Fcc Weighs Changes To Local Tv Ownership Rules What It Could Mean For

Leo Migdal
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fcc weighs changes to local tv ownership rules what it could mean for

In a significant move that could reshape the landscape of local television in the United States, the Federal Communications Commission (FCC) has initiated a process to overhaul the rules governing ownership of local ABC,... The agency announced it will consider a Notice of Proposed Rulemaking as part of its quadrennial regulatory review, aiming to modernize regulations that dictate who can own these influential broadcast outlets. The FCC is seeking public input on whether the current rules should be retained, modified, or entirely eliminated, citing the rapidly evolving media marketplace as a driving factor behind the review. The existing broadcast ownership rules, established decades ago, were designed to promote competition, diversity of voices, and localism in media. They place limits on how many stations a single entity can own in a given market and restrict cross-ownership of television stations, radio stations, and newspapers. However, the media landscape has undergone dramatic changes in recent years, with the rise of streaming services, social media platforms, and digital news outlets challenging the dominance of traditional broadcast television.

The FCC’s review acknowledges that these shifts may have rendered some of the current restrictions outdated or overly restrictive, potentially stifling innovation and investment in local broadcasting. The proposed rulemaking will evaluate whether loosening ownership caps could allow broadcasters to better compete with tech giants and streaming platforms that face fewer regulatory constraints. For instance, relaxing rules could enable companies to own multiple stations in a single market, potentially leading to cost efficiencies and greater investment in local programming. However, such changes could also raise concerns about media consolidation, potentially reducing the diversity of viewpoints and giving a handful of large corporations greater control over local news and information. The FCC’s review will also consider the impact on smaller broadcasters and underserved communities. Current rules aim to ensure that minority-owned and independent stations have opportunities to thrive, but critics argue that outdated regulations may inadvertently favor larger conglomerates.

The agency is expected to examine whether modernizing the rules could foster greater inclusivity or, conversely, exacerbate existing inequities in the industry. Public comment will play a critical role in shaping the outcome of this review. The FCC has emphasized that it wants input from a wide range of stakeholders, including broadcasters, advocacy groups, and viewers, to ensure any changes reflect the public interest. The agency has not set a timeline for finalizing new rules, but the process is expected to spark heated debate as stakeholders weigh the balance between competition, innovation, and preserving local voices in an... The Federal Communications Commission (FCC) has initiated a public notice, signaling the potential for significant changes to the ownership rules governing licensed broadcast radio and television stations. This move could drastically alter the local TV news landscape, as it re-evaluates long-standing regulations that have shaped media ownership for decades.

The FCC's current framework limits a commercial broadcaster's reach to 39% of the American TV viewing audience and restricts ownership of more than two of a region's top four stations. Similar rules are in place for radio stations, all of which are now under scrutiny. FCC Chairman Brendan Carr emphasized that the evolving media landscape is the primary driver behind this review. He noted that when these rules were established, the competitive environment was vastly different. Today, traditional broadcasters are competing not only with cable and satellite providers but also with a surge of online platforms, social media, and streaming services like Hulu and Netflix. This new reality, according to Carr, necessitates a fresh look at regulations designed for a bygone era to ensure broadcasters can effectively compete for audiences and advertising revenue.

Carr also addressed concerns about the FCC's authority to modify these rules, asserting that Congress explicitly granted the agency this power. He challenged the "curious" suggestion from some current and former commissioners that the FCC lacked the ability to make such changes, highlighting that the agency has previously exercised this authority. The current notice specifically asks if the 2016 determination of the FCC's authority to modify the ownership cap was correct, with Carr stating he has seen no evidence to suggest otherwise. This push for reform is supported by groups like the National Association of Broadcasters (NAB), which has urged the FCC to eliminate the ownership cap entirely. They argue that the existing rules are an undue restraint that hinder local TV and radio stations from competing against large tech firms such as Google and Netflix, which operate with fewer regulations and... If these new rules go into effect, they could pave the way for greater consolidation in the local media market, potentially leading to fewer, larger owners of TV and radio stations across the country.

The Eighth Circuit Court of Appeals handed down its decision this week on the appeals of the FCC’s December 2023 decision following its 2018 Quadrennial Review (see our summary here) to leave the local... The Court’s decision was a victory for television owners, declaring the restrictions on the ownership of two of the Top 4 TV stations in any market to be contrary to the record and ending... The Court also provided a more sweeping victory to the industry, concluding that the Quadrennial Review proceeding was inherently a deregulatory one. In the Quadrennial Review process, the FCC can retain the rules that it has or relax them based on the effects of competition. It cannot tighten them, leading the Court to throw out the one new aspect of the 2023 decision – expanding the prohibition on a company acquiring a second TV network affiliation and moving it... While this decision gives the TV industry much to celebrate, the decision was not a total victory for the broadcast industry.

