FCC Tightens TV-Station Ownership Curb by Cutting Discount

Federal regulators tightened limits on owning television stations by eliminating the practice of only counting part of some stations’ audience, a move opposed by broadcasters including 21st Century Fox Inc. and Sinclair Broadcast Group Inc. The Federal Communications Commission in a 3-to-2 Democratic-led party-line vote on Sept 7 abolished the 30-year-old UHF discount. Under the eliminated discount, the agency counted only half of households in a TV station’s local area, when judging ownership against the limit of reaching 39 percent of US TV households. Groups that exceed the limit as a result of the change needn’t sell stations, but must comply in future transactions, meaning future deals could result in sales to conform with the regulation. Companies over the limit without the discount include Tribune Media Co., Ion Media Networks Inc. and Univision Communications Inc., the FCC said.

The FCC in August voted to preserve other TV and radio station ownership restrictions, including a ban on owning both a daily newspaper and a nearby broadcast station. The live audience for broadcast TV has been shrinking for years, and broadcasters have said they need to be freed of “antiquated and unreasonable” rules to vie with digital competitors. Tribune, with 42 stations in cities including New York, Los Angeles and Chicago, where it is located, in an annual filing told investors that abolishing the UHF discount would affect its ability to acquire additional stations. Gary Weitman, a spokesman, in an e-mail said the FCC decision is a “non-issue” since company holdings comply with the rules.