FCC Chairman Tom Wheeler has argued that large broadcast companies use joint sales agreements as a way to circumvent limits on owning more than one station in a local market. His proposal, which is part of the commission's quadrennial review of its media ownership rules, would give stations two years to unwind the agreements or secure a waiver from the FCC.
Broadcasters have responded by arguing that the agreements often help keep struggling stations in small and rural markets afloat. They have also pointed to several instances where joint-sales agreements have allowed minorities and women to own TV stations, against a backdrop of consolidation and plummeting diversity in station ownership.
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Republican Commissioner Ajit Pai, who opposes the proposal, noted recently that three out of the four commercial, full-power TV stations owned by African-Americans are party to joint-sales agreements, including two owned by conservative commentator Armstrong Williams. The new language of the order suggests that such agreements would be likely to receive a waiver on the grounds that they encourage diversity in media ownership.
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