The Senate Committee on Commerce, Science, and Transportation held a hearing Tuesday titled "We Interrupt This Program: Media Ownership in the Digital Age". Chaired by Sen. Ted Cruz (R-TX), the session examined the FCC broadcast media ownership rules in the context of modern media consumption, where streaming services, social media, and digital platforms dominate video and audio content delivery. The focus was on whether these rules—originally designed to promote competition, diversity, and localism—remain relevant or require updates, particularly amid arguments that they asymmetrically hinder traditional broadcasters compared to unregulated tech giants like Google, Netflix, and Spotify.
A key point of discussion was the statutory 39% national cap on television household reach for a single broadcaster, which some argue can only be altered by Congress, not the FCC. Concerns were also raised about potential reductions in conservative viewpoints if rules are relaxed, allowing further media consolidation.
Witnesses included:
- Curtis LeGeyt, President and CEO of the National Association of Broadcasters (NAB), who advocated for modernization, arguing that outdated rules prevent broadcasters from scaling to compete effectively and invest in local journalism.
- Chris Ruddy, CEO of Newsmax, who opposed lifting the 39% TV cap, warning it could lead to excessive consolidation and fewer independent, conservative-leaning outlets.
- Thomas Johnson, Partner at Wiley Rein LLP, who provided legal analysis on the FCC's authority and the need for rules to reflect current competition.
- Steve Waldman, President of Rebuild Local News, who emphasized protecting local journalism from the harms of over-consolidation.
The hearing tied into the FCC's ongoing 2022 Quadrennial Regulatory Review, mandated by Congress every four years to assess if ownership rules are still necessary due to competition. No immediate outcomes or votes occurred, but it highlighted bipartisan interest in updating regulations before the 2026 midterm elections, with some lawmakers questioning the FCC's legal ability to modify certain caps without legislative action.
NAB President/CEO Curtis LeGeyt spoke at the hearing: “Without modernizing these ownership rules, local television news – the last bastion of truly local journalism in many communities – will suffer the same fate as thousands of local newspapers,” said LeGeyt. “Outdated ownership rules also limit broadcasters’ ability to provide viewers access to marquee sports and entertainment. Instead of subscribing to a new streaming service every time they want to watch a game, viewers overwhelmingly prefer to watch sports on broadcast TV.
“However, keeping broadcasters artificially small makes it harder to compete for increasingly expensive sports rights against our unregulated streaming rivals,” LeGeyt continued. “Broadcasting’s share of viewership is already less than half our streaming competitors. This decline will continue as premium sports content further migrates behind streaming paywalls.”
Broadcasters like the NAB argue for relaxing or repealing these caps to enable consolidation, allowing radio groups to achieve economies of scale, attract more investment, and better compete with digital audio platforms (e.g., podcasts, streaming services like Spotify). This could lead to increased spending on local content, news, and emergency alerts, potentially stabilizing struggling stations amid declining ad revenues.
However, critics contend that easing rules could spike mergers, reducing ownership diversity and local voices, especially in smaller markets where one company might dominate. For AM radio, lifting FM/AM subcaps might accelerate migration to FM by large owners, further marginalizing AM stations, though some see opportunities for niche AM programming. Overall, any overhaul could reshape radio by fostering larger networks but risking homogenized content and job losses in local operations. The FCC is expected to propose changes in 2026, with public comments influencing the final decision.