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Local marketing agreement
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In
United States U.S. and
Canada Canadian broadcasting, a '''local marketing agreement''' (or '''local management agreement''', or '''LMA''') is an
agreement in which one
corporation company agrees to operate a
radio station or
TV station owned by another
licensee. In essence, it is a sort of
lease.
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 transmitter plant plant.
LMAs have been
criticized because they often allow large companies, such as
Clear Channel Communications in the United States or
Rogers Communications in Canada, to flout rules of how many stations they can control in any one
market. In
San Diego, Clear Channel even operates AM station
XETRA (AM) XETRA and FM stations
XHITZ,
XHOCL, and
XHRM, all licensed to
Tijuana,
Baja California (state) Baja California,
Mexico by Mexican companies. These LMAs are all in addition to the stations actually FCC-licensed to San Diego, where Clear Channel already owns the maximum allowed by U.S. law.
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'''. In one recent Canadian dispute, Rogers and
Newcap Broadcasting had a local sales agreement pertaining to
CHNO in
Greater 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 cannot be implemented without the CRTC's approval. In early
2005, the CRTC ordered the agreement to cease.
See also
concentration of media ownership.
{{com-stub}}
category: broadcasting
category:United States communications regulation
Category:Canadian media regulation
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