America’s television and radio broadcasters are a bastion of trustworthy journalism and a vital part of our nation’s emergency infrastructure. A safe-haven from the misinformation, disinformation and questionable AI-generated content that runs rampant online, recent research illuminates a steadfast truth: Americans continue to place their trust in broadcasters for credible reporting.
- Half of all Americans say they rely on local broadcast radio or television stations the most for local news. This is especially important as local newspapers have been shutting down at an average of two every week. Fighting against news deserts, broadcasters are investing time and resources into investigative news – a public service that online sources cannot replicate. More Americans believe local broadcasting does a better job of solving problems in our communities, educating people about important local issues and providing information than social media and personal networks.
- In moments of crisis, broadcasters’ resilience keeps communities informed when other communications falter. During the Maui wildfires, television and radio stations were a lifeline as cell service failed and the power went out. They offered round-the-clock reporting before, during and after the disaster. Broadcasters are uniquely able to cover dangerous disasters that are becoming increasingly frequent.
Yet, these stations face enormous challenges in a hyper-competitive marketplace that have been exacerbated by asymmetric regulations. With yesterday’s confirmation of Anna Gomez to the Federal Communications Commission (FCC), an FCC fully seated with all five commissioners can be the catalyst to keep broadcasting strong for the millions who depend on our free, locally-focused service.
Policy Progress
This year, Congress has already made meaningful progress on two bills that will ensure consumer access to broadcasters’ trusted programming. I am grateful for the 184 bipartisan cosponsors of the AM Radio for Every Vehicle Act – legislation that will ensure the availability of AM radio in every automobile. I also applaud the Senate Judiciary Committee’s recent bipartisan passage of the Journalism Competition and Preservation Act – a bill that would arm broadcasters and other local news outlets with the necessary scale to negotiate fairly with dominant digital platforms, rather than be forced to accept the take-it-or-leave-it conditions currently imposed by these behemoth companies.
Similarly, the FCC has made strides in addressing some of the challenges facing local stations. By modernizing its regulatory fee structure, the Commission has taken steps to reduce the disproportionate fees broadcasters pay for work done on behalf of other industries. This will allow stations – particularly in smaller markets – to reinvest in providing the best local service. And the Commission’s launch of the Future of Television Initiative, a public-private partnership helping to bring the reality of Next Generation TV (ATSC 3.0) to viewers across the country, has the potential to unlock cutting-edge services that benefit public safety, close the digital divide and revolutionize broadcast TV. Solutions like these can fortify the fabric of our nation’s communications infrastructure and position broadcasting for another generation of unmatched free, local service.
But More Reforms Are Needed
A fully seated FCC must pursue more ambitious and necessary reforms. Specifically, there are three areas where action is necessary to enable vital local news and information our communities need.
First, broadcasters desperately need the FCC to modernize broadcast ownership rules dating back decades. In today’s world we face competition from pay-TV operators, satellite radio, streaming services and digital platforms operated by tech giants with market caps in the hundreds of billions (if not trillions) of dollars. These competitors have no obligations or incentive to provide the local news, weather, sports, public affairs and emergency information that broadcasters provide for free to the public every day. Yet broadcasters alone operate under regulatory constraints that incorrectly presume we compete only with one another for audience and advertising dollars.
Local news is costly to produce. A study from NAB found that nearly a quarter of an average television station’s budget goes to news operations. And yet, TV and radio stations are producing a record-high amount of local news. A recent survey of newsrooms found weekday local news increased 18 minutes on local TV stations and 21 minutes on radio compared to last year. This increase is driven by broadcast groups that have been able to leverage economies of scale to invest in more local news and launch free hyperlocal streaming channels.
As broadcasters fight for audiences and advertisers with much larger competitors, having the scale to compete will allow us to continue to improve the quality and local focus of programming that is our competitive advantage in today’s marketplace.
Second, as the method by which audiences consume television programming continues to shift, the FCC can help ensure that viewers have access to their local broadcast stations on virtual platforms. The system of regulations applied to legacy pay-TV providers recognizes the importance local broadcasters play in their communities. As the market shifts to new platforms, the FCC must actively consider whether their policies, which value a strong system of local broadcasting, are keeping pace. This is a fast-moving environment that requires the Commission to dig in and actively and publicly solicit stakeholder comments.
In 2014, the FCC initiated a proceeding to consider modernizing the definition of multichannel video programming distributors (MVPDs) to include streaming services that offer linear programming. Nearly a decade later, the media landscape has completely transformed, yet the FCC’s languishing record does not reflect that drastic change. The FCC must refresh its record in this proceeding to better reflect current marketplace realities.
Third, potential investors must have certainty that the FCC’s merger review process will conclude with an up or down vote in a timely fashion. Unfortunately, opaque and shifting guidelines about broadcaster transactions can deter potential buyers from investing in new and established entrants. This would-be investment can save struggling newsrooms and preserve local journalism. With newspapers all but disappearing in local communities across the country and news deserts proliferating, the FCC must ensure that broadcasting – the one source left in many communities dedicated to providing local news and information – can grow newsrooms and produce local programming where it is needed most.
In a landscape where misinformation abounds online, subscription fees soar and audiences’ attention is fragmented, broadcast radio and television remain the most trusted source of freely available, local content. At this critical juncture, NAB looks forward to working with the five commissioners to ensure broadcasters’ ability to grow our life-line service to the benefit of viewers and listeners across the country.
