FCC adopts media ownership rules Proposal passed by party-line vote allows networks to reach 45% of national audience.

[Dave Farber <dave () farber net>]

FCC adopts media ownership rules
Proposal passed by party-line vote allows networks to reach 45% of national 
audience.
June 2, 2003: 11:59 AM EDT NEW YORK (CNN/Money) - The Federal 
Communications Commission narrowly approved new media ownership rules 
Monday, allowing television broadcasters to expand their reach, despite 
fears the move may reduce the variety of viewpoints available to consumers. 
The Republican-led government agency voted 3-2 to allow the broadcast 
networks to own television stations that reach a combined 45 percent of the 
national audience, up from 35 percent.Citing a need to update the 
decades-old rules to reflect new sources of entertainment, information and 
news, the FCC also voted to lift a ban that prevents a company from owning 
both a newspaper and a television or radio station -- except in the 
smallest markets.Companies could own two television stations in most 
markets as long as they are not both in the top four, based on ratings. 
Additionally, a company could own three stations in markets where there are 
at least 18 stations, like Los Angeles."I have heard the concerns expressed 
by the public about excessive consolidation," FCC Chairman Michael Powell 
said ahead of the vote. "They have introduced a note of caution in the 
choices we have made.""Keeping the rules exactly as they are, as some so 
stridently suggest, was not a viable option," Powell added. "Without 
today's surgery, the rules will assuredly meet a swift death."But the two 
Democrats on the FCC opposed easing the regulations, arguing that the 
changes would concentrate ownership in the hands of a few, reduce the 
diversity of viewpoints and stifle reporting of local news."Today the 
Federal Communications Commission empowers America's new media elite with 
unacceptable levels of influence over the ideas and information upon which 
our society and our democracy depend," said Commissioner Michael 
Copps.Critics of the changes argued that it will stifle different voices 
from being heard on American airwaves. They point to the consolidation of 
ownership of radio stations after rules on ownership in that sector were 
modified as an example of what will happen under the new rules.Supporters 
of the plan said the current rules are out-of-date relics of an era when 
most people had access to only three major networks and a handful of 
independent or public television stations. Today, about 89 million 
households have access to dozens of channels with cable or satellite 
television service, or about 83 percent of households with televisions.The 
major broadcast networks argue their network business is only marginally 
profitable at best and to compete with cable networks they need to own more 
of the profitable affiliates that carry their programming.Owners of the 
major networks include Viacom (VIA.B: Research, Estimates), which owns CBS 
and UPN, News Corp. (NWS: Research, Estimates), which owns a majority of 
Fox (FOX: Research, Estimates), Walt Disney Co. (DIS: Research, Estimates), 
which owns ABC, General Electric Co. (GE: Research, Estimates), which owns 
NBC, and AOL Time Warner Inc. (AOL: Research, Estimates), the parent 
company of CNN/Money, which owns the WB network.The new rules would allow 
the nation's networks to own stations reaching about 45 percent of the 
nation, rather than the 35 percent allowed under current caps. It also 
would open more markets to allow the same company own two television 
stations. And it also would open the door for joint ownership of a 
newspaper and a television station in more markets than allowed under 
current rules.


Find this article at:
http://money.cnn.com/2003/06/02/news/companies/fcc_rules/index.htm



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