n another bitter 3-2 vote, the FCC adopted a Notice of Proposed Rulemaking to begin a review of the national television audience reach cap last Thursday. The cap limits entities from owning or controlling TV stations that, together, reach more than 39 percent of the television households in the country.
In the Notice, the Commission seeks comment on whether a cap is still needed. It also asks whether the UHF discount, which broadcasters use to determine compliance, should be eliminated.
FCC Commissioner Jessica Rosenworcel stridently opposed the NPRM; she said the FCC doesn’t have the authority to change this law, only Congress does. Further, she said this effort, “on the heels of this agency’s repeal of the Main Studio Rule, elimination of the eight voices test, and giving the green light for waivers of common ownership of the top four stations in a market, is ultimately destructive. We are destroying our most basic values and tearing apart the rules that have helped keep our media markets local, diverse, and competitive.” Opponents believe the change opens the door to more media consolidation, such as agency approval of the proposed Sinclair acquisition of Tribune.
FCC Chairman Ajit Pai said the agency does have the authority to change this law and “it’s amusing to hear such vociferous objections from this bench to simply asking the question whether we have authority, given that the same commissioners previously answered it—in the affirmative.” The marketplace has changed considerably due to the explosion of video programming options and various technological advances that have occurred since the cap was last considered in 2004, according to the Chairman. “We need to examine whether our rules should change accordingly. That’s an important discussion that will be informed by the facts in the record—not anything else.”
December 18, 2017
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