The Federal Communications Commission (FCC) has decided to relax the TV station ownership cap in an attempt to help local broadcasters consolidate and compete with streaming giants.
| PULSE POINTS |
❓ WHAT HAPPENED: The Federal Communications Commission (FCC) has voted to relax limits on TV station ownership. 📺 DETAIL: In a 2-1 vote, the FCC has allowed companies to own local stations covering more than 39 percent of households in the United States. The FCC also voted to allow companies to own more than two stations in a single market if deemed in the public interest. The vote was held on Thursday. “Viewpoint diversity” will reportedly be factored in when determining public interest. The purpose of removing the cap is to allow broadcasters to achieve scale and compete with broadcasting giants like Netflix. The cap removal was also framed as a way to help local journalism expand. The change to the cap comes as traditional television faces declining viewership and revenue due to the popularity of streaming, which accounts for over 40 percent of all viewership, according to Nielsen, a major audience research firm. “Local broadcasters are struggling in terms of audience and revenue, and this plan could give them some needed relief,” said Jeff McCall, professor of communications at DePauw University. 💬 KEY QUOTE: “In my view, if you care about trusted sources of local news and information, you have to care about the future of local TV stations. They are the economic engines that produce the paychecks for so many of the local journalists that remain in the business. So how can the FCC maximize the odds that those institutions continue to survive and hopefully thrive into the future? To start, we should stop hamstringing this one segment of the broader market with outdated restrictions,” said FCC Chairman Brendan Carr. 🎯 IMPACT: The represents an overturning of the 39 percent ownership cap which was established in 2004, over 20 years ago. This will allow local media to consolidate into larger entities capable of staying competitive. The decision is expected to reshape the broadcasting industry. |
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