FCC Launches Proceeding to Modify Broadcast Ownership Rules

As the Government prepares to shut down, at today’s meeting (September 30^th), the FCC commenced a rulemaking proceeding seeking comments on proposed changes to the radio and TV broadcast ownership rules.  According to the FCC:

“The Notice of Proposed Rulemaking would advance the Commission’s 2022 regulatory review of its broadcast ownership rules and seek public comment on whether, given the current state of the media marketplace, it should retain, modify, or eliminate any of these rules.”

The rule making is soliciting comments on all remaining broadcast ownership rules.  Specifically, the Commission is examining:

Local Radio Rule

• Seek comment on whether the Local Radio Ownership Rule, which limits the total number of radio stations that may be commonly owned in a local market, continues to be necessary in the public interest as the result of competition.

• Seek comment on possible modifications of the rule’s operation, including the relevant product market, market size tiers, and numerical limits.

• Seek comment on whether to retain, modify, or eliminate the separate limits (or subcaps) that restrict the number of radio stations a licensee can own in the same service (AM or FM) in a single market.

Local Television Rule

• Seek comment on whether the Local Television Rule, which limits a single entity from owning more than two television stations in the same local market remains necessary in the public interest as the result of competition.

• Seek comment on possible modifications of the rule’s operation, including the relevant product market, the numerical limit, and consideration of television market characteristics.

Dual Network Rule

• Seek comment on whether the Dual Network Rule, which prohibits a merger between or among the Big Four broadcast networks (ABC, CBS, FOX, and NBC), remains necessary in the public interest as the result of competition, and if not, whether to modify or eliminate the rule.

We anticipate that the FCC will look to relax these rules.  All of the rules were enacted before the existence of competition from digital services.  The time has come to recognize that the competitive environment has changed and relaxes these restrictive rules.

You can see the FCC’s Notice of Proposed Rulemaking here.