The Start of a Seismic Shift to Local TV News

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 possess robust advertising and streaming businesses. 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.

H/T The Desk