The Federal Communications Commission is in the process of reviewing a cap prohibiting entities from owning broadcast TV stations that reach more than 39% of the national TV audience.
Some experts argue that a repeal of the cap, which was passed by Congress in 2003, could intensify consolidation and control over the media landscape, but others, including industry trade groups like the NAB, claim the rule could help broadcasters modernize in a landscape dominated by streaming.
“This should have been done five to 10 years ago,” Steven Schiffman, an adjunct professor at Georgetown University who specializes in media studies and digital media, said. “Broadcasters definitely have a place in the media landscape. But…broadcasters’ role and relevance within the media ecosystem, certainly in the United States, is significantly lower and less relevant than it was 10 years ago.”
The comment period on the proposal runs through the month of August.
Gain ground: The cap was put in place to prevent networks from wielding disproportionate influence on viewers, according to Schiffman. Today, in a media landscape where broadcast is less relevant, he said, there are still major broadcasters like Fox, ABC, NBC, and CBS, but many consumers find news or content through social media or streaming.
Executives in broadcast, according to Schiffman, might argue that lifting the cap could help make broadcast, which has seen regular declines, more relevant and could position networks to capture younger viewers, who generally stream more.
Reversing or increasing the cap could also help broadcasters gain critical ad revenue, Rick Kaplan, chief legal officer for the trade association the National Association of Broadcasters, told Marketing Brew.
Over the years, broadcasters have lost revenue to platforms like Google and Facebook at the same time that TV advertising has declined as consumers cut cords. Pay TV and linear TV advertising was down from $146.9 billion in 2020 to $126.1 billion in 2024, according to data released last month by the consulting firm PwC. In contrast, OTT ad-supported tiers generated $22.8 billion in the US in 2024, a number that is expected to grow to $37.3 billion by 2029.
“We are now, as I think everyone realizes, competing with so many sources that are not just even national, but really global,” Kaplan said. “Especially with the advent of streaming, it's just untenable to keep going with regulations that just only target over-the-air broadcasters.”
In July, the US Court of Appeals for the Eighth Circuit struck down an FCC order that stated that an entity can’t own more than one of the top four TV stations in a specific market in terms of audience share.
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On the stump: Ad dollars aside, a potential cap reversal could have political implications. In 2003, when the cap was set, the 39% figure represented a compromise between mostly Democratic lawmakers, who advocated for a 35% cap, and Republican lawmakers, many of whom had pushed for a 45% cap.
Raising the cap further could pave the way for influential figures like billionaires to consolidate and control more media, according to Melissa Ryan, CEO and founding partner of media firm Inviolable.
Even without a cap reversal, that’s already happening, she said, citing Jeff Bezos’ and Elon Musk’s respective purchases of the Washington Post and X, as well as the Skydance-Paramount merger involving billionaire Larry Ellison and his son, Skydance CEO David Ellison, as just a few examples. She also mentioned Sinclair Broadcast Group, which has consolidated local news stations in recent years and has been accused of spreading right-wing disinformation.
“It just allows for even more of a trend that we are already seeing playing [out] across legacy media and social media,” Ryan said.
A potential change to the ownership cap comes at a time when media and advertising are being affected by the more mainstream conservative influence of the second Trump administration, Ryan said.
“During the first Trump administration, it felt like the popular culture was broadly out of alignment with where the Trump coalition was, and certainly you saw that in the kinds of advertising you saw and the way companies were reacting,” she said. “Now where we’re at, we’re in a very different place culturally. I would say that the right has, if not cultural dominance, a lot more impact and influence on the culture.”
Amid the changing domestic landscape, conservative groups rallied together in May to send FCC chairman Brendan Carr, appointed by President Trump, a letter declaring support for eliminating ownership rules. Many Republicans are often in favor of federal deregulation, and broadcast stations that favor conservative views could stand to gain ground, potentially negotiating deals with more established broadcasters if the cap is reversed, according to Puck.
Thanks to the June confirmation of FCC commissioner Olivia Trusty, the FCC, which is tasked with developing rules to implement laws passed by Congress, now has a conservative majority.