Nab Executive Defends Fcc Authority To Lift Broadcast Ownership
The debate over whether the Federal Communications Commission can eliminate the national broadcast ownership cap has moved from policy arguments to questions of statutory authority, according to the National Association of Broadcasters‘ top legal... Rick Kaplan, chief legal officer and executive vice president of legal and regulatory affairs at NAB, published a blog post on Nov. 24 defending the FCC’s authority to modify or eliminate the cap. The rule currently restricts television broadcasters from owning stations that reach more than 39% of U.S. households. Trump questions FCC ownership cap changes as Nexstar defends merger plans
“We’re now at the predictable moment in a Washington fight when the losing side abandons policy arguments and retreats to the last refuge of the desperate: ‘Well, it doesn’t matter anyway, the agency doesn’t... The post argued that opponents of changing the rule have shifted their strategy after losing ground on policy objections. Kaplan characterized recent legal challenges to the FCC’s authority as procedural deflection rather than substantive argument. Local broadcasters keep you connected and informed. Learn about how we serve Americans every day, the economic impact we have on local communities, read stories of broadcasters' public service and more. Local television and radio stations played an indispensable role in 2024 connecting communities to trusted journalism and verified information during an election year.
Take a look back at all that we accomplished together in 2024. Questions? NAB members can call our free Legal Hotline to learn more about legislation, filings and updates from Washington. Call: (866) 682-0276 Email: legal@nab.org Join our team of broadcast advocates. When legislative issues arise that could impact your station and career, we'll reach out and give you simple steps to contact your legislators.
Sign Up Today ‘The record shows that the need for TV broadcasters to gain scale now has become an emergency,’ the group told the FCC When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. WASHINGTON—As dealmaking for broadcast stations heats up and station groups eye potential acquisitions, the National Association of Broadcasters has filed comments with the Federal Communications Commission saying, “It is It is time—indeed, past time—for... The filing was made following the regulator’s request for public comments on current ownership rules and comes at a time when broadcasters have high hopes that ownership caps will finally be repealed.
In the August 4 filing, the NAB repeated many familiar argues that broadcasters have been severely hurt by out-dated ownership caps put in place decades before the rise of digital media, streaming TV, Netflix,... In a striking move that could reshape the landscape of American television, the National Association of Broadcasters (NAB) that represents ABC, CBS, FOX, & NBC station owners has submitted a forceful letter to the... The NAB argues that these decades-old restrictions, which limit any single entity from owning local commercial TV stations reaching more than 39 percent of U.S. households, are outdated and stifle broadcasters’ ability to compete in a rapidly evolving media market dominated by tech giants and streaming platforms. “For more than two decades, the national TV rule has prohibited any entity from owning local commercial TV stations reaching, in the aggregate, more than 39 percent of the total number of TV households... “This outmoded rule prevents broadcasters – but not any other video service providers – from competing for audiences and vital advertising revenues across the country and harms the public’s free, over-the-air (OTA) television service.
The time to eliminate this harmful restriction is now.” The filing marks a significant escalation from the NAB’s previous positions, which sought only to liberalize or modernize the rules rather than abolish them entirely. The NAB’s argument hinges on the dramatic transformation of the media landscape since the ownership cap was last adjusted in 2004. The rise of streaming services like Netflix and Hulu, social media platforms, and digital advertising juggernauts like Google and Facebook has fundamentally altered how audiences consume content and how advertisers allocate their budgets. “With Google and Facebook gobbling up local advertising revenues and stations competing with unconstrained streaming platforms for viewers’ time and attention, the FCC must end this limitation and allow broadcasters to better serve the... The NAB contends that these “continued marketplace trends over the past seven years” render any artificial limits on TV station groups’ audience reach unjustifiable. The filing also reflects a strategic optimism about the current political climate.
With FCC Chair Brendan Carr, appointed during the Trump administration, at the helm, the NAB appears hopeful that the agency will be more receptive to dismantling the ownership caps. The letter references a 2017 effort under Carr’s watch, when the FCC sought public comment on modifying or eliminating the national audience reach limit. At the time, Carr noted that broadcasters “now compete for eyeballs with YouTube stars, social media platforms, and streaming services—not to mention traditional cable and satellite offerings.” Although that initiative stalled, the NAB sees... In 2017, the NAB had taken a more cautious stance, advocating for either maintaining the 39 percent cap with a revised calculation or raising it to 78 percent if certain discounts were eliminated. Today’s filing, however, pulls no punches. Supported unanimously by the NAB’s Television Board—including major players like Nexstar, Sinclair, and Univision—the organization argues that the national TV rule “in any form does not promote, but instead harms, competition, diversity, and localism.”...
