NAB: FCC MUST UNFETTER LOCAL BROADCASTERS

In its comments on the FCC's proposed ownership reform filed today, the  National Association of Broadcasters emphasized that the commission "has a clear duty … to reevaluate the broadcast ownership rules to ensure they still serve the public interest in a rapidly changing media marketplace."

In doing so, NAB argues, the FCC "must recognize the continuing proliferation of media

outlets accessible to American consumers and the profound impact such proliferation has had on the broadcast industry and the need for continued ownership regulation."

Technological advancements, the growth of multichannel video and audio outlets and the Internet, and an expansion in the number of broadcast outlets in the past several decades have altered the media marketplace in two fundamental ways, NAB said.

First, consumers nationally and in local markets of all sizes now have access to a vast array of information and entertainment from broadcast and nonbroadcast outlets. Second, NAB said, "due to this explosion of outlets, as the commission found even four years ago, traditional broadcasters are struggling to maintain their audience and advertising shares in a sea of competition" with exponentially increasing sources for information, opinion and entertainment, which have also created "new and growing competitors for the advertising support that is crucial to free over-the-air media."

NAB says the current rules do not serve the public and offered suggestions for change:

• "The commission shouldreform the television duopoly rule to reflect the current competitive televisionmarketplace and allow more freely the formation of duopolies in markets ofall sizes. Freely permitting local television duopolies is necessary topreserve and enhance television broadcasters' ability to serve theirviewers and communities in markets of all sizes."
• "As NAB has previouslyshown, the case for repealing the anachronistic ban on joint ownership ofnewspapers and broadcast outlets is clear and compelling. The ban inhibitsthe development of new innovative media services, especially on-line anddigital services, and precludes struggling broadcast and newspaperentities, particularly those in smaller markets, from joining together toimprove, or at least maintain, existing local news operations."
• "The radio/televisioncross-ownership rule similarly does nothing to advance the public interestunder current marketplace conditions. The rule is no longer needed toensure diversity in local markets, but in its current form primarilyserves to limit radio station ownership arbitrarily. With television andradio broadcasters facing unprecedented competition from cable, satellite televisionand radio, and audio and video Internet applications, a cross-ownershiprule applicable only to local radio and television broadcast stations isinequitable and outdated."
• "In response to the commission'srequest for comment on proposals to foster ownership of broadcast outletsby minorities, women and small businesses, NAB reiterates its long-heldbelief that the commission should pursue constitutionally sustainableprograms to further opportunities for such groups. NAB recognizes thatimproving access to capital is key to this effort and suggests ways toachieve this goal, including reform of attribution and auction rules."

To read the NAB's complete comments, click here.