Step Up for Local TV: A Hard-Hitting Take on FCC Regulation
A Compensation Cap Reversal Might Secure Survival for Local News Outlets
On May 2, FCC Commissioner Nathan Simington and his top gun, Gavin M. Wax, penned an opinion piece in The National Pulse, advocating a 30% cap on reverse retransmission fees - the cash that local TV stations fork over to their parent broadcast networks. This bold move is crucial to preserving local journalism and curbing network and media monopolies like CBS, ABC, NBC, and Fox.
As a rare African-American TV station proprietor, I've often felt like the lone voice pleading for the FCC to ditch its archaic regulations and foster innovation and fair competition. If the FCC truly wants to avoid the fate of the newspaper industry and ensure the survival of TV, it needs to take two crucial actions.
First off, tear down the Depression-era ownership limits burdening the TV industry by scrapping the artificial market ownership caps and the 39% national audience cap. This would finally pave the way for television to compete fairly against tech titans like Google, X, Facebook, Apple, Netflix, Amazon, Hulu, TikTok, etc., who are all immune to FCC regulations.
Secondly, the FCC needs to chill out on the regulatory restraints surrounding ATSC 3.0, the advanced television format. The FCC has a history of helping new technology that widens public availability and service. It did so with FM radio and UHF television by ensuring they were accessible on all new tuners. The FCC should do the same for ATSC 3.0.
Simington and Wax's proposal presents a necessary third step for the FCC's mission to secure local broadcasting and journalism. A 30% cap on reverse retransmission fees would strip networks of their undue advantage over local news and broadcasting outfits. Section 303 of the Communications Act gives the FCC the necessary power to control network and affiliate relationships, making it crucial for the FCC to intervene and restrain the financial aggression displayed by national networks.
This reform would also be a win for consumers. It'd allow affiliates to keep their pricing affordable for Multi-channel Video Programming Distributors (MVPDs). Whether we're tuning in through classic cable/satellite or streaming platforms, the FCC needs to act decisively to give local TV a fighting chance against Big Tech in the ownership stakes and against networks in terms of distribution control and revenues. Otherwise, we'll lose local TV and the local service it provides.
When network media empires exploit their market power and hoard retransmission revenues, local stations are forced to compromise on news personnel and slash diverse content offerings. This is detrimental to the public interest and spells trouble for the TV industry. In such situations, it's not only suitable but necessary for the FCC to jump into action.
Capping reverse retransmission fees, dismantling outdated and discriminatory broadcast ownership rules, and scrapping artificial and harmful regulations hindering the universal deployment of ATSC 3.0 are the perfect remedies. Without such simple solutions, broadcast TV could continue its downward spiral as Simington warned last March.
- The FCC should consider a 30% cap on reverse retransmission fees to curb network monopolies like CBS, ABC, NBC, and Fox, as suggested by Commissioner Nathan Simington and Gavin M. Wax.
- As a TV station proprietor, I have advocated for the FCC to modernize regulations and foster fair competition, especially against tech giants immune to FCC regulations.
- To truly pave the way for television to compete, the FCC should scrap Depression-era ownership limits and market caps, allowing TV to challenge tech titans like Google, X, Facebook, Apple, Netflix, Amazon, Hulu, TikTok, etc.
- The FCC needs to relax regulatory constraints on ATSC 3.0, the advanced television format, to ensure its widespread availability and service, as itdid with FM radio and UHF television.
- Simington and Wax's proposal, along with the actions mentioned above, could empower local TV, giving it a better footing against Big Tech in ownership stakes and against networks in terms of distribution control and revenues.
- Capping reverse retransmission fees, dismantling bias ownership rules, and reducing regulatory obstacles for ATSC 3.0 deployment can prevent the further decline of broadcast TV, as warned by Simington last March.
- Without these remedies, local TV could suffer losses and the general public could miss out on important local news and diverse content offerings.
- In the face of network media empires exploiting market power to hoard retransmission revenues, it's essential for the FCC to intervene to protect the interests of the TV industry and the general public.
