AUCTION IMPACTS

PUBLIC SERVICE OBLIGATIONS LOST IN THE AUCTION 
NOT ACCOUNTED FOR NOR STUDIED
COALITION "BIG DATA MACHINE" IDENTIFIES MORE THAN 68,000+ HRS. OF CHILDREN'S PROGRAMMING PER YEAR TO BE ELIMINATED DUE TO STATIONS BEING SOLD IN THE AUCTION

This is what we found when we let the supercomputer run the numbers and make a few billion calculations, and it ain't too pretty:
  • Auction bids were accepted from 174 eligible TV stations
  • Of these, 133 were full power, and 41 were Class A
  • 30 of these moved to the VHF
  • And 144 were sold in the reverse auction
  • These 144 sold stations currently air 442 content OTA channels
  • Each OTA channel is obligated to air 3 hrs a week of kid shows
  • This comes to 1,326 hrs a week of kid shows taken off the air
  • About 68,962 hrs a year of kid shows lost to the auction!

We also had our nerds dive a little deeper and found out that:
  • Of the 210 TV DMA, only 52 had winning bids
  • Meaning 158 TV DMA had no winners
  • And of these 158, 30 had no displaced auction eligible stations
  • And these 30 are the Phase Zero DMA

Then our geeks felt left out, and came up with this analysis:
  • The 144 sold stations, each have 6 MHz
  • This comes to 864 MHz sold (does not count moves to VHF)
  • Take 210 TV DMA x 84 MHz auction band = 17,640 MHz 
  • That 864 Mhz sold in the reverse auction is only 5% of the total!!!!
  • So where did the remaining 95% of the spectrum sold come from?
  • Well about 1,725 LPTV and translator stations were displaced
  • Which is 10,350 Mhz, or 59% of the total of the Forward Auction!

So then our bean counters came into the meeting and said:
  • If the Forward Auction generated $19.77 billion
  • And LPTV and translators provided 59% of that spectrum
  • Which is about $11,660,300,00 of value!!!!!!!
  • Although the Reverse Auction generated $10 billion
  • So, $5.9 billion of value got taken from the LPTV industry!

But then our C-suite executives and their quants came up with this:
  • There are 9500 or so remaining LPTV & Class A licenses & permits
  • Which have a total of about 2 billion TV pops
  • And the average per TV pop price was about $7.50 each
  • Then the Class A, LPTV, and translator industry is worth $15 billion

So there you have it, 
  • Congress and the FCC cut over 68,000 hrs a year of kid content
  • Stations sold in the auction accounted for 5% of the spectrum sold
  • 59% of the spectrum sold in the Forward Auction came from LPTV
  • LPTV got ripped off of $5.9 billion in value
  • But the Forward Auction comp now values LPTV spectrum at $15B


RU SURE YOU KNOW WHAT IS HAPPENING IN YOUR DMA AND REPACKING?  THINK YOU UNDERSTAND IT ALL? 

DO NOT BE SO SURE, AS THE ANALYSIS TAKES A QUITE A FEW INPUTS.

WE WILL HAVE LATER THIS WEEK THE TOP 25 MARKETS STUDY DONE, AND IT IS EYE-OPENING! 


GET YOUR GAME PLAN IN PLACE NOW!















COALITION COMMENTARY
We have said here before, the return of the UHF discount will disadvantage LPTV spectrum holders since our spectrum was next in line to be bought.  But if the big dogs run around and round up more rigged model spectrum, as Sinclair is attempting to do with Tribune, well, it could take a while for them to get to us.  So in some ways, we should be joining with Free Press since we are economically disadvantaged by the UHF discount.













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A CHANNEL 6 STATION UPDATE...











this came across the transom yesterday from Politico...

"FCC PARLOUR GAMES - Speculation has swirled for months about the possibility that Democratic Commissioner Mignon Clyburn would depart the agency, leaving it without the quorum of three commissioners necessary to conduct major business. Some on the left have sketched out a strategy where she stymies the net neutrality rulemaking by doing so - crippling the agency, but also slowing the Republican majority's efforts to reverse Obama-era rules. But a little-known agency rule that would allow FCC Chairman Ajit Pai to convene a so-called "board of commissioners" if a quorum can't be met adds another wrinkle to the wonky calculations.

- The board of commissioners - which would be Pai and follow GOP Commissioner Mike O'Rielly - would have the power to largely carry out commission business as usual. And while there is an exception to prevent the board from finalizing rules, they can override that if they deem it's in the public interest to do so. Lawyers familiar with the FCC's rules tell Margaret this means Pai and O'Rielly could finalize the roll-back on net neutrality even if Clyburn tries to stop them by leaving the commission. A spokesperson for Clyburn's office said she is "well aware" of the option to form such a board. "This is why Commissioner Clyburn has continued to reiterate the importance of having a minority voice at the table that pushes back against an agenda that does not put #ConsumersFirst," the spokesperson said in a statement.

- To be sure, the political cost of moving forward with the controversial change in an unorthodox way would be high. And it could bring additional risks in the expected legal challenge to come. FCC watchers don't expect it to come to this, but with Clyburn's term technically expiring in June, it's something that's on the radar of the chairman's office."


















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If you would like to be part of our collective effort to make sure LPTV and TV translators are treated fairly in the Incentive Auction and channel repacking JOIN US today!


Mike Gravino
Director
LPTV Spectrum Rights Coalition
(202) 604-0747
http://www.lptvcoalition.com