Trump's chosen FCC representative issues stern correspondence to Bob Iger, criticizing the 'deterioration of public confidence'.
Trump's chosen FCC representative issues stern correspondence to Bob Iger, criticizing the 'deterioration of public confidence'.
Brendan Carr, set to take over as chairperson next month, who was appointed by Trump, penned a letter to Disney CEO Bobby Iger over the weekend, addressing the bargains ABC, a Disney-owned network, is having with its partner stations spread across the USA.
Carr leveraged this minor situation to expound on broader industry issues and hint at his plans to exert considerable power in his new position at the FCC, adopting an approach vastly different from his predecessors.
The letter, attained by CNN, initiates with, "Hey, Bob, Americans are losing faith in the nationwide news media to provide a comprehensive, accurate, and fair report."
Carr draws on survey data and points out, "ABC's performance has undeniably added to this dip in public trust. For example, ABC News recently agreed to pay $15 million to Donald Trump's future presidential foundation and museum as well as an additional $1 million in attorney fees to settle a slander lawsuit."
Carr distinguishes between the national networks and local stations, licensed by the FCC, stating, "Americans largely admire their local media outlets."
He expresses support for more local programming, an idea hardly controversial. However, his focus on the media's trust deficit – writing to Iger – reveals that Carr, who has been a commissioner since 2017, prioritizes distinct concerns compared to Republican and Democratic chairmen in the past.
Later, Carr mentions the digital divide but highlights Republican accusations of Big Tech censorship. He also amplifies Trump's criticism of ABC, albeit in a more courteous manner.
Disney, presumably, may ignore the commissioner's letter, but Carr references multiple FCC domains controlling Disney, such as station licensing.
Television station license renewals are typically a formality – licenses are seldom challenged, and almost never revoked. But during Trump's presidential campaign, he expressed a desire for ABC and other broadcasters to lose their licenses.
The FCC also oversees retransmission consent, allowing cable providers to transmit local stations' signals in exchange for payment. In September, Disney-owned channels disappeared from DirecTV lineups for two weeks due to a retransmission consent disagreement.
Rarely are ABC stations directly owned by the network; they are typically controlled by other businesses with affiliation agreements with ABC.
"The tactic ABC appears to be using in these negotiations worries me," Carr writes to Iger in the letter. "From what I've heard, ABC is attempting to demand burdensome financial and operational concessions from local broadcast TV stations under the threat of ending long-standing ties, which could result in blackouts and other consumer disadvantages."
He also raises concerns about Disney favoring its global streaming services over local, freely accessible stations. Similar criticisms could theoretically be made against other major media entities.
"The emergence of this enormous trust divide between local news outlets and national programs like ABC just emphasizes the significance of retransmission consent revenues remaining accessible for local TV stations to invest in their local news operations and content that caters to their communities," Carr writes.
In essence, he portrays himself as an ally to local media and a foe to corporate titans.
An ABC spokesperson didn't immediately answer a request for comment.
Carr concludes the letter, affirming that he will be "keeping tabs" on the ABC negotiations "to ensure that these negotiations allow local TV stations to fulfill their federal obligations and address the needs of their local communities."
The FCC rarely has the capability to influence the programming and behavior of American media corporations – but Carr seems ready to take on the challenge.
Carr emphasizes the importance of maintaining retransmission consent revenues for local TV stations, as they are essential for investing in local news operations and content. This revenue stream is crucial for local stations to meet their federal obligations and serve their communities, which may be under threat due to the negotiating tactics of major media corporations like Disney, focusing on their global streaming services over local stations.
In light of the digital divide and accusations of Big Tech censorship, Carr aims to exert significant influence in his new position at the FCC, leveraging the media business landscape to advocate for local media and challenge corporate titans.