The National Association of Broadcasters has reiterated its call for the FCC to update outdated radio ownership caps, arguing that today's broadcasters compete primarily against unregulated streaming services and digital giants rather than other radio stations.
In comments filed in the FCC’s biennial communications marketplace review (GN Docket No. 26-78), the NAB says the current rules place radio on a “playing field fundamentally tilted against them.”
Broadcasters remain subject to strict ownership limits and regulations while facing largely unregulated competitors for listeners and advertising dollars. The group urges the Commission to relax local radio ownership restrictions to help level the competitive landscape.
Radio now operates in a blended audio-video ecosystem where consumers easily switch between services, according to the filing. Supporting data shows rapid changes in listener behavior: Edison Research indicates 61% of all audio listening now occurs on digital devices, compared to just 28% through traditional AM/FM receivers.
Local advertising dollars have also shifted dramatically toward digital platforms. Borrell Associates estimates show local digital ads now make up roughly 70% of all local ad spending, with most revenue going to companies like Google and Meta. Overall radio advertising revenue — including both over-the-air and digital — has dropped 30.1% since 2007, according to BIA data.
The NAB contends these financial pressures make strict ownership caps unsustainable. Broadcasters need greater scale and flexibility to compete effectively and sustain free over-the-air service, the group says.“
To date, the Commission has failed to reckon with how that robust competition impacts broadcast stations and their ability to offer over-the-air services free to the public,” the NAB stated.