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Occasionally, a “local marketing agreement” may refer to the sharing or contracting of only certain functions, in particular advertising sales. JSAs are counted toward ownership caps for television and radio stations. 2009 and 2014, especially arrangements where a company buys a television station’s facilities and assets, but sells the license to an affiliated third-party “shell” corporation, who then enters into agreements with the owner of the facilities to operate the station on their behalf. FCC began to increase its scrutiny regarding the use of such agreements—particularly joint sales—to evade its policies.
Wheeler indicated that he planned to address local marketing and shared services agreements in the future. These alliances gave larger broadcasters a way to expand their reach, and smaller broadcasters a means of obtaining a stable stream of revenue. In 1992, the FCC began allowing broadcasting companies to own multiple radio stations in a single market. However, broadcasters still used local marketing agreements to help transition acquired stations to their new owners.
Sinclair’s use of local marketing agreements would lead to legal issues in 1999, when Glencairn, Ltd. Glencairn subsequently announced plans to sell five of its 11 existing stations that were operated by Sinclair under LMAs to that company outright. Sinclair that the company used to gain control of the stations through LMAs. After the FCC updated its media ownership rules to allow a single company to own two television stations in the same market in August 1999, Sinclair restructured the deal to acquire KOKH outright. 40,000 fine against Sinclair for illegally controlling Glencairn. The most common use of an LMA in television broadcasting is to create a “virtual duopoly”, where the stations operated under the agreement are consolidated into a single entity.
The operations of the stations can be streamlined for cost-effectiveness through the sharing of resources, such as facilities, advertising sales, personnel and programming. Sharing agreements may also be used as a loophole to control television stations in situations where it is legally impossible to own them outright. An LMA or similar agreement does not affect the ownership of the station’s license, meaning that they do not require the approval of the FCC to establish, and the two stations are still legally considered separate operations from a licensing standpoint. Gannett’s broadcasting and digital media properties, re-acquired the licenses for most of the affected stations following the split. FCC voted in favor of removing the requirement for a market to still have eight distinct station owners in order to allow duopolies, but the prohibition of owning two of the top four stations in a market remains.
Broadcasters could also collect carriage fees for the stations they operate under sharing agreements on behalf of their owner, often bundling its carriage agreements with those of stations they own outright. Cable television providers advocated barring sharing agreements between television stations for this particular reason. In the United States, the FCC no longer allows broadcasters to collude with one another in negotiating retransmission consent fees. Although the majority of LMAs involve the outsourcing of one television station’s operations to another, occasionally, a company may operate a station under an LMA, JSA or SSA even if it does not already own a station in that market. Benson had received offers from Raycom and others to buy the station, but was not prepared to sell WVUE outright. WLYK’s licensee, Border International Broadcasting. Public interest organizations have disapproved of the use of LMAs for virtual duopolies that circumvent the FCC’s rules due to their effects on the broadcasting industry, particularly the results of consolidation through the irregular use of LMAs.
LMA or a similar agreement with the senior partner. Alternatively, the stations may consolidate their news programming under a single joint brand. This in particular is one of the caveats of pushes to ban outsourcing agreements by media consolidation critics, who also suggest that LMAs result in a decreased amount of local news coverage on the brokered station. 25 markets, making Denver and St. KPLR and KTVI as both were among the four highest-rated stations in St. Denver had five and St. KPLR has since expanded its 7:00 p.