Summer 2003
FCC Eases Media Ownership Rules
Earlier this spring, the Federal Communications Commission (FCC) evoked a storm of protest when it voted to free media companies of ownership limits by removing longstanding consolidation restrictions.
The rule change announced by FCC Chairman Michael Powell will enable media companies to increase market share and own newspapers and television stations in the same city. Under the new rules, individual media companies will be able to reach 45% of American households- up from 35% under the traditional rules.
The six media ownership rules that were altered were:
- Broadcast-newspaper Cross Ban Ownership (adopted in 1975)- prevents ownership of a television station and newspaper in the same city
- Local Radio Ownership Rule (adopted in 1941)-prohibits radio stations from operating a large percentage of companies in the same area
- National TV Ownership Rule (adopted in 1941)-allows television stations to reach a maximum of 35% of American households
- Local TV Multiple Ownership (adopted in 1964)-prohibits television stations from monopoly in the same marketing area.
- Radio/TV Cross-Ownership Restriction (adopted in 1964)-prevents ownership of a radio and television station in the same market.
- Dual Television Network Rule (adopted in 1946)-prohibits a merger between radio and television stations. In particular, ABC, CBS, Fox, and NBC are not allowed to merge.
According to Michael J. Copps, one of the two Commissioners who voted against the changes, when similar changes had been made in regulation of radio ownership, "Diversity of programming suffered. Homogenized music and standardized programming crowded out local and regional talent. Creative local artists found it evermore difficult to obtain play time on the air. Editorial opinion polarized. Competition in many towns became non-existent as a few companies -- in some cases a single company -- bought up virtually every station in the market. This experience should terrify us as we consider visiting upon television and newspapers what we have inflicted upon radio."
Despite an outpouring of citizen support for the ownership restrictions, and additional support from organizations as diverse as the Leadership Conference on Civil Rights (LCCR) and the National Rifle Association, the FCC panel voted 3-2 along party lines to alter the restrictions, with all three Republicans voting for the changes.
Chairman Powell did not attend the nine hearings on the FCC rulings, and had only one official forum in which he discussed the FCC's plans to review the rules.
Powell's ruling was sharply criticized by many groups. "American democracy requires a competitive media environment," said Wade Henderson, executive director of the Leadership Conference on Civil Rights. "A media market with diverse voices is critical to a civil rights agenda that ensures equity and democratic participation in areas vital to the health of our nation and our communities - education, economic opportunity, the environment, health care and political participation."
Legislation to roll back the rules has been introduced in the House and the Senate. The Senate Commerce Committee passed a provision to block the rules by voice vote. In July 2003, the House legislation, which was very similar to the Senate provision, passed by a 400-21 vote.
Opponents of the rules have also announced that they would ask the Commission to reconsider the changes, and failing that, file lawsuits to challenge them. The White House has indicated that it is unsympathetic to a rollback of the regulations.
