NAB calls for broadcast ownership rule modernization following Senate FCC hearing

The National Association of Broadcasters said broadcast ownership rules need updating to reflect competition from streaming services and technology companies, issuing a statement following a Senate Commerce Committee oversight hearing with Federal Communications Commission leadership.

“Today’s hearing underscored what local broadcasters have been saying for years: the rules governing television and radio ownership are badly outdated and no longer reflect the competitive realities of today’s media marketplace,” said Curtis LeGeyt, NAB president and CEO.

FCC chair signals shift toward constraining ‘national programmers’ in ownership rule review

The statement followed testimony from FCC Chair Brendan Carr, who told the committee that the commission has not made a final decision on broadcast ownership caps but is examining ways to address the influence of national programming companies over local stations.

“One of the concerns that I have in media policy as a general matter is you’ve got the national programmers, Comcast, Disney and others, that are increasingly dominating with respect to those local broadcasters,” Carr said during the hearing. “So we want to make sure that they do have the ability to invest in local news gathering.”

LeGeyt said local broadcasters face regulatory constraints that do not apply to streaming services and technology platforms.

“Local stations are competing every day against unregulated global tech and streaming giants that face none of the constraints imposed on broadcasters,” LeGeyt said. “That imbalance makes it harder for stations to invest in local journalism, weather coverage, emergency information and the live sports programming that communities rely on.”

Broadcast industry’s top lawyer makes case for deregulation in NAB podcast

The NAB said calls to modernize ownership rules have come from broadcast companies, members of Congress and advocacy groups. Several senators, including Jerry Moran, have written to the FCC urging changes to ownership limits to help local broadcasters compete with digital platforms.

During the hearing, Moran asked Carr about the impact of ownership cap changes on local stations. Carr said the commission is weighing policies that could create incentives for investment in local news operations.

Advertisement

“If you look at local newspapers, they’ve been shutting by the thousands all across the country,” Carr said. “And so if we care as a public interest matter about local news and local reporting, I think we have to start to look at policies that can create more incentives for investment there.”

Carr indicated the ownership cap review may focus on limiting the control that national programming companies have over affiliate operations rather than simply adjusting numerical limits on station ownership.

“We’re looking at ideas for that,” Carr said when asked about empowering local stations to air more locally produced content during evening hours currently dominated by network programming.

What does it mean if the FCC isn’t independent?

LeGeyt said the NAB will work with Carr on modernizing the rules. “We appreciate Chairman Carr’s willingness to confront these issues head-on and his recognition that policymakers have the power to modernize the rules before more local voices are lost,” LeGeyt said.

The FCC opened a proceeding on broadcast ownership rules but has not proposed specific changes. Commissioner Anna Gomez said during the hearing that she has concerns about consolidation reducing competition and driving up consumer costs.

“I am concerned that the level of consolidation in this country is actually reducing the incentives that lead to lower costs for consumers,” Gomez said.