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DTV switch would trigger KFTL sales clause

Spanish-language broadcaster Univision Communications Inc. is buying KFTL(TV) Stockton, Calif.,
from Family Communications Inc. for $65 million, according to documents filed at the
Federal Communications Commission.

Univision would not comment on a price, but there is more to it than meets
the eye.

Because KFTL is on channel 62, the contract includes a provision in which
Family would also get one-half of any payout Univision receives if it decides to
vacate the channel early as part of the digital transition.

Channel 62 is located in a swath of spectrum the FCC plans to auction for use
by advanced communications services when the digital transition is completed and
broadcasters' second channels are returned.

To try to jump-start those services, the FCC is allowing broadcasters to take
payments from those companies in exchange for giving up the channels
early.

Contributing editor John Eggerton has been an editor and/or writer on media regulation, legislation and policy for over four decades, including covering the FCC, FTC, Congress, the major media trade associations, and the federal courts. In addition to Multichannel News and Broadcasting + Cable, his work has appeared in Radio World, TV Technology, TV Fax, This Week in Consumer Electronics, Variety and the Encyclopedia Britannica.