NAB Urges FCC to Modernize Outdated Ownership Rules
| RADIO ONLINE | Friday, June 15, 2018 |
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 NAB |
NAB is urging the Federal Communications Commission to modernize outdated radio ownership rules as part of its quadrennial media ownership review proceeding planned for later this year. The trade group believes the existing radio ownership limits are not needed to promote competition in today's audio marketplace and, in fact, impede terrestrial radio stations' ability to compete and serve their local communities.
NAB's request comes at a time of unprecedented consolidation among radio's competitors in the media world. In a letter to the Commission, NAB noted that radio ownership rules have remained static since 1996, a date that preceded the introduction of streaming services like Pandora and Spotify, along with SiriusXM satellite radio, podcasting, Facebook and YouTube.
But in the digital audio world of 2018, local radio stations, especially AM, face intense competition for listeners and advertisers, NAB wrote. For free over-the-air (OTA) radio to remain as a meaningful competitor to audio sources un encumbered by any comparable regulatory restrictions, radio NAB says broadcasters must be able to compete on a level playing field. This fact is particularly salient in smaller markets, with more limited available advertising revenue.
During its review, NAB wrote the Commission may well find that ownership restrictions on broadcast radio stations alone no longer promote competition in the audio marketplace or serve listeners who rely on free OTA radio services. If the Commission ultimately main tains radio-specific ownership restrictions, however, it must recognize that radio stations compete against an array of other outlets and reframe its approach to ownership regulation. NAB urges the Commission to consider the following approach:
- In the top 75 Nielsen Audio markets, allow a single entity to own or control up to eight commercial FM stations, with no limit on AM ownership.
- To promote new entry into broadcasting, an owner in these top 75 markets should be permitted to own up to two additional FM stations (for a total of 10 FMs) by participating in the FCC's incubator program.
- In Nielsen markets outside of the top 75 and in unrated markets, there should be no restrictions on the number of FM or AM stat ions a single entity may own or control.
As part of the FCC's quadrennial media ownership review, NAB will be filing more comments along with supporting evidence that justifies radio ownership modernization.
