- Local marketing agreement
In U.S. and Canadian
broadcasting, a local marketing agreement (or local management agreement, or LMA) is an agreementin which one company agrees to operate a radio stationor TV stationowned by another licensee. In essence, it is a sort of leaseor franchise.
Federal Communications Commission(FCC) regulations, the licensee is still completely legally responsible for the station, including fines for profanityoutside of safe harborhours. An LMA must also include the "entire" station's facilities ( studioand all), as the FCC prohibits subleasing of only the frequency rights or transmitterplant. [ [http://www.hallikainen.com/FccRules/2007/73/3555/ FCC Regulations section 73.3555] ]
LMAs have been
criticized because they could allow companies to circumvent FCC rules on how many radio or television stations they can control in any one market. However, the FCC addressed this issue and now stations under LMA are counted toward the ownership cap in a given market. [ [http://www.fcc.gov/Bureaus/Mass_Media/Orders/1999/fcc99207.txt FCC Ownership Limits and LMA rules] ]
Occasionally, "local marketing agreement" may refer to the sharing or contracting of only certain functions, in particular advertising sales. This may also be referred to as a local sales agreement (LSA) or a joint sales agreement (JSA). In the U.S., JSAs for radio stations are counted toward ownership caps; however, TV station JSAs are not counted towards ownership caps, although the FCC is considering changing this.
In one recent Canadian dispute,
Rogers Communicationsand Newcap Broadcastinghad a local sales agreement pertaining to CHNO-FMin Sudbury, Ontario, but community interests and the lobby group Friends of Canadian Broadcastingpresented substantial evidence to the Canadian Radio-television and Telecommunications Commissionthat in practice, the agreement was a "de facto" LMA, going significantly beyond advertising sales into program production and news gathering. LMAs in Canada cannot be implemented without the CRTC's approval, and in early 2005, the CRTC ordered the agreement to cease. [ [http://www.crtc.gc.ca/archive/ENG/Decisions/2005/db2005-22.htm CRTC Decision 2005-22] ]
Concentration of media ownership
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