FCC EXAMINES BROADCAST-NEWSPAPER CROSS-OWNERSHIP

FCC began review of 1975 rule barring cross-ownership of broadcast station and daily newspaper in same market. In rulemaking voted Thurs., Commission asked series of wide-ranging questions that noted changes in number and kinds of media outlets established in last 30-plus years, including Internet. Original rule was designed to ensure diversity of voices in market. Notice says there are some 40 newspaper-broadcast combinations that have been grandfathered in, and FCC has granted 4 permanent waivers of rule. Commission asked parties to provide data on how public interest was harmed or benefited from such combinations. Proceeding comes as result of June 2000 biennial review on broadcast ownership. Sec. 202 of Telecom Act of 1996 directs FCC to revisit broadcast ownership every 2 years.

Among options is to keep rule as it’s written, modify media covered by rule, apply market concentration or market voice count test, modify geographic coverage areas or scrap rule altogether. Commission asked newspapers, broadcasters, consumer groups and other parties to submit comments on whether rule continued to be necessary to protect diversity of viewpoints; impact of new media; effect of media ownership diversity or concentration on diversity of viewpoints; whether commercial incentives might be enough to ensure divergent viewpoints from commonly owned media; impact on advertising; how public benefits from joint operations.

Commission also seeks comments on whether there are differences between combining newspaper and radio station vs. newspaper and TV station; whether “market concentration” standard should be implemented or perhaps, “voice count” standard; whether it should enforce structural separations, such as requiring that management be separated from editorial side. Commission also is reviewing its policy of allowing broadcast station licensee to keep newspaper until its next license renewal date. That review comes in wake of change in license terms to 8 years from 3.

Newspaper Assn. of America (NAA) said it was encouraged by FCC action. Trade group is fighting to repeal ban. “With the ever-expanding number of types of media voices today, there simply is no reason that justifies continuation of the cross-ownership ban,” NAA Pres. John Sturm said. NAB spokesman said rules were instituted when there was no cable, satellite, Internet or other media alternatives. “These are antiquated rules that are a relic of a bygone era,” he said. However, Center for Digital Democracy said changes would represent end of “checks and balances” on media ownership and criticized Chmn. Powell as having “a deregulatory agenda that will ultimately sap the vitality” of media marketplace.

Powell praised rulemaking as “fair, wide-ranging, and appropriate, while Comr. Copps urged parties to submit data. “Decisions without you are very often decisions against you,” he warned. There currently are 17 newspaper-TV combinations in U.S., Mass Media Bureau staff said, including News Corp. ownership of N.Y. Post and TV station in N.Y.C. Public has 60 days to submit comments to FCC and 30 days for replies.