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