House Assistant Democratic Leader Joe Neguse and Sen. Michael Bennet, both D-Colo., are urging FCC Chairman Brendan Carr to reject Nexstar’s proposed $6.2 billion purchase of Tegna (see 2508190042) because it will violate the current 39% national broadcast-ownership cap and “could have devastating consequences for” their state. Nexstar CEO Perry Sook said in September that he expected the FCC to act on the cap before year-end to allow the Tegna purchase to proceed (see 2509050058).
More consolidation among local broadcast stations is a must for survival, but beyond a change in ownership, it will also bring a change in how stations operate, station group owners said Wednesday at NAB’s annual New York City show. They also said the ATSC 3.0 transition needs a deadline for exiting 1.0 that the FCC will support.
The FCC’s draft further NPRM on ATSC 3.0 is seen by broadcasters as an indication of Chairman Brendan Carr’s good intentions toward the industry, but 3.0 opponents said the item highlights concerns about encryption, privacy and spectrum use.
A draft further NPRM proposing the relaxation of some FCC requirements for broadband labels is expected to be approved at the agency’s Oct. 28 meeting, but it isn’t yet clear how Commissioner Anna Gomez will vote on it.
As the FCC looks at revising or doing away with its dual network and local TV rules, MVPDs told us they're likely to object along familiar lines about broadcaster consolidation tipping the balance of power in retransmission consent negotiations. FCC commissioners unanimously approved a 2022 quadrennial review NPRM in September that asks whether the local TV and dual network rules remain necessary (see 2509300062).
FCC Commissioner Anna Gomez signaled that she's open to relaxing some broadcast-ownership rules, called for a clearly defined public interest standard, and again condemned FCC “censorship and control” efforts in her latest “First Amendment Tour” speech Thursday evening. “While one set of outlets is defunded, stripped of licenses or publicly admonished, others are quietly promoted and cleared of regulatory obstacles,” Gomez told a modest crowd at the University of Mississippi. The Trump administration’s goal “is not to reduce bias or to ensure balance, but to engineer a media environment that echoes the government's worldview.”
The regulatory structure that governs broadcasting “is an anachronism” and wouldn’t exist if it were a new technology introduced today, wrote Eric Fruits, a senior scholar for the International Center for Law & Economics, in a post Thursday for Truth on the Market. An emerging technology today wouldn't be subject to rules like retransmission consent, ownership caps and the public interest standard, he said. “The idea that a panel of three to five presidentially appointed FCC commissioners in Washington can better determine the ‘public interest’ than the public itself -- through its viewing choices in a competitive market -- is a relic of progressive-era central planning,” Fruits said. “In reality, the vague standard invites regulatory capture and rent seeking, where politically connected groups lobby the FCC to define the public interest in ways that benefit them, rather than the public at-large.”
The FCC voted unanimously Tuesday to seek comment on relaxing local broadcast-ownership limits, even as protesters at the crowded meeting called FCC Chairman Brendan Carr “the censorship czar” and he continued to deny that his recent comments about Jimmy Kimmel were a threat.
FCC authority to change the national TV ownership cap remains unclear, and anything the agency does is likely to end up challenged in court, agency Chief of Staff Scott Delacourt said Wednesday at a Media Institute event. He also waved off the idea that the end of Chevron deference significantly changes how the FCC will defend its actions in court. The commissioners will vote on kicking off the 2022 quadrennial review of broadcast-ownership rules at its meeting next week (see 2509090060).
The elimination of the broadcast TV national ownership cap would lead to higher prices for MVPD consumers and lower broadcasting viewership, said DirecTV in an ex parte filing posted Monday in docket 17-318. NAB's arguments that eliminating the cap won’t raise retransmission consent fees “is a curious position from an organization whose two biggest members seek to merge with the explicit goal of achieving ‘contractual revenue synergies,’” said DirecTV, referencing Nexstar’s proposed $6.2 billion purchase of Tegna.