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US Television Ownership Restrictions Must Be Reviewed, Says Court

US Television Ownership Restrictions Must Be Reviewed, Says Court

The existing US television ownership rules must be reviewed, a US Appeals Court has determined.

Currently, TV station ownership is restricted so that no one network can reach more than 35% of US households (see Viacom Networks Leave NAB Over Audience Limit); it also prevents operators from owning cable systems and broadcast TV stations in the same market.

Should a relaxation of the rules come about, there is likely to be flurry or merger and consolidation activity in the US TV market as companies seek to develop greater vertical integration across areas of their businesses.

The Viacom network has already been granted a temporary reprieve from the restriction, pending the result from the Court of Appeals and withdrew from the National Association of Broadcasters (NAB) over the latter’s support for the 35% limit (see Viacom Given Temporary Audience Limit Reprieve As Courts Reassess Rules).

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