Rules for Television

Eliminate Outdated and Bureaucratic Rules That Hurt Local TV Stations

ISSUE SUMMARY

America’s local television stations are critical to providing local news, emergency information, entertainment and sports to communities across the country. However, they are forced to comply with outdated rules that place severe limits on their ability to grow and compete.

These rules, first enacted decades ago, have remained substantially unchanged despite a revolutionized media landscape.
To ensure the long-term viability of local broadcast TV, Congress and regulators must act to get rid of outdated ownership rules that limit local stations’ ability to innovate, grow and compete.

Go Deeper:

America’s local television stations are unfairly constrained by outdated, bureaucratic rules designed for a world that no longer exists.

FCC rules prevent local television companies from owning stations across the country that, combined, have the potential to reach more than 39% of U.S. television households, regardless of actual viewers.
In contrast, Big Tech platforms, cable TV and streaming services, such as Amazon, Netflix and YouTube, are not subject to any constraints. They can – and do – reach 100% of national audiences.
These obsolete rules put local stations at a significant disadvantage, limiting their ability to attract investment, innovate and compete.

Without changes to these outdated regulations that tip the scales in favor of Big Tech and cable TV, many of the essential services and content that Americans rely on from free local TV stations could disappear – and Big Tech’s control over what Americans see and hear will only grow.

An increasing number of Americans report regularly getting their news from social media sites such as Facebook (30%) and TikTok (17%, including nearly 40% of adults under 30), and these numbers are only projected to grow.
Because of their massive size, Big Tech companies like Amazon and Netflix are also able to pay huge amounts to sports leagues to air games, taking games off of local TV stations that show the games for free to the masses. The end result is that sports fans may soon need numerous streaming subscriptions to watch their favorite teams. Fair competition can keep sports open to everyone, not just a privileged few.
As a result of these unfair restrictions on local TV stations, Big Tech and other national cable TV players have even more control over what Americans get to see and hear.

Policymakers need to act now to get rid of outdated regulations that prevent fair competition.

After years of inaction, policymakers finally lifted restrictions on local stations owning local newspapers in 2017. But this came too late for the thousands of local newspapers that had already shuttered their doors. The result is more than half of U.S. counties now having either no local newspaper or only one remaining print outlet.
A similar dynamic of inaction is playing out with rules governing local TV stations. The FCC has failed to fully and timely review ownership rules. The FCC’s congressionally-mandated 2018 review was not released until December of 2023, and only following a court order. The FCC’s 2022 review is still not published.
The realities of the new digital age demand updated rules that allow local TV to fairly compete against Big Tech as well as nationwide cable networks.

The Bottom Line:

Policymakers must act now to eliminate outdated rules and enable local TV stations to compete. Let’s champion fair competition and ensure that Americans continue to have a choice when it comes to where they get their news and sports.