The National Association of Broadcasters is making an aggressive push to eliminate local radio ownership restrictions and significantly reduce television ownership limits, arguing that decades-old regulations no longer reflect today’s fragmented media landscape. In a September 19 filing with the Federal Communications Commission, NAB representatives detailed how traditional broadcasters face unprecedented competition from streaming services, digital platforms and social media companies that operate without similar ownership constraints. The trade group met with staff from commissioners’ offices to discuss the upcoming quadrennial ownership review ahead of the late September commission meeting. Broadcast ownership rules face fresh scrutiny in September FCC meeting “The Commission should inquire whether maintaining any ex ante radio ownership restrictions today is still in the public interest,” NAB stated in its filing, marking a more aggressive stance than its 2018 position that... The NAB last week submitted a letter asking the FCC to quickly repeal the 39% cap on national ownership of television stations.
This cap precludes the ownership by one company or individual of an attributable interest in television stations capable of reaching more than 39% of the television households in the United States. The rule has been in place since 2004. When adopted, over-the-air television was still analog, so the cap included a UHF discount as, at the time, UHF stations were deemed inferior to those that transmitted on VHF channels. While the transition to digital reversed that relationship as UHF is now seen as preferable, the discount remains, counting UHF stations as reaching only half the households reached by VHF stations. So, were an owner to have exclusively UHF stations, it could theoretically own stations reaching 78% of TV households. Yet even 78% is not 100%, and any cable or satellite channel, or even any broadcast program provider like a network or syndicator, and any online video provider, has no limit to the number...
The NAB argues that this is fundamentally unfair and impedes competition in today’s video marketplace. While some might argue that most of these other services are not free, requiring a subscription to an MVPD or a connection to the internet, practically speaking, in today’s world, many of these competitive... Only the delivery method is different. There are likely going to be those that oppose any change in the rule. Certain MVPD interests have opposed any expansion in the ownership of broadcast companies, arguing that bigger broadcast companies lead to higher retransmission consent fees and greater expenses for consumers. Some public interest advocates contend that these limits allow for the existence of independent television owners and fear that, without ownership limits, over-the-air television would be totally dominated by a small number of companies.
Of course, we have already seen in the market that some big television groups have decided that it is economically not advantageous to spend their time and resources in smaller markets and have begun... But the argument that independent owners need legal protection will likely still be made. There are certainly questions as to the continued validity of the national ownership cap in light of today’s multiplatform digital competition, but the effect is evident. Many of the biggest local television operators have reached the limits set by the national cap, even factoring in the discount, and their acquisition of new stations is limited. These operators have reached the limits of their growth to achieve the scale necessary to compete with the digital giants in today’s media marketplace. This proposal to eliminate the cap is not new – with an open proceeding to abolish the cap begun in 2017 (see our article here).
But there is one question that was raised when that proposal was first advanced that has stalled its resolution. The 39% limit is written into statute by Congress. Thus, questions arise as to whether the FCC can on its own change that cap. Unlike the local ownership rules governing the number of radio and TV stations that one owner can have in any local market, where Congress laid out a Quadrennial Review process for the Commission to... Today, NAB urged the Federal Communications Commission (FCC) to eliminate its cap on the percentage of Americans any one broadcast group can serve. Only broadcasters are limited in how many U.S.
households they can serve – no other medium is subject to this arcane rule. The process to reconsider the rule was initiated under FCC Chairman Ajit Pai in 2017, yet the Commission has not acted despite the rise of nationwide and global streamers as well as the increasing... Outdated rules prevent local TV broadcasters from owning stations across the country that, combined, have the potential to reach more than 39% of U.S. television households, regardless of actual viewers. In contrast, Big Tech platforms, cable TV and streaming services, such as Amazon, Netflix and YouTube, are not subject to any constraints. They can reach 100% of national audiences in addition to their global reach.
