On February 12, 2010 the Federal Communications Commission (FCC) issued a Declaratory Ruling (“Rocking M”) which ruled to limit the allowable duration of network affiliation agreements between broadcasters and network content providers.
The dispute before the Commission was between Rocking M, the licensee of multiple Kansas FM broadcast stations, and Streckline Communications their contracted network operator. Conflict arose between these two parties over Rocking M’s decision to adopt a Spanish language programming format and consequently drop commercial content provided by Streckline under their affiliation agreements. Streckline sued for breach of contract in a Kansas state court, and Rocking M responded by requesting a ruling from the FCC on whether the terms of their affiliation agreements comported to the Commission’s rules. Specifically, Rocking M objected to a clause which required the licensee to carry Streckline’s programming in perpetuity, with Streckline reserving for itself the sole right to terminate and/or alter the agreements. Nearly one year later, the Commission granted Rocking M’s request.
In the decision, the Commission ruled that the terms of the affiliation agreements between Rocking M and Streckline which required the licensee to carry programming in perpetuity were at variance with the licensee’s responsibility to serve the public interest. The Commission found that such a one-sided affiliation with a network severely restricted the licensee’s ability to be sensitive to the “needs and interests of [their] local communities” as well as changing audience tastes and the current market climate.
Rocking M is important to all broadcasters required to serve the public interest. This new interpretation of the Commission’s rules safeguards broadcasters from inflexible time brokerage and local marketing agreements which would subsequently hinder their capacity to remain relevant to their communities of license. The decision also reinforces the importance of local knowledge in programming and the importance of the local broadcaster’s role in interpreting what is in the interest of its community.
For more information on the Rocking M decision, and how it might affect you, please contact an attorney of the firm.
