Federal Communications Commission (FCC) Orders Nexstar to Sell WPIX-TV
The Federal Communications Commission (FCC) has recently made a ruling that local TV giant Nexstar Media Group’s acquisition of WPIX-TV in New York violated federal limits on station ownership. In response, the regulatory agency has ordered Nexstar’s partner in WPIX, Mission Broadcasting, to sell the station or for Nexstar itself to shed other stations in its portfolio to comply with ownership regulations. Additionally, the FCC has fined Nexstar $1.2 million for their actions.
WPIX-TV, an affiliate of The CW, has been a prominent player in the New York media market since it first went on the air in 1948. Nexstar, the largest owner of U.S. TV stations, gained control of The CW in 2022 and has been operating WPIX since 2020 under a local marketing agreement with Mission. This type of agreement, known as a “sidecar” deal, has come under scrutiny in recent years as regulators have expressed concerns regarding potential workarounds to ownership rules.
The FCC ruling states that Nexstar engaged in an unauthorized transfer of control, surpassing the cap of 39% of U.S. TV households reached by a single owner. Nexstar CEO Perry Sook has expressed strong disagreement with the FCC’s decision and intends to dispute it vigorously. He argues that Nexstar has always complied with FCC regulations and that the acquisition of WPIX and the local marketing agreement were approved by the FCC in 2020.
However, FCC Chairwoman Jessica Rosenworcel emphasizes that it is the agency’s responsibility to enforce the existing law, which prohibits companies from owning or controlling broadcast stations that reach more than 39% of the national television audience. Unless Congress changes this law, the FCC has no choice but to enforce it.
The implications of this ruling are significant for the media industry. It highlights the growing concern over consolidation and ownership limits in the local TV sector. With the ever-changing media landscape, the FCC is keen on ensuring a competitive marketplace and preserving investments in local news, investigative journalism, and other services that broadcasters provide to their communities.
Looking forward, this ruling might lead to a reevaluation of existing ownership rules and a more stringent enforcement of compliance. The FCC may explore additional measures to prevent potential workarounds and unauthorized transfers of control. As the media industry continues to evolve, regulators will likely prioritize maintaining fair competition and ensuring diverse and independent voices in the marketplace.
Furthermore, this ruling sheds light on the importance of media ownership regulations in the digital age. As technology advances and streaming services gain prominence, the FCC’s role in overseeing ownership and controlling ownership concentration becomes even more critical. Striking the right balance between promoting innovation and competition while preventing monopolistic practices will be a key challenge in the years to come.
In conclusion, the FCC’s ruling on Nexstar’s acquisition of WPIX-TV brings attention to the complexities of media ownership regulations. It serves as a reminder that compliance with ownership limits is essential for fostering a competitive media industry and safeguarding the interests of viewers and local communities. Moving forward, industry stakeholders should closely monitor any adjustments to ownership rules and ensure compliance to avoid potential penalties and regulatory challenges.
