New FCC boss could unleash biggest local TV shakeup in decades

The appointment of Brendan Carr as incoming FCC chairman signals a potential seismic shift in the broadcast television landscape. With his track record of advocating for deregulation and his stated intention to revisit ownership limits, the industry appears poised for consolidation.

During his tenure as commissioner, Carr has argued that current ownership restrictions hamper broadcasters’ ability to compete in an increasingly digital marketplace.

“It is past time for the FCC to confront the harms that its own media ownership policies have caused,” Carr wrote in 2023, setting the stage for what could become a fundamental restructuring of the broadcast industry.

“For decades, the FCC prohibited someone from owning a newspaper and a broadcast station in the same market. This restriction was born in an era when newspapers and broadcasters were the only games in town for local news and information. Back then, Americans got their news in the morning when a newspaper clunked onto the front doorstep and in the evening when they tuned into one of three nightly newscasts. But over time, the FCC failed to acknowledge the titanic changes taking place in the news business, particularly with the rise of the Internet,” wrote Carr.

The numbers tell part of the story. Under current regulations, no single entity can own stations reaching more than 39% of U.S. households or control more than one of the four largest stations in any market. Established in a pre-internet era, these rules face mounting pressure from industry leaders who see consolidation as crucial for survival.

Station groups aren’t being subtle about their expectations.

Sinclair CEO Chris Ripley, speaking to analysts after the election, described the upcoming regulatory environment as lifting “a cloud over the industry.”

“It does feel like a cloud over the industry is lifting here, and we do think some much needed modernization of the regulations will be forthcoming, and we intend to, as we’ve always said, or consistently over the last few years, we intend to participate in that, in the M&A in the industry, be it as a buyer as a seller or a merger partner.”

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Nexstar’s Perry Sook publicly praised Carr’s appointment, highlighting the nominee’s “understanding of local broadcasters’ needs.”

The timing of this leadership change coincides with the FCC’s ongoing Quadrennial Review process. The 2022 review remains unfinished and the 2026 review will occur midway through the new administration. These regulatory checkpoints provide formal opportunities to reshape ownership rules that have defined the industry for decades.

However, this push toward consolidation raises legitimate concerns.

The Internet and Television Association warns that allowing multiple station ownership within markets could inflate retransmission fees. Public interest groups point to potential impacts on viewpoint diversity and local news coverage.

The economic argument for consolidation centers on scale.

Local broadcasters face competition not just from cable networks but from streaming services, social media platforms, and digital advertising giants. Station groups argue that increased operational efficiency through consolidation would enable more investment in local news and programming–but so far the industry has mainly seen reductions and layoffs.

History suggests caution. Previous waves of media consolidation have sometimes led to reduced local news coverage and standardized content across markets. 

Just this week, Tegna consolidated its station marketing efforts, laying off roughly 100 marketing managers and creating seven regional marketing hubs to create promos for stations. Gray has also undergone layoffs (despite earning $930 million in revenue during its third financial quarter), even cutting news at WAGM in Presque Isle, Maine, and  WYMT of Hazard, Kentucky.

“Despite these staffing changes, we will continue to produce local newscasts with local journalists and local meteorologists in all of our existing local news markets, including small markets,” Gray Media noted during its Q3 earnings call. 

The challenge for the incoming FCC will be balancing the industry’s economic concerns with its mandate to serve the public interest.

Curtis LeGeyt, president of the National Association of Broadcasters, frames the issue as “leveling the playing field.” But the playing field in question extends beyond traditional broadcasting. 

“We are competing, both television and radio, in an environment where we’re competing for audience and advertising dollars with players all across the media landscape. – there is a real awareness of the need for local broadcasters to be able to compete. And in some cases, having increased scale is going to be a part of that.”

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Today’s media landscape includes streaming services producing local news, digital-first news operations and social media platforms serving as primary news sources for many Americans.

As the industry approaches this crossroads, broadcast executives must consider whether consolidation alone addresses local television’s fundamental challenges. Is it truly an issue of scale? Or is it an issue of product innovation?

While larger broadcast groups might achieve operational efficiencies, the core challenge remains: delivering compelling local content to audiences who increasingly consume media through non-traditional channels. Mergers and acquisitions may strengthen balance sheets, but they don’t automatically solve the innovation puzzle.

The coming regulatory environment under Carr’s leadership will likely enable significant industry consolidation. However, the more pressing question for local television isn’t whether stations can merge, but whether they can evolve. The future of broadcasting may depend less on ownership structures and more on reimagining what local television means in a digital-first world.