A proposed shared-services agreement between two Toledo TV stations could lead to the shuttering of one channel's news department and the creation of what media transparency advocates say is a move toward limited competition in local TV news.
WUPW-TV, Channel 36, is in the process of being bought by American Spirit Media, which has several ties to Raycom Media, the owner of WTOL-TV, Channel 11. The service-sharing agreement attached to the $22 million sale states that Channel 36 and Channel 11 would be able to share news staff and broadcasts.
In addition to news, WUPW and WTOL would share access to studios, master control, technical facilities, maintenance, and promotional efforts.
The practice, although increasingly common in small markets, has come under fire from media transparency groups and is being investigated by the Federal Communications Commission. The FCC has rules in place that prevent one company from owning multiple TV stations in midsized markets such as Toledo.
The FCC is seeking input on whether service-sharing agreements should be redefined to stop a company from controlling news broadcasts at multiple stations in one market.
Three service-sharing agreements struck between Thomas Henson, the head of American Spirit Media, and Raycom have resulted in the merging of newsrooms and their staffs in Ashland, Va., Columbus, Ga., and Wilmington, N.C.
The stations involved in those deals were relocated to one studio within their respective markets. Those deals also culminated in the sharing of some or all news programming between stations.
It's unclear if layoffs occurred in those deals. That information is not recorded by the Federal Communications Commission.
There apparently has been no decision about layoffs related to the WUPW sale, although service-sharing agreements usually result in layoffs.
The agreement between WTOL and WUPW is for at least 10 years. It hinges on FCC approval after a 30-day period of public comment. The new owners of WUPW would pay WTOL more than $1.3 million the first year of the agreement. That amount would be adjusted for inflation in following years.
Calls made to Raycom, WTOL, and WUPW were not returned. Representatives from LIN Media, the current owner of WUPW, didn't have any comment other than a statement made last week confirming the sale, spokesman Courtney Guertin wrote in an email.
WTOL is a CBS affiliate. WUPW is affiliated with FOX.
Toledo has two other TV stations that do newscasts, WTVG, Channel 13, and WNWO, Channel 24. WTVG is affiliated with ABC and WNWO is with NBC.
Corie Wright, an attorney for the media transparency group Free Press, said Raycom is notorious for striking deals like this to gain control of news programming at two or more stations in a market.
"What has happened in a lot of markets, particularly smaller markets, is stations are not only merging, but they are engaging in something that we label covert consolidation," Ms. Wright said. "They outsource all news to another station in a market.
"What you are seeing is entire station newsrooms being laid off and simulcast news programs."
Newscasts provided by WTOL cannot exceed 15 percent of WUPW's weekly programming in accordance withFCC rules. WUPW has only nine hours of local news programming a week, according to a financial report on LIN Media's Web site.
At nine hours a week, it would be easy to funnel all news programming from WTOL over to WUPW and fall short of the 15 percent rule, Ms. Wright said.
Angela Campbell, director of the institute for public representation at Georgetown University, said that after the FCC relaxed its media ownership rules in 1999, service-sharing agreements began to creep up across the country. Local news stations were whittled away throughout the past decade, she said.
"They're eliminating entire news operations and the reason they do this is they claim it's more efficient," Ms. Campbell said. "Of course it also means since they are not that big of markets to begin with, they have reduced competition."
Ms. Campbell represents a group of citizens in Hawaii who are pushing the FCC to review Raycom's grip on three stations there. The news programming on the stations is identical or nearly identical, with different anchors reading the same copy, she said.
The FCC initially ruled those deals were valid, but stated, "Nonetheless, we agree with Media Council insofar as it suggests that the net effect of the transactions in this case — an extensive exchange of critical programming and branding assets with an existing in-market, top-four, network affiliate — is clearly at odds with the purpose and intent of the [FCC] rule."
The group is appealing the decision to a higher level within the FCC.
"I would like, ideally, that they went back to the one-owner rule," Ms. Campbell said. "I don't see any reason for one entity to own more than one station in a market. I'm realistic enough to think that is not going to happen."
"The next best thing would be for the commission to clarify what their rules do allow and don't allow," Ms. Campbell added.