The Federal Communications Commission (FCC) voted to eliminate a long-standing rule capping the number of households a single broadcaster can reach nationwide.
The rule limited the number of viewers any single broadcaster could reach at 39% of the national television viewing audience and will be replaced with a “granular, case-by-case review.”
The video marketplace has changed with the high number of digital platforms which enjoy unrestricted national reach, according to a statement by the commission.
“Eliminating the national cap will allow broadcasters to better compete with these unregulated digital giants. The market also reflects a growing imbalance of power in the network-affiliate relationship, which the national cap intended, but failed to curb, as evidenced by network control over online video carriage, preemption rights and revenue sharing requirements.”
The rule change is likely to have major implications on television and could accelerate consolidations of media companies.
The FCC’s vote is considered a victory for local TV news broadcasters as they seek to compete in a broader market.
The National Association of Broadcasters (NAB), applauded the FCC’s action saying it eliminates the outdated rule and will strengthen local stations, and ensue they can compete in today’s media marketplace and enhance local stations’ ability to deliver the trusted news and emergency information millions of Americans rely on.