NAB Opposes FCC Proposal For Geotargeted Programming On FM Boosters

Comments

The NATIONAL ASSOCIATION OF BROADCASTERS (NAB) has responded to the FCC's proposal to allow geotargeted programming content on FM boosters with comments filed WEDNESDAY (2/10) warning that allowing such use of boosters would undermine radio's business model and raise interference concerns.

The comments criticizing the proposed rule change prompted by a petition by GEOBROADCAST SOLUTIONS commend the Commission for being open to new ideas but contend that "rather than bolster the industry’s economic outlook, GBS’s proposal would instead undermine the industry’s fundamental business model. The vast majority of broadcasters -- from a wide array of perspectives -- agree that permitting program origination on boosters will almost certainly drive both advertising rates and revenues down even further as advertisers push to purchase geo-targeted ads. The outcome is unavoidable, given the obvious business incentives for advertisers to purchase spots that cherry-pick what they view to be their most desirable customers and at a lower cost."

The NAB added that broadcasters "do not by and large see pent-up demand by small businesses in their local markets that have not previously purchased advertising time, and even if such demand exists, it would not be economical to undertake the substantial investment to capture the additional business" and that "Minority-and women-owned stations could be hardest hit." In addition, the NAB noted that GEOBROADCAST SOLUTIONS' example of a NEW YORK station zoning ads for NEW JERSEY, LONG ISLAND, and CONNECTICUT could hurt suburban stations local to those areas.

« see more Net News