Good Morning! Let's Check the Pulse for Tuesday, Feb 10

Radio Broadcasting

Senate Commerce Committee Hearing on Broadcast Media Ownership: Chaired by Sen. Ted Cruz (R-Texas), the full committee hearing is taking place today at 10:00 AM EST in the Russell Senate Office Building. It examines the FCC outdated broadcast media ownership rules, particularly the national cap limiting a single broadcaster from reaching more than 39% of U.S. television households.

• Context and Debate: The rules, dating back decades, aimed to promote competition and diversity in media. With the rise of streaming services, social media, and digital platforms shifting how Americans consume content, proponents (including the National Association of Broadcasters or NAB) argue the cap is antiquated and hinders broadcasters' ability to compete for audiences, advertising, and programming. Critics, including representatives from Newsmax, contend it remains a key protection for competition, diversity, and voices in the ecosystem (with some concerns about impacts on conservative media).
• Testimony Highlights: FCC Commissioner Olivia Trusty recently defended deregulation, stating it would boost competition. The NAB is pushing to eliminate or level the restriction, while others warn congressional action may be needed since the cap is statutory.
• Relevance to Radio: While the 39% cap specifically targets national TV reach, broader ownership deregulation discussions often affect radio (e.g., local market rules, cross-ownership). Industry groups like the NAB represent both TV and radio, and changes could influence consolidation trends in radio broadcasting.

Digital Revenue Growth: Radio's digital advertising revenue reached a record $2.3 billion in 2025 (per RAB/Borrell Associates), now ~25% of total revenue and seen as the "primary growth engine." Forecasts predict 9.5% growth to $2.5 billion in 2026.

Media Industry:

Hollywood Labor Negotiations Kick Off: SAG-AFTRA began contract talks with the Alliance of Motion Picture and Television Producers (AMPTP) under a media blackout. Unions seek stronger AI protections and improved streaming residuals following the 2023 strikes. Contracts expire May 1 (writers) and June 30 (actors), raising concerns about potential disruptions in a changed industry landscape (reported in The New York Times, Variety).

Court TV Sale Announced: E.W. Scripps is selling Court TV (known for live trial coverage) to the parent company of Law&Crime (Dan Abrams' network). The buyer aims to expand its streaming presence, reflecting shifts from traditional cable to digital (NYT DealBook).

Broader Trends and Notes:

• AI's role in advertising drew criticism after underwhelming Super Bowl 2026 spots, with viewers favoring humor/emotion over tech-driven ads (WSJ).
• Ongoing discussions in media circles include fragmentation in liberal outlets ahead of 2028 elections and regulatory scrutiny (e.g., FCC probes into shows like "The View").

U-S News

Trump Threatens to Block New U.S.-Canada Bridge Opening: President Donald Trump has threatened to prevent the opening of a new Canadian-built bridge across the Detroit River (linking Ontario and Michigan), escalating trade disputes. He demands the U.S. be "fully compensated" for past contributions, framing it as part of broader cross-border trade issues. This has drawn attention amid his push for tariffs and renegotiated deals, with potential impacts on Midwest commerce and relations with Canada.

Record Snow Drought in the Western U.S. Sparks Water and Wildfire Fears:  A historic snow drought combined with unusual heat is gripping much of the American West (including states like Colorado, Nevada, and California). This depletes mountain snowpack critical for spring runoff, raising alarms about severe water shortages, reduced reservoirs (e.g., Colorado River system), heightened wildfire risk, and disruptions to winter tourism/recreation. Experts warn of a potentially devastating spring and summer.

Ghislaine Maxwell Appeals for Clemency from Trump:  Ghislaine Maxwell, convicted in the Jeffrey Epstein case, declined to answer House lawmakers' questions but signaled willingness to testify that neither Trump nor former President Clinton engaged in wrongdoing related to Epstein—if Trump grants her clemency. Her lawyer emphasized she could provide an "unfiltered truth." This ties into ongoing Epstein-related scrutiny and political maneuvering.

Winter Olympics 2026 Coverage (Ongoing in Milano-Cortina, Italy):  Day 4 of the 2026 Winter Olympics features U.S. athletes, including Mikaela Shiffrin in women's Alpine events and mixed doubles curling progress. Coverage includes reactions to Trump comments on athletes (e.g., calling skier Hunter Hess a "loser" for ambivalence about representing the U.S.), with some protests over U.S. policies like sending ICE agents to the Games.