Musician advocacy groups want the FCC to keep the Local Radio Ownership Rule. They’re pushing back as broadcasters lobby to eliminate the limits.
What We Know: The MusicFirst Coalition and Future of Music Coalition recently met virtually with FCC staff. They spoke with the Office of Economics and Analytics and the Media Bureau. The rule caps how many stations one entity can own in a market. It also limits how many can share the same service, AM or FM. By law, the FCC must review its broadcast ownership rules every four years. It then decides whether each rule still serves the public interest. The FCC closed the formal comment round in its 2022 Quadrennial Review, but it still hears from interested parties in meetings.
Meanwhile, the NAB wants the limits gone, and it says broadcasters large and small agree. The groups counter that AM/FM stations don’t pay performance royalties for over-the-air plays, while digital rivals do. As a result, they say, radio holds a significant cost advantage.
What They Said: “We believe that music creators should be paid fairly for the use of their work by all platforms that use music as a draw to attract audiences and advertising dollars.” –MusicFirst Coalition and Future of Music Coalition
What Remains Unclear: It’s unclear when the FCC will act on the 2022 Quadrennial Review. The commission hasn’t signaled whether it will keep, loosen or remove the Local Radio Ownership Rule. Likewise, reports don’t indicate how staff responded during the virtual meeting. Whether the FCC will consider partial changes instead of full removal also remains open.
What It Means: The outcome could reshape how radio groups grow in local markets. If the FCC removes the cap, larger companies could consolidate more stations. Conversely, keeping the rule would preserve limits that the groups say protect smaller stations and local voices. The decision could also show how aggressively the FCC plans to loosen other broadcast ownership rules. Either way, the royalty debate between the NAB and musician advocates isn’t going away.
Barrett Media produces daily content on the music, news, and sports media industries. Sign up for our newsletters to stay updated and get the latest information right in your inbox.
