Television
Call for Change: Broadcasters Seek FCC Support Amid Streaming Surge
2025-04-08

In the heart of Las Vegas, television station owners convened at the National Assn. of Broadcasters convention, delivering a resounding plea to Washington for assistance in navigating an increasingly digital landscape. With streaming platforms steadily drawing away traditional audiences and advertisers shifting budgets online, broadcasters face an uncertain future. The potential loss of NFL media rights after 2029 further complicates matters. To counteract these challenges, station owners advocate for regulatory changes that would allow greater consolidation and technological advancements like NextGen TV.

A Plea for Regulatory Relief

Amidst the vibrant backdrop of Las Vegas, leaders from prominent broadcasting entities such as Nexstar Media Group, E.W. Scripps, and Fox Television Stations gathered, voicing concerns about their industry's survival. They pointed out that current regulations hinder their ability to compete with tech giants like Google and Facebook, which dominate digital advertising without similar constraints. Specifically, they requested the Federal Communications Commission (FCC), led by Brendan Carr, to reconsider ownership caps that restrict any single company from owning more than 39% of U.S. stations. These caps were last adjusted in 2004, long before the advent of widespread streaming services.

According to Nielsen data, streaming now accounts for over 43% of all TV viewing, nearly doubling the share held by broadcasters. Digital video ad revenue surged to $57 billion in 2023, far surpassing local TV’s $18 billion, which has fallen by 36% since 2000 when adjusted for inflation. Despite this, FCC Chairman Carr is perceived as sympathetic towards local broadcasters, emphasizing his desire to empower them against larger national entities.

Community Anchors in Transition

Broadcasters argue that communities rely heavily on them for local news coverage, especially as newspapers fade. A Magid survey revealed that 40% of consumers prefer TV stations for local news, deeming them the most trusted source. This was evident during January's Palisades and Eaton fires in Los Angeles, where major stations provided continuous updates. However, financial pressures mount as viewership and ad revenue migrate online. Stations must invest in extended newscasts and dedicated streaming operations to remain competitive.

E.W. Scripps CEO Adam Symson highlighted the unsustainable economics of maintaining multiple stations within one market. Some groups, like Sinclair Broadcast, have already centralized their news broadcasts. Family-owned News-Press & Gazette Co., operating stations in cities like Palm Springs and Santa Barbara, believes increased market presence could enhance its journalistic capabilities. While contraction raises concerns about job reductions, consumer surveys indicate openness to consolidation due to perceived redundancy in content.

The Future of Sports Broadcasting

Tensions between broadcasters and networks have escalated regarding affiliate relationships and programming exclusivity. Concerns exist over potential NFL media rights renegotiations post-2029, where streaming platforms might bid aggressively. Netflix and Amazon Prime Video have shown interest in expanding their sports offerings. Meanwhile, broadcast TV retains a unique advantage in reaching every U.S. household, exemplified by NBC's inclusion in the NBA's recent $76-billion media rights deal.

Station owners also seek FCC intervention in setting a timeline for transitioning to NextGen TV, promising improved picture quality, targeted advertising, and interactive features via over-the-air signals. E.W. Scripps' Symson anticipates substantial revenue growth through this technology.

Perspective on the Changing Landscape

As a journalist observing these developments, it becomes clear that the broadcast television industry stands at a pivotal crossroads. Their call for deregulation reflects not just a desire for survival but a strategic move to maintain relevance in an era dominated by digital innovation. Embracing NextGen TV could indeed revolutionize how content is delivered and monetized, offering broadcasters a fighting chance against tech behemoths. Ultimately, the question remains whether policymakers will act swiftly enough to preserve an institution so integral to community information dissemination while fostering healthy competition in the media sector.

More Stories
see more