NAB's Common Refrain: Reform Ownership Regs ... Especially Cross-Ownership Rules

More Consolidation ... Less Restrictions

The NATIONAL ASSOCIATION OF BROADCASTERS (NAB) came out firing in media ownership comments filed today with the FCC. As expected, the 30-page document (not including a wealth of charts and data), argued for modest reform of media ownership rules, featuring the elimination of cross-ownership rules and reform of the television duopoly rule.

Broadcasters "must have the flexibility to form competitively viable ownership structures," today's filing read. "Ownership rules that limit the ways broadcasters can compete in a digital, multichannel environment adversely affect stations' abilities to serve their diverse audiences and local communities."

In light of the increasingly fragmented audio marketplace and the financial challenges facing local stations ... the Commission should continue the process of relaxing the local radio restrictions

NAB asserted that its broadcasters were at a competitive disadvantage against Net and other media rivals because they "enjoy dual revenue streams of both subscriber fees and advertising revenues ... Existing ownership restrictions are not needed to ensure programming, viewpoint, source or outlet diversity in the 21st century media marketplace," the filing said.

"The current local radio limits were established nearly 15 years ago in a less competitive marketplace, before the emergence of satellite radio, online streaming, and iPods and MP3 players. According to numerous studies, common ownership of radio stations has produced greater programming diversity and has not significantly affected advertising prices. In light of the increasingly fragmented audio marketplace and the financial challenges facing local stations, especially during the recent severe recession, the Commission should continue the process of relaxing the local radio restrictions."

The NAB also said that broadcasters "must have the flexibility to form competitively viable ownership structures. Ownership rules that limit the ways broadcasters can compete in a digital, multichannel environment adversely affect stations' abilities to serve their diverse audiences and local communities.... Existing ownership restrictions are not needed to ensure programming, viewpoint, source or outlet diversity in the 21st century media marketplace." 

"Simply put, it is untenable to maintain broadcast-only restrictions on the assumption that common ownership of stations could somehow reduce the ability of consumers to access diverse information or harm competition in the information marketplace." 

NAB also expressed its support for the continuing relaxation of local radio restrictions "in light of the increasingly fragmented audio marketplace and the financial challenges facing local stations." 

With regard to ownership diversity, NAB reiterated its support for "incentives to promote new entry and access to capital."

The entire filing can be viewed and downloaded here.

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