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Locast, Which Streamed Live Local TV For Free, Halts Operations After Lawsuit By ABC And Others; + more notable news

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WhyADuck
Premium Member
join:2003-03-05

2 edits

8 recommendations

WhyADuck

Premium Member

Every news article I have read about Locast gets it wrong in some way...

With the exception of the one linked here, which was pretty accurate. The facts are that as of yesterday, when most of these news stories appeared, all that had really happened was that the judge had said that the case must go to trial. In his decision he made some statements about what he felt was illegal, however it should be noted that this judge is in his 90's (according to an article that appeared on the StopTheCap site) and probably does not understand modern technology very well.

That said, one of the things that was in his decision was that he did not feel that Locast should be able to use donations collected for expansion to other markets. I think that is just wrong, because if you look at virtually every other nonprofit out there that's ever expanded to a new location, they do the same thing. A prime example in my area would be Goodwill Industries, they are always opening new locations and I don't ever see them conducting separate fundraising drives to do it. Same thing with the Salvation Army. Basically I think that judge pulled that part of his decision out of his nether regions (although I am sure the plaintiff's lawyers probably suggested it in some way) and if the case goes to a jury trial I think they'd have a much harder time convincing a jury that's not allowed, since so many other nonprofits do exactly the same thing.

That said, I have seen several people make suggestions to the effect that if that's a real impediment, they could just operate each city as a separate nonprofit, and only use funds collected in each city to fund operations in that city. It would be really stupid if they had to do that, because no other nonprofits in the country that I'm aware of is forced to silo their operations that way, but it could be done.

The thing that really got them into trouble, I think, was the interruption of programming to solicit donations. This is not typically how a translator station operates; normally it just re-transmits whatever it receives from the main station. If Locast had never done that then the networks would have had a much shakier case, and also Locast probably wouldn't have wound up with such a huge disparity between the amount they took in and their actual operating expenses (which they said they intended to use for expansion, which with just about any other nonprofit would be allowed if they actually expanded and didn't just sit on the funds forever). Maybe part of Locast's sin was that it didn't expand fast enough, and burn through more of those donations. To be clear, I totally disagree with that judge's thinking that they can't use funds collected in one city to fund expansion into another, and I don't think a jury would buy that, or that it would survive an appeal (especially if the appellate judges are younger and more tech-savvy).

And before anybody accuses me of ageism, I am also a senior citizen, although that judge has quite a few years on me if that StopTheCap report was accurate. I have a lot of problems understanding modern technology, particularly cell phones which still frustrate the hell out of me half the time. And sad to say, my mind is not getting any sharper with age. I just don't think a judge that old should still be deciding important cases that affect the entire nation. The biggest problem with people is that as we get older we tend to forget how much we hated it when we were young and old fogies were making bad decisions that affected our lives adversely!

But anyway, it is simply not accurate to say that the judge shut down Locast, as so many outlets reported. After his decision that the case must go to trial, which included his questionable objections to the service, Locast (I'm sure in consultation with legal counsel) made the decision to shut down pending the outcome of the trial. There is no indication so far that Locast is shut down for good (unless there is new news to that effect that I haven't read yet) but almost all the news stories yesterday would have had you believe that, particularly if you only read the headlines!

RMinNJ
join:2003-05-06
Oak Ridge, NJ

6 recommendations

RMinNJ

Member

Re:locast

They probably should have gone after the "donations" differently but perhaps they would not have had the money to expand then. Without expansion I'm not sure how the service could have been offered in the first place.

The networks still would have gone after them, donations or not as they want their re-transmission fees. The networks demand these fees ..proved they are legally entitled to get paid for us to watch commercials from our local bagel shop. They also skirt around their legal requirements of offering an OTA signal by simply offering a signal..irregardless of whether people can get it or not. ATSC 3.0 may change that where one may be able to get the signal say indoors in an apartment... but maybe not.. They do not care.

I think its a good opportunity for small OTA installers.. many people cannot go on roofs etc.. I can say from personal experience Dish antenna installation service currently botches this opportunity by lazily offering only the tiny Televes Boss antenna as an antenna option.

Reticent
join:2008-08-11
USA_PDX

6 recommendations

Reticent

Member

Locast

An excellent idea pre-scuttled by legislators limiting revenues to operational costs,
crippling legal defense against deep pockets - taxes at shirk.