FCC Ready to Open Floodgates on Broadcast Ownership (ep.389)

The Federal Communications Commission (FCC) is moving quickly to "refresh the record" on the national TV ownership cap, which currently limits a single company to reaching 39% of U.S. TV households. 

This initiative, spearheaded by Chairman Brendan Carr shortly after Commissioner Olivia Trusty's confirmation, signals a strong deregulatory push aiming to modernize "outdated rules" and enable broadcasters to better compete with Big Tech. 

The move is part of Carr's "Delete, Delete, Delete" agenda and is expected to lead to the most aggressive deregulation in decades, with potential ripple effects for radio broadcasters as well.

History of Ownership Caps and the Impact of the Telecommunications Act of 1996:
Historically, the FCC has imposed limits on media ownership to promote diversity, localism, and competition in the broadcast landscape. These caps were designed to prevent any single entity from dominating the airwaves and to ensure a variety of voices and viewpoints for the public.
 * Early Caps: Since the 1930s, the federal government has regulated the number of radio stations an entity could own. Over time, these limits were gradually relaxed by the FCC, particularly in the 1980s and early 1990s.
 * The Telecommunications Act of 1996: This landmark legislation marked a significant shift in media ownership policy. While proponents argued it would foster competition and lower prices, critics contended it led to massive consolidation. The Act notably:
   * Eliminated the national cap on radio station ownership: This allowed for unlimited national consolidation in the radio industry, leading to a dramatic reduction in the number of distinct radio companies and an increase in station holdings by a few large entities. This often resulted in homogenized programming and a decline in local content.
   * Increased the national television ownership cap: The cap was raised from 25% of U.S. TV households to 35% (later raised to the current 39%). While not eliminated entirely, this increase significantly expanded the potential reach of individual broadcast companies.
   * Eased local ownership limits: The Act also raised local caps on both radio and television station ownership, further facilitating consolidation within individual markets. For example, in the largest radio markets, the number of stations an owner could have increased from 4 to 8.
   * Mandated Quadrennial Reviews: The Act directed the FCC to review its media ownership rules every four years to determine if they remained "necessary in the public interest as a result of competition," and to modify or repeal any rules deemed no longer necessary. 

This provision, however, has often led to litigious battles and stagnant rules.
The exponential increase in ownership following the Telecommunications Act of 1996 was a direct consequence of these deregulatory measures. 

The removal of national radio caps and the significant raising of TV caps empowered large media conglomerates to acquire numerous stations across the country, leading to widespread consolidation and concerns about a shrinking diversity of media voices. 

The current FCC's move to further relax these caps aligns with a continued push towards deregulation, arguing that such measures are necessary for traditional broadcasters to compete in a rapidly evolving media landscape dominated by large tech platforms.

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