US Television Network Ownership: Rules and Regulations
The Federal Communications Commission (FCC) regulates US media ownership to ensure diversity and competition. Rules govern how many TV and radio stations a single entity can own, both locally and nationally. The FCC reviews most rules every four years to ensure they serve the public interest.
FCC rules prevent mergers between major Television Networks: ABC, CBS, Fox, and NBC. This ban on dual network ownership maintains competition and prevents excessive power concentration.
An entity can own two TV stations in the same Designated Market Area (DMA) under certain conditions. Station service areas, defined by their digital noise limited service contour, must not overlap. Alternatively, one station must rank outside the DMA’s top four by audience share. However, applicants can argue a top-four combination serves the public interest.
Local radio ownership is limited by market size. In markets with 45+ stations, an entity can own up to eight, with a maximum of five in one service (AM or FM). Allowable station numbers decrease as markets shrink. In markets with 14 or fewer stations, an entity can own up to five, with no more than three in one service, and must not own over 50% of the market’s stations.
Nationally, a single entity can own unlimited TV stations if their combined reach doesn’t exceed 39% of US households. A UHF Discount gives UHF stations (channels 14+) half the household weight of VHF stations (channels 13 and below), acknowledging UHF’s historically weaker signal. Unlike other rules, the national TV ownership rule isn’t subject to quadrennial review.
In 2017, the FCC eliminated the rule against owning a broadcast station and a daily newspaper in the same market. The FCC also eliminated the radio-television cross-ownership rule. These changes reflect the growth and diversification of news and entertainment sources.
