Court Rejects Stay on FCC’s Reinstatement of UHF Discount – Does it Mean TV Ownership Consolidation is in the Clear?

In a very short one page decision, the US Court of Appeals rejected the requests filed by public interest groups to stay the effect of the Federal Communications Commission’s decision to reinstate the UHF discount. For the foreseeable future, this decision will free many broadcast television groups to acquire more television stations as UHF stations (which most TV stations now are) count for only half their audience reach in assessing compliance with the 39% limit on the national audience share that any TV owner can have.

While, contrary to some press reports, this does not signal the Court’s final approval of the FCC’s decision to reinstate the discount, it does suggest the direction which the Court is likely to take in its assessment of this Commission decision. This decision does not end the case. The public interest groups can continue to pursue their appeal though full briefing and oral argument and a full court decision. However, the rejection of the stay certainly increases the odds that the FCC will ultimately prevail in its defense of the reinstatement of the UHF discount.