In a striking move that could reshape the landscape of American television, the National Association of Broadcasters (NAB) that represents ABC, CBS, FOX, & NBC station owners has submitted a forceful letter to the Federal Communications Commission (FCC), calling for the complete repeal of ownership rules that cap the reach of broadcast station groups. The NAB argues that these decades-old restrictions, which limit any single entity from owning local commercial TV stations reaching more than 39 percent of U.S. households, are outdated and stifle broadcasters’ ability to compete in a rapidly evolving media market dominated by tech giants and streaming platforms.
“For more than two decades, the national TV rule has prohibited any entity from owning local commercial TV stations reaching, in the aggregate, more than 39 percent of the total number of TV households in the nation,” the NAB’s letter states. “This outmoded rule prevents broadcasters – but not any other video service providers – from competing for audiences and vital advertising revenues across the country and harms the public’s free, over-the-air (OTA) television service. The time to eliminate this harmful restriction is now.” The filing marks a significant escalation from the NAB’s previous positions, which sought only to liberalize or modernize the rules rather than abolish them entirely.
The NAB’s argument hinges on the dramatic transformation of the media landscape since the ownership cap was last adjusted in 2004. The rise of streaming services like Netflix and Hulu, social media platforms, and digital advertising juggernauts like Google and Facebook has fundamentally altered how audiences consume content and how advertisers allocate their budgets. “With Google and Facebook gobbling up local advertising revenues and stations competing with unconstrained streaming platforms for viewers’ time and attention, the FCC must end this limitation and allow broadcasters to better serve the public interest,” the letter asserts. The NAB contends that these “continued marketplace trends over the past seven years” render any artificial limits on TV station groups’ audience reach unjustifiable.
The filing also reflects a strategic optimism about the current political climate. With FCC Chair Brendan Carr, appointed during the Trump administration, at the helm, the NAB appears hopeful that the agency will be more receptive to dismantling the ownership caps. The letter references a 2017 effort under Carr’s watch, when the FCC sought public comment on modifying or eliminating the national audience reach limit. At the time, Carr noted that broadcasters “now compete for eyeballs with YouTube stars, social media platforms, and streaming services—not to mention traditional cable and satellite offerings.” Although that initiative stalled, the NAB sees an opening now, urging the FCC to “expeditiously conclude this rulemaking” and scrap the rule entirely.
In 2017, the NAB had taken a more cautious stance, advocating for either maintaining the 39 percent cap with a revised calculation or raising it to 78 percent if certain discounts were eliminated. Today’s filing, however, pulls no punches. Supported unanimously by the NAB’s Television Board—including major players like Nexstar, Sinclair, and Univision—the organization argues that the national TV rule “in any form does not promote, but instead harms, competition, diversity, and localism.” The letter is bolstered by extensive data illustrating the competitive disadvantages broadcasters face compared to their unregulated digital rivals, who operate without similar ownership constraints.
A significant portion of the NAB’s argument addresses legal concerns, preempting critics who claim only Congress can alter the rules. “If the FCC has authority to modify its calculation of national audience reach by repealing the UHF discount, then it also would have authority to change the method of calculating national audience reach in other ways,” the filing contends, laying out a detailed case for the FCC’s regulatory power. This legal groundwork aims to clear the path for swift action by the agency.
The NAB’s push comes at a pivotal moment for broadcasters, who have long argued that ownership restrictions hinder their ability to scale operations, invest in local journalism, and compete for advertising dollars. As the media industry continues to consolidate and digital platforms dominate, the repeal of these rules could unleash a wave of mergers and acquisitions, potentially transforming the reach and influence of broadcast station groups across the country. For now, all eyes are on the FCC—and Chair Carr—to see whether this bold call to action will finally dismantle a regulatory framework rooted in a bygone era of television.April 4, 2025 – In a striking move that could reshape the landscape of American television, the National Association of Broadcasters (NAB) has submitted a forceful letter to the Federal Communications Commission (FCC), calling for the complete repeal of ownership rules that cap the reach of broadcast station groups. The NAB argues that these decades-old restrictions, which limit any single entity from owning local commercial TV stations reaching more than 39 percent of U.S. households, are outdated and stifle broadcasters’ ability to compete in a rapidly evolving media market dominated by tech giants and streaming platforms.
“For more than two decades, the national TV rule has prohibited any entity from owning local commercial TV stations reaching, in the aggregate, more than 39 percent of the total number of TV households in the nation,” the NAB’s letter states. “This outmoded rule prevents broadcasters – but not any other video service providers – from competing for audiences and vital advertising revenues across the country and harms the public’s free, over-the-air (OTA) television service. The time to eliminate this harmful restriction is now.” The filing marks a significant escalation from the NAB’s previous positions, which sought only to liberalize or modernize the rules rather than abolish them entirely.
The NAB’s argument hinges on the dramatic transformation of the media landscape since the ownership cap was last adjusted in 2004. The rise of streaming services like Netflix and Hulu, social media platforms, and digital advertising juggernauts like Google and Facebook has fundamentally altered how audiences consume content and how advertisers allocate their budgets. “With Google and Facebook gobbling up local advertising revenues and stations competing with unconstrained streaming platforms for viewers’ time and attention, the FCC must end this limitation and allow broadcasters to better serve the public interest,” the letter asserts. The NAB contends that these “continued marketplace trends over the past seven years” render any artificial limits on TV station groups’ audience reach unjustifiable.
The filing also reflects a strategic optimism about the current political climate. With FCC Chair Brendan Carr, appointed during the Trump administration, at the helm, the NAB appears hopeful that the agency will be more receptive to dismantling the ownership caps. The letter references a 2017 effort under Carr’s watch, when the FCC sought public comment on modifying or eliminating the national audience reach limit. At the time, Carr noted that broadcasters “now compete for eyeballs with YouTube stars, social media platforms, and streaming services—not to mention traditional cable and satellite offerings.” Although that initiative stalled, the NAB sees an opening now, urging the FCC to “expeditiously conclude this rulemaking” and scrap the rule entirely.
In 2017, the NAB had taken a more cautious stance, advocating for either maintaining the 39 percent cap with a revised calculation or raising it to 78 percent if certain discounts were eliminated. Today’s filing, however, pulls no punches. Supported unanimously by the NAB’s Television Board—including major players like Nexstar, Sinclair, and Univision—the organization argues that the national TV rule “in any form does not promote, but instead harms, competition, diversity, and localism.” The letter is bolstered by extensive data illustrating the competitive disadvantages broadcasters face compared to their unregulated digital rivals, who operate without similar ownership constraints.
A significant portion of the NAB’s argument addresses legal concerns, preempting critics who claim only Congress can alter the rules. “If the FCC has authority to modify its calculation of national audience reach by repealing the UHF discount, then it also would have authority to change the method of calculating national audience reach in other ways,” the filing contends, laying out a detailed case for the FCC’s regulatory power. This legal groundwork aims to clear the path for swift action by the agency.
The NAB’s push comes at a pivotal moment for broadcasters, who have long argued that ownership restrictions hinder their ability to scale operations, invest in local journalism, and compete for advertising dollars. As the media industry continues to consolidate and digital platforms dominate, the repeal of these rules could unleash a wave of mergers and acquisitions, potentially transforming the reach and influence of broadcast station groups across the country. For now, all eyes are on the FCC—and Chair Carr—to see whether this bold call to action will finally dismantle a regulatory framework rooted in a bygone era of television.
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