digital media competition to radio

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Wasting no time following the reopening of the government, the FCC has published its Notice of Proposed Rulemaking in the 2022 Quadrennial Review in the Federal Register, setting December 17 as the deadline for initial comments on the questions asked by the FCC.  We summarized the issues raised by the FCC in our article here.  While the FCC will review the local radio ownership limits for television, following the prohibitions on owning two of the top 4 TV stations in a market being thrown out by the 8th Circuit Court of Appeals in July (see our article here), that FCC review will focus principally on whether the ownership limit of two TV stations in a market should be continued, or if one party should be able to own more. The 39% cap on national ownership of TV stations is being considered in a separate proceeding (see our discussion here).  The FCC will also look at the dual network rule, which currently forbids the common ownership of two of the top 4 TV networks.  With control issues seemingly settled for now at the networks, pressure to move on reform of that rule may have lessened.  Probably the biggest impact of the Quadrennial Review will be on radio, where the local ownership rules have remained unchanged since 1996, limiting one owner from owning more than 8 stations (only 5 of which can be FM stations) in even the biggest markets with more than 45 total stations. 

Radio’s role in the media marketplace has become more and more challenging over the last decade, as its traditional place in the car has been challenged by new audio entertainment options.  As those options proliferate, sounding and functioning  more and more like radio, they are becoming more accessible to the public and more and more popular with listeners.  Over-the-air radio now competes with streaming services, podcasts, satellite radio, and other audio media.  These changes in listening habits are coupled with a change in the advertising marketplace, as the digital media giants now take over two-thirds of the local advertising market that was once the province of radio, television and newspapers.Continue Reading December 17 Comment Date Set in 2022 Quadrennial Review Looking at Local Ownership Rules – What is at Stake, Particularly for Radio?

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?