President Donald Trump’s feud with the major broadcast networks has thrust the Federal Communications Commission and its “public-interest standard” into the national spotlight. While the agency and the White House have largely been in lockstep, Trump made news recently when he vocally came out against an active FCC proposal to reform the agency’s broadcast-ownership rules.
Notably, it doesn’t appear that Trump’s objection had much to do with a desire to preserve the 39% national market cap imposed on independent broadcasters. Rather, he directed his ire at the possibility that changing the rules would allow what he calls “the fake news networks” to grow larger. But if the president wants to curtail the major networks’ power, the proposed broadcast-ownership reforms would go a long way toward that goal.
The major television networks do own and operate some of their affiliates, but the vast majority—roughly 93% of the nearly 1,000 nationwide—are owned by independent broadcast groups like Nexstar Media Group, Gray Media, Tegna and Sinclair. These independent broadcasters are limited in their reach because of the national market cap set by Congress, as well as various rules regarding multiple station ownership in smaller markets.
If the restrictions were removed, independent broadcast companies could increase their reach to more Americans. As the number of stations they own increases, so too would the efficiencies and cost savings per station. And more importantly, the broadcasters’ negotiating power would increase as well. If Sinclair or Nexstar could reach most markets in the country, the networks would have more incentive to negotiate better terms with them.
As FCC Chair Brendan Carr has made abundantly clear, broadcasters have a public-interest obligation that comes with their broadcast license. This requirement comes with rules that do not apply to other services, like cable television or online streaming applications. And while the First Amendment grounds for this type of regulation have been long debated, the pressure of regulation has seen some behavioral changes among the major networks.
When ABC late-night host Jimmy Kimmel made comments about the murder of Charlie Kirk, Carr gave a vague warning to affiliates: you are on the hook if the content the networks provide violate commission rules. And indeed, both Sinclair and Nexstar temporarily refused to air the “Jimmy Kimmel Live!” program.
Since then, the Trump administration has been exploring ways to shift power in the network-affiliate relationship. Carr released a public notice in November asking for comments about the current market dynamics of affiliate agreements and the need for updates to FCC rules that would give affiliates more power when negotiating with the networks.
But changes to the affiliate rules would do little to change the market dynamics. The television networks no longer need local affiliates to reach consumers. In today’s media landscape, they can reach consumers directly through streaming apps. And this trend will likely continue as more content—especially live sports—moves exclusively to apps like Peacock (owned by NBC parent Comcast), Disney+ (owned by ABC parent Disney) and Paramount+ (owned by CBS parent Paramount).
But broadcasting probably isn’t going away entirely, either. Broadcast is free and over-the-air, so for those few Americans who don’t have broadband and the many Americans who don’t want to pay for myriad streaming services, it remains a viable option. Broadcast stations are also inherently local, meaning much of independent broadcasters’ non-network content is locally targeted, which also gives local advertisers a direct line to the community.
If the president wants to empower the independent broadcasters, the answer isn’t with changes to the network-affiliation rules. Instead, it is to allow independent broadcasters to increase their value and compete on fair terms. The best way to allow them to compete is to support the FCC’s media-ownership reforms.
The president’s feud with the broadcast networks will likely continue. But if he really wants to hit the Big Four where it hurts, he needs to get the government out of the broadcast business. By allowing the market to work, independent broadcasters will have more control over the content they choose to air, providing the check to the major networks he desires.
