Telecommunications: Preliminary Information on Media Ownership

Various laws and regulations constrain the ownership of television and radio stations. Five restrictions on the ownership of television and radio stations follow: (1) National television ownership cap - A single entity can own any number of television stations nationwide as long as the stations collectively reach no more than 39 percent of national television households. (2) Local television ownership limit - A single entity can own two television stations in the same DMA if (1) the "Grade B" contours of the stations do not overlap or (2) at least one of the stations is not ranked among the top four stations in terms of audience share and at least eight independently owned and operating full-power commercial and noncommercial television stations would remain in the DMA. (3) Local radio ownership limit - A single entity can own up to 5 commercial radio stations, not more than 3 of which are in the same service (that is, AM or FM), in a market with 14 or fewer radio stations; up to 6 commercial radio stations, not more than 4 of which are in the same service, in a market with 15 to 29 radio stations; up to 7 commercial radio stations, not more than 4 of which are in the same service, in a market with 30 to 44 radio stations; and up to 8 commercial radio stations, not more than 5 of which are in the same service, in a market with 45 or more radio stations; except that an entity can not own, operate, or control more than 50 percent of the stations in a market. (4) Newspaper-broadcast cross-ownership ban - A single entity cannot have common ownership of a full-service television or radio station and a daily newspaper if the television station's "Grade A" contour or the radio station's principal community service area completely encompass the newspaper's city of publication. (5) Television-radio cross-ownership limit - A single entity can own up to 2 television stations (if permitted under the Local Television Multiple Ownership Cap) and up to 6 radio stations (if permitted under the Local Radio Multiple Ownership Cap) or 1 television station and 7 radio stations in a market with at least 20 independently owned media voices remaining post merger; up to 2 television stations and up to 4 radio stations in a market with at least 10 independently owned media voices remaining post merger; and 1 television station and 1 radio station regardless of the number of independently owned media voices. In the 1996 Act, the Congress required FCC to conduct a biennial review of its media ownership rules to determine "whether any such rules are necessary in the public interest as the result of competition" and to "repeal or modify any regulation it determines to be no longer in the public interest."