Nexstar Media Sees FCC Relaxing National Viewership Cap This Month

Nexstar Media Group expects FCC rules on national viewership cap to ease as soon as this month. The company is a diversified media company with television broadcasting, television network, and digital media assets operating in the US. It produces and distributes engaging local and national news, sports, and entertainment content across its television and digital platforms.

Nexstar Media Group, a diversified media company with television broadcasting, television network, and digital media assets operating in the US, expects the Federal Communications Commission (FCC) to ease rules on the national viewership cap as soon as this month. The company, which produces and distributes engaging local and national news, sports, and entertainment content across its television and digital platforms, has been vocal about its desire to expand its reach.

Nexstar Media Group's CEO Perry Sook stated at the Citigroup Inc.'s 2025 Global TMT Conference that the FCC could move toward striking rules that limit broadcasters' merger opportunities "as early as this month" [2]. The company expects the agency to relax or eliminate the national viewership cap, which currently limits a single broadcaster from reaching more than 39% of US households. Additionally, Nexstar anticipates the FCC to address a rule that restricts the number of stations owned in local markets.

The anticipated rule changes are crucial for Nexstar's acquisition of Tegna, a deal announced last month. The $6.2 billion acquisition would bring together two major players in the U.S. television and local news landscape. Nexstar's Sook emphasized the need for these rule changes to be implemented this year, before the mid-term elections and while the Trump administration and FCC Chairman Brendan Carr are aligned on a deregulatory agenda [2].

The relaxation of ownership caps could significantly impact the local TV station business, which is already in dealmaking mode. Recent years have seen various mergers and acquisitions among local TV station owners, with companies like Nexstar, Sinclair, and E.W. Scripps expanding their local duopolies. The anticipated rule changes could accelerate this trend, potentially leading to further consolidation in the local broadcast landscape [1].

However, not all stakeholders are in favor of the proposed changes. The National Association of Broadcasters, along with other affiliate groups, have filed letters to the FCC arguing that the current restrictions are necessary to ensure local broadcasters can continue to serve their communities effectively. They contend that the proposed rule changes could lead to a decrease in local news coverage and a shift towards more national content [1].

The outcome of the FCC's decision will have significant implications for Nexstar Media Group and the broader broadcast industry. If the rules are eased, Nexstar could expand its reach and potentially increase its market share. However, if the changes are not implemented, the company may need to find alternative strategies to grow and compete in the evolving media landscape.

References:
[1] https://www.hollywoodreporter.com/business/business-news/fox-cbs-nexstar-local-tv-buying-1236358490/
[2] https://www.bloomberg.com/news/articles/2025-09-03/nexstar-sees-fcc-rule-relaxation-as-soon-as-this-month