The Jimmy Kimmel saga, station ownership, and the FCC

Summary

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Marketplace Morning Report

Episode: The Jimmy Kimmel saga, station ownership, and the FCC
Date: September 24, 2025
Host: David Brancaccio

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Episode Overview

This episode dives into the intersection of media ownership, broadcast regulations, and free speech, using the recent controversy around Jimmy Kimmel's late-night show as a lens. Host David Brancaccio unpacks how affiliate station groups like Nexstar and Sinclair exercised their discretion to opt out of airing Kimmel’s show after it returned to ABC, exploring the dynamics between station owners, networks, and government regulators—especially the FCC. The episode also provides an update on the looming threat of a government shutdown in Washington.

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Key Discussion Points & Insights

The Jimmy Kimmel Incident and Affiliate Opt-Out

• [01:07] Jimmy Kimmel's show, recently pulled by ABC, returned with a "somber" host addressing criticism over his comments on the murder of right-wing activist Charlie Kirk.
• However, major station groups Nexstar and Sinclair (reaching 20% of the audience) chose not to air the episode, highlighting a split between network and affiliate decision-making.
  • David Brancaccio: “The station groups, Nexstar and Sinclair, which control ABC affiliates that reach about 20% of the country, opted out.” [01:19]

Station Ownership vs. Network Ownership

• [02:09] The episode distinguishes the goals and powers of affiliate station groups (e.g., Nexstar, Tegna, Sinclair) from those of the national networks.
  • Craig Lemay (Northwestern University): “They have interests that are not the same as the networks. They also have licenses to protect where the networks actually do not, except in their owned and operated stations, and the networks see their competition in the future with big streamers.” [02:20]
• A $6 billion merger between Nexstar and Tegna is mentioned as a backdrop to the shifting business models in broadcasting.

Content and Editorial Control

• The decision by affiliates to not air Kimmel's episode underscores a long-standing but less visible power dynamics: affiliates have always had discretion to preempt network shows.
  • Craig Lemay: “Affiliates have the option not to run it if they find it offensive or think it would offend their audience. But this ... doesn’t play out in public the way this particular episode has.” [03:00]

Regulatory Context: The Role of the FCC

• [03:12] Discussion turns to the FCC’s indirect influence over programming—though it doesn't censor content directly, it controls licenses, which shapes broadcaster behavior.
  • Craig Lemay: “The FCC ... has no power to censor, but it also gives it discretion to award licenses. So, it’s an indirect power over programming.” [03:24]
• The "news distortion policy" and its vague threat: Though the FCC can intervene in cases of intentional, serious deception in news, the policy remains unclear in its definitions and enforcement.
  • Craig Lemay: “It hangs like a sword of Damocles over the broadcasters.” [04:32]
  • Craig Lemay: “The policy ... requires real deliberate deception by a broadcaster. It can't simply be inaccuracy or a difference of opinion.” [05:12]

Media Consolidation and Political Process

• Concerns about large station owners and media consolidation have implications for politics and public trust in the news.
  • David Brancaccio: “We have a long history in this country about concern about powerful owners of a lot of media properties and their effect on the political process and the effect on the news.” [03:12]

FCC’s Approach Over Decades

• Past FCC chairs had various philosophies: from Newton Minow’s concern about public service and news, to the more hands-off, market-driven approach of the Reagan era.
  • Craig Lemay: “... Newton Minow famously exercised his discretion as chairman through the raised eye bar approach... he was more concerned about what they were not doing in terms of news and public affairs.” [04:10]

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Memorable Quotes & Moments

• Craig Lemay on affiliate discretion:
  “Affiliates have the option not to run it if they find it offensive or think it would offend their audience. But this ... doesn’t play out in public the way this particular episode has.” [03:00]

• On the FCC’s indirect power:
  “The FCC ... has no power to censor, but it also gives it discretion to award licenses. So, it’s an indirect power over programming.” [03:24] (Craig Lemay)

• On news distortion policy:
  “The policy, insofar as it has any clarity at all, requires real deliberate deception by a broadcaster. It can't simply be inaccuracy or a difference of opinion.” [05:12] (Craig Lemay)

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Timestamps for Key Segments

• 01:07: Setting the stage—Kimmel controversy, ABC vs. affiliates
• 02:09: Difference between station and network ownership; business models diverging
• 03:12: Historical context of media ownership and the FCC's influence
• 04:10: Past FCC approaches and how current events represent a shift
• 05:06: What triggers FCC intervention—news distortion policy explained
• 05:27: End of interview with Craig Lemay

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Brief Washington Update: Looming Government Shutdown

• [06:55-08:46] The show shifts briefly to Washington, updating listeners on President Trump’s canceled meeting with congressional Democrats regarding preventing a government shutdown.

  • Republicans want a stopgap bill through Thanksgiving; Democrats want continued health subsidies and Medicaid restoration.
  • Essential services (Social Security, debt interest, certain federal employees) would continue in a shutdown, but details remain murky for this go-round.

  “Social Security checks would still go out. The government would continue paying interest on its debt. Federal agencies can decide which employees are essential and have to keep working without pay during a shutdown. In the past, air traffic control and TSA screeners had to work, for example.” [08:14] (Nancy Marshall Genzer)

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This episode captures the complex interplay between broadcast station owners, networks, and federal regulators at a moment when high-profile content controversies (like Jimmy Kimmel’s) highlight questions of free speech, editorial independence, and the evolving nature of public interest in American media.

