Local Radio Ownership Cap

Before the 1996 Telecom Act: A local limit of 1 AM station plus 1 FM station and a national limit of 20 AM plus 20 FM stations.

Before the June 2, 2003 Changes: Allowed ownership of up to 8 radio stations (on a sliding scale) in a local market, depending on total number of stations in market. It allowed ownership of as many as 8 in a market of 45 stations and ownership of no more than 5 if there are fewer than 14 local stations.

New Rules: The FCC found that the current limits on local radio ownership are necessary and in the public interest, but that the previous methodology for defining a radio market did not serve the public interest. Previously, the FCC considered the geographic reach of a radio signal in this regulation. However, the agency is replacing its geographic reach standard with the geographic market definitions used by Arbitron, the radio ratings service.

Local Television Ownership Limit

Before the 1996 Telecom Act: No more than one TV station per market.

Before the June 2, 2003 Changes: It allowed ownership of "two" TV stations in same market if that market has a minimum of 8 independent voices and one of the "two" stations is not among the top four stations in that market. This has been commonly called the "duopoly" rule.

New rules:

• In markets with five or more TV stations, a company may own two stations but only one of these stations can be among the top four in ratings.
• In markets with 18 or more TV stations, a company can own three TV stations but only one of these stations can be among the top four in ratings.
• In deciding how many stations are in the market, both commercial and non-commercial TV stations are counted.

The FCC adopted a waiver process for markets with 11 or fewer TV stations in which two top-four stations seek to merge. The FCC will evaluate on a case-by-case basis whether such stations would better serve their local communities together rather than separately.

Local Broadcast-Newspaper Ownership Rule

Before the June 2, 2003 Changes: Prohibited ownership of a local radio or television station and a major local daily newspaper. The FCC has allowed grand-fathered exemptions and some waivers.

New Rules:

In markets with three or fewer TV stations, no cross-ownership is permitted among TV, radio and newspapers. A company may obtain a waiver of that ban if it can show that the television station does not serve the area served by the cross-owned property (i.e. the radio station or the newspaper).

In markets with between 4 and 8 TV stations, combinations are limited to one of the following:

• A daily newspaper; one TV station; and up to half of the radio station limit for that market (i.e. if the radio limit in the market is 6, the company can only own 3) or
• A daily newspaper; and up to the radio station limit for that market; (i.e. no TV stations) or
• Two TV stations (if permissible under local TV ownership rule); up to the radio station limit for that market (i.e. no daily newspapers).

In markets with nine or more TV stations, the FCC eliminated the newspaper-broadcast cross-ownership ban and the television-radio cross-ownership ban.

Dual Network Rule

Before 1996 Telecom Act: Prohibited ownership of more than one broadcast network.

Before the June 2, 2003 Rulings: One company could not own more than one of the four largest broadcast networks – ABC, NBC, CBS and Fox. Some companies currently own one Top Four network and some smaller networks.

No Change: The FCC retained its ban on mergers among any of the top four national broadcast networks

National Television Ownership Rule

Before the 1996 Telecom Act: A company can own TV stations reaching no more than a 25% share of U.S. TV households.

Before the June 2, 2003 Changes: No company could own TV stations that reach more than a 35 % share of total U.S. TV households. A court ruling temporarily suspended the 35% limit. News Corp. and Viacom – owners of Fox and CBS respectively – are both at about 40% because of recent acquisitions.

New Rule: The FCC incrementally increased the 35% limit to a 45%.