FCC votes to eliminate broadcast ownership rule

The FCC on Thursday voted to eliminate a longstanding rule capping the number of households a single broadcaster can reach nationwide, a move the commission said is necessary to better help television networks compete with the rapid growth of tech companies in the media sector. 

The now-scrapped rule, which had been in place since the early 2000s, limited the number of viewers any single broadcaster could reach at 39 percent of the national television viewing audience.  

It will be replaced with what the agency said will be “a granular, case-by-case review.”

“The video marketplace has changed dramatically with the proliferation of digital platforms—all of which enjoy unrestricted national reach,” the commission said announcing the vote. “Eliminating the national cap will allow broadcasters to better compete with these unregulated digital giants.  The market also reflects a growing imbalance of power in the network-affiliate relationship, which the national cap intended, but failed to curb, as evidenced by network control over online video carriage, preemption rights and revenue sharing requirements.”  

The rule change is likely to have major implications on the future of television news and could accelerate consolidation  by media companies across the country.  

The FCC’s........

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