ATVA: Stop the Swap

Why It Matters

If left unchecked, the loophole could accelerate media consolidation, eroding competition and local programming diversity while giving large broadcasters unchecked market power.

Key Takeaways

• Sinclair used multicast feeds to sidestep FCC duopoly review
• ATVA represents major MVPDs urging tighter ownership rules
• FCC approved Sinclair’s Gainesville and Tulsa station acquisitions last month
• Loophole could enable broader consolidation of Big Four network affiliates

Pulse Analysis

The Federal Communications Commission’s pending review of broadcast‑ownership rules comes at a time when the industry is testing the limits of existing regulations. Historically, the FCC has required a formal review whenever a company seeks to own two full‑power stations in the same market, a safeguard designed to preserve competition and localism. However, the agency’s current proposal to ease those restrictions has raised alarms among multichannel video programming distributors (MVPDs), who fear that a more permissive regime could accelerate the concentration of media assets in the hands of a few large groups.

Sinclair Broadcast Group’s recent transactions illustrate how broadcasters can exploit a technical gap in the rules. By acquiring the network affiliation—ABC, CBS, Fox or NBC—of a second station and delivering that programming as a multicast sub‑channel on an existing outlet, Sinclair avoids a license transfer, which would normally trigger a duopoly review. In Gainesville, Florida, Sinclair added NBC’s WNBW as a sub‑channel of its CBS affiliate WGFL before purchasing the full‑power station. A similar strategy unfolded in Tulsa, Oklahoma, where Sinclair bundled Fox’s KOKI with its ABC station and later filed to acquire the MyNetworkTV outlet KMYT. These moves let Sinclair expand its market footprint while staying under the FCC’s radar.

ATVA’s letter to the commission underscores the broader industry concern: unchecked use of the multicast loophole could lead to rapid consolidation of the nation’s four major networks, diminishing local news voices and limiting consumer choice. By tightening the definition of a “transfer” to include affiliation swaps and multicast arrangements, the FCC could restore meaningful oversight and preserve a competitive landscape. Stakeholders are watching closely, as any rule change will shape the balance of power between broadcasters, MVPDs, and the viewing public for years to come.