As expected, the FCC has officially opened a new Notice of Proposed Rulemaking to advance its long-delayed 2022 Quadrennial Review of broadcast ownership rules, with a focus on how radio operators structure local ownership against Big Tech competitors.
The local radio ownership rule, as well as the local television ownership rule and the dual network rule, will now face what FCC Chairman Brendan Carr calls the “Gretzky test” – hockey great Wayne Gretzky’s strategy of keeping an eye on where the puck is going, not where it’s been.
Media Bureau staff outlined that the agency will examine product markets, market tiers, and station limits as part of the radio ownership review.
Commissioner Anna Gomez used her opening statement to connect the proceeding to recent controversies over political pressure on broadcasters and her previous statements on what she calls FCC “weaponization.” “In the last few weeks, we saw one of the most alarming attacks on the First Amendment in recent history,” she said, warning that threats to revoke licenses create “an existential risk to a broadcaster which cannot exist without its license.”
Concerns over Carr’s involvement in media drama surrounding late-night host Jimmy Kimmel were pressed home earlier in the Open Meeting, which was briefly and loudly disrupted by protesters chanting, “Fire Carr, The Censorship Czar.”
Gomez emphasized that local broadcasters are essential to civic life and that consolidation can reduce the number of independent voices. “One beauty of the local broadcasting model is they are virtually everywhere,” she said. “What we all need to understand is that even when you get your news on your phone as opposed to from a local broadcast, the source of that news is very often a local broadcast journalist that does the hard work day in and day out. That means if there are fewer local broadcast journalists, there are fewer total journalists out there covering the stories that matter to communities and to the nation.”
Chairman Carr noted the statutory obligation to move forward despite delays.
“When Congress passed the Telecommunications Act, it recognized that competition could fundamentally reshape the audio and video media marketplace,” Carr said. “The marketplace has been changing rapidly, driven by technological innovation and evolving consumer preferences. The growth of digital competition has brought new opportunities for consumers to benefit from more personalized viewing options. But it requires us to carefully reassess whether our rules reflect today’s reality and allows broadcasters to compete effectively.”
In his reference to the Gretzky test, Carr added, “Nowhere is that more important than with our media regulations,” he said. “Our primary goal is promote investment [in] local broadcasters who provide trusted news and information vital to the communities they serve.”
The item was approved unanimously by the Commissioners, with the news being met warmly by many in the broadcast industry.
NAB President and CEO Curtis LeGeyt commented, “We commend Chairman Carr for advancing this long-overdue proceeding to modernize outdated broadcast ownership rules. Local radio and television broadcasters continue to face outdated restrictions that hinder investment, innovation, and the ability to serve their communities.
“This rulemaking is a critical step to ensure that local stations can compete on a level playing field with streaming platforms and digital giants. Modernizing these rules is essential to protecting the future of local journalism, and we look forward to working with the Commission to move this process forward,” he added.
Beasley Media Group CEO Caroline Beasley said, “We would like to thank Chairman Carr for moving forward with the quadrennial review on this critical endeavor. This is a defining moment for our industry to ensure that local radio can continue to fulfill its essential public service mission for decades to come. We look forward to working with the Commission to implement common-sense reforms that will allow broadcasters to compete fairly and keep serving the local audiences who rely on us every day.”
