[BC] Re: LPFM Operations

[Mike McCarthy]

At 02:27 AM 9/7/2006 -0400, Black, Mike wrote


>1) NCE's and LPFM's have the same underwriter rules.
>Agree
>
>2) They are forbidden from broadcasting commercial material.
>As defined by the FCC, they can not air commercials for a for-profit
>entity. However, they are allowed to do so for non-profits, if they
>choose, with some tradeoffs.

Not so as you think.  NCE's (and similarly LPFM's) can air underwriting and 
sponsor announcements which can say and position itself such that the only 
thing verboten is the promotion of a specific product, pricing, or sales 
campaign, locations, and services offered.  MANY stations air polished/ad 
agency quality 60 or 30 second underwriting announcements which so closely 
mimic commercials that you really need to listen to make sure they don't 
cross the line.  That would include music beds, sounders, professional 
V/O's, the whole thing.

PBS pushed that envelope years ago when they wanted to air polished program 
sponsorships. Simple text credits were not doing the trick any more.  Just 
watch This Old House or Hometime and the opening and closing sponsorships. 
Each one gets 30 seconds at the front and end.

>3) Not only can they sell airtime, they can sell their whole
>station (not LPFM's, just NCE's).
>Disagree. NCE's and LPFM's can not sell their station. And, according to
>the FCC, can not sell airtime. They air announcements that acknowledge
>donations to the station and must air announcements of legitimate
>program support. In addition, point me to the rules that do not treat
>NCE and LPFM stations the same in this regard.

WRONG...NCE station assets and rights to the license are just as saleable 
as a commercial station.  OTOH, you are correct that LPFM licenses are not 
transferable through the traditional asset purchase or rights transfer.


>4) Enhanced Underwriter Announcements are not commercials.
>By the FCC's definition, Enhanced underwriting can include
>"logograms or slogans which identify and do not promote, location
>information, value neutral descriptions of a product line or service,
>and  brand and trade names and product or service listings." This is for
>underwriting by for-profit businesses. However, all of the fines or
>citations have been to stations that exceeded the FCC's guidelines.

Correct...as noted above.

>7) NCE stations get in trouble with the FCC over content,
>not price.
>Not sure what you mean here by "price". Once again, the Commission, in
>its own words, is concerned of the "Nature of Noncommercial Educational
>Broadcasting". The content of announcements that contain "price" are an
>issue, just as much if the station is operated in such a manner as to
>question its overall noncommercial status. The FCC has stated if an
>underwriting sounds like a commercial, though the language is ok, such
>as music beds or sfx, then it is actionable.

Tell that to PBS...  Years ago, I would agree that the FCC's view on 
"polished production" was far more conservative.  Today, not so.


MM