US media ownership changes confirmed

The Federal Communications Commission has, as expected, relaxed America's media ownership regulations.


In a vote that divided the FCC along party lines, the three Republican members of the Commission voted for the controversial changes, while the two Democrats voted against.

The changes will be made to ownership laws put on the statutes between 1941 and 1975 - most of them before the development and widespread take-up of cable television. One rule that has been altered is a 35% cap on how much of the US national television market one company can reach; that cap is now set at 45%. Another major change is in the realm of cross-platform ownership. Under the new rules, in all but the very smallest TV markets, companies are now able to own two TV stations - provided there are another six in competition - and can also now own combinations of those TV stations along with newspapers and TV stations in that same market. In the largest markets, such as New York and LA, one company can now own three stations - provided there are another eight in competition - and cross-platform ownership restrictions have been similarly relaxed.

The changes were hotly contested, with some groups fearing a substantial reduction in plurality in local markets. America's big TV networks however argued the changes were essential in order for them to compete against cable programming.

In announcing the changes, FCC Chairman Michael Powell outlined his view on the relevancy of ownership rules: "Keeping the rules exactly as they are as some suggest was not a viable option. Without today's surgery, the rules will assuredly meet a swift death."

Following the vote, Jeff Chester, the Director of the Center for Digital Democracy - a group that opposed the changes - said: "By allowing broadcast networks to amass even more power in the number of stations they can now control across the country, and by setting aside the prohibition against a single company owning both a newspaper and a television station in the same community, the FCC has weakened the very fabric of our democracy.

"Fewer owners of the mass media means fewer voices will be heard, fewer opportunities for discourse and debate will be available, and ultimately fewer options for those who seek alternative and minority viewpoints. A handful of companies will gain from today's decision, but the public at large will lose."

Speaking on ABC's This Week programme yesterday (Sunday), Powell tried to allay such fears, saying: "I think you'll see some restructuring, but I happen to personally believe not nearly as much as some of the alarmist rhetoric would suggest. Just because somebody can buy something doesn't mean it makes strategic or financial sense to do so."

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