FCC prepares to end national TV station ownership cap

The Federal Communications Commission signaled it will vote on Aug. 6 to repeal the longstanding cap on ownership of TV stations, replacing a limit that keeps owners from controlling stations in more than 39% of markets with a case-by-case review of transactions that might come before regulators.

“Today, national programmers can distribute their programming to 100 percent of the country — either through their own streaming services or through deals they cut with nationwide ‘virtual cable companies,’ like YouTube TV. The cap no longer constrains their control over distribution in this respect,” FCC Chairman Brendan Carr wrote in an op-ed published by Brietbart. “Nor does the cap limit other players in today’s media market. Cable channels like MS NOW can reach 100 percent of the country. Social media sites from Bluesky to X can reach 100 percent of the country. Netflix can reach 100 percent too. Same with podcasts and all other forms of digital content.”

A decision by the FCC to eliminate the cap might have immediate consequences. Nexstar, one of the largest owners of TV stations in the U.S., has been barred by a federal court from completing its recent acquisition of Tegna, a smaller TV station owner, on the grounds that the transaction would give Nexstar too much control over local TV properties across the country. Nexstar also owns national outlets like the CW broadcast network and the NewsNation cable-news outlet.

The decision will likely spur legal action. “This unlawful effort to hand control of the public airwaves to billionaire buddies of this administration will destroy local newsrooms, silence community reporting, and drive-up costs for the American families who depend on local stations for news and emergency alerts,” said Anna M. Gomez, a Democratic member of the FCC, who added: “Congress set the 39 percent national ownership cap in federal law, and only Congress has the authority to raise or eliminate it. The Commission cannot waive away that limit simply because these corporate behemoths want to get out from under it.”

Nexstar is in favor of the move. “The FCC’s decision to review the national television ownership cap is a welcome and long-overdue step toward bringing broadcast regulation into the modern media marketplace,” the company said in a statement. “These rules were last updated before Netflix streamed a single movie, before the first iPhone, and before Instagram existed, and they continue to single out local broadcasters based on a competitive landscape that disappeared with the VCR. No one would suggest limiting the reach of YouTube, Amazon, or CNN, yet local broadcasters are still forced to compete under rules written for a different century.”

A trade group representing TV stations applauded the initiative. The National Association of Broadcasters said it “applauds Chairman Carr and the FCC for moving forward with consideration of an order to eliminate the national television ownership cap. This reflects the understanding that decades-old ownership restrictions that apply only to broadcasters — and none of our competitors — are out of step with today’s media marketplace. The move, the organization said, “will empower local stations, ensuring they can better compete, invest and serve their communities with the most trusted and freely available news and information, premier sports and entertainment.”

The FCC said a decision to remove the cap did not represent an automatic approval of deals that might come before it in the future. “There may be transactions that would have exceeded the limits of the 39% national cap that do not promote the public interest and those will be denied,” the regulator said Wednesday. “On the other hand, there may be transactions that would have exceeded the cap that do promote the public interest and could gain Commission approval.”

One media company felt the decision was improper. “There is no doubt that the media landscape is changing rapidly. But the evidence shows that broadcaster consolidation leads to higher prices for consumers,” said Michael Hartman, chief legal officer at DIRECTV. “On the other hand, there is simply no evidence that greater national consolidation improves the quality of local programming or journalism. Broadcasting has always been grounded in serving local communities, and consumers deserve more investment in local news and diverse voices, not less.” Variety