If the FCC votes this summer to set the national TV station ownership cap at 50% of U.S. TV homes as some broadcasters are advocating, other broadcasters who favor a 78% cap or no cap at all may go to court.
So says Nexstar Media CEO Perry Sook.
Speaking on a panel Thursday at the annual S&P Global TV & Radio Summit in New York, Sook, among those who want no cap, said: "If the cap is set at 50%, which I think is unlikely...there might be some folks that would advocate for elimination of the cap that would … sue and say, ‘Let’s take another look at this.’
“No victory in Washington is ever final; no defeat is ever fatal.”
After the session, Sook declined to say whether Nexstar would bring such a suit itself or leave it to other like-minded broadcasters such as Sinclair Broadcast Group or one or more of the networks.
The Obama FCC set the ownership cap at 39%. But last fall, under the chairmanship of Ajit Pai, the agency eased the rule by restoring the so-called UHF discount.
That had the effect of creating a different cap for each group ranging from around 50% to 78% depending on the group's mix of UHF and VHF stations. The coverage of UHF stations is halved in calculating the group’s total coverage.
The FCC is expected this summer — possibly at its July 12 open meeting — to set a new cap that would treat all groups the same, regardless of what kind of stations they have.
Sinclair and Nexstar want no cap. Reflecting the consensus of the entire broadcasting industry, NAB has asked for a 78% cap. Eight groups led by Hearst and Scripps have called for a 50% cap and, according to sources, are gaining traction at the FCC with the relatively modest proposal.
If the FCC adopts a new cap that is any higher than the Obama-era 39%, it is likely to be challenged in court by interest groups opposed to media consolidation.
So, if the FCC sets the cap at 50%, it might get blitzed in the U.S. Court of Appeals in Washington — from the 39 percenters on one side and the likes of Nexstar on the other.
Also, a 50% cap could affect Sinclair’s pending merger with Tribune. As now structured, the deal would put Sinclair’s coverage at 58%.
Sinclair CEO Chris Ripley was on the panel with Sook. Asked about a 50% cap, he said: “If that were to happen, I think there would be alternatives for restructuring the transaction.”
So says Nexstar Media CEO Perry Sook.
“No victory in Washington is ever final; no defeat is ever fatal.”
After the session, Sook declined to say whether Nexstar would bring such a suit itself or leave it to other like-minded broadcasters such as Sinclair Broadcast Group or one or more of the networks.
The Obama FCC set the ownership cap at 39%. But last fall, under the chairmanship of Ajit Pai, the agency eased the rule by restoring the so-called UHF discount.
The FCC is expected this summer — possibly at its July 12 open meeting — to set a new cap that would treat all groups the same, regardless of what kind of stations they have.
Sinclair and Nexstar want no cap. Reflecting the consensus of the entire broadcasting industry, NAB has asked for a 78% cap. Eight groups led by Hearst and Scripps have called for a 50% cap and, according to sources, are gaining traction at the FCC with the relatively modest proposal.
If the FCC adopts a new cap that is any higher than the Obama-era 39%, it is likely to be challenged in court by interest groups opposed to media consolidation.
So, if the FCC sets the cap at 50%, it might get blitzed in the U.S. Court of Appeals in Washington — from the 39 percenters on one side and the likes of Nexstar on the other.
Also, a 50% cap could affect Sinclair’s pending merger with Tribune. As now structured, the deal would put Sinclair’s coverage at 58%.
Sinclair CEO Chris Ripley was on the panel with Sook. Asked about a 50% cap, he said: “If that were to happen, I think there would be alternatives for restructuring the transaction.”
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