Federal Regulatory Body Calls for Abolition of All Ownership Limits Proposed by FCC
The Federal Communications Commission (FCC) has reopened the process to reconsider the national broadcast television ownership cap, originally set by Congress at 39 percent of U.S. households reached by a single company. This move, led by Republican Chairwoman Carr, invites fresh public comments and signals the FCC’s intent to potentially modify or repeal this ownership cap.
The National Association of Broadcasters (NAB) and several broadcast companies have advocated for this change, citing the need to consolidate more local TV stations to compete with streaming and tech platforms that have international reach. Critics, including media advocacy groups, accuse the FCC of pursuing deregulation to benefit corporate consolidation and political interests.
The 39 percent cap, established in 2004, restricts the reach of large broadcasting groups like Nexstar and Sinclair. The FCC has sought to reopen this issue administratively, despite previous attempts under the Trump administration not resulting in a cap repeal.
In parallel, broadcasters have challenged specific local ownership rules in court, with mixed legal outcomes. The Eighth Circuit Court recently sided with broadcasters on some local ownership rule aspects but upheld the FCC's market definitions, indicating ongoing disputes around media ownership limits at both regulatory and judicial levels.
Coalitions of press freedom, civil liberties, and journalist groups strongly oppose relaxing ownership limits, warning that further consolidation could harm local journalism, reduce press independence, and exacerbate news deserts aggravated by digital advertising monopolies.
The FCC's administrative proceedings are ongoing, with the filing of comments by the NAB to expedite the elimination of the national broadcast television ownership cap. The filing presents numerous research studies and articles from TV Tech to support the FCC's abolition of the national broadcast television ownership cap.
The rule, critics argue, unfairly skews the market in favor of streaming platforms and other national and international technology and media conglomerates. The filing asserts that there is no justification for retaining the national ownership TV rule in a market characterized by intense competition, content diversity, and abundant options for advertisers.
According to the filing, unconstrained streaming platforms garner 46 percent of total TV usage in the country, while broadcast television combined garners only 18.5 percent. The national broadcast television ownership rule prevents TV broadcasters from reaching more than 39 percent of the total number of TV households in the nation.
The filing argues that repealing the national ownership TV rule is not just important or urgent but is a necessity for the competitive viability of TV broadcasters. However, it does not provide any new information about the specific legal authority for the FCC to abolish the national ownership cap.
Interested parties can find more information and the full filing online. The need for TV broadcasters to gain scale has become an emergency, according to the NAB, as they cannot hope to compete with the growing dominance of streaming and tech platforms. The revolution brought about by the internet and digital technologies has significantly altered the media and advertising landscape, making the FCC's reconsideration of the national broadcast television ownership cap a topic of significant public interest.
[1] National Association of Broadcasters (NAB) filing with the Federal Communications Commission (FCC), [date]. [2] Eighth Circuit Court decision on local television ownership rules, [date]. [3] Free Press comments on the FCC's reconsideration of the national broadcast television ownership cap, [date]. [4] Coalition of press freedom, civil liberties, and journalist groups' statement on the FCC's reconsideration of the national broadcast television ownership cap, [date].
- The National Association of Broadcasters (NAB) has filed with the Federal Communications Commission (FCC), advocating for the elimination of the national broadcast television ownership cap.
- Critics, including media advocacy groups, accuse the FCC of pursuing deregulation to benefit corporate consolidation and political interests.
- The 39 percent cap, established in 2004, restricts the reach of large broadcasting groups like Nexstar and Sinclair.
- The FCC's administrative proceedings are ongoing, with the filing presenting numerous research studies and articles from TV Tech to support the abolition of the national broadcast television ownership cap.
- In parallel, broadcasters have challenged specific local ownership rules in court, with mixed legal outcomes.
- The revolution brought about by the internet and digital technologies has significantly altered the media and advertising landscape, making the FCC's reconsideration of the national broadcast television ownership cap a topic of significant public interest.
