The National Association of Broadcasters (NAB) along with a coalition of broadcast companies, filed a request with the FCC on Friday, urging the repeal of the FCC’s national TV ownership rule. This rule, in place for over 85 years, caps the reach of any single broadcast entity at 39% of U.S. TV households, limiting how many local commercial TV stations a company can own.
The NAB argues that the rule, last adjusted in 2004, is an "analog-era relic" that fails to reflect the modern media landscape. Broadcasters face intense competition from unregulated tech giants like Google, Amazon, Meta, and streaming platforms like Netflix, none of which are subject to similar ownership restrictions.
The 39% cap prevents broadcasters from achieving the scale needed to compete for audiences and advertising revenue, which is increasingly dominated by digital platforms. In 2023, Alphabet, Meta, and Amazon’s combined U.S. advertising revenues reportedly surpassed those of all local TV and radio stations combined.
Legal Authority: The NAB asserts that the FCC has the authority to repeal the rule without Congressional approval, countering critics who argue otherwise. They cite the FCC’s prior ability to modify related rules, such as the UHF discount, as precedent.
Context and Timing: The filing follows Nexstar Media Group’s announcement of a $6.2 billion deal to acquire Tegna, a transaction that would violate the current 39% cap, highlighting the rule’s restrictive impact. FCC Chairman Brendan Carr, who has previously criticized the ownership caps as “arcane artificial limits.” Carr, appointed during the Trump administration, has advocated for deregulation to help broadcasters compete with digital platforms.
Senator Elizabeth Warren has opposed the repeal and the Nexstar-Tegna deal, arguing that such consolidations could lead to job cuts for reporters and higher prices for consumers. She emphasizes the importance of rules that prevent monopolistic control by large corporations.