The partisan divide in the United States continues to heat up amid fears about the levels of control of the so-called “gatekeepers.” Growing suspicion and accusations haven’t helped the situation, lest the other side inject its agenda into the “system” and promote its values. First, it was the Supreme Court. Then the Federal Reserve. This time up, it’s the Federal Communications Commission.
Backdrop: Many argue that this has been the case throughout history, but over the past decade, there has been the perception on both sides of the aisle that long-standing norms continue to be uprooted. It’s been supercharged by the rise of the internet and social media, prompting what was once identity politics to transform into a broader “culture war.” Battles fought on cable news and talk radio have since migrated to podcasts and tweets, with the impacts spreading far and wide to the business world.
Cracker Barrel (CBRL) might have been the latest corporation to get caught up in the conflict, but another one just happened at broadcast network ABC. The Disney (NYSE:DIS) subsidiary has pulled Jimmy Kimmel Live! off the air after controversial statements surrounding the murder of conservative activist Charlie Kirk. Prior to the announcement, Nexstar Media Group (NXST) – which is seeking FCC approval for its merger with Tegna (TGNA) – said its stations that are affiliated with ABC wouldn’t broadcast his show, calling Kimmel’s remarks “offensive and insensitive at a critical time in our national political discourse.” Before the FCC’s approval of Skydance-Paramount, the latter canceled ‘The Late Show With Stephen Colbert’
Bigger picture: Soon after Kimmel’s remarks, FCC Chairman Brendan Carr suggested the regulatory agency could take action against TV broadcasters, which come with an “obligation to operate in the public interest” – unlike cable channels, streamers, etc. “These companies can find ways to change conduct, to take action, frankly, on Kimmel, or there’s going to be additional work for the FCC ahead,” he told podcaster Benny Johnson, adding that “we could be called ultimately to be a judge in that.” Following the move by ABC, Carr further stressed a need to “reinvigorate the public interest,” which means “you can’t be running a narrow partisan circus and still meet your public interest obligations.”
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