US agency removes cap on local TV station ownership
Many critics argue the move will lead to excessive market power among station owners and spark industry consolidation.
On Thursday, the US Federal Communications Commission (FCC) voted to remove the cap limiting local TV station owners from reaching over 39% of US TV households. FCC Chair Brendan Carr stated that the move will aid local broadcasters in their struggle for survival, offering them more avenues to secure capital and generate revenue.
The FCC's sole Democrat, Anna Gomez, argued that the proposal is illegal and contended that only Congress can lift the cap. Critics argue that the decision will yield excessive market power among station owners. The FCC has restricted local broadcast station ownership since 1941, with the most recent increase in the ownership cap to 39% in 2004.
Carr emphasized that the change aims to stop "hamstringing" local broadcasters, considering the decline of local newspapers in recent years. The new rule will examine TV company mergers exceeding 39% individually to determine their public interest. Gomez expressed concern that the decision could encourage a surge of transactions, ultimately granting more control over public airwaves to a select few companies, potentially favoring content that aligns with the current administration.
Carr believes this change will enable local TV station owners to invest more in local programming and bolster their bargaining power against national networks that he claims hold too much influence. In March, the FCC approved a $3.54 billion sale of local TV station owner Tegna to Nexstar, despite objections from Democratic-led states, which would expand Nexstar's presence to cover 80% of US TV households.
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