Nexstar urges FCC to repeal TV ownership rules in filing

By Dak Dillon April 14, 2025

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Nexstar Media Group has submitted comprehensive comments to the Federal Communications Commission’s “Delete, Delete, Delete” proceeding, arguing for the elimination of decades-old broadcast ownership restrictions that it claims hamper competition and threaten the future of local television.

In its April 10, 2025, filing, Nexstar traced the history of broadcast ownership regulation back to 1941, when the FCC first limited the number of television stations a single entity could own to just three stations nationwide.

The National Television Ownership Cap has evolved over decades, with Congress last setting it at 39% of U.S. television households in 2004, where it remains today.

The current regulatory framework also includes the Local Television Ownership Rule, which prohibits ownership of more than two full-power television stations in a Designated Market Area (DMA), with only one allowed to rank among the top four stations in audience share.

“Incredibly, although today’s media landscape is unrecognizable from that of the 1940s, the Commission’s television-broadcast rules have remained largely unchanged,” Nexstar wrote in its filing, calling the current situation a “break glass moment for America’s broadcasters.”

Nexstar’s filing emphasizes how dramatically the competitive environment has changed since the regulations were established.

The company argues that in an era of streaming services, digital platforms and social media, the ownership restrictions exclusively burden television broadcasters while their competitors operate without similar constraints.

“In this modern landscape, the Commission’s antiquated ownership rules undermine the public-interest goals that the FCC is obligated to promote: competition, localism, and viewpoint diversity,” the filing stated.

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The document cited the FCC’s own 2024 Communications Marketplace Report, which found that 80% of U.S. adults watch streaming video over a typical 30-day period. In March 2024, online video distributors “accounted for 38.5% of total U.S. TV viewing,” with Netflix and Amazon Prime Video each commanding about 70 million active users in the United States.

Filling the ‘news deserts’ left after the decline of local papers

Nexstar’s filing points to the accelerating decline of traditional newspapers as a critical factor in the importance of local television. The company cites research showing the closure of hundreds of local newspapers in recent years, creating what it calls “‘news’ deserts in poorer and rural communities.”

This newspaper decline is referenced throughout the station managers’ letters as well. KIAH in Houston notes that the Houston Chronicle’s circulation has “declined by more than 70%, dropping to just 142,785 by 2023” from over 500,000 daily readers at its peak. KTLA’s letter mentions that the Los Angeles Times “has reduced their journalistic staff by over 20%.”

Nexstar argued that as newspapers retreat, local television stations are “singularly positioned to fill this void, providing timely and trusted news and information to their communities and combating the spread of uncontested disinformation from unreliable non-local sources.”

Nexstar’s filing contends that the FCC has the authority to modify or eliminate these regulations and is legally obligated to do so. The company cites Section 202(h) of the Telecommunications Act of 1996, which requires the Commission to “repeal or modify any regulation it determines to be no longer in the public interest.”

The filing also references the Administrative Procedure Act, arguing it is “arbitrary and capricious for an agency to retain… rules that have long outlived their usefulness.”

Nexstar specifically targeted both the National Television Ownership Cap and the Local Television Ownership Rule, stating that both should be repealed because “the law,” “the facts,” and “the public interest” warrant it. The company argues the FCC’s 2018 Quadrennial Review Order incorrectly interpreted its statutory mandate.

Impact on local news and community service

Throughout the filing, Nexstar emphasizes that ownership restrictions harm rather than protect localism by preventing broadcasters from achieving economies of scale necessary to support local news operations.

“Television broadcasters are uniquely committed and suited to providing high-quality local news and information to viewers,” the filing stated, noting that Nexstar stations supported community-based charities that raised more than $130 million last year.

The company offers its Indianapolis stations WXIN and WTTV as a case study, where common ownership of two top-four stations has allowed the creation of over 25 hours per week of entirely separate newscasts, with the stations together airing over 100 hours per week of news and local programming.

Nexstar details the significant costs of operating local television stations, noting that “a Nexstar station in a top 100 designated market area without local news has a monthly operational cost of at least $550,000, excluding affiliation and programming fees and sales commissions.” Another station in a top 150-200 DMA providing 40 hours of local news weekly has monthly operational costs of approximately $780,000, with average monthly utility bills between $20,000 and $30,000.

The filing and station letters highlight extensive community services beyond traditional newscasts.

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KTLA in Los Angeles reports partnering with 78 community non-profits throughout greater Los Angeles in 2024, with joint efforts that “helped raise over $28,000,000 of funding” for organizations including the American Heart Association, LA Fire Department, Project Angel Food and Homeboy Industries.

KXAN in Austin notes that its investigations during the previous Texas legislative session “were responsible for eight senate and house bills being signed into law by Governor Greg Abbott.” The station also produces weekly live high school football games and partners with the Central Texas Food Bank and Family Elder Care Summer Fan Drive.

WTEN in Albany describes its annual “Coats for Kids” event providing warm winter coats to children, an annual “Backpack Give-away” distributing 1,250 free backpacks to needy families, and a telethon for the Center for Disability Services that reached its goal of $100,000 in 2025.

Station managers join the campaign

In a separate but coordinated effort, Nexstar has mobilized general managers from stations across its nationwide portfolio to submit individual letters to the FCC echoing the company’s position.

Letters from station executives in markets including Houston, San Francisco, Los Angeles, Albany and Austin follow similar templates while providing local examples of their community service. Each begins with language urging the elimination of both national and local ownership restrictions.

KIAH-TV in Houston highlights its partnerships with the Houston Hispanic Chamber of Commerce and Houston Food Bank, while KTLA in Los Angeles notes its continuous 75-hour coverage during recent wildfires. KRON4 in San Francisco emphasizes its role in statewide political coverage, including hosting debates for U.S. Senate candidates.

The FCC is reviewing comments submitted to the “Delete, Delete, Delete” proceeding as Chairman Carr pursues what he has described as a “sweeping deregulation initiative.”

While no timeline has been announced for FCC action, the coordinated push from Nexstar and other broadcast groups signals the industry’s prioritization of ownership deregulation in the current regulatory environment.

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