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Local broadcast TV appears to be on the verge of deregulation by the Federal Communication Commission, which would be game-changing for the industry. But will the industry really use the moment to transform itself?
It’s no secret that broadcast TV is experiencing headwinds. According to iSpot, linear ad impressions were down 5.41% in Q1 of 2025. However, linear ad revenue still climbed 3.99% thanks to major sports programming like the NFL Playoffs, Super Bowl, March Madness and the NBA. National ad spend on cable and linear was down 7% per MoffettNathanson, and local broadcast “core” revenues (excluding political and retransmission fees) for the top five companies declined an average of 4%:
Company2025 Q1 Local Rev2024 Q1 Local RevLocal Rev % ChgScripps$132,000,000 $136,000,000-3%Nexstar$454,000,000$474,000,000-4%Sinclair$292,000,000$297,000,000-2%Gray$344,000,000$372,000,000-8%Tegna$286,000,000$296,000,000-3%TOTAL$1,508,000,000$1,575,000,000-4%
With a new FCC Chairman in place and Olivia Trusty nominated by President Trump as a third Republican commissioner, broadcasters are optimistic that a more broadcast-centric commission may advance deregulation that could materially improve margins. The argument: A lighter regulatory burden would allow stations to reinvest in local journalism, expand community programming and better compete in a rapidly consolidating, digitally native media landscape.
As I see it, there are five regulatory opportunities for broadcasters in front of the FCC:
Lift or ease the 39% ownership cap: This would allow station groups to expand their national reach, improve scale and increase negotiating power. Eliminate or relax the “top 4” ownership restriction: Permitting ownership of more than one major network affiliate in a market could drive operational efficiency and consolidate sales efforts. Enable stations to