A Broadcast Ownership Exception — Or An Emerging De Facto Rule?

LocalProximity
Written By Tim Hanlon

Lance Asper‍ via ‍Unsplash‍

Late last week, the FCC’s Media Bureau, acting under delegated authority, finalized a decision that may quietly reshape local television ownership policy.

In an order released Friday, the Bureau granted a waiver allowing Indianapolis-based Circle City Broadcasting to acquire WRTV, the market’s ABC affiliate, in a deal valued at approximately $83 million. The transaction gives Circle City ownership of three full-power television stations in the same Nielsen Designated Market Area (DMA): WRTV (ABC), WISH-TV (CW), and WNDY-TV (MyNetworkTV).

Under longstanding FCC rules, that configuration would not normally be permitted.

For decades, the commission’s Local Television Ownership Rule has limited a single entity to owning no more than two full-power stations in a market — subject to additional restrictions. The rule bars common ownership of two of a market’s top-four rated stations and requires that at least eight independently owned full-power stations remain after a combination. These structural caps were designed to preserve competition, protect viewpoint diversity, and promote localism — core pillars of broadcast policy.

Circle City’s acquisition of WRTV exceeds the commission’s two-station limit in Indianapolis. Absent a waiver, the transaction would have surpassed that numerical cap.

A Local Owner’s Expansion

Circle City is not a national chain. It is a locally based broadcaster led by DuJuan McCoy, an Indianapolis native who built the company after acquiring WISH-TV (CW) and WNDY-TV (MyNetworkTV) from Nexstar Media Group in 2019. The company became one of the few Black-owned television broadcast groups in the country.

Since then, Circle City has emphasized local news and community engagement. But without a “Big Four” affiliate (ABC, CBS, NBC, or Fox), it lacked the leverage that comes with major network programming — particularly in retransmission consent negotiations.

Acquiring WRTV (ABC) fundamentally alters that equation. It provides Circle City with network scale, broader audience reach, and stronger bargaining power.

In approving the waiver, the Media Bureau concluded that the combination would not materially harm competition in Indianapolis. The market remains served by other major operators, including Tegna Inc., which owns WTHR (NBC), and Nexstar Media Group, which owns WXIN (Fox) and WTTV (CBS).

Notably, this was not a traditional failing-station waiver invoking the FCC’s established criteria tied to financial distress, low audience share, and limited buyer alternatives. Instead, the Bureau relied on broader public-interest reasoning, determining that the specific circumstances justified flexibility.

That move — from strict structural application toward case-by-case discretionary balancing — is where the broader implications emerge.

Duopolies, SSAs — And Now Triopolies?

Broadcast ownership has long evolved at the edges of FCC caps. “Duopolies” — ownership of two stations in one market — became common after rule changes in the early 2000s. (The latest example just this week in Lexington, KY). Even where ownership was limited, broadcasters often relied on Shared Services Agreements (SSAs) or Joint Sales Agreements (JSAs) to consolidate operations without transferring licenses.

Now, industry observers increasingly discuss “triopolies” — three stations under common ownership in one market. The Indianapolis waiver does not rewrite the rule. But it demonstrates that ownership of a third station can be approved under case-by-case review.

And Indianapolis presents an additional wrinkle.

Nexstar owns two full-power stations in the market — WXIN (Fox) and WTTV (CBS). But Nexstar also holds a 75% controlling stake in The CW Network, the national programming service that supplies primetime content to Circle City’s WISH-TV (CW).

Legally, that does not count as owning a third station in Indianapolis. The FCC measures license ownership, not network equity. Nexstar does not control WISH-TV’s newsroom or hold its broadcast license.

But structurally, Nexstar’s position is layered. It owns two local stations and holds a controlling interest in the national network entity supplying programming to a third major broadcast signal in the market.

This highlights a deeper regulatory tension: the FCC’s rules focus primarily on horizontal concentration — how many stations you own in a market. They are far less attuned to vertical integration — owning both stations and networks.

In practical terms, market influence today may extend beyond simple license counts.

Structural Guardrails vs. Market Evolution

The Media Bureau justified the waiver in part by pointing to the continued presence of large competitors like Nexstar and Tegna. But if vertical integration already complicates the competitive landscape, relying solely on station-count metrics may understate how interconnected markets have become.

Ownership caps were designed as bright-line guardrails — preventing excessive concentration before it takes root. Once waivers begin expanding those limits beyond narrowly defined distress scenarios, the lines blur.

Circle City argues — persuasively — that scale is necessary to compete in a fragmented, digital-first environment. That economic reality is not imaginary. But economic pressure has historically been balanced against structural diversity concerns.

If scale and competitiveness now justify exceeding the two-station limit, similar arguments will arise elsewhere. Mid-sized market owners may contend that triopoly status is essential to sustain newsroom investment. Larger groups may argue that digital competition reduces the relevance of local concentration altogether.

Gradually, waivers can accumulate into precedent. And precedent can become expectation.

An Exception — Or the Future?

The Indianapolis decision may strengthen a local, minority-owned broadcaster and preserve local jobs. That is a meaningful outcome.

But the broader question is structural: Are ownership limits still firm guardrails, or are they evolving into flexible guidelines?

The distinction between horizontal ownership and vertical influence is increasingly blurred. A market can comply with station-count rules while still concentrating power through network ownership, shared operations, or strategic waivers.

The FCC’s mandate is to serve the public interest. Historically, structural limits were the mechanism used to safeguard viewpoint diversity and editorial independence. Replacing bright lines with discretionary balancing may offer flexibility — but it also invites gradual erosion.

Is Indianapolis a narrow exception tailored to unique facts? Or is it an early indicator that triopolies — whether through ownership or ecosystem influence — are becoming normalized?

In broadcast regulation, transformation rarely arrives through sweeping reform. More often, it unfolds one waiver at a time.

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Tim Hanlon

Tim Hanlon is the Founder & CEO of the Chicago-based Vertere Group, LLC – a boutique strategic consulting and advisory firm focused on helping today’s most forward-leaning media companies, brands, entrepreneurs, and investors benefit from rapidly changing technological advances in marketing, media and consumer communications.

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