Broadcast TV landscape is shifting under FCC

The string of broadcast television station ownership deals capped by the announcement of a sale by Allbritton Communications puts pressure on the Federal Communications Commission to keep its eye on the broadcast industry even as the agency is going through its own makeover. Taken together, the deals signal a reshaping of the broadcast business as it consolidates into larger station ownership groups that provide more leverage as they buy programming and sell it to pay-TV operators.

As the industry shifts, the FCC has been slow to act with its media ownership rules in flux. The commission’s rules dictate who can own what media properties and where. They generally prevent one company from owning a newspaper and a TV station in the same market and effectively cap what media properties one company can hold in individual locations. Mark Fratrik, BIA/Kelsey chief economist and vice president, said the rash of sales comes down to three things: historically low interest rates, higher-than-expected TV station revenues and rising fees from pay-TV operators. While TV deals have been moving fast, little has unfolded at the FCC with media ownership rules.