FCC's Wheeler Seeks To Limit TV Station Mergers

FCC Chairman Tom Wheeler is proposing to prevent joint retransmission consent negotiations between two of the top four separately owned TV stations in a local market, and adopt a "rebuttable presumption" that coordinated negotiations by any two stations in a market are not in the public interest.

According to Broadcasting&Cable, The chairman plans to vote on that retransmission consent proposal at the March 31 meeting, according to senior FCC officials speaking on background. He will circulate the item on March 10, the customary 21 days before the meeting. Those officials made it clear the move was a way to try to stem rising cable prices.

The officials cited what they called skyrocketing costs of retrans, from $28 million in 2005 to $2.4 billion in 2012.

The chairman wants immediate action on retrans and JSAs (see below), but is also seeking comment on other issues, including local ownership rules and continuing to ban the merger of two of the top four broadcast networks.

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In response to an announcement today by FCC Chairman Wheeler that he will circulate a proposal affecting broadcasters' joint sales agreements and shared services agreements, NAB President and CEO Gordon Smith stated:

"NAB is disappointed but not surprised by this proposal from Chairman Wheeler. Broadcast companies across America have demonstrated that sharing arrangements lead to more local news and provide robust competition to giant pay TV providers.

"The real loser will be local TV viewers, because this proposal will kill jobs, chill investment in broadcasting and reduce meaningful minority programming and ownership opportunities.

"Coincidentally, two industries would benefit from today's proposal: Big Cable companies who want less competition for advertising in local markets, and wireless companies who support punitive FCC actions that drive more TV stations into spectrum auctions."