FCC Study Finds LPFMs Have No Economic Impact On Full Service Commercial FMs
January 5, 2012 at 12:41 PM (PT)
The FCC has released its economic study of the impact of low power FMs on full power commercial stations, as required under the Local Community Radio Act, finding "LPFM stations generally do not have, and in the future are unlikely to have, a demonstrable economic impact on full-service commercial FM radio stations."
The study found no statistically significant ratings impact from LPFMs in most cases, and where there was impact, the amount was about 0.008 ratings points per week. Regression analyses found mostly no impact on revenues, although some regressions showed the commercial station increasing revenues when an LPFM was introduced into its coverage area. The only statistically significant decline in revenues found when LPFMs duplicate commercial formats was in religious stations' revenue, but the FCC said that the difference was caused by "spurious correlation," with the study unable to control and account for factors other than the LPFM.