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Fcc media consolidation Original Source Link: (May no longer be active)
http://story.news.yahoo.com/news?tmpl=story&u=/nm/20030107/media_nm/fcc_4http://story.news.yahoo.com/news?tmpl=story&u=/nm/20030107/media_nm/fcc_4
Entertainment - Reuters/Variety Industry
UPDATE 1-New FCC commissioner against media consolidation
Tue Jan 7, 1:53 AM ET Add Entertainment - Reuters/Variety Industry to My Yahoo!
By Pamela McClintock
WASHINGTON (Variety) - New Democratic FCC (news - web sites) commissioner Jonathan Adelstein made it clear Monday that he's against further consolidation of the media business, questioning the wisdom of a Republican campaign to relax an unprecedented number of ownership rules.
In his first public speech, Adelstein wasted no time in challenging the agenda set by FCC chairman Michael Powell. He said the agency is charged with protecting a variety of voices on the airwaves and that ownership regulations are a key component.
"In practice, that means we must promote competition, diversity and localism so that the marketplace of ideas can flourish. A great thing about my new job is that I am passionate about this mission, and it is my sworn duty to carry it out," Adelstein said during his address at the Future of Music Policy Summit in Washington.
Adelstein's choice of words made it clear that Powell will have trouble achieving a consensus as he forges ahead with the agency's review of the regulations. Powell already had his work cut out for him in wooing Democratic commissioner Michael Copps, who is adamantly opposed to wholesale deregulation.
Both Adelstein and Copps are veteran Capitol Hill aides, meaning they have direct access to key solons -- and not just Democrats.
At the music policy summit, Adelstein said massive consolidation of the radio business proves why ownership regulations are crucial. Unlike the TV biz, the radio industry was allowed to consolidate to its heart's delight after 1996.
In 1996, the two largest radio groups consisted of fewer than 65 stations. Now, Clear Channel -- the largest radio group -- owns 1,200 stations. The second largest group, Viacom's Infinity Broadcasting, owns 250 stations.
Adelstein said he disagrees with a FCC study suggesting that consolidation of the radio business hasn't hurt diversity of programming.
"Ownership consolidation in local markets by definition reduces competition and puts programming decisions into the hands of comparatively fewer, often national players," Adelstein said in his speech.
"Therefore, we must consider how consolidation affects the programming choices available to listeners and the level of local public affairs coverage," he said.
Adelstein said radio consolidation is the "canary" in the coal mine. He said the FCC better consider the health of that canary before further relaxing media ownership rules.
Other regulations up for grab include the following:
= A rule prohibiting a TV broadcaster from reaching more than 35% of the national audience. This means that media giants including Viacom Inc. and News Corp. can't grow beyond a certain point in terms of their stables of TV stations.
= A rule blocking a company from owning a TV station and newspaper in the same major market -- without a waiver, that is.
= A duopoly rule barring one company from owing multiple media outlets in one community.
Last week, all sectors of the TV business made massive filings with the FCC laying out their respective arguments with respect to the rules.
Reuters/Variety
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