No, running a program provided on a “barter” basis does not allow an LPFM (or NCE) station to include commercials. LPFM (Low Power FM) and NCE (Non-Commercial Educational) stations are subject to specific regulations that prohibit the airing of commercial advertising. Even if a program is acquired through a barter arrangement, which involves exchanging content for airing in exchange for something of value, it does not grant LPFM or NCE stations permission to broadcast commercials. These stations are required to maintain their non-commercial status and adhere to FCC regulations, which prohibit the broadcast of commercial content in any form.
No, running a program provided on a “barter” basis does not allow an LPFM (or NCE) station to include commercials. LPFM (Low Power FM) and NCE (Non-Commercial Educational) stations are subject to specific regulations that prohibit the airing of commercial advertising. Even if a program is acquired through a barter arrangement, which involves exchanging content for airing in exchange for something of value, it does not grant LPFM or NCE stations permission to broadcast commercials. These stations are required to maintain their non-commercial status and adhere to FCC regulations, which prohibit the broadcast of commercial content in any form.
Barter is a term employed in commercial broadcasting where a station agrees to broadcast a program or provide other services, such as ID jingles, in exchange for carrying commercials furnished by the producer or syndicator. In a barter arrangement, there is no monetary transaction; instead, it’s akin to a trade.
Section 399b of the Communications Act encompasses the following:
(a)“Advertisement” defined. For purposes of this section, the term “advertisement” means any message or other programming material which is broadcast or otherwise transmitted in exchange for any remuneration, and which is intended-
(1) to promote any service, facility, or product offered by any person who is engaged in such offering for profit;
(2) to express the views of any person with respect to any matter of public importance or interest; or
(3) to support or oppose any candidate for political office.
The critical term here is “remuneration.” Although not explicitly defined in Title 47, “remuneration” denotes “income in the form of a commodity, service, or privilege if, before the performance of the service for which it is payment, the parties have agreed upon the value of such commodity, service, or privilege, and that such part of the amount agreed upon to be paid may be paid in the form of such commodity, service, or privilege” (as exemplified by 20 CFR 332.2(a)(2)). Consequently, remuneration can encompass commodities or services, not just cash.
A prevalent misconception is that “consideration” or “remuneration” solely pertains to cash transactions in the context of noncommercial educational (NCE) stations. However, this perspective is inaccurate.
When a syndicator offers a station valuable content, such as a produced radio program that the station didn’t have to allocate resources to create, this essentially constitutes the syndicator “compensating” the station for airtime. Broadcasting such a program alongside commercial messages would contravene the FCC’s NCE policy.
Some argue that since the Commission’s NCE policies don’t explicitly mention “barter,” they also don’t exclusively refer to cash payments. Instead, they employ the term “consideration,” encompassing any form of compensation exchanged for broadcasting content, whether it’s cash, tangible goods, or services.