To counter the sharp reversal of fortunes, many broadcasters formed Local Marketing Agreements; describe how they work.

Question

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The Answer is Local Marketing Agreements (LMAs) are agreements between two broadcasters in which one station agrees to sell advertising time on another station. This allows the two stations to share resources and programming, which can help to counter the sharp reversal of fortunes that one station may be experiencing.

Under an LMA, the station selling the advertising time retains control over the programming and editorial content, while the station buying the advertising time is able to reach a larger audience and generate additional revenue. This can be especially beneficial for smaller stations that may be struggling financially, as it allows them to continue operating while also providing value to the station selling the advertising time.

LMAs are subject to regulations from the Federal Communications Commission (FCC) to ensure that they do not result in anti-competitive behavior or consolidation of media ownership. However, when used appropriately, LMAs can be a valuable tool for broadcasters to navigate challenging economic circumstances and maintain their presence in the market.

To Counter the Sharp Reversal of Fortunes, Many Broadcasters Formed