Local Television Ownership Limit - Under the current rule, a single entity may own two television stations in the same local market if (1) the so-called “Grade B” contours of the stations do not overlap; or (2) at least one of the stations in the combination is not ranked among the top four stations in terms of audience share and at least eight independently owned and operating commercial or non-commercial full-power broadcast television stations would remain in the market after the combination. The Commission in 2003 voted to revise the local TV ownership rule to permit an entity to own up to two television stations in markets with 17 or fewer television stations, and up to three television stations in markets with 18 or more television stations. The rule revision was challenged in Prometheus and has not taken effect. The Further Notice seeks comment on whether the Commission should revise the number of stations that can be commonly owned or whether additional evidence or analysis exists that would further justify the limits adopted in 2003.
Local Radio Ownership Limit - The current rules reflect numerical caps set by Congress in 1996. The restraints are based on a sliding scale that increases with the size of the local market. As a general rule, one entity may own (a) up to five commercial radio stations, not more than three of which are in the same service (i.e., AM or FM), in a market with 14 or fewer radio stations; (b) up to six commercial radio stations, not more than four of which are in the same service, in a market with between 15 and 29 radio stations; (c) up to seven commercial radio stations, not more than four of which are in the same service, in a radio market with between 30 and 44 (inclusive) radio stations; and (d) up to eight commercial radio stations, not more than five of which are in the same service, in a radio market with 45 or more radio stations. The Third Circuit in Prometheus questioned the rationale behind the Commission’s decision to retain these caps. The Further Notice calls for comment on whether the limits should be revised or whether additional evidence exists to further justify retaining them as they are.
UHF Discount Used in Calculating the National Television Ownership Limit - In 2004, Congress enacted legislation that permits a single entity to own any number of television stations on a nationwide basis as long as the station group collectively reached no more than 39 percent of the national TV audience. Because the limit is set by statute, the numerical cap is not under review in the 2006 proceeding. However, the Further Notice does seek comment on issues concerning the Commission’s UHF discount rule, which the agency has used in calculating a UHF station’s audience reach under the national cap.
Newspaper/Broadcast Cross-Ownership Ban - The current rule prohibits common ownership of a full-service broadcast station (television or radio) and a daily newspaper if the station’s service area completely encompasses the newspaper’s city of publication. In the 2002 Order, the Commission relaxed this rule and the separate radio/TV cross-ownership restriction by replacing both regulations with a set of “cross-media limits.” The new limits were tiered according to the size of the local market: (a) in those with three or fewer TV stations, all newspaper/broadcast and radio/television combinations were prohibited; (b) in markets with between four and eight stations, an entity could own a combination that includes a newspaper and either (i) one television station and up to 50 percent of the radio stations that may be commonly owned under the applicable radio cap, or (ii) up to 100 percent of the radio stations allowed under the applicable radio cap; and (c) in markets with nine or more television stations, cross-media combinations would be permitted without limit as long as they complied with the applicable local television and local radio caps. The cross-media limits were challenged in Prometheus, and although the Third Circuit agreed that a flat ban on newspaper/broadcast combinations was no longer necessary, the court remanded the specific numerical caps to the Commission for further consideration. The cross-media limits have not taken effect. The Further Notice seeks comment on how the Commission should approach newspaper/broadcast restrictions now. Among other questions, the agency calls for input on whether the differences between television and radio broadcast operations are significant in the context of common ownership with a newspaper.
Radio/Television Cross-Ownership Limit - The current rule allows an entity to own one TV station (or two, if the market is large enough to trigger the “duopoly” provisions of the local television ownership rule) and a varying number of radio stations in a local market, depending on the number of independently owned media “voices” that are left. The Further Notice calls for input on how the agency should address radio/TV combinations now.
Dual Network Ban - The current rule permits common ownership of multiple broadcast networks but prohibits a merger between or among the “top four” networks, i.e., ABC, CBS, Fox, and NBC. The restraint was not an issue in Prometheus. The Further Notice calls for comment on whether the restriction should be retained.
