Dive Brief:
- The Federal Communications Commission under Chairman Ajit Pai is looking into changes on media ownership regulations, according to The Wall Street Journal.
- The Journal’s reporting pointed out rules that limit a TV station group to a 39% audience share, as well as individuals or companies owning a daily newspaper and a radio or TV station in the same market were under consideration.
- “Going forward, we’re going to have a much more fact-based discussion about where our media ownership regulations … are and where they should be,” Pai said.
Dive Insight:
The FCC under the Trump administration is taking a number of steps that favor business interests. In February, the agency chose to not review the merger between AT&T and Time Warner, it also blocked consumer data privacy rules and is set to fight net neutrality.
If the FCC were to loosen current media ownership restrictions, this would likely open the door to mega-mergers between large media companies looking to gain efficiencies and reach as the number of viewing options available to consumers continues to proliferate. Under the previous administration, several deals fell apart because of the regulatory environment, including AT&T's attempted merger with T-Mobile.
Such deals could be good for marketers. The AT&T, Time Warner merger, for example, matches wireless expertise with popular entertainment content at a time when more consumers are watching programming on their phones. As a result, it is likely to open up new advertising opportunities for brands. At the same time, fewer media companies vying for ad dollars could easily lead to higher prices due to reduced competition.
The regulatory environment under Trump may not be good news for consumers, however. Fewer media choices among TV, print and radio means fewer voices although that isn’t as major of an issue with online choices being almost unlimited. Prices could also rise for consumers.