Transcript

[A]

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[B]

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[C]

The Different Goals of Owning a TV Station versus Owning a TV Network I'm David Brancaccio in Los Angeles. After being pulled by ABC last week, Jimmy Kimmel's late night show was back on TV last night, but there's an asterisk. The station groups, Nexstar and Sinclair, which control ABC affiliates that reach about 20% of the country, opted out. As you've been hearing, Kimmel was generally somber, saying he understood why his comments about the murder of right wing activist Charlie Kirk were, quote, ill timed, unclear, or maybe both. There are issues of appropriate speech versus free speech at play in this saga, but here some business context regarding companies that own groups of affiliate TV stations. Two station groups, Nextar and Tegna, are working on a $6 billion merger. That, plus the business mod of the broadcast stations, may be diverging from the models of the firms that own the networks. That's the view of Craig Lemay, a professor at Northwestern University's Medill School of Journalism. Professor, welcome.

[D]

Thank you.

[C]

Nexstar, Tegna More people may know Sinclair Broadcasting. These station groups are big players, but not necessarily what household names?

[D]

Not household names, but they are very big players and they have interests that are not the same as the networks. They also have licenses to protect where the networks actually do not accept in their owned and operated stations and the networks see their competition in the future with big streamers. I just think the Kimmel episode has really put the spotlight on this new era of affiliate network relationships and we'll see where it's going to go.

[C]

Divergent business models, divergent goals but also divergent decisions, Right? I mean, Disney, ABC put Kimmel back on, yet Sinclair and nexstar did not put that first episode back on the air. I mean, it plays out with content.

[D]

It does. And it's always been the case that affiliates have the option not to run it if they find it offensive or think it would offend their audience. But this is. It doesn't play out in public the way this particular episode has.

[C]

Of course, we have a long history in this country about concern about powerful owners of a lot of media properties and their effect on the political process and the effect on the news.

[D]

We do. But the reason we're talking about this at all is because the heavy hand of the fcc. I mean, the fcc, the Communications act, as you know, specifically says the FCC has no power to censor, but it also gives it discretion to award licenses. So it's an indirect power over programming. And there's never been an FCC chairman to exercise that power in the way that Chairman Carr proposes to.

[C]

Yeah, I mean, it's an interesting point that you make. Right. Those of us who grew up in broadcasting were always mindful of never saying bad words on the air because the FCC was gonna come in and get us in trouble. But in fact, beyond the dirty words, the FCC has not had a long role in, let's say, policing content.

[D]

No, it hasn't. You know, my former colleague Newton Minow famously exercised his discretion as chairman through the raised eye bar approach. And. And while he talked about broadcasters failing to serve the public interest, he was more concerned about what they were not doing in terms of news and public affairs. And then later, during the Reagan administration, we had an FCC approach led by the chairman there, who said, the public interest is whatever interests the public. But you just never seen the FCC go after news organizations the way it has now. It's using. If I'm listening to Chairman Carr's language, he's talking about the news distortion policy that the FCC has, which is a very informal policy. No one really knows what it means. Not the broadcasters, not the fcc. But it hangs like a sword of Damocles over the broadcasters.

[C]

This is a principle that if it's perceived that the news is being distorted past a certain threshold, the FCC does have a rule in intervening.

[D]

Yeah. And the FCC has made news distortion complaints, of course, against Comcast and NBC and then of course against CBS for its 60 Minutes interview with Kamala Harris. But the policy, insofar as it has any clarity at all, requires real deliberate deception by a broadcaster. It can't simply be inaccuracy or a difference of opinion.

[C]

Craig Lemay is a professor at Northwestern University's Medill School of Journalism. Thank you for the briefing.

[D]

Thank you.

[E]

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[C]

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[C]

President Trump has canceled a meeting with congressional Democrats where they were supposed to talk about preventing a partial government shutdown. With money running out next week if Republicans and Democrats can't reach a deal, many federal agencies will close a week from today. Marketplace's Nancy Marshall Genzer joins us now with the latest.

[F]

David, in his social media post, President Trump called off the meeting planned for this week with Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries. Trump didn't close the door completely. He said he looked forward to a meeting with the Democrats if they, quote, get serious about the future of our nation. Schumer accused Trump of running away from the negotiating table.

[C]

What were they going to actually talk about?

[F]

Well, the Republicans want Democrats to agree to a stopgap bill through around Thanksgiving which basically keeps funding at this year's levels with a bit more for security for congressional and administration officials. Democrats want the bill to include money to extend expiring subsidies for people who buy health insurance on the Obamacare exchanges. They also want to reverse Republicans cuts to Medicaid.

[C]

All right, Nancy, here you and I are again. Remind us what happens if they run out and they shut down.

[F]

There is no plan right now. Usually the Office of Management and Budget publicizes shutdown plans on its website. Right now that page is blank. We do know Social Security checks would still go out. The government would continue paying interest on its debt. Federal agencies can decide which employees are essential and have to keep working without pay during a shutdown. In the past, air traffic control and TSA screeners had to work, for example. We just don't know yet exactly who would be essential in this shutdown.

[C]

All right. Marketplace's Nancy Marshall Genzer works out of our Washington bureau. And keep us posted. In Los Angeles, I'm David Brancaccio with a Marketplace morning report from apm, American Public Media. Hey, David Brancaccio here. Big news. Half priced Hoodie weekend is back. That means this weekend only you can get a Marketplace zip up hoodie when you donate $10 a month or support public service journalism and pick up a cozy new hoodie just in time for the cooler weather. Get yours before this deal ends at midnight Sunday. What you do is go to marketplace.org donate.