Will The FCC Raise Limits On TV Station Ownership?

For many TV industry analysts, it seems an easy projection: The new Trump Administration will mean less regulation for the TV businesses -- particularly for TV station groups, which could mean high merger activity. But Barclays Capital says don't be too sure.

One of the main points of contention is lifting the cap on the number of TV stations one company can own -- now at 39% of US TV homes. “Lifting broadcast caps [are] not easy,” writes media analyst Kannan Venkateshwar. “Broadcast ownership rules have been reviewed many times at the Supreme Court, circuit courts and Congress. Even the Republican-led FCC, while raising the limits in early 2000s, recognized the need to maintain a limit on ownership.” Secondly, it may not be the Federal Communications Commission deciding on whether to lift that cap. “Because the 39% cap was put in place by Congress, there is a school of thought that argues that only Congress can modify this cap.”