The National Association of Broadcasters (NAB) has filed comments with the Federal Communications Commission (FCC), advocating for the immediate removal of broadcast television ownership limits. They contend that these decades-old regulations disadvantage traditional broadcasters in their competition with unregulated streaming platforms and tech giants. In an August 4 filing, the NAB framed the removal of the national ownership cap as a crucial measure to safeguard free over-the-air television services.
The current rule, unchanged since 2004, prohibits any entity from owning stations reaching over 39 percent of U.S. television households. “It is time — indeed, past time — for the Commission to expeditiously eliminate the national cap to ensure a more level playing field that allows broadcasters to not only survive, but also to thrive,” the trade group stated in its 29-page submission. “Rather than serving any public interest goals, the national TV rule today creates a vicious circle for broadcasting. Restricting broadcasters’ audiences and ad revenues hinders their ability to produce and/or acquire high quality programming and obtain vital investment capital, which in turn further impairs their ability to attract viewers, earn ad dollars, and invest in local journalism and innovations, including NextGen TV. Ending this anti-competitive vicious circle by removing the rule is now an emergency for TV broadcasting.”
This filing coincides with the FCC's review of a proceeding initiated in 2017, seeking updated information on video marketplace changes and competitive dynamics. Station groups are closely monitoring this process, many contemplating potential acquisitions currently blocked by ownership restrictions. The NAB's argument revolves around significant marketplace shifts since the rule's implementation. According to Nielsen data cited in the filing, streaming services now command 46 percent of total television usage, compared to broadcast television's 18.5 percent share. YouTube alone accounts for 12.8 percent of all TV viewing time—nearly 70 percent of broadcast television’s total share. “No rational basis exists for retaining a national restriction on any TV broadcasters in a marketplace where all broadcast television combined garners only 18.5 percent of total TV usage in the country,” the filing stated.
The NAB highlighted the financial strain on broadcast stations due to declining advertising revenues, which have dropped 43 percent in inflation-adjusted terms from 2000 to 2024, according to BIA Advisory Services data. Digital advertising platforms, particularly Google, Facebook, and Amazon, now dominate the advertising market supporting free broadcast services. The NAB argues that ownership restrictions prevent broadcasters from achieving the necessary scale to compete for programming, audiences, and advertising revenue against platforms with national and international reach. Streaming services, the filing notes, face negligible ownership restrictions while investing billions in content. “The national TV cap now seriously hinders rather than serves the FCC’s traditional goals and significantly impairs local TV stations’ provision of their most important public service — offering news, emergency information, and valued entertainment and sports programming in local communities across the country at no cost to the public,” the organization stated.
This potential increase in scale would likely lead to further market consolidation, with broadcasters already anticipating increased mergers and acquisitions. The trade group presented data indicating that as station groups have grown through consolidation, local news programming (often more cost-effective to produce on a larger scale) has increased. From 2011 to 2023, while the number of separate station groups producing news decreased from 140 to 62, total local news telecasts increased 41.7 percent and news hours grew 49.7 percent. The filing also addressed legal aspects regarding the FCC's authority to alter or eliminate the ownership cap.