NAB’s pushing hard for the FCC to scrap outdated broadcast ownership rules—it’s about time for a shakeup in this industry.
The National Association of Broadcasters (NAB) has formally requested that the Federal Communications Commission (FCC) eliminate local radio and television ownership restrictions. In a recent 87-page filing, the organization argues that these outdated regulations hinder the competitive viability of local broadcasters within a rapidly evolving media environment.
NAB asserts that despite significant changes in media consumption over the last few decades, local stations are still bound by rules established nearly a century ago. The association emphasizes that these restrictions do not apply to their online competitors, placing radio and television broadcasters at a distinct disadvantage.
Under current regulations, licensees in major radio markets can own up to eight commercial stations, but subcaps limit ownership to five stations in each band. As market size decreases, these caps become more restrictive. NAB claims that these limitations prevent local broadcasters from attracting investment and generating advertising revenue, ultimately affecting their ability to serve communities effectively.
The association attributes declining audience share and revenue not to competition within the radio industry, but to the increasing dominance of online content providers and digital advertising platforms. The FCC is presently conducting its 2022 Quadrennial Review and has been gathering feedback on radio ownership limits, with the deadline for reply comments having passed on January 16.
With a Republican majority at the FCC that appears generally supportive of reforming ownership rules, there’s speculation about how extensively these regulations may be relaxed. NAB argues that critics of reform are relying on flawed data and outdated arguments, failing to recognize the current competitive landscape.
The association is addressing concerns raised by groups like the National Association of Black Owned Broadcasters (NABOB), which opposes changes to ownership rules. NAB contends that the financial struggles of Black-owned stations are reflective of broader economic challenges faced by smaller broadcasters, rather than a result of potential further consolidation.
NAB also challenges claims from music advocacy groups, such as the musicFIRST Coalition and the Future of Music Coalition, which oppose ownership reform due to frustrations with copyright law and performance rights fees. NAB insists that these issues are unrelated to the current ownership discussions.
In its filing, NAB called for swift action from the FCC to discard these restrictive rules, asserting that doing so would not only enhance operational capacity for local stations but also improve the quality of news and emergency information they provide to the public.
As the FCC navigates these complex discussions, NAB stresses the necessity of modernizing ownership regulations to foster a more competitive and financially viable environment for local broadcasters across the country.