Everything about Local Marketing Agreement totally explained
In
U.S. and
Canadian broadcasting, a
local marketing agreement (or
local management agreement, or
LMA) is an
agreement in which one
company agrees to operate a
radio station or
TV station owned by another
licensee. In essence, it's a sort of
lease or
franchise.
Under
Federal Communications Commission (FCC)
regulations, the licensee is still completely
legally responsible for the station, including
fines for
profanity outside of
safe harbor hours. An LMA must also include the
entire station's facilities (
studio and all), as the FCC prohibits subleasing of only the
frequency rights or
transmitter plant.
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.
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 or
LSA or, more commonly, "joint sales agreement" or 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 Communications and
Newcap Broadcasting had a local sales agreement pertaining to
radio station CHNO in
Sudbury,
Ontario, but community interests and the lobby group
Friends of Canadian Broadcasting presented substantial evidence to the
Canadian Radio-television and Telecommunications Commission that in practice, the agreement was a full LMA, going significantly beyond advertising sales into program production and news gathering. LMAs in Canada can't be implemented without the CRTC's approval, and in early
2005, the CRTC ordered the agreement to cease.
Further Information
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