An increasing number of Americans report regularly getting their news from social media sites such as Facebook (30%) and TikTok (17%, including nearly 40% of adults under 30), and these numbers are only projected... Broadcasters invest in local journalism to provide Americans’ most trusted news. As misinformation flourishes, this service is increasingly vital. But as a result of out-of-date FCC restrictions on local broadcasters, Big Tech has even more control over what Americans get to see and hear. “There is simply no good reason to keep any artificial limits on TV station groups’ audience reach,” the NAB argued When you purchase through links on our site, we may earn an affiliate commission.
Here’s how it works. WASHINGTON—In a new letter to the Federal Communications Commission, the NAB is arguing that the agency should “completely repeal” ownership rules limiting the reach of broadcast station groups rather than simply liberalizing or modernizing... homes. “For more than two decades, the national TV rule has prohibited any entity from owning local commercial TV stations reaching, in the aggregate, more than 39 percent of the total number of TV households... “This outmoded rule prevents broadcasters – but not any other video service providers – from competing for audiences and vital advertising revenues across the country and harms the public’s free, over-the-air (OTA) television service. The time to eliminate this harmful restriction is now.”
In its arguments, the NAB hinted at the industry’s hopes that the current administration and FCC chair Brendan Carr will be more receptive to changing the ownership caps. The letter noted that in 2017, during the first Trump administration, the FCC sought comment on modifying or eliminating the national audience reach limit. FCC Chairman Brendan Carr asked for ideas to cut outdated broadcast regulations – and the NAB has now given him plenty to work with. In an 80-page filing backed by a 60-page appendix, the NAB delivered a sweeping blueprint for deregulation under Carr’s “Delete, Delete, Delete” initiative, targeting everything from local ownership caps to Equal Employment Opportunity requirements. “This is a moment for bold ideas, and NAB is proud to lead the charge,” said NAB President and CEO Curtis LeGeyt. “The FCC’s rules should reflect today’s media landscape, not one from decades past.
Our filing lays out a clear, actionable path to modernize regulations and empower local radio and TV stations to better serve their communities. We appreciate the Commission, especially Chairman Carr, for launching this important effort. Reforming outdated ownership rules is the essential first step to strengthening local journalism and ensuring broadcasters can continue to survive.” At the top of NAB’s list is a demand to abolish local broadcast ownership rules that restrict how many radio and television stations a company can own in a single market. NAB argues that these caps were created in the analog era and have no place in today’s vastly expanded media environment. “No broadcast regulations are more devastating to the viability and future vitality of TV and radio broadcasters than the national TV ownership restriction and the local radio and TV ownership rules,” NAB wrote.
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The Debate Over Whether The Federal Communications Commission Can Eliminate
The debate over whether the Federal Communications Commission can eliminate the national broadcast ownership cap has moved from policy arguments to questions of statutory authority, according to the National Association of Broadcasters‘ top legal... Rick Kaplan, chief legal officer and executive vice president of legal and regulatory affairs at NAB, published a blog post on Nov. 24 defending the F...
“We’re Now At The Predictable Moment In A Washington Fight
“We’re now at the predictable moment in a Washington fight when the losing side abandons policy arguments and retreats to the last refuge of the desperate: ‘Well, it doesn’t matter anyway, the agency doesn’t... The post argued that opponents of changing the rule have shifted their strategy after losing ground on policy objections. Kaplan characterized recent legal challenges to the FCC’s authority...
Take A Look Back At All That We Accomplished Together
Take a look back at all that we accomplished together in 2024. Questions? NAB members can call our free Legal Hotline to learn more about legislation, filings and updates from Washington. Call: (866) 682-0276 Email: legal@nab.org Join our team of broadcast advocates. When legislative issues arise that could impact your station and career, we'll reach out and give you simple steps to contact your l...
Sign Up Today ‘The Record Shows That The Need For
Sign Up Today ‘The record shows that the need for TV broadcasters to gain scale now has become an emergency,’ the group told the FCC When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. WASHINGTON—As dealmaking for broadcast stations heats up and station groups eye potential acquisitions, the National Association of Broadcasters has filed comments ...
In The August 4 Filing, The NAB Repeated Many Familiar
In the August 4 filing, the NAB repeated many familiar argues that broadcasters have been severely hurt by out-dated ownership caps put in place decades before the rise of digital media, streaming TV, Netflix,... In a striking move that could reshape the landscape of American television, the National Association of Broadcasters (NAB) that represents ABC, CBS, FOX, & NBC station owners has submitte...