House Passes 39% Cap Compromise - Multichannel

House Passes 39% Cap Compromise

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The House voted Monday for a massive spending bill that included a provision that caps a TV-station group's potential reach at 39% of TV households.

The Senate is not expected to take up the bill until early January.

The 39% cap spares Viacom Inc. (owner of CBS and UPN stations) and News Corp. (owner of Fox stations) from having to sell stations. Both companies reach just under 39%.

In June, the Federal Communications Commission raised the cap to 45%, but both the House and Senate made moves to retain the old 35% cap.

The 39% cap would be statutory, meaning that the FCC would no longer have power to raise or lower it. Unless Congress changed the cap, parties would have to persuade a court that the limitation on station ownership violated the federal constitution.

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