In the first two and a half years since Curtis Legate took over as chairman and CEO of the National Association of Broadcasters (NAB), there has been much discussion about the future of AM radio, a century-old technology that some automakers have begun phasing out of new cars.
Founded in 1923 as the National Association of Radio Broadcasters, NAB’s mission is to advance the legislative and regulatory interests of radio and television stations.
Lugate, who led NAB’s government relations team and served as COO before being appointed head of NAB in January 2022, said NAB’s mission has “never been more important than it is today”.
“We have stations in every corner of this country, urban, rural, big market, small market, Republican state, Democratic state, and we serve everyone in a nonpartisan and trustworthy way,” Legate said in an interview with The Hill on Thursday.
“And we do this in a media environment that is highly fragmented and rife with misinformation and disinformation,” he continued.
Lugate said NAB’s mission is “to give consumers access to vibrant local broadcasting,” which is why the potential loss of access to free, easily available AM radio in the car is a top issue for the trade group.
NAB told Parliament, Law requiring all vehicles to have AM radiosAs the name suggests, this bill would require all new cars to be equipped with AM radios. Senators Ed Markey (D-Mass.) and Ted Cruz (R-Texas) have been spearheading the movement since popular automakers such as BMW, Mazda, Volkswagen, Volvo, and Tesla announced plans to phase out or eliminate AM radios from certain new vehicles, especially electric vehicles (EVs).
The Senate bill has 61 co-sponsors. House version The bill boasts more than 250 sponsors, but legislative days and tools to pass the bill are dwindling. About 450,000 AM radio listeners across the country have contacted their members of Congress “to let them know the importance AM radio has to their communities,” Legate said.
More than 82 million people in the U.S. listen to AM radio every month, according to research firms. 2022 Nielsen SurveySenior communities, especially in rural and diverse areas, rely on AM radio, which has a longer reach and is less affected by physical barriers like buildings and mountains than FM radio, broadband or satellite services, according to a report by the House Energy and Commerce Committee’s Subcommittee on Innovation, Data, and Commerce. Hearing Regarding last month’s bill.
Supporters of the bill include the NAB, AARP And some Former Administrator of the Federal Emergency Management Agency (FEMA)and emphasizes the importance of AM radio access to the National Security Alert System.
“Automakers are committed to making every consumer who gets into their car a customer across all media outlets and generating revenue from that consumer,” Lugate said.
“Radio is outside of that scope. So what we’re asking here is for the accessibility of radio, especially in times of disaster, to be prioritised over their revenues and paid subscriptions and data services,” Lugate added.
Groups opposed to the bill include the Alliance for Automotive Innovation (AAI), an auto trade group that represents automakers, including some that want to eliminate AM radio from new cars, and the Consumer Technology Association (CTA), which advocates for innovation in consumer technology. Critics of the AM radio mandate say it will stifle innovation, especially in the transition to electric vehicles.
Automakers claim that EVs’ electromagnetic frequencies could distort AM radio signals, requiring costly repairs and design compromises to fix. Shielding and filtering repairs could cost $3.8 billion over seven years, translating to $50 to $70 per car, “which could be a significant burden for automakers,” according to the research firm. Center for Automotive Research (CAR) research was funded by AAI.
Opponents also argue that requiring new cars to have AM radios is the only way to ensure that consumers receive important safety warnings.
Ann Online Survey A survey of 800 U.S. adults conducted by the CTA found that more than 95% received the Oct. 4, 2023 emergency alert on their cell phone, while 1% heard it on AM radio.
For consumers who want AM radio, automakers will likely consider offering portable AM radios, similar to first aid kits or tire kits, said John Bozzella, president and CEO of AAI. Said It was discussed in the Subcommittee on Innovation, Data and Commerce last month.
Bozzella also said automakers should continue to provide emergency alerts from FEMA’s Public Alert and Warning System free of charge and supported clear disclosure if a vehicle doesn’t have an AM radio.
When asked about these alternatives, LeGeyt said, “none of them are good enough to provide easy access to AM on the dashboard” and that they are “a disservice to the consumer.”
