Brendan Carr — FCC Set to Vote on Removing 'Outdated' Ownership Limit to Support Local News Stations

FCC to Vote on Dropping TV Ownership Caps

The Federal Communications Commission (FCC) is poised to vote next month on doing away with limits on how many television stations one entity can own. FCC Chairman Brendan Carr believes this change could aid local news outlets in their struggle against large national media companies.

In an opinion piece published on Breitbart News, Carr emphasized that the FCC should consider a “case-by-case approach” when it comes to approving deals that benefit the public. He plans to advocate for a vote on August 6 to eliminate the ownership caps for local TV stations.

According to Carr, “Removing the national cap would provide substantial relief to local stations by restoring a healthy counterbalance to the growing influence of national programmers. This increased scale would enable stations to attract the capital and advertising revenue needed to produce community-focused news.”

He pointed out that if the FCC remains passive, the media landscape could look dire. Carr urges people to observe their local newspapers. Just like the national cap, the FCC has held onto outdated regulations limiting investment in local newspapers for over 40 years. These regulations had persisted until 2017, long after the economic realities of local journalism had shifted. As a result, many local newspapers shut down, leaving communities with only a handful of national options. Carr expressed concern that local television might face a similar fate.

Historically, the FCC established national ownership caps to prevent any single company from dominating more than 39 percent of TV households. The fundamental aim was to restrain the influence of national programmers and their interests in major cities.

Carr noted, “The FCC sought to limit national programmers from wielding excessive power as both content creators and owners of influential television stations.” For a time, these caps helped maintain balance between national programmers and local station owners.

However, the landscape has shifted dramatically in recent years. The cap no longer serves as a limitation on national program producers; instead, it’s acting as a barrier for local broadcasters who are trying to compete. Carr pointed out that national programmers no longer depend on local stations to disseminate their content.

He explained that nowadays, national programmers can distribute content nationwide through streaming services or partnerships with national virtual cable companies like YouTubeTV, which renders the cap ineffective. Numerous media players, from cable channels to social media platforms, now reach audiences across the nation, making the 39% cap on local TV station ownership an imbalance in the market.

“This cap isn’t protecting local broadcasters; it’s hindering their growth and competitiveness. In essence,” Carr argues, “the national cap has become counterproductive to its original purpose.”

Carr pointed out that local stations currently lack the authority to reject national programming that doesn’t align with community values, adding that national television producers are demanding increasingly high fees. “Local broadcasters are struggling to secure the resources necessary to provide reliable local news. This has led many to become little more than conduits for content produced far from their communities,” he remarked.