Reassessing Deregulation in Broadcast Radio
For many years, broadcast radio companies have advocated for deregulation, believing it would promote industry growth and drive innovation. Despite these expectations, the current environment has not consistently delivered the intended benefits. Today’s broadcast radio landscape requires a careful and comprehensive review of existing policies. It is crucial to examine whether deregulation has achieved its goals or if policy adjustments are necessary to better support the industry.
Challenges of Multiple Station Ownership
Owners who hold numerous stations in a single market often face considerable difficulties maintaining financial stability. The persistent inability of many such owners to remain solvent highlights significant flaws in the present market structure. These issues suggest that it may be necessary to reconsider the maximum number of stations any one owner can possess in a given market to ensure the industry’s long-term health. Financial instability has led to the loss of valuable personnel across radio markets and, more importantly, contributed to the industry’s departure from its core commitment to serving the public interest—a responsibility that was previously paramount.
Proposed Ownership Cap for Sustainable Competition
The new recommendation for the maximum number of signals an owner can hold in a market is two FM stations and two AM stations, totaling four per market. Companies would still be permitted to own stations in multiple markets, provided they adhere to the two FM and two AM per market limit. FM HD side channel signals would be allowed to operate independently, but companion FM translators would not be permitted.
Restoring Local Radio and Public Service
The experience of the past several decades demonstrates that extensive deregulation has not reliably strengthened local radio. Instead, it has placed financial strain on station owners, reduced staffing, and diminished the industry’s mission to serve the public interest. By reinstating clear and reasonable ownership limits, competition can be revitalized, local service can be improved, and sustainable operation can be encouraged. A cap of two FM and two AM stations per owner in each market—four in total—with FM HD subchannels standing alone, represents a practical and balanced approach to restoring broadcast radio’s health and its value to communities.