“In an emergency, it’s just not practical to pull over to the side of the road, pop the trunk and get out a portable radio,” Lugate said. “And it grossly underestimates the 82 million Americans who rely on them every day.”
According to new Nielsen research, AM/FM radio continues to reach more U.S. adults than any other media, including smartphones, televisions and tablets. Audio Today 2023 According to the report, AM/FM radio reaches 91 percent of Americans each month, and of the one-third of AM listeners, roughly three-quarters do so while driving.
At a subcommittee hearing last month, CTA CEO Gary Shapiro noted that while AM and FM radio don’t pay performers, digital and streaming platforms do.
“These terrestrial networks are using music to grow their audiences, and they’re making billions of dollars in advertising revenue without paying the performers,” Shapiro said.
“Making AM radio a requirement would condone this unfair system and allow the broadcasting industry to profit at the expense of artists.”
Mr Lugate told The Hill that the argument was “misleading”.
“What the CTA is ignoring is a crucial difference between broadcast radio and any other audio service: our service is free to all consumers and we don’t charge membership fees,” Legate said.
AM radio issues are just one part of NAB’s portfolio. NAB is one of the largest advocacy groups in Washington. $11 million Last year alone, they lobbied the federal government on dozens of bills and issues, according to Open Secrets, a nonprofit that tracks political finance.
Legate said the NAB has asked the Federal Communications Commission to modernize regulations on media ownership because current rules don’t address the fact that broadcasters don’t just compete with other broadcasters for viewers and advertising dollars. The NAB has also worked to ensure that local broadcasters are fairly compensated when their work is accessed through social media platforms or fed into artificial intelligence (AI) models.
“In a media industry where there is so much disruption from streaming, big tech companies and generative AI, NAB now more than ever needs to have a clear focus on our core constituency: our member companies’ local broadcast assets,” Mr Legate said.
Legate said that with social media, AI and streaming services having significantly transformed the media industry in recent years, NAB would double down on its mission to support local broadcasters and journalists.
A draft policy statement shared with The Hill, which NAB’s board is due to vote on next week, explicitly reaffirms that commitment.
“NAB serves as the voice for America’s local radio and television broadcasters in Washington, D.C. While some NAB’s television station members have interests beyond local broadcasting, the association’s core focus is to advocate for policies that protect audiences by ensuring that live local broadcasting remains vibrant, competitive and freely available in today’s media environment,” the policy statement, which has not yet been ratified, reads.
“Our advocacy will prioritize only what best serves the American public and ensure the vital role of local broadcasters in American democracy. NAB’s policy positions are grounded in protecting the public’s access to local broadcasters, including on issues that may conflict with the interests of NAB’s other member companies.”
Mr Lugate said that in his almost 13 years at NAB, the trade body had “never reaffirmed its core mission in this way”.
But the reaffirmation could cause tension with certain members when it comes to potential changes to streaming services regulation.
Several Senate Democrats Pressed Last fall, the Federal Communications Commission asked the FCC to reconsider whether streaming services should be subject to the same distribution rules as traditional broadcasters.
But the Viewer Choice Protection Coalition, which includes media and streaming giants such as ABC, FOX, Fubo, Hulu, NBC, Paramount, Roku, Telemundo, Univision and Warner Bros. Discovery, opposes these efforts. Discuss Applying broadcasting rules to streaming services would “reduce viewer choice and increase costs for consumers.”
Asked about the coalition’s arguments against potential draft FCC rules on the issue and how members might respond to the proposed policy statement, Legate said the NAB is a “big tent.” He added that because members range from traditional broadcasters like Nexstar and Sinclair to streaming and media giants like Paramount and NBCUniversal, policy interests may differ. Hill is owned by Nexstar, and Nexstar Chairman and CEO Perry Suk co-chairs the NAB. board of the National Association of Broadcasters.
But the policy statement is broader than any specific issue, and “simply emphasises that whilst some NAB member companies have other media interests which may sometimes conflict with local broadcasters, NAB’s advocacy work is based solely on the interests of local broadcasters,” Lugate said.
