FCC Proposes Changes to Media Ownership Rules

RADIO ONLINE | Thursday, October 26, 2017

FCC Chairman Ajit Pai issued proposed changes to modernize media ownership rules "to clear a path for more competition, innovation and investment in the media sector." The Commission is seeking to eliminate the Radio/Television Cross-Ownership Rule and the Newspaper/Broadcast Cross-Ownership Rule, while leaving the current Local Radio Ownership Rules intact. The rules are expected to be considered by the Commission at its November 16 Open Meeting.

"We want to modernize our rules in order to better reflect today's marketplace and clear a path for more competition, innovation, and investment in the media sector," said Pai.

Radio/Television Cross-Ownership Rule
Current rule prohibits an entity from owning more than two television stations and one radio station in the same market, unless the market meets certain size criteria. Specifically, if at least 10 independently owned media voices would remain in the market post-merger, an entity may own up to two television stations and four radio stations. If at least 20 independently owned media voices would remain in the market post-merger, an entity may own either: (1) two television stations and six radio stations, or (2) one television station and seven radio stations. In all instances, entities also must comply with the local radio and local television ownership limits. The Proposed Action would eliminate the rule. Separate Local Radio Ownership and Local Television Ownership Rules would continue to restrict the number of radio stations and television stations any entity could own in a market.

Newspaper/Broadcast Cross-Ownership Rule
Current rule prohibits common ownership of a daily print newspaper and a full-power broadcast station (AM, FM, or TV) if the station's service contour encompasses the newspaper's community of publication. The Proposed Action would eliminate the rule entirely.

Local Radio Ownership Rule
Under the current rule, the total number of radio stations that may be commonly owned in a local radio market is tiered, depending on the total number of full-power commercial and noncommercial radio stations in the market. For example, in markets with 45 or more radio stations, an entity can own no more than 8 commercial radio stations, no more than 5 of which may be in the same service (AM or FM). The Proposed Action is no change.

Shared Service Agreements
No change. SSAs must be placed in a broadcast station's online public file.

In response to FCC Chairman Ajit Pai's proposal, NAB Executive VP/Communications Dennis Wharton said, "NAB strongly supports Chairman's Pai plan for modernizing broadcast media ownership rules. For 40 years, policymakers and the courts have blessed countless mega-mergers among national telco, cable and satellite program giants, while at the same time blocking broadcast/newspaper or radio/TV combinations in single markets.

"This nonsensical regulatory approach has harmed the economic underpinning of newspapers, reduced local journalism jobs, and punished free and local broadcasters at the expense of our pay TV and radio competitors. We look forward to rational media ownership rules that foster a bright future for broadcasters and our tens of millions of listeners and viewers."