FCC Launches Major Inquiry into TV Network Power Over Local Broadcasters

The Federal Communications Commission has opened a new proceeding to examine the relationship between national television networks and their local affiliates. This inquiry, announced by Chairman Brendan Carr, aims to address growing concerns about unfair practices and anticompetitive leverage. The move could significantly reshape the broadcasting landscape.

The agency is drawing direct parallels to its landmark 1941 Chain Broadcasting Regulations, which broke the dominance of four major radio networks. Today’s television market is similarly dominated by four large, horizontally integrated networks. The FCC asserts its authority to ensure public airwaves operate in the public interest.

Historical Precedent and Modern Tensions

The FCC’s notice explicitly cites its 1941 report. That decision led to NBC divesting one of its networks, which ultimately became ABC. The Commission found regulations were necessary to address unfair negotiation practices between radio networks and local stations.

Similar tensions now exist in television. Affiliate stations have long expressed frustration over reverse compensation fees. They also object to a loophole allowing networks to negotiate streaming deals directly, bypassing local partners. This financial and operational pressure threatens the viability of local broadcasting.

Empowering Local Stations and Restoring Control

A key recommendation under consideration involves granting affiliates more programming freedom. This could allow them to broadcast other networks’ programs and schedule their own content. The goal is to rebalance a relationship the FCC says undermines local community needs.

The inquiry seeks information on how bargaining positions have changed. It will also examine if affiliation agreements impede affiliates’ control over programming decisions. The FCC stresses that agreements should not limit preemptions for issues of “greater local or national importance.” This follows high-profile preemptions of network programming by major station groups.

This FCC inquiry represents a pivotal moment for American television. The outcome could redefine the balance of power between national networks and local broadcasters. The future of local news and community-focused programming hangs in the balance.

Thought you’d like to know

What is the main goal of the FCC’s new inquiry?

The inquiry aims to investigate potential anticompetitive practices by major TV networks against their local affiliate stations. It seeks to determine if networks exert undue influence that harms local broadcasters’ ability to serve their communities.

How does this relate to the 1941 Chain Broadcasting Rules?

The FCC is drawing a direct historical parallel. The 1941 regulations broke the dominance of four national radio networks, leading to the creation of ABC. The current television market is similarly dominated by four major networks.

What specific changes could this inquiry bring?

Potential outcomes include giving local affiliates more power to preempt national programming and schedule alternative content. It could also alter financial arrangements like reverse compensation fees that stations pay to networks.

Why are local broadcasters concerned about streaming?

National networks often negotiate streaming deals for services like YouTube TV and their own platforms like Peacock without involving local affiliates. This bypasses a traditional revenue source for local stations.

What was the “Jimmy Kimmel factor” mentioned?

Major station groups like Nexstar and Sinclair recently preempted Jimmy Kimmel’s ABC show. This demonstrated existing tensions and the desire for local control over programming, a key issue the FCC is now examining.

Trusted Sources

Federal Communications Commission, Reuters, Associated Press