The National Association of Broadcasters (NAB) is actively campaigning for changes in TV station ownership rules. They argue that the current federal regulation, which prohibits the common ownership of top TV stations in a market, is outdated.
Recently, NAB attorneys met with an aide to Jessica Rosenworcel, Chair of the Federal Communications Commission (FCC), to push for a more market-driven approach to ownership. This meeting, held on November 30, was followed by a detailed letter on December 1, emphasizing their stance.
Urgent Call for Deregulation: NAB’s letter to the FCC outlined their belief that the longstanding ownership restrictions no longer make sense in the current competitive landscape of video and advertising markets. The organization specifically criticized the FCC’s top-4 rule, which limits a single entity from owning more than one of the four highest-rated TV stations in a market. Although the FCC has considered waivers for this rule under certain conditions, NAB insists that the rule is too restrictive, especially in smaller markets with fewer stations.
Shared Services Agreements: The NAB also highlighted the existence of Shared Services Agreements among TV stations. These agreements, they argue, effectively create top-four combinations, bypassing the intent of the rule without formal license transfers.
Opposition from the Pay-TV Sector: The letter also addressed concerns from the pay-TV industry. These stakeholders are worried that consolidation in the broadcast TV industry could lead to higher carriage fees and more aggressive negotiation tactics, including signal blackouts, from TV station owners.
Financial Implications: According to S&P Global, TV station owners earned substantial revenues from retransmission consent fees, totaling $14.46 billion in 2022.
NAB’s Role and Mission: On its website, the NAB describes itself as a primary trade association for broadcasters, advocating for the interests of its members at the federal level. They are pushing for the FCC to complete its TV station ownership review by December 27, as mandated by a federal appeals court.
