Trump‘sโ Renewed Threat to Broadcast Licenses & The Media consolidation Landscape
Recent actions by former President Donald Trump and statements from within the Federal Communications Commission (FCC) have raised concerns aboutโ potential government intervention inโ broadcast content,specifically regardingโฃ criticism of political โคfigures. Thisโฃ comes alongside aโค backdrop of โขongoing consolidation within the localโ television industry and lobbyingโ efforts toโ loosen ownership regulations.
The Core ofโ the issue: License โฃRenewals & “Responsible Use”
Trump, during โขa rally in Nevada on September 17, 2024, called for a review of the licenses ofโ television stations airing content he deems unfair, specifically referencing ABC โand โits late-night โhost Jimmy Kimmel. he stated, “They better get their act together,โ and they โbetter treat people fairly. If theyโข don’t, we’re going to have to do something about โtheir licenses.”โ
This echoes past rhetoric from Trump, whoโค has frequentlyโฃ criticized โฃmedia outlets โขand suggested using the FCC’sโข licensing power to influence coverage.The FCC is responsible for granting and renewing broadcast licenses, andโ traditionally, โคthes renewals have been largely procedural. However, the threat โฃimplies a โฃpotential shift towards using license renewals as leverage to control content.
Anโฃ unnamed source โฃclose to Trump โfurther clarified the position, stating, “responsible use ofโ theโ airwaves doesn’t โคmean โฃhavingโ the political languageโข [the government] doesn’t want on thereโฆ Responsible use isn’t a political issue.” This statement suggests a belief that the FCCโข should enforce a standard of “responsible use” that alignsโข with the administration’s preferences, despite arguments thatโข such a standard woudlโ inherently be subjective and politically motivated.
FCC commissioner Carr’sโ Position
Addingโ to the โขconcerns, FCC Commissioner Nathan Carrโข has publicly expressed support for re-evaluating broadcast station ownership rules and caps. Carr has indicated he โwould support eliminating these longstanding regulations, potentially paving the way for further media consolidation. He has also suggested theโ FCC should be โฃmore active in ensuring broadcasters operate in the public interest.
Media Consolidation & Potential Leverage
The timing of theseโ developments coincides with notable activity in โขthe localโฃ television market.โ Companies likeโค Nexstar and Sinclair Broadcast Group have been aggressivelyโข acquiring stations, increasing their market share.
*โข โ Nexstar โฃcurrently owns approximately 30 โABC-affiliated networksโข across the U.S., representing about 10% of the over โ200 stations the company owns โฃinโฃ total. Nexstar announced on Wednesday, May 15, 2024, that its ABC-affiliated stations wouldโค preempt the airingโฃ of Jimmy Kimmel’s late-night show “due to theโ host’s statements.”
* Sinclair similarly announcedโข it would preempt Kimmel’sโ show.
* โค Nexstar โ is seeking โขgovernment โฃapproval for a โค$6.2 billion merger with Tegna.
* Sinclair is also โexploring mergers โfor its broadcast TV station business, though no deal has beenโ announced as of Augustโ 11, 2024.
These companies have historically been subject to federal limits on theโฃ number of stations theyโ can own. Loosening these regulationsโ would allow for even greater consolidation.
The Financial Pressures on Broadcast โคTV
The push for deregulation and โคconsolidation is driven,in part,by โขthe financial challenges facing the broadcast televisionโค industry. โThe rise of streaming services hasโฃ led to a โขdecline in pay-TV subscribers, โimpactingโฃ the lucrative “retransmission fees” that broadcast stations receive from โdistributors like Charter for the right toโฃ carry their signals. These fees are a โsignificantโค sourceโ of revenue for companies like โคNexstar,and dwindling pay-TV โsubscriptions directly โฃaffect their profits.
Disclosure: Comcast is the parentโค company of NBCUniversal,โ which owns โCNBC. Versant โwould become the โฃnewโค parent company of โคCNBCโข under a planned spinoff.
This situation creates a complex dynamic where large โคmedia companies, facing economic pressures, are concurrently seeking regulatory relief and potentially vulnerable to political pressure regarding their content. The threat of license review, combined โคwithโ the โFCC’s consideration of deregulation, raises concerns about theโ future of self-reliant journalism and the potential for government influence over the airwaves.