The FCC Has a Loophole That TV Station Owners Are Using to Buy Up Local ABC, CBS, Fox, & NBC Channels That They Shouldn’t Be Allowed to Buy


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The American Television Alliance has called on federal regulators to close a regulatory gap that allows television broadcasters to combine major network affiliations in local markets without undergoing full public interest reviews required for traditional station ownership transfers. This comes as there is growing concern about a small number of owners buying up multiple ABC, CBS, FOX, and NBC stations in a single market.

In a letter filed on May 11, 2026, with the Federal Communications Commission as part of the ongoing 2022 Quadrennial Regulatory Review of broadcast ownership rules, the ATVA highlighted recent examples where station groups have used affiliation swaps and multicast arrangements to effectively establish what are known as Big Four duopolies. These duopolies involve common ownership or control of multiple stations affiliated with the leading national networks — CBS, NBC, ABC and Fox — within the same television market. Such combinations typically command higher retransmission consent fees and can impact competition, consumer prices and local news production.

Under current FCC procedures, transfers or assignments of broadcast licenses that would create such duopolies receive scrutiny to determine whether they serve the public interest. The ATVA argues that broadcasters have found a way around this process by first securing a network affiliation agreement from a competing station without acquiring its license, then distributing that network’s programming via a secondary digital multicast channel on a station they already own. Only afterward do they seek approval to purchase the now-deaffiliated station’s license, which appears less consequential because it no longer carries a major network signal.

The organization detailed how Sinclair Broadcast Group has employed this strategy in at least two markets. In Gainesville, Florida, Sinclair already owned WGFL, the CBS affiliate. It obtained the NBC affiliation previously held by WNBW, owned by MPS Media but operated by Sinclair under various agreements. Sinclair added the NBC programming as a multicast channel on WGFL. It then filed to acquire WNBW itself, which by that point carried a different affiliation. The FCC approved the transaction on April 3, 2026, but the agency never reviewed the creation of the combined CBS-NBC operation under the full public interest standard.

A similar pattern unfolded in Tulsa, Oklahoma. Sinclair owned KTUL, the ABC affiliate, according to the letter. It acquired the Fox affiliation from KOKI, owned by Rincon Broadcasting, which also owned MyNetworkTV affiliate KMYT. Sinclair placed the Fox signal on a multicast channel of KTUL while operating KOKI under agreements. It subsequently applied for and received approval to purchase KMYT. Again, the duopoly involving ABC and Fox programming was established prior to the license transfer review.

The ATVA contends that these maneuvers allow broadcasters to consolidate control over valuable programming rights and advertising markets while evading meaningful oversight. The group has previously argued in the same proceeding that the commission should develop a specific methodology for evaluating Big Four affiliate combinations, taking into account potential harms such as increased costs for cable and satellite subscribers and reductions in local news coverage and diversity of viewpoints.

The letter references past FCC efforts to address similar loopholes, including rules concerning multicast signals and affiliation swaps, though recent court decisions have altered some ownership restrictions. The alliance maintains that without action, such practices will accelerate consolidation in the television industry.

The filing comes amid broader concerns about media ownership concentration and its effects on local journalism and consumer choice. The FCC is currently examining its broadcast ownership rules under the periodic review mandated by the Telecommunications Act of 1996. The ATVA recommended that the commission modify its rules to ensure proper oversight of affiliation-related transactions and to curb further consolidation in local television markets.

In an accompanying press release, the group stressed that consumers deserve consistent regulatory review whenever major network affiliations are effectively combined in a market, regardless of the transaction’s technical structure. It pointed to statements from broadcast executives indicating that operating multiple stations, or double-ups, remains central to industry strategies for achieving efficiencies.

The American Television Alliance, which represents cable and satellite providers, has long raised alarms about the growing power of large station groups. By acquiring affiliations separately from licenses and using digital subchannels to carry additional networks, broadcasters can achieve the functional equivalent of a duopoly while presenting regulators with what appear to be routine station purchases. This approach, the ATVA warned, undermines the commission’s ability to weigh the benefits and drawbacks of market concentration, including potential increases in programming costs passed on to viewers and fewer independent sources of local information.

If left unaddressed, the group said, the loophole will encourage more such transactions, further concentrating control of the nation’s airwaves in fewer hands and weakening the diversity of local television service that federal rules have long sought to protect. The FCC now faces the task of determining whether its existing framework adequately safeguards the public interest in an era of rapidly evolving digital broadcasting technology.

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