The FCC just took a decidedly nasty turn following the election. The FCC board has 5 members, by law no more than 3 of the same political party. That means the FCC is always 3-2, with the party of the President controlling the chairman.
On another issue (requiring that radio stations post details about their revenue from political ads), Chairman Wheeler has become the FCC czar. Rather than bringing the issue to a public hearing with all 5 members, he wrote the new rule, had the two Democrats sign off on it, and told the Republicans the rule will become law no matter whether they sign off on it or not.
Clear Channel just pleaded with the FCC to act carefully as it draws up its plan for “saving” AM radio. This could be very much related to why Clear Channel is suddenly selling its antennas at a fire sale. Maybe Democratic political appointee Mignon Clyburn thinks if the FCC destroys AM radio, Rush Limbaugh will stop talking.
One proposal is to turn AM into all digital. There are no radios you could buy today that can receive it. Perhaps 5% of car radios can. In addition to other considerations, directional antennas don’t work with digital AM. Probably 80% of AM stations would turn in their licenses rather than build new digital antenna systems. IHeart (Clear Channel) has urged the FCC to “do no harm” by its actions on AM radio.
So who owns AM stations at this point and has the most to gain or lose? Prior to 1996, the most any one company could own was 20.
According to my counts:
– Clear Channel / iHeart — 250
– Cumulus — 122
– Townsquare — 80
– Salem — 71
– Multicultural — 36
– Entercom — 32
– CBS — 29
– Saga — 27
– Radio Disney — 24 (divesting)
By far, the most AM stations (around 3,300) are still mom and pop local stations.