The radio rules remain unchanged, as do the TV limits that do not allow an interest in more than 2 TV stations in any market. The Court had been urged to find that these rules were no longer supportable in light of competition from digital media. The Court looked at the statutory requirement that the Commission review these rules every 4 years in light of competition, and decided to defer to the FCC’s policy judgment that the proper scope of... The Court deferred to the FCC’s findings that broadcasting’s unique local nature and its broad-based advertising reach (as opposed to the individually-targeted ads of digital competitors) made it different from digital media. Therefore, the Court upheld the FCC’s findings that broadcasting was still a unique marketplace where the public interest required limits on how many stations one party can own in a market. Certainly, most broadcasters, particularly in radio, would be surprised to know that they do not compete with digital – but that was the effect of the Court’s decision.

So, what’s next? In a few places in the Court’s decision, there were statements that suggested that the judge’s view of competition might have been different than that of the majority of the 2023 FCC. But, as Courts are to defer to administrative agencies on policy judgements (as opposed to judgements as to the meaning of a law, where a Court can substitute its judgement for that of an... But that is not to say that the FCC’s 2023 views on competition are written in stone and cannot be changed. Clearly, a different FCC can review an updated record and conclude that the industry has in fact changed, and that digital companies do in fact compete with radio and local TV. A new FCC, like the one that is currently in place, is permitted to conclude that the public interest demands that the rules be relaxed (or eliminated because they no longer serve any useful...

As we wrote several months ago, there were two ways that ownership deregulation might come for local radio and TV. One was through this Court decision which, except for the victory on the Top 4 issue, unfortunately did not occur. The other is from the FCC itself. The FCC is supposed to be conducting its 2022 Quadrennial Review, which needs to be completed quickly so that a 2026 review can begin. That means that the new Commission, headed by Chairman Carr who has in the past said that the radio ownership rules are a relic of another age and that the industry is at a... With the ball back in the FCC’s Court (once it resolves the question of whether it will offer any justification for the Top 4 rule in the 90 days provided by the Court), we...

While the Court’s failure to throw out those rules pushes the timeline back a few months from what the industry may have preferred, we still expect that these proposals will be offered at some... And, given the “break-glass” moment that the Chairman has recognized exists for the industry, we would expect quick actions once the proceeding starts. We are still bullish on changes to be effective in 2026 – let us hope that the FCC comes through. Daily stocks & crypto headlines, free to your inbox By continuing, I agree to the Market Data Terms of Service and Privacy Statement Without changes to outdated bureaucratic rules, local stations can’t compete with tech giants, and the things you value most about your local TV and radio stations, like news, emergency coverage and live sports, could...

Washington has the power to keep local stations strong by changing the rules that regulate local TV and radio. But we need your help to ensure they take action before it’s too late. NAB President and CEO Curtis LeGeyt wrote about this issue in an op-ed for The Hill: Last year, the new chairman of the FCC, Brendan Carr, called this a “break glass moment,” as he implored the commission and Congress to act. I could not agree more. The actions that local broadcasting needs to get a fair playing field are simple and attainable in short order with bold leadership from the FCC and support from Congress.

First, the FCC should the national audience reach cap, which prevents television station owners from serving more than 39% of American households, even as streaming giants reach 100% of Americans. Second, the FCC should modernize the rules that govern how many television and radio stations an owner can offer in one market. Wouldn’t a community be better served by investment in two strong local newsrooms, rather than four under-resourced entities?

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In a significant move that could reshape the landscape of local television in the United States, the Federal Communications Commission (FCC) has initiated a process to overhaul the rules governing ownership of local ABC,... The agency announced it will consider a Notice of Proposed Rulemaking as part of its quadrennial regulatory review, aiming to modernize regulations that dictate who can own the...

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The FCC’s review acknowledges that these shifts may have rendered some of the current restrictions outdated or overly restrictive, potentially stifling innovation and investment in local broadcasting. The proposed rulemaking will evaluate whether loosening ownership caps could allow broadcasters to better compete with tech giants and streaming platforms that face fewer regulatory constraints. For ...

The Agency Is Expected To Examine Whether Modernizing The Rules

The agency is expected to examine whether modernizing the rules could foster greater inclusivity or, conversely, exacerbate existing inequities in the industry. Public comment will play a critical role in shaping the outcome of this review. The FCC has emphasized that it wants input from a wide range of stakeholders, including broadcasters, advocacy groups, and viewers, to ensure any changes refle...

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Carr also addressed concerns about the FCC's authority to modify these rules, asserting that Congress explicitly granted the agency this power. He challenged the "curious" suggestion from some current and former commissioners that the FCC lacked the ability to make such changes, highlighting that the agency has previously exercised this authority. The current notice specifically asks if the 2016 d...