This is a good article. Follow the link for more information. Occasionally, a “local marketing agreement” local dating arrangement refer to the sharing or contracting of only certain functions, in particular advertising sales. JSAs are counted toward ownership caps for television and radio stations.
2009 and 2014, especially arrangements where a company buys a television station’s facilities and assets, but sells the license to an affiliated third-party “shell” corporation, who then enters into agreements with the owner of the facilities to operate the station on their behalf. FCC began to increase its scrutiny regarding the use of such agreements—particularly joint sales—to evade its policies. Wheeler indicated that he planned to address local marketing and shared services agreements in the future. These alliances gave larger broadcasters a way to expand their reach, and smaller broadcasters a means of obtaining a stable stream of revenue. In 1992, the FCC began allowing broadcasting companies to own multiple radio stations in a single market. However, broadcasters still used local marketing agreements to help transition acquired stations to their new owners. Sinclair’s use of local marketing agreements would lead to legal issues in 1999, when Glencairn, Ltd.
Glencairn subsequently announced plans to sell five of its 11 existing stations that were operated by Sinclair under LMAs to that company outright. Sinclair that the company used to gain control of the stations through LMAs. After the FCC updated its media ownership rules to allow a single company to own two television stations in the same market in August 1999, Sinclair restructured the deal to acquire KOKH outright. 40,000 fine against Sinclair for illegally controlling Glencairn. The most common use of an LMA in television broadcasting is to create a “virtual duopoly”, where the stations operated under the agreement are consolidated into a single entity.