FCC votes 2-1 to let broadcasters exceed 39% ownership cap case by case
The Federal Communications Commission's 2-1 party-line vote replaces the flat 39% national audience-reach cap with a case-by-case review, letting broadcasters seek approval for mergers that exceed the cap when the FCC finds a deal serves the public interest. Chair Brendan Carr said the FCC's authority to modify the cap is clear, pointing to a D.C. Circuit ruling that Congress's original cap set only a starting point for further change, and warned that local broadcast television risks following local newspapers into decline, noting that more than 80% of local journalism jobs have vanished over the past two decades. Commissioner Olivia Trusty said streaming viewership now surpasses the combined share of broadcast and cable, more than double broadcast alone, making the cap outdated. Commissioner Anna Gomez dissented, saying Congress set the 39% cap in 2004 and only Congress can change it.
Station-group mergers that once ran into the 39% ceiling can now proceed to a public-interest review instead, opening the door to further consolidation among broadcasters such as Nexstar, which already holds FCC approval for its over-the-cap acquisition of Tegna. Free Press has said it will sue to block the order, and the American Television Alliance warned the change could raise costs and reduce local news programming. Agencies negotiating audience deals and measurement across markets will need to track which groups gain reach as new mergers clear the case-by-case review, since larger combined footprints change how national campaigns translate into local audience delivery.