Episode 113: FCC Kills the 39% Broadcast Ownership Cap

The FCC voted 2-1 to eliminate the national broadcast TV ownership cap — the rule that prohibited any single company from owning local stations reaching more than 39% of U.S. TV homes. For studio heads, showrunners, agents, and working producers, this is a structural shift in the broadcast content buyer landscape, with direct implications for licensing fees, affiliate negotiations, and who controls local programming decisions. Key Takeaways: The 39% national ownership cap is gone, effective immediately after a 2-1 FCC vote. No new numerical ceiling replaces it — reviews will be conducted case by case. Nexstar's $6.2 billion merger with Tegna, which would give the combined company reach into ~80% of U.S. TV homes, remains on hold due to an antitrust lawsuit from DirecTV and several states — but the regulatory environment just shifted in Nexstar's favor. Sinclair and Nexstar were the primary lobbying forces behind the cap's removal and are best-positioned to expand immediately. Disney (ABC), Fox, and Paramount (CBS) all filed jointly in support of eliminating the cap. Fox filed an additional separate letter arguing network O&O stations should face no differential limits compared to independent owners. The FCC currently has only 3 of its 5 chartered commissioners seated. The sole dissenting vote, Democrat Anna Gomez, argued the beneficiaries are national companies that dictate local programming — not true local broadcasters. More station-group consolidation means fewer competing buyers for syndicated and local content, reducing upward pressure on licensing fees and narrowing the field of independent bidders. The Nexstar-Tegna antitrust case is now the key forward indicator — its outcome will signal how far the new permissive regulatory posture actually extends in practice. The cap's removal was sold as a lifeline for local news. Its practical effect on content economics is likely consolidation of programming power upward — into fewer, larger national owners. For anyone whose business depends on a healthy, competitive broadcast buyer market, the Nexstar-Tegna lawsuit is the next event to watch closely. If that case collapses, consolidation accelerates on a timeline measured in months, not years. Subscribe to The Option for daily updates on the business behind the business.