FCC proposes repealing 39% broadcast ownership cap for case-by-case review
The FCC has released a draft order proposing the repeal of the 39% national television station ownership cap, shifting instead to a case-by-case public interest review for acquisitions. The Commission justifies the move by citing the rise of streaming and national cable providers as proof that broadcast ownership reach no longer limits consumer choice.
Key Takeaways
- Draft order replaces the 39% national audience reach limit with a case-by-case evaluation of proposed station acquisitions.
- Proposal retains the 50% UHF discount, which currently allow broadcasters to exceed the 39% cap in practice.
- FCC justifies the shift by citing competition from unregulated streaming giants like Netflix and Amazon.
- Public interest reviews will weigh benefits like local programming resources against risks such as increased retransmission fees.
- Commission vote on the reform is scheduled for the agency's August open meeting.
Why It Matters
The repeal effectively greenlights a new era of consolidation for broadcast groups seeking the scale necessary to compete with digital-native platforms. By removing the 39% ceiling, the FCC acknowledges that 'national reach' is no longer a broadcast-exclusive privilege, potentially allowing major station owners to pursue 100% market coverage. This shift signals a regulatory pivot toward a more flexible, 'public interest' standard that treats traditional TV more like its unregulated streaming competitors. For the industry, this likely triggers a wave of M&A as groups like Nexstar and Sinclair look to expand their leverage with networks and advertisers. Watch for legal challenges regarding the FCC's statutory authority to override caps previously set by Congress.
Additional Context
The National Association of Broadcasters (NAB) has strongly endorsed the FCC's proposal as a necessary step for industry survival. Per NAB leadership in July 2026, the current restrictions place local broadcasters at a 'unique disadvantage' compared to streaming services and social media platforms that face no audience reach limits. The association likened the current broadcast environment to the decline of local newspapers, arguing that regulatory inertia could stifle investment in local journalism and emergency services if broadcasters cannot achieve competitive scale. Opposition within the Commission remains sharp, led by Commissioner Anna Gomez. As reported by Wiley Law in July 2026, Gomez argues the FCC lacks the legal authority to repeal the cap, contending that the 39% limit was hardcoded by Congress in 2004 and can only be modified by legislative action. This jurisdictional dispute is already being framed as a potential 'Major Questions Doctrine' case, suggesting that the Supreme Court could ultimately decide if the FCC can unilaterally deregulate national media ownership. Recent transaction approvals have already tested these boundaries. In March 2026, the FCC’s Media Bureau approved Nexstar’s acquisition of Tegna, a deal that pushed Nexstar’s reach to approximately 54.5% of U.S. households via waivers and existing discounts. Per Broadcast Law Blog reporting from March 2026, that decision was criticized for bypassing a full Commission vote and transparency requirements. The new draft order seeks to formalize and streamline this process, shifting away from the 'unusual' use of bureau-level waivers toward a standardized agency-wide review framework for all deals exceeding the 39% threshold.
Read full article at michiganmedia.com
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