Broadcast ownership groups argue survival requires consolidation amid streaming competition

Major television station owners are mounting an intense lobbying campaign to eliminate federal ownership limits they say threaten the survival of over-the-air broadcasting, as the FCC prepares to revisit rules that have remained unchanged for more than two decades.

In a series of filings submitted August 4, broadcast companies ranging from Sinclair and Nexstar to smaller groups like Trinity Broadcasting Network argued the 39 percent national audience reach cap has become obsolete in an era dominated by streaming platforms and tech giants with unlimited growth potential.

The National Association of Broadcasters characterized the situation as urgent in its 29-page submission, stating that “removing the rule is now an emergency for TV broadcasting.” The trade group argued that the current restrictions create a “vicious circle” that prevents stations from effectively competing against unregulated competitors like YouTube, Netflix and Amazon Prime Video.

NAB calls ownership limits ’emergency’ threat in the way of further consolidation

Competitive landscape shifts dramatically

The filings paint a picture of an industry under siege from multiple directions.

Nielsen data cited by several companies shows streaming services captured 46 percent of total television viewing time by June 2025, while broadcast television fell to just 18.5 percent, marking the first time broadcast viewing dropped below 20 percent.

Sinclair noted that just two streaming platforms, YouTube and Netflix, now command a larger combined audience share than all broadcast television stations combined.

Meanwhile, digital advertising has begun overtaking traditional local television advertising, with tech platforms capturing an increasing share of revenue that once sustained local newsrooms.

“The 30-year-old ATSC 1.0 standard places broadcasters at a technological disadvantage compared to other content and video delivery platforms,” Gray Media explained in an ex parte filing, highlighting how outdated broadcast technology hampers their ability to compete for advertising dollars.

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The ownership cap, established when the media landscape looked radically different, now prevents broadcast groups from achieving the scale their competitors enjoy without restriction.

Netflix, Amazon Prime Video, YouTube TV and other streaming services can reach 100 percent of American households, while broadcast companies remain artificially constrained at 39 percent.

Stakes rise for local journalism

Station owners consistently framed their arguments around preserving local news and public interest programming that streaming services don’t provide.

Nexstar, which operates in 42 markets, noted it produces 2,500 hours of local news programming weekly and employs approximately 3,000 newsroom staff, including 1,200 journalists.

The Four Affiliates Associations, representing more than 700 stations affiliated with ABC, CBS, Fox and NBC, warned that current restrictions prevent broadcasters from achieving economies of scale necessary to fund local journalism. They pointed to data showing a 75 percent decline in local journalists since 2002, leaving more than 1,000 counties without equivalent coverage of even one full-time local journalist.

The E.W. Scripps Company made a broader argument about the rule’s current impact, contending the cap now “harms localism by preventing local broadcast station owners from competing on a level footing both with national networks and with an increasing array of unregulated competitors.”

This reflects a fundamental shift in how broadcasters view the ownership limits – once seen as protecting local stations from network dominance, now viewed as handicapping them against tech platforms with unlimited reach.

Fox Television Stations, which operates 29 stations including outlets in 14 of the top 15 markets, emphasized that network-owned stations produce more local news than independent competitors, approximately 60 hours per week compared to 19.5 hours for non-affiliated stations.

However, the industry’s emphasis on quantity of local news hours raises questions about audience demand and programming innovation.

While broadcasters tout producing dozens of hours weekly, it remains unclear whether local viewers need or want 90 hours of local news that largely repeats the same stories throughout dayparts and across broadcasts.

The local television news format has remained largely unchanged for decades, even as viewing habits have shifted dramatically toward on-demand and mobile consumption.

The companies argue that relaxing ownership limits would enable larger station groups to support smaller market operations that might otherwise become financially unsustainable. Yet critics might note that consolidation has often led to cost-cutting measures, shared resources across markets and standardized programming approaches rather than the kind of innovation that might better serve modern audiences seeking more targeted, relevant local information.

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Opposition groups challenge FCC ownership review, citing legal constraints and consumer harm

Several broadcasters specifically addressed concerns about media concentration, arguing that eliminating the cap would “enhance” rather than diminish localism by allowing successful operators to cross-subsidize news operations in smaller markets where standalone stations struggle financially. 

While it’s unclear what will happen in local markets, what is coming at the policy level is becoming increasingly clear.