The FCC's Media Ownership Rules and the Implications for the Network-Affiliate Relation

On June 20, 2003 the Federal Communications Commission (FCC; 2003b) released a Report and Order that completed its 2002 Biennial Regulatory Review of 4 broadcast ownership rules. The increase in the station ownership cap from 35% to 45% of U.S. television households raises questions about the impact of the FCC's action on the network-affiliate relation. This study uses February 2002 Nielsen ratings to identify the stations and ownership conditions under which an affiliate is likely to have bargaining power in its dealings with its network.