local radio ownership rules

Subscribe to local radio ownership rules via RSS

We would normally provide you with some of the regulatory developments of significance to broadcasters from the past week, with links to where you can go to find more information as to how these actions may affect your operations.  But, as the government shutdown has drastically limited activity at the FCC, and as Congress did…

  • The FCC released a Public Notice announcing that, effective 12:01 AM on October 1, the agency will “suspend most operations”
…
…

Every four years, the FCC is supposed to conduct a review of its local broadcast ownership rules – the rules that govern the number of radio or television stations in a market in which one person or entity may have an “attributable” interest (some form of control rights defined under very complicated FCC attribution rules). The FCC is supposed to do this regular assessment of these local ownership rules to determine if they continue to be necessary in the public interest as a result of changes in competition.  The last quadrennial review, which commenced in 2018, was not completed by the FCC until December 2023 when it released an order that, for all practical purposes, concluded that there had been no changes in the competition faced by broadcast stations.  In the 2023 order (which we summarized here), the Commission actually tightened the rules for television stations, and it left the rules for radio unchanged despite the significant competition from digital media that had exploded since the last review was completed (see for instance our article here on the explosion of digital competition and its effect on over-the-air radio).  Appeals of the 2023 decision were only resolved in July (see our article here).  With the decision on the appeal complete, the FCC Chair this week announced that the next Quadrennial Review would now begin in earnest. 

The next review, the 2022 Quadrennial Review, was actually started in late 2022 (even before the 2018 review was completed) with the release of a Public Notice (see our article here).  But that Public Notice only asked very general questions about the state of competition in the broadcast industry, and the previous administration took no further action after releasing the Public Notice.  This week, FCC Chairman Carr, in his blog post setting out the issues to be considered at the FCC’s September 30th regular monthly meeting, stated that a 2022 Quadrennial Review Notice of Proposed Rulemaking would be on the agenda.  That announcement was followed with a public draft of the NPRM that will be considered at the September 30 meeting.  While it is possible that some changes may be made in the draft, in practice these drafts are generally adopted with few significant modifications.  Thus, we now have an idea of the issues to be considered in the 2022 Review.Continue Reading FCC Begins Quadrennial Review of its Local Ownership Rules for Radio and TV – Should the FCC Relax Broadcast Ownership Rules Based on Competitive Factors?

The Eighth Circuit Court of Appeals handed down its decision this week on the appeals of the FCC’s December 2023 decision following its 2018 Quadrennial Review (see our summary here) to leave the local radio and television ownership rules largely unchanged.  The Court’s decision was a victory for television owners, declaring the restrictions on the ownership of two of the Top 4 TV stations in any market to be contrary to the record and ending that restriction unless, within 90 days, the FCC can show that there was in fact record evidence supporting the restriction.  The Court also provided a more sweeping victory to the industry, concluding that the Quadrennial Review proceeding was inherently a deregulatory one.  In the Quadrennial Review process, the FCC can retain the rules that it has or relax them based on the effects of competition.  It cannot tighten them, leading the Court to throw out the one new aspect of the 2023 decision – expanding the prohibition on a company acquiring a second TV network affiliation and moving it to a digital subchannel or an LPTV station (when the rule had previously applied only to moving that affiliation to a full-power station.)

While this decision gives the TV industry much to celebrate, the decision was not a total victory for the broadcast industry.  The radio rules remain unchanged, as do the TV limits that do not allow an interest in more than 2 TV stations in any market.  The Court had been urged to find that these rules were no longer supportable in light of competition from digital media.  The Court looked at the statutory requirement that the Commission review these rules every 4 years in light of competition, and decided to defer to the FCC’s policy judgment that the proper scope of competition to be analyzed at this time was the competition within the broadcast industry itself.  The Court deferred to the FCC’s findings that broadcasting’s unique local nature and its broad-based advertising reach (as opposed to the individually-targeted ads of digital competitors) made it different from digital media.  Therefore, the Court upheld the FCC’s findings that broadcasting was still a unique marketplace where the public interest required limits on how many stations one party can own in a market.  Certainly, most broadcasters, particularly in radio, would be surprised to know that they do not compete with digital – but that was the effect of the Court’s decision.Continue Reading Court of Appeals Throws Out TV Top 4 Ownership Prohibition – What is Next for Radio and Other Local TV Ownership Rules?

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 US Court of Appeals for the Eighth Circuit has scheduled for March 19 the oral argument on the appeals
…

With the election over, broadcasters and their Washington representatives are now trying to decipher what the next administration will have in store at the FCC and other government agencies that regulate the media.  Already, the DC press is speculating about who will assume what positions in the government agencies that make these decisions.  While those speculations will go on for weeks, we thought that we would look at some of the issues pending before the FCC affecting broadcasters that could be affected by a change in administration.

There are two issues presently before the courts where the current Republican Commissioners dissented from the decisions which led to the current appeals. The FCC’s December 2023 ownership decision (see our summary here) is being appealed by both radio and television interests, arguing that the FCC did not properly relax the existing ownership rules in light of competition from digital media, as required by Congress when it established the requirement for Quadrennial Reviews to review the impact of competition and assess whether existing radio and TV ownership rules remain “necessary” in the public interest.  While briefs have already been filed in that case, it will be interesting to see how the new administration deals with the issues raised, as both sitting Republican Commissioners dissented, saying that the FCC should have considered digital competition in substantially relaxing those rules (see Carr dissent here and Simington Dissent here).  Even if the change in administration does not change the Commission’s position in court, the 2022 Quadrennial Review has already been started (see our article here), so a new administration already has an open proceeding to revisit those rules.Continue Reading How FCC Regulation of Broadcasters May Change in a New Administration  – Looking at the Pending Issues

While we normally publish a weekly summary of regulatory actions relevant to broadcasters, the weekend before last we said that we would take the holiday weeks off – and return with a summary on January 7 of all that occurred over the break – unless there was news in the interim.  Well, there has been…