FCC To Move Forward Reviewing Broadcast Ownership Rules

The FCC has voted to review its broadcast ownership rules, seeking public input on whether to retain, modify, or eliminate the Local Radio, Local Television, and Dual Network rules. 

FCC Chairman Brendan Carr emphasized the need to adapt these rules to reflect the rise of online streaming services, which have transformed the media marketplace. The FCC is mandated to review these rules every four years to assess their necessity in the public interest amid competitive changes.

Carr stated that the review aims to encourage investment in local broadcasters, who provide essential news and information to their communities, while also considering public safety, national security, and other public interest goals. If any rule is deemed unnecessary, the FCC will modify or eliminate it.

➤Local Radio Ownership Rule: Limits the number of radio stations one entity can own in a market. The review will consider changes to the product market, market size tiers, numerical limits, and subcaps restricting AM or FM station ownership.
➤Local Television Rule: Permits owning multiple TV stations in a market if at least one is not among the top four. The review will examine the product market, numerical limits, and market characteristics.
➤Dual Network Rule: Prohibits mergers among the Big Four networks (ABC, CBS, FOX, NBC). The review will evaluate whether to modify or eliminate this rule.

This follows a court decision vacating the FCC’s “top four” rule, which barred owning two top-four TV stations in a market, and a recent call for comments on the National Television Multiple Ownership Rule, limiting entities to stations reaching no more than 39% of U.S. TV households. 

The comment period for the latter ended August 22, with Carr previously calling the ownership rules outdated.

FCC Commissioner Anna Gomez, the sole Democrat, criticized Carr for threatening action against ABC over comments by Jimmy Kimmel, alleging it was an attempt to suppress speech. Kimmel’s removal from ABC and affiliate stations owned by Nexstar and Sinclair sparked protests and was later reversed after discussions. Gomez warned that such actions threaten First Amendment rights and reflect the risks of media consolidation, especially as Nexstar pursues a $6.2 billion merger with Tegna, expected to close in 2026, pending approvals. 

Sinclair is also reviewing its broadcast strategy, and both companies are pushing to lift the 39% cap.

Gomez argued that media consolidation could harm viewpoint diversity and local programming, emphasizing that only Congress can lift the 39% cap. She urged stakeholders to prioritize rules that support local broadcasters and the public interest while addressing the economic challenges of broadcast television.

Reactions from Radio Leaders:

➤NAB President and CEO Curtis LeGeyt championed the move: “We commend Chairman Carr for advancing this long-overdue proceeding to modernize outdated broadcast ownership rules,” LeGeyt said. “Local radio and television broadcasters continue to face outdated restrictions that hinder investment, innovation and the ability to serve their communities. Local broadcast stations remain the most accessible and trusted platforms for news, community voices and life-saving emergency alerts."

➤Mary G. Berner, President and CEO, Cumulus Media: "We’re encouraged that Chairman Carr and the FCC are advancing the 2022 Quadrennial Review. Quickly modernizing the radio ownership rules is essential for listeners who rely on local radio every day. With updated rules, companies like ours can invest more locally, diversify our offerings, and compete effectively in today's rapidly evolving audio landscape. We look forward to working with the Commission to make these updates."

➤CEO Caroline Beasley, Beasley Media Group: “We would like to thank Chairman Carr for moving forward with the quadrennial review on this critical endeavor. This is a defining moment for our industry to ensure that local radio can continue to fulfill its essential public service mission for decades to come. We look forward to working with the Commission to implement common-sense reforms that will allow broadcasters to compete fairly and keep serving the local audiences who rely on us every day.”