Sinclair Could Be a Big Winner From the FCC’s Latest Deregulation Move

Goodbye, local studio rule. Hello, more consolidation?

bx98ct/iStock / Getty Images Plus

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.

For almost 80 years, the Federal Communications Commission required that TV and radio stations have a studio in or near the community they served. It was only logical that a TV station covering a particular city or region have a physical presence there—to better cover the news, to give a connection to the community, and to offer viewers an easy way to interact with the station.

But on Tuesday, the FCC’s Republican majority voted to eliminate the main studio rule. It was the latest step by the commission under President Donald Trump to deregulate the broadcast industry, and it could further pave the way for the growth of a small number of powerful media companies, including Sinclair Broadcast Group, the pro-Trump TV behemoth on a mission to dominate the local news business across the country.

The FCC’s two Democrats voted against the decision. “By eliminating the main studio rule in its entirety for all broadcast stations—regardless of size or location—the FCC signals that it no longer believes those awarded a license to use the public airwaves should have a local presence in their community,” Commission Mignon Clyburn, a Democrat, said after the vote.

Critics on the left and right condemned the FCC’s decision. “By eliminating this rule, the Commission has blasted open a path for conglomerates like Sinclair to move even more resources—including broadcast facilities and staff—away from underserved communities,” Dana Floberg, a policy analyst at the media advocacy group Free Press, said in a statement.

Christopher Ruddy, the CEO of the conservative Newsmax Media company and a friend of Trump, wrote in a recent Washington Post op-ed: “If this requirement is dropped, local news production could be moved to places such as New York and Washington as the big networks buy up local stations.”

The broadcast industry was a driving force behind the FCC’s decision. The National Association of Broadcasters, the industry’s top lobbying group, argued that the rule was outdated because viewers and listeners can now contact their local TV and radio stations by email and on social media, and so it’s no longer necessary to maintain a physical presence in the community. The NAB also said that throwing out the main studio rule would lead to “cost savings and other efficiencies that will allow stations to better serve their audiences.” Broadcast companies such as Sinclair say they need all the savings they can find as they compete with Google, Amazon, and other major tech corporations entering the media business. 

The FCC’s three Republicans agreed with the industry’s stance. Ajit Pai, the commission’s Republican chairman, went even further by predicting a future in which “technology allows broadcast stations to produce local news even without a nearby studio.”

The elimination of the rule will undoubtedly help companies such as Sinclair as they seek to consolidate the broadcast business down to a handful of mega-companies. Right now, Sinclair is seeking FCC approval of a $3.9 billion merger with Tribune Media. That deal would see Sinclair acquire 42 new TV stations—including stations in New York, Los Angeles, and Chicago, the three largest media markets in the country—making Sinclair far and away the largest owner-operator of TV stations in America.

As it happens, Sinclair—a company notorious in the industry for cutting costs and running lean newsrooms—is already experimenting with how to outsource the news. In 2016, Sinclair decided that it would outsource the local newscast for WNWO, its NBC affiliate in Toledo, Ohio, to a centralized studio located a state away in South Bend, Indiana.

The results have at times been shaky. The website FTVLive.com has documented the slip-ups and mistakes that appear to result from Sinclair’s efforts to produce a local news program from a studio operation more than 150 miles away. Here are two examples:

AN IMPORTANT UPDATE

We’re falling behind our online fundraising goals and we can’t sustain coming up short on donations month after month. Perhaps you’ve heard? It is impossibly hard in the news business right now, with layoffs intensifying and fancy new startups and funding going kaput.

The crisis facing journalism and democracy isn’t going away anytime soon. And neither is Mother Jones, our readers, or our unique way of doing in-depth reporting that exists to bring about change.

Which is exactly why, despite the challenges we face, we just took a big gulp and joined forces with the Center for Investigative Reporting, a team of ace journalists who create the amazing podcast and public radio show Reveal.

If you can part with even just a few bucks, please help us pick up the pace of donations. We simply can’t afford to keep falling behind on our fundraising targets month after month.

Editor-in-Chief Clara Jeffery said it well to our team recently, and that team 100 percent includes readers like you who make it all possible: “This is a year to prove that we can pull off this merger, grow our audiences and impact, attract more funding and keep growing. More broadly, it’s a year when the very future of both journalism and democracy is on the line. We have to go for every important story, every reader/listener/viewer, and leave it all on the field. I’m very proud of all the hard work that’s gotten us to this moment, and confident that we can meet it.”

Let’s do this. If you can right now, please support Mother Jones and investigative journalism with an urgently needed donation today.

payment methods

AN IMPORTANT UPDATE

We’re falling behind our online fundraising goals and we can’t sustain coming up short on donations month after month. Perhaps you’ve heard? It is impossibly hard in the news business right now, with layoffs intensifying and fancy new startups and funding going kaput.

The crisis facing journalism and democracy isn’t going away anytime soon. And neither is Mother Jones, our readers, or our unique way of doing in-depth reporting that exists to bring about change.

Which is exactly why, despite the challenges we face, we just took a big gulp and joined forces with the Center for Investigative Reporting, a team of ace journalists who create the amazing podcast and public radio show Reveal.

If you can part with even just a few bucks, please help us pick up the pace of donations. We simply can’t afford to keep falling behind on our fundraising targets month after month.

Editor-in-Chief Clara Jeffery said it well to our team recently, and that team 100 percent includes readers like you who make it all possible: “This is a year to prove that we can pull off this merger, grow our audiences and impact, attract more funding and keep growing. More broadly, it’s a year when the very future of both journalism and democracy is on the line. We have to go for every important story, every reader/listener/viewer, and leave it all on the field. I’m very proud of all the hard work that’s gotten us to this moment, and confident that we can meet it.”

Let’s do this. If you can right now, please support Mother Jones and investigative journalism with an urgently needed donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate