The Federal Communications Commission (FCC) will review some of its broadcast ownership rules for radio and television station groups during its upcoming meeting this month, the agency’s chairman announced on Monday.
In a blog post on the FCC’s website, Chairman Brendan Carr said the agency will examine its current radio and TV station ownership rules as part of a Congressionally-mandated review, which requires the agency to consider modifying or refreshing those rules once every four years.
The agency last considered its radio and TV ownership rules in 2023 as part of the FCC’s quadrennial review for 2018, which was compelled only after the National Association of Broadcasters (NAB) sued on the matter.
The 2022 quadrennial review was started that year, but has never been completed or published. It wasn’t clear from Carr’s blog post if the meeting will complete the 2022 review or start the process of examining its rules as part of next year’s review.
The FCC will start the process of accepting public comments on three ownership rules in particular:
- The Local Radio Ownership Rules, which limits the total number of radio stations that a single company may directly own in a given broadcast market. The rule typically caps the number of radio stations a company may own to three in very small broadcast markets and up to eight in larger markets.
- The Local Television Rule, which prevents broadcasters from having direct ownership of more than two licensed TV stations in an area.
- The Dual Network Rule, which prohibits the owners of ABC, CBS, Fox and NBC from merging their broadcast networks.
Crucially, Carr made no mention of whether the FCC will examine a request by the NAB to eliminate a rule that caps the number of local TV stations that can be directly owned by a single broadcaster. Under current federal rules, one broadcaster cannot own a collection of TV stations that reach more than 39 percent of the American population.
The NAB and some of its members argue the broadcast ownership rules restrict them from consolidating their operations in an era where tech companies like Google, Netflix and Amazon are allowed to launch streaming platforms with unlimited reach.
The broadcasters say they need to consolidate in order to concentrate their market power and recapture advertising dollars that have shifted toward streaming platforms. The companies have pointed to their local news investments as proof that they should be rewarded with an unrestricted ability to acquire more assets and merge their operations.
Carr has appeared empathetic to the cause of local TV broadcasters: In the past, he has made remarks that suggest he is open to the idea of lifting some ownership restrictions. But he has stopped short of endorsing the idea that the ownership cap should be eliminated entirely, and it isn’t clear if broadcasters will get that part of their wish list fulfilled anytime soon.
Nonetheless, on Monday, the NAB said it was encouraged by Carr’s willingness to either complete the 2022 quadrennial review or start the process on the 2026 quadrennial review with respect to its radio and TV broadcast ownership rules.
“Outdated rules have held broadcasters back for too long. Modernizing them means stronger local journalism, more investment in communities and the live sports fans count on,” Curtis LeGeyt, the CEO of the NAB, said in a statement. “Broadcasters welcome this long-awaited step forward.”
LeGeyt — who has declined interview requests from The Desk in the past, despite publicists hired by the NAB offering to arrange talks on the broadcast ownership matter — applauded Carr for “jump-starting the long-overdue 2022 Quadrennial Ownership Review,” though Carr’s blog post did not specify the 2022 review.
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Read more:
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- FCC deals blow to TV stations, upholds broadcast ownership rules
- Nexstar asks court to review FCC ownership limits
- NAB renews call for FCC to eliminate broadcast ownership cap
- Nexstar CEO not worried about FCC rules impacting TEGNA deal
- Nexstar asks local TV station executives to support media deregulation
