The FCC has issued a new notice asking for the public to weigh in on whether the agency should make changes to the current rules surrounding broadcast television station ownership.
The agency first asked the public for comment on whether to retain, modify or eliminate its rule limiting entities from owning or controlling broadcast television stations that, in the aggregate, reach more than 39% of the television audience households in the United States back in December 2017. At the time, it also sought comment on part of the rule which provides a 50% discount for UHF stations for the purposes of compliance with the cap.
“The dockets in this and other proceedings show that the national audience
reach cap still generates significant interest to commenters who continue to submit information about it, despite the fact that the record closed seven years ago,” the FCC’s new notice states. “Accordingly, we present commenters with this
further opportunity to refresh the record in the National Television Multiple Ownership proceeding.”
Specifically, the agency is asking for comment on “materials filed since the comment period ended in April 2018” and whether they highlight any issues that warrant further comment and consideration.
It also requested comment on “new or additional information regarding the television and video programming marketplace” that is relevant to the proceeding, such as whether there have been any developments in the relationship between national broadcast networks and their local affiliates that may be relevant to modifying the cap and whether it should continue to include a UHF or other discount if retained.
Additionally, it is seeking comment on other relevant trends within the
television and video programming industry or in related markets that are now relevant to the Commission’s review of the cap. For instance, how the policy has affected broadcast television’s market position in relation to other video distributors, such as online video providers that are not restricted by ownership
limits.
Lastly, the FCC is asking for comment on whether there are any other legal or economic developments that it should consider in the context of the national television audience cap.
The move comes as the National Association of Broadcasters, conservative groups and members of Congress have all lobbied the FCC in recent months, asking them to modernize broadcast ownership rules.
During a panel discussion hosted by the Milken Institute last month, FCC chairman Brendan Carr signaled support of TV station ownership reform being one way to empower local broadcasters, calling the current rules “arcane” and “artificial.” He added that he would seek to “constrain some of the power” of national programmers.
“NAB thanks Chairman Carr for taking this important step towards modernizing a decades old rule that limits television broadcasters’ ability to compete in today’s media marketplace,” NAB President and CEO Curtis LeGeyt said in a statement. “We appreciate Chairman Carr’s willingness to tackle this critical issue, which will allow us to better serve our communities with trusted news and information. We look forward to working together to bring outdated ownership rules into the 21st century and give local stations a fair chance to compete with Big Tech.”
It also follows Allen Media Group recently hiring the investment firm Moelis to help it explore a potential sale of its 28 television stations in 21 U.S. markets. Others who have also reportedly explored selling stations include Sinclair Broadcasting Group and Cox Media Group owner Apollo Global Management.
In addition to the 39% cap, station owners must abide by the “Top 4” rule, which restricts the number of big four broadcast TV network affiliates a company can own in a single market.
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