Fin-Syn Rules.pdf

The Financial Interest and Syndication Rules (Fin-Syn Rules) were implemented by the Federal Communications Commission (FCC) in 1970 to increase programming diversity and limit the market control of the three broadcast television networks. The rules prohibited network participation in two related arenas: financial interest in television programs beyond first-run exhibition and the creation of in-house syndication arms.

The rules were intended to benefit independent television producers by giving them more autonomy from the networks and allowing them to benefit from the lucrative syndication market. However, the rules were controversial and contested from the beginning, with the networks feeling that Fin-Syn was unfair and did not solve the intended problems.

In 1983, the FCC proposed eliminating most of the rules, but a lobbying effort by Hollywood production organizations kept them in place. In the early 1990s, the rules were relaxed, and by November 1995, all traces of Fin-Syn had been eliminated. The elimination of the Fin-Syn rules could have several long-term consequences for television, including changes in programming diversity, advertising influence, and the role of independent producers.

Key consequences of the elimination of Fin-Syn include:

Increased vertical integration, with networks having more control over production, distribution, and exhibition
Potential decrease in programming diversity, as networks may prioritize programs with high syndication potential
Increased influence of advertisers on network production, as they now write checks directly to organizations that produce and distribute content
Changes in the role of independent producers, who may face increased competition from networks and larger production organizations.