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Outdated Bureaucratic TV and Radio Rules Limit America’s Local Stations’ Ability to Grow and Compete Against Big Tech
ISSUE SUMMARY
For more than 80 years, ownership of local TV and radio stations has been highly regulated by the Federal Communications Commission (FCC). These restrictions cover everything from who can own stations, how many and what kind of stations they can own, and in which markets owners are allowed.
These obsolete rules harm investment in America's local TV and radio stations and threaten the future of local news and community programming, live sports and audience engagement. Without changes, the tens of millions who rely on free over-the-air broadcasts for news, sports and weather could lose the critical local service broadcasters provide.
In contrast, local broadcasting's biggest competitors, notably Big Tech and global streaming platforms, operate in a regulatory-free environment, where even massive mergers and acquisitions are approved without a second thought.
The FCC has an opportunity right now to address these rules so that local programming can thrive and compete with Big Tech.
Go deeper:
The FCC's rules limit local TV and stations' growth and prevent them from taking advantage of economies of scale.
Enacted decades ago, ownership rules have remained substantially unchanged, despite a revolutionary media landscape that provides Americans with an abundance of news and entertainment sources that did not exist when the rules were created - from national cable networks to social media platforms and streaming services. To put it in perspective, most of the rules date back to a time before the internet.
In contrast, Big Tech platforms, cable TV and streaming services, such as Amazon, Netflix and YouTube, face no such restrictions on audience reach. They can reach 100% of national audiences. What's more, that reach drives advertising revenue that makes their businesses sustainable.
Removing these obsolete restrictions would allow local stations to innovate, grow and better serve their communities.
Without strong local stations, Americans will be ceding even more control to Big Tech to decide what they can see and hear.
As Big Tech's market share grows, these companies increasingly dominate the news and information that Americans can access. In contrast, the growth of every single broadcasting company is limited by federal law, so without changes, broadcasters can't compete against Big Tech.
Google-owned YouTube accounts for over one-tenth of all the TV that Americans watch and is unlimited in who it can reach. TikTok is now the go-to news resource for nearly 4 in 10 young Americans.
Meanwhile, local TV broadcasters are only allowed to reach 39% of TV households nationwide, and radio stations can only offer a handful of channels to listeners in each market. Apple, Spotify and Amazon have no such limits.
The bottom line:
Washington has the power to modernize outdated rules and let local TV and radio compete, but time is running out.
Without changes to rules, many of the services that Americans rely on from local TV and radio could disappear - adversely impacting those who depend on free over-the-air broadcasting for news, sports, weather updates and emergency information.
In addition to vital news, free over-the-air services mean everyone can watch local teams and major sporting events, without having to pay for multiple, and often expensive, streaming subscriptions. Fair competition can keep sports available to everyone, not just a privileged few.
