FCC Votes to Eliminate UHF Discount

According to a new NAB press release, the FCC released an order, approved by a 3-2 vote, eliminating the UHF discount portion of the national TV ownership cap. The agency found that the digital transition had removed the justification for the discount.

Also, as proposed, the FCC’s order provides certain grandfathering for TV station groups that will exceed the 39% national audience cap without the UHF discount. Specifically, the following combinations will be grandfathered: (1) those in existence on September 26, 2013 (i.e., the date of release of the FCC’s proposal to eliminate the UHF discount); (2) those created by a transaction that had received FCC approval on or before September 26, 2013; and (3) those proposed in applications pending before the FCC on September 26, 2013. Any grandfathered ownership combination that is subsequently sold must comply with the national cap in existence at the time of the transaction.

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