BOCA RATON, FLA. — It’s the home of multimedia commentator Rob Carson and a MVPD-distributed cable channel that continues to pluck away viewers from FOX News. Now, the company led by Chris Ruddy has issued what it calls “a strong public challenge to any move that would weaken or eliminate the national television ownership cap.”
The head of Newsmax Media Inc. made his company’s viewpoint known in “a decisive and detailed filing” submitted Wednesday to the FCC in response to its ongoing “Re: Delete, Delete, Delete” initiative.
In particular, Newsmax takes aim at the “Horizontal Ownership Cap” by warning that efforts being led by the NAB to relax the current rules would lead to dangerous levels of media consolidation, diminish local journalism, and place excessive political influence in the hands of a few large media corporations.
Newsmax’s 33-page filing comes in response to a Public Notice issued by the FCC in June, which invited public comment on whether to retain, revise, or eliminate the cap. The rule currently bars any single broadcaster from reaching more than 39% of U.S. households.
Newsmax argues this limit is essential to ensuring media diversity and viewpoint competition. “Americans of every political persuasion, demographic, and location would be harmed by any weakening of the national ownership limit,” the filing states. “Anything less would undermine Congress’ mandate to preserve competition, localism, and a diversity of voices.”
Newsmax CEO Ruddy signed the filing personally. He argued that removing or raising the cap would further empower major broadcasters — “many with liberal-leaning news divisions” — to dominate local news markets across the country.
However, Ruddy did not establish any statement of fact behind this claim. While some companies such as The E.W. Scripps Co. and TEGNA have been finger-pointed as liberal-leaning with their local news by market observers who spoke with RBR+TVBR under condition of anonymity, they also point to Sinclair Inc., which has taken a decisively conservative tone with its local and national newscasts.
Rather, Ruddy points to networks, and not so much the largest ownership groups. And, there is plenty of chatter among D.C. insiders that the “Big Four” will be exempt from any ownership rule tweaks, given their ownership of networks as well as stations.
“If networks like CBS, ABC, and NBC were allowed to expand their reach unchecked, they would have even less incentive to produce programming that reflects the values of local communities, particularly those in America’s heartland,” the filing from Newsmax claims.
Newsmax also claims the Commission does not have the authority to change or eliminate the 39% cap. Citing the Supreme Court’s “Major Questions Doctrine” and congressional action in 2004, the company argues that any significant change would require a new act of Congress. “There could be no greater ‘basic and fundamental change’ to a limit set by Congress than abolishing it altogether,” the filing states.
Ultimately, Newsmax stressed that, in its view, the debate is not just about business — it’s about democracy. “At a time when local journalism is in crisis, the Commission should not further harm one of the last bastions of community-based news,” the filing says. “The Horizontal Ownership Cap has played a critical role in preserving local broadcasting — and must remain in place.”
And, as Ruddy sees it, “The FCC must reject any proposal to raise or remove the cap — not just to honor congressional law, but to defend America’s media landscape from monopolization and political manipulation.”
