U.S. loosens rules for media cross-ownership
Source : CBC News
December 18, 2007
In a controversial move that could increase media concentration in the U.S., the Federal Communications Commission has voted to allow broadcasters in the nation's 20 largest media markets to also own a newspaper. FCC chairman Kevin Martin pushed through a vote in favour of the proposal on Tuesday, despite protests from U.S. senators and consumer groups.
The move overturns a 32-year ban on cross-media ownership of broadcast and newspaper interests in a single market.
The FCC tried to loosen the ban in 2003, but that proposal was overturned by a federal appeals court.
Commissioners believe this new set of rules will survive judicial scrutiny.
It may not be approved in the U.S. Senate, as 25 senators have signed a letter to the FCC threatening to overturn the decision.
Consumer groups also oppose the move saying that loosening ownership rules will lead to fewer, less diverse voices in the media in major U.S. cities.
However, the White House has made it clear it supports the FCC initiative.
Commerce Secretary Carlos Gutierrez has said "the current ownership rules are significantly outdated in the modern media marketplace."
Republican FCC commissioner Robert McDowell noted the explosion of new media in the modern marketplace including cable and internet outlets, saying they were sufficient to provide diverse points of view.
FCC chair Martin, another Republican, referred to the steady decline in revenue among U.S. newspapers, who are consolidating and cutting back costs as they lose ad revenue to online media.
The proposal 'strikes a balance" between the changing media marketplace and the need to protect diversity and competition, he said.
The proposal includes a permanent waiver for six new newspaper-broadcast combinations, part of a wave of consolidations that have taken place in the past few years in the U.S.
The waivers benefit companies like Gannett Inc. and Media General Inc., which faced the prospect of having to sell media assets in cities that are not considered among the 20 largest media markets.
In addition, 36 newspaper-broadcast ownership combinations were grandfathered because they predated the 1975 creation of the rule against cross-ownership.
Democratic members of the FCC decried the proposal, saying there may be more media outlets, but there has been no corresponding increase in news gatherers and producers, especially at the local level.
"In the final analysis, the real winners today are businesses that are in many cases quite healthy, and the real losers are going to be all of us who depend on the news media to learn what's happening in our communities and to keep an eye on local government," said FCC commissioner Michael Copps.
Canada's federal regulator, the Canadian Radio-television and Communications Commission, also has a mandate to provide for diversity of voices in Canadian media.
However, it has allowed cases of cross-ownership in Canadian cities as media conglomerates make deals to buy broadcast interests.
The issue of cross-media ownership is again before the CRTC as it considers its decision on CanWest's proposed takeover of Alliance Atlantis Communications.
With files from the Associated Press
© CBC
The move overturns a 32-year ban on cross-media ownership of broadcast and newspaper interests in a single market.
The FCC tried to loosen the ban in 2003, but that proposal was overturned by a federal appeals court.
Commissioners believe this new set of rules will survive judicial scrutiny.
It may not be approved in the U.S. Senate, as 25 senators have signed a letter to the FCC threatening to overturn the decision.
Consumer groups also oppose the move saying that loosening ownership rules will lead to fewer, less diverse voices in the media in major U.S. cities.
However, the White House has made it clear it supports the FCC initiative.
Commerce Secretary Carlos Gutierrez has said "the current ownership rules are significantly outdated in the modern media marketplace."
Republican FCC commissioner Robert McDowell noted the explosion of new media in the modern marketplace including cable and internet outlets, saying they were sufficient to provide diverse points of view.
FCC chair Martin, another Republican, referred to the steady decline in revenue among U.S. newspapers, who are consolidating and cutting back costs as they lose ad revenue to online media.
The proposal 'strikes a balance" between the changing media marketplace and the need to protect diversity and competition, he said.
The proposal includes a permanent waiver for six new newspaper-broadcast combinations, part of a wave of consolidations that have taken place in the past few years in the U.S.
The waivers benefit companies like Gannett Inc. and Media General Inc., which faced the prospect of having to sell media assets in cities that are not considered among the 20 largest media markets.
In addition, 36 newspaper-broadcast ownership combinations were grandfathered because they predated the 1975 creation of the rule against cross-ownership.
Democratic members of the FCC decried the proposal, saying there may be more media outlets, but there has been no corresponding increase in news gatherers and producers, especially at the local level.
"In the final analysis, the real winners today are businesses that are in many cases quite healthy, and the real losers are going to be all of us who depend on the news media to learn what's happening in our communities and to keep an eye on local government," said FCC commissioner Michael Copps.
Canada's federal regulator, the Canadian Radio-television and Communications Commission, also has a mandate to provide for diversity of voices in Canadian media.
However, it has allowed cases of cross-ownership in Canadian cities as media conglomerates make deals to buy broadcast interests.
The issue of cross-media ownership is again before the CRTC as it considers its decision on CanWest's proposed takeover of Alliance Atlantis Communications.
With files from the Associated Press
© CBC
