Here are six out of home stories Billboard Insider thinks are worth watching in 2018.
Clear Channel Outdoor Gains Freedom?
Insider expects iHeart Media to go bankrupt during 2018. As part of the process Clear Channel Outdoor shares will either be sold or transferred to iHeart’s creditors. Insider thinks this will be a good development for Clear Channel Outdoor by removing distractions and allowing it to use cashflow to grow.
Regulatory Relief
The Trump administration is reducing regulatory burdens on business. The effect has been most pronounced at the FCC and the EPA but out of home companies benefited from the Department of Labor’s decision to ease OSHA recordkeeping requirements. Expect to see more in 2018.
The Baltimore Billboard Tax
Be glad you don’t operate a plant in Baltimore. The city of Baltimore taxes billboards at $5 per square foot and electronic billboards at $15 per square foot. That works out of a tax of $280/month for a 14 by 48 static billboard face and $840/month for a 14 by 48 digital billboard face. Billboards are the only form of advertising which is taxed. Clear Channel Outdoor has challenged to the City of Baltimore’s billboards tax as an unconstitutional disparate treatment of a single form of speech. The results of this case may influence whether other cash starved municipalities go after billboards to generate tax revenues.
The Courts and Municipalities Struggle with Reed v Gilbert
The State of Tennessee is appealing a Reed v Gilbert repeal of the State’s billboard control laws. Insider expects to seem more small municipalities amend their sign codes to become Reed v Gilbert compliant. Most small communities have done nothing to update their sign codes after Reed v Gilbert. Some operators like GEFT Outdoor are suing communities with outdated sign codes. Insider expects to see more municipalities update and simplify their sign codes to avoid litigation.
OSHA Climbing Rule Goes Into Effect
The OSHA climbing rule goes into effect November 2018. Insider will be watching to see if the Trump administration relaxes or delays the standards.
Economic Headwinds
We’ve gone 9 years since the last recession. The stock market and bitcoin setting new records. Out of home companies are rapidly adding capacity with digital signs. We might see a recession although the fiscal boost from the recent tax bill could push it off for a while.
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