FCC schedules August vote to repeal 39% national TV ownership cap
The FCC is scheduled to vote on August 6 on a proposal to eliminate the 39% national television ownership cap, moving instead to a case-by-case review process. The change seeks to modernize broadcast regulations and allow local stations to better compete with digital platforms and national streaming entities.
Key Takeaways
- The 39% audience reach limit, last updated 20 years ago, will be replaced by individualized transaction reviews.
- Chairman Brendan Carr argued the rule currently handicaps broadcasters while competitors like YouTube and Netflix reach 100% of the market.
- Nexstar Media Group and the National Association of Broadcasters (NAB) issued statements supporting the move as essential for local news investment.
- The FCC asserts it has the statutory authority to change the limit, despite the rule originally being linked to congressional directives.
Why It Matters
The repeal marks a definitive shift toward rapid consolidation in the broadcast sector, allowing major groups to exceed the previous 39% ceiling if they meet the FCC's public interest standard. By removing the 'bright-line' prohibition, the FCC is aligning broadcast regulation with the competitive realities of the streaming era, where digital platforms face no national reach limits. For the broader ecosystem, this could trigger a wave of M&A activity among station groups seeking to build the scale necessary to negotiate better terms with networks and advertisers. Watch for the official release of the draft Order on July 16 for specific criteria to be used in the new case-by-case review process.
Additional Context
The FCC's move arrives as the broadcast industry faces intensified pressure from streaming competitors and legal hurdles for existing mergers. Per Investing.com (July 2026), Nexstar Media Group shares rose 5% following reports of the cap repeal, as the deregulation is particularly critical for its multi-billion-dollar acquisition of Tegna. That transaction would expand Nexstar's reach to approximately 80% of U.S. households, significantly exceeding the current 39% limit. While the FCC previously granted a waiver for the deal, a group of state attorneys general and satellite provider DirecTV have sought to halt integration through antitrust litigation scheduled for trial in 2027. Regulatory friction remains high within the Commission itself. Per Light Reading (July 2026), Democratic Commissioner Anna Gomez has characterized the repeal effort as 'unlawful,' arguing that only Congress has the power to modify the 39% threshold it codified in 2004. Advocacy groups like Free Press have similarly signaled intent to challenge the order in court, maintaining that the cap is essential for preventing media monopolies and preserving viewpoint diversity. Despite these internal and external objections, the Republican-led commission is expected to pass the measure in its 2-1 vote in early August. Broadcasters like Sinclair, Inc. have also weighed in, with CEO Chris Ripley calling the move a 'common sense' step toward preserving local journalism. Per NewscastStudio (July 2026), largest station groups contend the existing cap prevents them from gaining the scale necessary to reject disadvantageous national programming demands and negotiate higher carriage fees with streaming cable-like platforms. The repeal effectively moves the broadcast industry toward the same unrestricted reach currently enjoyed by national networks and vMVPDs like YouTube TV.
Read full article at tvnewscheck.com
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