Newsmax Backs Some Broadcasters' Plan to Raise TV Ownership Cap, With Caveats
Newsmax backed some TV station owners' request that the FCC increase the national cap to 50 percent from 39 percent while nixing the "outdated" UHF discount, though the media outlet "maintains its position that Congress clearly intended to prohibit a…
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single broadcast television licensee from reaching more than 39 percent of the national audience." If the cap is lifted, the company wants ownership above 50 percent grandfathered only if it existed before an April 21, 2017, order restoring the UHF discount and station groups not to be allowed "to evade the National Ownership Cap through contractual services agreements with a television station to which the ownership group is not a licensee." A "reasonable" cap "is essential to ensuring localism," Newsmax said Tuesday in docket 17-318. "If station groups find localism too constraining on their business plans, they can simply relinquish their spectrum rights and offer their content on any number of new and unregulated platforms or they can become national cable channels and seek carriage without the benefit of retransmission consent rights." Newsmax continues (see 1805180074) to have concerns about Sinclair buying Tribune, though the news outlet's media ownership plan isn't targeting the acquirer, said John Simpson of Capitol Resources, a consultant to Newsmax and the person who made the FCC filing. But the deal may be the only pending transaction that would be affected by the cap, he told us Wednesday. "We should set a cap, everyone should abide by that cap, and we shouldn’t let certain folks, because of when their merger was announced … have an advantage over everyone else" because the deal "was announced when the national ownership cap was in limbo," said Simpson. "If it was anybody else, I think Newsmax would have the same position." Hearst Television and others operating 306 TV stations total sought the 50 percent cap, no UHF discount and grandfathering (see 1805170033). Hearst and Sinclair declined to comment Wednesday. Separately posted to docket 17-179 Wednesday, Sinclair responded to a May 21 letter from Media Bureau Chief Michelle Carey (see 1805220063). "The responses and supporting documents submitted this afternoon contain Highly Confidential Information and were submitted under seal pursuant to the Protective Order," said a cover letter of the public filing, which contained many redactions.