Multiple Ownership Rules

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It was just a few weeks ago when we posted our article talking about how June would bring a Republican majority to the FCC, speculating as to what deregulatory issues would be on the Chairman’s agenda.  Last Wednesday morning, I was on a video call with a broadcaster’s association’s Board of Director, passing along the same message.  Only minutes after I left that call, the news came Republican Commissioner Simington had announced his departure from the FCC effective last Friday.  Shortly thereafter, Commissioner Starks, the Democrat whose planned departure was to have given the Republicans a majority on the FCC, announced that last Friday would also be his departure date.  Suddenly, the FCC had only two Commissioners – one Democrat and one Republican – not even enough for the quorum necessary to do business in the normal course.  So thoughts of quick action on changes to the FCC’s ownership rules or on the many deregulatory Delete, Delete, Delete proposals that have been made seem to be on hold for the moment.  What is likely to happen?

First, it must be remembered that already pending is the nomination of Republican Olivia Trusty to the Commission seat that was vacated when Jessica Rosenworcel left her role as Chair of the FCC upon the change in administration.  Trusty has had a confirmation hearing and was approved by the appropriate Senate committee. All that stands between her and a seat on the FCC is approval by the full Senate – which would then provide the FCC with a quorum and a Republican majority.  But, watch as there could be delays in that confirmation process. Continue Reading FCC Loses Two Commissioners and a Quorum – What Does It Mean for Broadcasting?

  • FCC Commissioners Simington and Starks both announced that they were leaving the FCC as of June 6.  Starks stated at
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At Thursday’s FCC monthly open meeting, FCC Commissioner Geoffrey Starks announced that it would be his last meeting.  In March, he said that he would be departing soon, so the announcement that he would be gone before the FCC’s next scheduled open meeting on June 26 was not a surprise.  But as one of two remaining Democratic FCC Commissioners, even though the nomination of Olivia Trusty as the third Republican Commissioner has not yet been approved by the Senate, this announcement guarantees that Chairman Carr will have a Republican majority in time for next month’s open meeting.  With that majority, what issues affecting broadcasters might be affected?

Probably highest on the list is the broadcast ownership rules.  We noted in our recent article on the ownership rules that the FCC had not yet released a Notice of Proposed Rulemaking teeing up the issues that it expected to address in its 2022 Quadrennial Review – even though that review needs to be completed this year so that the 2026 review can begin on time.  As both Chairman Carr and Republican Commissioner Simington have recently been quoted as acknowledging that the current ownership rules are antiquated and in need of change to allow local broadcasters to compete with the plethora of new digital competition, a Republican majority may well make it possible for a proposal for aggressive relaxation of the rules to be advanced soon – something that might not have been possible had the Commission been locked in its partisan deadlock.Continue Reading A Republican FCC Majority Coming Soon as Commissioner Starks Announces Imminent Departure – What Broadcast Issues May be Affected? 

  • President Trump signed an Executive Order purporting to end federal subsidies for NPR and PBS provided through the Corporation for
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In many of the comments filed by broadcasters and their representatives in the FCC’s “Delete, Delete, Delete” docket, high on the list of rules suggested for deletion were the local broadcast ownership restrictions.  Changes in these rules were also a subject high on the discussion list in Las Vegas at the recent NAB Convention.  With all of the interest in changes to these rules, we thought that we should spend a little time looking at the possible routes by which FCC action on changes to the ownership rules could occur.

First, it should be noted that the local ownership rules are different from the national cap on television ownership which, as we recently wrote, the NAB has asked the FCC to abolish.  A review of the 39% national audience cap was started in the Pai administration at the FCC (see our article here), and the NAB is seeking to revive and resolve that proceeding, arguing that national caps are no longer necessary given the competition from so many other national video services that are unrestrained by any ownership limitations.Continue Reading Local Broadcast Ownership Rules – How Could Ownership Deregulation Play Out? 

  • The FCC announced that May 23 is the effective date of its January Order increasing its application fees, including those
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  • The US Court of Appeals for the Fifth Circuit issued a decision that raises significant questions about the FCC’s ability
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  • The NAB and SoundExchange filed with the Copyright Royalty Board a proposed settlement of the pending litigation over the 2026-2030
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The NAB last week submitted a letter asking the FCC to quickly repeal the 39% cap on national ownership of television stations.  This cap precludes the ownership by one company or individual of an attributable interest in television stations capable of reaching more than 39% of the television households in the United States.  The rule has been in place since 2004.  When adopted, over-the-air television was still analog, so the cap included a UHF discount as, at the time, UHF stations were deemed inferior to those that transmitted on VHF channels.  While the transition to digital reversed that relationship as UHF is now seen as preferable, the discount remains, counting UHF stations as reaching only half the households reached by VHF stations.  So, were an owner to have exclusively UHF stations, it could theoretically own stations reaching 78% of TV households.

Yet even 78% is not 100%, and any cable or satellite channel, or even any broadcast program provider like a network or syndicator, and any online video provider, has no limit to the number of households that it can be theoretically reach.  The NAB argues that this is fundamentally unfair and impedes competition in today’s video marketplace.  While some might argue that most of these other services are not free, requiring a subscription to an MVPD or a connection to the internet, practically speaking, in today’s world, many of these competitive channels have as much practical reach as do local broadcast TV stations.  Only the delivery method is different.Continue Reading NAB Requests the End of the 39% Cap on Nationwide Television Station Ownership – Looking at the Issues