Media Ownership
Issue:
The FCC first implemented local
ownership restrictions starting with radio in 1938. The most recent
local ownership rule – the newspaper/cross-ownership ban – was adopted
in 1975. These restrictions on local broadcasters do not apply to any
other industry, even those as highly concentrated as cable and
satellite. Broadcasters are urging the FCC to modernize the local
ownership restrictions so that local stations can compete on a level
playing field against other media, including large cable systems.
The FCC ownership rules currently being examined, as required by law,
are as follows:
- Local TV ownership or "duopoly" rule: Limits the number of
TV stations that any one company can own in a local market, depending on
the size of the market (i.e., the number of TV stations in that market).
In fact, in most markets, a single company can own only one TV station.
In larger markets, one company can own two TV stations (but never two
stations among the top-4 rated stations).
- Local radio ownership rule: Limits the number of radio
stations that any one company can own in a local market, depending on
the size of the market (i.e., the total number of radio stations in that
market).
- Newspaper/broadcast cross-ownership rule: Prohibits one
company from owning a daily newspaper and even a single broadcast outlet
in the same local market. In markets as large as New York or Los
Angeles, the owner of a daily newspaper cannot own even a single radio
or TV station.
- Radio/television cross-ownership rule: Limits the number of
radio stations that can be owned by a company that also owns a TV
station in that same market.
Legislative Action:
In 2004, Congress set the national TV ownership cap at 39%.
Therefore, the FCC is not examining the national TV ownership rule,
which prevents a single company from owning TV stations that
collectively reach more than a certain percentage of US television
households nationwide. However, the FCC is looking at other ownership
issues. Additionally, various members of Congress have written the FCC
expressing their views in relation to the ownership review process.
Industry Views:
The FCC should relax unreasonable ownership restrictions on the
media. Broadcasters believe that these decades-old rules should be
updated to reflect the dramatic changes in the media marketplace,
including the growth of cable TV, satellite TV and radio, and the
Internet.
|
