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FACT SHEET: UPDATING MEDIA OWNERSHIP RULES IN THE PUBLIC INTEREST
Today, Chairman Wheeler is delivering on his commitment to Congress and the Third Circuit, circulating the 2010/2014
Quadrennial review and rules that, if adopted, will take into account the evolving media marketplace and the
Commission’s obligation to conduct timely review of the rules. Consistent the Telecommunications Act of 1996, the
Commission considers whether the rules continue to serve its goals of promoting competition, localism, and diversity – in
particular, diversity of viewpoints in local markets, thereby enriching local communities.
Rules incorporate the comprehensive record. In 2014, the Commission adopted a further notice of proposed
rulemaking to establish a clear and transparent set of guidelines for media ownership, incorporating the record from the
2010 proceeding and initiating the 2014 review. The further notice also sought updated information on the state of the
media ownership marketplace.
The substantial record developed evidences both the existence of a dynamic media marketplace and the continuing
importance of traditional media outlets to their local communities. Thus, while advances have changed the ways in
which many consumers access entertainment, news, and informational programming, traditional media outlets remain
of vital importance to their local communities. Our analysis indicates that the ownership restrictions remain necessary
in the public interest, though the realities of the media marketplace require some targeted modifications of a number of
the rules.
The rules now circulated for vote by the full Commission:
Preserve the existing ownership restrictions, with targeted modifications.
Carry out the Third Circuit’s remand of diversity issues, re-adopt the small business revenue-based eligible entity
standard, address proposals submitted by MMTC, and decline to adopt race- or gender-based measures.
Readopt the TV JSA attribution rule consistent with the court’s guidance in Prometheus III and Congress’s
guidance on grandfathering.
Adopt a definition of shared services agreements; require that these agreements be filed with the Commission
and made publicly available; and do not attribute any such agreements, other than JSAs, at this time.
The existing media ownership rules, with slight modification, remain in the public interest. The order, if adopted, finds
that the current media ownership rules remain necessary in the public interest but require minor updates to reflect
current industry trends and marketplace realities. Given that the broadcast TV incentive auction is underway and its
results will not be known for some time, the auction’s effect on the marketplace is not yet clear. The Commission’s
future quadrennial ownership review will be able to assess the impact of marketplace changes resulting from the
auction. The proposed order:
Local Television Ownership Rule: (1) Retains the existing rule, with a minor technical modification to
address the transition to digital broadcasting; (2) Extends the current ban on co-ownership of two top-four
television stations in a market to network affiliation swaps, to prevent broadcasters from evading
application of the rule; and (3) Declines to limit dual network affiliations via multicast at this time.
Local Radio Ownership Rule: Retains the existing rule with minor clarifications to assist the Media Bureau in
processing license assignment/transfer applications. (For example, the item adopts a new Puerto Rico
market definition based on Commission precedent, and also clarifies the grandfathering rules applicable to
community of license changes.)
Radio/Television Cross-Ownership Rule: Retains the existing rule with a modification to address the
transition to digital television broadcasting.
Newspaper/Broadcast Cross-Ownership Rule: Retains the existing ban on cross ownership, but modestly
relaxes the rule by providing an exception for failed or failing entities and states that the Commission will
consider waivers. The trigger for the rule is also modified to consider the relevant Nielsen television or radio