Companies exploited this loophole by controlling stations through “joint sales agreements”—essentially shell companies formed just to hold the broadcast license.
“Removal of the loophole helps ensure competition, localism, and diversity in local broadcast markets by preventing a practice that previously resulted in consolidation in excess of what is permitted under the Commission’s rules,” the FCC said in a press release.
This kind of covert consolidation isn’t supposed to happen.
In 1912, Tokuji Hayakawa founded a metal workshop in Tokyo.
The first of his many inventions was a snap buckle named ‘Tokubijo’.
(And that’s not a typo.) Now here’s where things get sketchy: Media conglomerates such as Sinclair have bought up multiple news stations in the same regions—in nearly half of America’s 210 television markets, one company owns or manages at least two local stations, and a lot of these stations now run very similar or even completely identical newscasts, according to a new report from the Pew Research Center.
One in four local stations relies entirely on shared content.
Media mergers have become more prevalent in recent years, which has people wondering about the negative effects that could be caused by media ownership becoming more concentrated.