FCC opens broadcast ownership rules to scrutiny amid market transformation

The Federal Communications Commission voted Sept. 30 to launch its quadrennial review of broadcast ownership regulations, asking whether decades-old rules limiting station consolidation remain relevant as streaming services and digital platforms reshape how Americans consume audio and video content.

The notice of proposed rulemaking examines three core regulations: the Local Radio Ownership Rule, which caps the number of stations a single entity can own in a market; the Local Television Ownership Rule, which generally limits ownership to two stations per market; and the Dual Network Rule, which prevents mergers among ABC, CBS, Fox and NBC.

The commission seeks comment on whether these rules continue to serve the public interest or instead prevent broadcasters from achieving operational efficiencies needed to compete with digital alternatives.

Chairman Brendan Carr framed the review as essential to keeping regulations aligned with market realities.

“The old regulatory silos have been breaking down for quite some time, so the commission must move forward with a keen understanding of today’s converged markets,” Carr said in a statement. He added that the commission intends “to take a fresh approach to competition by examining the broader media marketplace, rather than treating broadcast radio and television as isolated markets.”

The inquiry follows a July ruling by the U.S. Court of Appeals for the Eighth Circuit, which vacated the commission’s retention of the “top-four” prohibition barring common ownership of two top-rated television stations in a market. The court found the FCC acted arbitrarily in its 2018 review and emphasized the statute’s intent to reduce regulation where competition has increased.

Commissioner Anna M. Gomez issued a dissenting statement warning against consolidation, citing recent incidents where large station groups made programming decisions that prioritized corporate interests over local communities.

She quoted correspondence from a viewer in Eugene, Oregon, who noted that four of five local news stations are commonly owned: “This means that although there are five stations with local news programs on air each day there [are] really only two choices. I believe that limits the points of view available when it comes to local news stories.”

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“This precise example neatly encapsulates the danger of allowing vast and unfettered media consolidation,” Gomez wrote. “Financial gains for corporate giants is not a basis to abandon our, and broadcasters’, obligations to serve the public interest.”

She emphasized the continued importance of local journalism: “What we all need to understand is that even when you get your news on your phone as opposed to from a local broadcast, the source of that news is very often a local broadcast journalist that does the hard work, day in and day out.”

The notice asks whether the commission should expand its market definitions to include satellite radio, streaming audio services, online video platforms and social media when assessing competition. Historically, the FCC has treated broadcast radio and television as distinct markets, but industry commenters argue this approach ignores how audiences now access content across multiple platforms.

For radio, the commission seeks input on whether existing ownership caps, which range from five to eight stations depending on market size, adequately balance consolidation benefits against viewpoint diversity concerns. The notice also questions whether separate limits for AM and FM stations remain necessary.

Regarding television, the inquiry examines whether the two-station limit reflects current competitive pressures from streaming services and whether broadcasters need greater scale to maintain local news operations. The notice notes that retransmission consent fees from cable and satellite providers now account for approximately 41% of station revenue, compared to 50% from advertising.

The Dual Network Rule review considers whether the four major broadcast networks maintain unique market positions that justify preventing their merger, or whether online video distributors and other platforms have diminished their distinctiveness in programming and advertising.

Commissioner Olivia Trusty supported moving forward with the review despite the approaching 2026 cycle.

“The marketplace has been changing rapidly, driven by technological innovation and evolving consumer preferences,” Trusty stated. “The growth of digital competition has brought new opportunities for consumers to benefit from more personalized viewing options. But it also requires us to carefully reassess whether our rules reflect today’s realities and allow broadcasters to compete effectively in this dynamic environment.”

Carr stated the commission’s “primary goal is to promote investment in local broadcasters who provide trusted news and information vital to the communities they serve.” He added that the review will “consider whether public safety, national security, and other public interest goals should be part of this review process.”

The commission initiated this review in December 2022 with a public notice seeking initial comments. The notice of proposed rulemaking will establish a 30-day comment period and 60-day reply comment period following Federal Register publication.