FCC Releases Annual Marketplace Report

The FCC's latest report on the state of the communications marketplace has been released, marking the last report under the current Democratic majority. 

The report has sparked dissent from the two sitting Republican commissioners, Brendan Carr and Nathan Simington, over how the FCC defines the markets it regulates. 

Carr criticized the commission for using an outdated approach that views each broadband technology as separate and distinct, rather than reflecting the converged market for communications services. He also expressed concerns about the report's focus on equity considerations instead of competitive indicators.

GOP Commissioner Brendan Carr, the incoming chairman, said he would “correct course” on the agency’s next marketplace report in 2026. “Instead of providing an accurate assessment of the converged market for communications services, the Commission continues to use a decades-old approach

Simington echoed Carr's sentiments, emphasizing that broadband and media should be considered based on their delivery modalities. The FCC's treatment of broadcast media as a separate entity has been seen as a reason for not easing broadcast ownership caps. The upcoming 2022 Quadrennial Media Ownership Review, to be completed under Carr, will focus on the remaining ownership rules.

The report assesses competition in various categories, including fixed broadband services, mobile wireless, voice telephone, satellite, video, and audio. Broadcast radio is a subsection of the audio category, with topics such as revenue trends, the number of licensed stations, and the growth of online audio platforms being discussed.

Despite the rise of alternative audio platforms, terrestrial radio's unique advantage lies in its ubiquitous and free nature, making it accessible to a broad audience regardless of internet connectivity. This aspect continues to sustain its significance, particularly in rural and underserved regions.

Contrasting the stability of terrestrial radio, satellite radio and online audio services have witnessed significant growth. These platforms offer expansive content libraries that cater to diverse listener interests, ranging from music and podcasts to sports and talk shows.

Online audio providers, in particular, have revolutionized the market by leveraging technology to offer personalized listening experiences. Services like Spotify and Apple Music use sophisticated algorithms to recommend content tailored to individual tastes, enhancing listener engagement and satisfaction.

The FCC notes that the competitive edge of these digital services stems from their ability to integrate seamlessly with mobile devices, aligning with the contemporary on-the-go lifestyle of consumers. Furthermore, the advent of smart speakers has facilitated easier access to streaming audio in households, further embedding these services into the fabric of daily entertainment.

The FCC report emphasizes that the competition within the audio programming marketplace is intensifying, with terrestrial, satellite, and online audio providers continually adapting to technological advancements and changing consumer preferences. This competitive environment fosters innovation and diversity in content offerings, benefiting consumers with more choices than ever before.