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NAB Advocates Deregulating Broadcast Ownership Limits

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Music Business News

The National Association of Broadcasters has intensified its advocacy for the Federal Communications Commission to expedite the deregulation of existing broadcast ownership limits. In a comprehensive 87-page reply comment submitted as part of the FCC’s 2022 Quadrennial Regulatory Review, the NAB articulated that the current ownership restrictions for local radio and television stations are outdated and no longer serve the public interest in the face of competition from digital media and online advertising platforms.

The NAB described the existing ownership rules as relics from a bygone era, asserting that they hinder broadcasters’ ability to compete effectively with streaming services and social media platforms that dominate audience engagement and advertising revenues without similar regulatory burdens. The association contended that the existing limitations on local radio ownership prevent operators from scaling their operations, attracting necessary investments, and generating sufficient revenue to sustain their services.

Tank - Black Music Month - Radio Facts

Current regulations allow a single licensee to own a limited number of commercial stations, with stricter subcaps in smaller markets. The NAB’s proposal urges the complete removal of these caps, arguing that doing so would enable radio operators to adapt more effectively to market changes and invest in local programming, including news and community-focused content. The organization emphasized that deregulation would benefit the public by enhancing service quality and innovation without imposing costs on taxpayers or listeners.

The ongoing review by the FCC will assess whether the current broadcast ownership rules remain relevant in light of evolving competition. The NAB’s filing aligns with a broader industry trend toward modernizing ownership policies, with previous court decisions already modifying certain restrictions. If the FCC moves forward with significant deregulation, it could pave the way for increased mergers and operational efficiencies, enhancing the competitiveness of local stations against unregulated digital rivals.

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