Wed, Jun 04, 2003 page12

• FCC decides to relax US media ownership rules

  REGULATORY VOTE Companies will be able to own a newspaper and TV station in the same city. Critics say the move will lead to more monopolies

  • AP
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  US federal regulators relaxed decades-old rules restricting media ownership, permitting companies to buy more television stations and own a newspaper and a broadcast outlet in the same city.

  The 3-2 vote by the Republican-controlled Federal Communications Commission brought strong criticism from opponents, including one lawmaker who predicted an "orgy of mergers and acquisitions" putting a few giant companies in control of what most people see, hear and read.

  

  The Reverend Jesse Jackson, right, carries a sign alongside another protester demonstrating against the US Federal Communications Commission outside its offices in Washington on Monday. The FCC eased rules on media ownership, allowing companies to own more TV stations or a combination of newspapers, TV and radio stations in the same city.

  PHOTO: AFP

  Many media companies favored the move, saying current restrictions hindered their ability to grow and compete in a market changed by cable TV, satellite broadcasts and the Internet.

  The diverse circle of critics include media moguls Ted Turner and Barry Diller, consumer advocates, civil rights and religious groups, small broadcasters, writers, musicians, unions and the National Rifle Association.

  Under the new rules, a single company can now own TV stations that reach 45 percent of US households instead of 35 percent. The major networks wanted the cap eliminated, while smaller broadcasters said a higher cap would allow the networks to gobble up stations and take away local control of programming.

  Rather than squelching diverse viewpoints and local control in news and entertainment, the big companies say, freedom from old restrictions will allow them to provide better news coverage in more communities. The broadcast networks say the changes will help keep free TV alive by helping them compete with pay services for quality programming.

  FCC Chairman Michael Powell said the commission achieved its goal of "building modern rules that take proper account of the explosion of new media outlets for news, information and entertainment."

  The commission's Democrats, Jonathan Adelstein and Michael Copps, said the changes give too much power to media giants. In the largest markets, a single company will be able to own up to three TV stations, eight radio stations, the cable TV system, cable TV stations and a daily newspaper.

  "This is the most sweeping and destructive rollback of consumer protection rules in the history of American broadcasting," Adelstein said. He said consumers' anger "will flash as they surf through their channels only to find more sensationalism, commercialism, crassness, violence, homogenization and noticeably less serious coverage of news and local events."

  Powell said after the vote that court challenges would have swept away the old rules anyway and now he is confident "the vast majority of what we've done will survive" the lawsuits he expects to be filed.

  Senator Byron Dorgan, a member of the Commerce Committee, was joined at a news conference by Senator Ernest Hollings, the committee's ranking Democrat, and Senator Trent Lott, the former Republican leader. They criticized the commission vote and threatened congressional action to block the initiatives.

  "There clearly is going to be an orgy of mergers and acquisitions," said Dorgan, who called the decision "dumb and dangerous."

  But Representative Billy Tauzin, chairman of the House Energy and Commerce Committee, supported Powell, saying, "The rules correctly reflect the continuing goals of ensuring diversity and localism and guarding against undue concentration."

  The commission ended a ban on joint ownership of a newspaper and a broadcast station in the same city. Restrictions in markets with nine or more TV stations were eliminated, while smaller markets would face some limits. "Cross-ownership" still would be barred in markets with three or fewer TV stations.

  Tribune Co and Gannett Inc were among the major newspaper-owning companies that wanted the ban lifted. Both also have broadcast holdings.

  "Our readers, viewers and listeners across the country are the real winners today," Tribune president Dennis FitzSimons said.

  "They will benefit as we explore additional ways of enriching the content of our newspapers, television stations and Web sites," he said.

  The commission also eased rules governing local TV ownership so one company can own two television stations in more markets and three stations in the largest cities such as New York and Los Angeles.
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