The Federal Communications Commission made it easier for already big TV broadcasters to get even bigger.
The agency voted 2-1 to erase the 39% audience cap and instead decided which stations could be acquired on a case-by-case basis. The U.S. has had an ownership cap in place since 1941, and it was raised to 39% in 2004. Now there is no longer any cap in place, and station groups are more than ready to start clumping together thanks to this move.
The action was a priority for FCC Chairman Brendan Carr, who believed the rule to be outdated and thought its elimination would allow broadcast TV to better compete with “big tech.” Critics said eliminating the cap would lead to less diversity in voices and jobs in local television.
Locally, this means the number of owners of TV stations in Atlanta could become much smaller than it is now. Or new station groups could jump into the market. Nexstar is currently trying to absorb WXIA/WATL owner TEGNA, but state attorneys general are in court trying to stop the merger. There have also been persistent rumors that WSB-TV owner Cox Media Group could be an acquisition target. Atlanta is the 7th largest Nielsen market in the country, and groups like Nexstar, Sinclair, and others would like to snag a property in this lucrative and competitive market.
More on this FCC move and its ramifications from Variety.com.
