FCC Reverses Obama-Era Limits on TV Stations’ Owners

Background — Previously stations groups operated under a regulation that capped them at 39% national audience share. This change should drive further consolidation.

Chart — I posted this on Twitter that showed the potential cap by broadcast group.

Immediate impact — More revenue opportunities for advertising as they are able to add more national brands as customers (larger footprint).

Long term impact — Improved economies of scale. Think combining local news (sports, etc.) for many markets into a national/regional product. Another idea would be further investments in data/tech such as user registrations to build out a direct relationship with consumers. Both moves make more sense when you have a larger footprint. Think Comcast and the X1 platform in the cable space.


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