Here's my take: I read the transcripts of the announcements in question. If there is a line in the sand between commercial and underwriting, they were standing on it.
The FCC made no reference to the station's media kit and not specifically saying the station is non-commercial. In fact, the FCC only regulates the on air content. If you call Underwriting a form of Commercial Advertising, the FCC doesn't care. There is nothing that prohibits a non-profit from selling advertising (except in licensed media when the entity is deemed non-commercial educational). Churches, colleges and non-profits frequently run entities that are for profit and in many cases in a non-profit venture sell advertising to offset the cost of the operation. Do you suspect the Prairie Home Companion items sold are sold at cost or might they make a little off each sale or license to a vendor that is sold?
The FCC does not regulate formats. While some subject matter can overstep specific rules for a NCE station, the FCC acted fairly here.
I really tend to suspect is there was a gentleman's agreement here. The FCC might have figured they wanted Beasley to 'cut it out' and gave them a bone if they would. As the LPFM was clearly about to topple underwriting rules in the most liberal context and surely had by the most conservative view of the spots, the $2,000 fine was likely affordable for them while still leaving a mark (likely nullifying any financial benefit from the Underwriting sold that was in question or at least a percentage of that amount). The result, Beasley calms down, the FCC can get back to everyday matters and the LPFM learns the valuable lesson, it is wiser to stay away from that line in the sand on Underwriting rules. In this scenario everybody wins, sort of. I feel like this was a carefully crafted decision where input on both sides was considered.
Beasley is like many full power broadcasters. They have invested greatly and see way too much of the money generated going back to lenders. The numbers can make you lose sleep perpetually! Then this LPFM that cost less than that station vehicle sticker price hits the airwaves and a few of their clients hear about them. The full power guy gives birth to a cow and goes defensive. The poor LPFM with nothing compared to the big boy hopes to stay around after all is said and done.
I suggest LPFM stations befriend every full power station that they can, go after the underwriter that cannot afford the big boys and play fair.
Both sides know, except for production values, the text of Underwriting and Commercials is more about carefully chosen words. Both 'sell' and help the business. In other words, the end result and purpose is the same. With Underwriting Rules it is implied that non-commercial broadcasters are to somehow imply that results are not supposed to be a reason to Underwrite but we all know regardless of how we try to shade it, the real reason under all the fluff and warm fuzzy feelings is results otherwise they'd just hand you cash and expect nothing (and you never get much cash that way) and you'd never bother with an Underwriting spot at all.
