Sinclair Television acquires non-licensed assets of WDKA and KBSI stations.
The landscape of U.S. television broadcasting is poised for change, with the Federal Communications Commission (FCC) considering relaxing current ownership regulations. This shift comes in the wake of an 8th U.S. Circuit Court of Appeals ruling that vacated key aspects of the FCC's local television ownership rules from the 2018 Quadrennial Review.
The court's decision effectively removes restrictions on owning two of the top four stations in a local market and the expansion of that prohibition to multicast streams and low power TV stations. This ruling paves the way for greater consolidation in local TV station ownership.
The federal statute mandating the FCC to review its media ownership rules every four years is intended to be deregulatory in nature. As such, the court's decision sets a legal precedent limiting the FCC's ability to tighten ownership restrictions going forward.
FCC Chair Ajit Pai and the current FCC have indicated a willingness to reconsider and potentially relax ownership regulations. The commission has sought public comment on current ownership rules and is open to revising or eliminating caps, including the nearly 85-year-old national broadcast ownership cap that restricts broadcasters from reaching more than 39% of TV households nationwide.
This move aligns with broadcasters' calls for modernization and deregulation, as groups like the National Association of Broadcasters (NAB) have criticized the current limits as outdated and unfair compared to digital and streaming competitors.
The FCC recently granted an 18-month waiver delaying biennial ownership reporting requirements for broadcasters, citing burdensome compliance without sufficient benefit. This indicates a regulatory environment moving toward easing reporting and ownership constraints amid ongoing review processes.
Sinclair, a prominent broadcaster, has announced the acquisition of the non-licensed assets of WDKA-TV (Paducah, Ky.) and KBSI-TV (Cape Girardeau, Mo.). While Sinclair previously owned these stations and sold them to Community News Media in a deal approved by the FCC in 2021, the acquisition of their licensed assets may be a sign that dealmaking for U.S. TV stations is heating up.
The public is invited to comment on the current ownership rules, with comments and replies due in August. The future of U.S. television broadcasting could see significant changes, with a potential loosening of broadcast ownership caps and a shift towards a more deregulated environment.
- The FCC's consideration to relax ownership regulations in the television broadcasting industry could lead to greater consolidation, as the court's decision has paved the way for it.
- Broadcasters like Sinclair are pursuing deal-making, such as the acquisition of WDKA-TV and KBSI-TV, indicating an active period for transactions within the TV station ownership sector.
- In response to the FCC's plans to reconsider current ownership regulations, the commission has invited public comments, aiming to modernize and deregulate the television broadcasting industry.
- Notably, the National Association of Broadcasters has been calling for modernization and deregulation, criticizing the current ownership limits as outdated and unfavorable compared to digital and streaming competitors.
- Amid ongoing review processes, the FCC has granted an 18-month waiver to broadcasters, delaying biennial ownership reporting requirements and suggesting a regulatory environment moving towards easing reporting and ownership constraints.
