Media Consolidation
Corporate Media and the FCC
The June 2nd, 2003 decision by the Federal Communications Commission (FCC) to drastically relax media cross-ownership rules has created an unprecedented public debate on the growing trend toward media consolidation and its potentially adverse impact on the free flow of information. Under the new FCC ownership rules, one company will be allowed to own a major newspaper, eight radio stations, three television stations, and the cable company in a single market. In essence, one company now could control all programming and news content in a single media market made up of millions of individuals. Not only will the free flow of information be adversely impacted by the FCC rule changes, but many local, independent, and minority owned media companies could be forced out of the market.
Indeed, media consolidation has already adversely impacted the radio industry. Since the passage of the 1996 Telecommunications Act, the number of radio station owners has dropped 34%, while in almost every market, less than five companies control over 70% of the market share. The picture is especially bleak for minority business owners. In 2000, only 175 minority broadcasters owned 426 stations, or about 4.0% of the nation’s 10,577 commercial AM and FM radio stations. At the end of the last decade, only 23 full power commercial television stations out of 1,288 were owned by minorities.
Fortunately, in June 2004 the 3rd U.S. Court of Appeals to remand back to the Federal Communications Commission (FCC) the new FCC rules. It was later upheld in June 2005 by the Supreme Court in its refusal to review the case. The decision by the courts represent a great triumph for democracy in this nation and for the future of free and open airwaves. It is a reflection of the people’s will, as an unprecedented two million people contacted the FCC to register their opposition to the rules.
Time to Reclaim the Media
But the fight is not over yet. In July 2005 I re-introduced the Media Ownership Reform Act of 2005 with Congressman Maurice Hinchey. MORA is a broad measure that seeks to undue the massive consolidation of the media that has been ongoing for nearly 20 years. It restores the fairness doctrine, reinstates a national cap on ownership radio stations, and lowers the number of radio stations one company can own in a local market. It further reinstates the 25% national TV ownership cap, requires regular public interest reports from broadcasters and provides for more independently produced programming on television. The bill establishes new public interest obligations to ensure broadcasters are meeting the needs of a local community and requires increased and sustained public input and outreach so that our constituents have a voice in the programming they receive. After the courts' rejection of the FCC rules, it is now up to Congress to establish statutory limitations on media consolidation and provide clear guidance to the Federal Communications Commission as it initiates a new rule-making proceeding on media ownership.
Indeed, the FCC has the responsibility to get it right this time. Instead of holding just one hearing, the Commission must schedule a series of town hall meetings nationally, both in major media markets, as well as, in small rural towns, to collect and analyze the various perspectives raised by citizens regarding the impact of media conglomeration in theirs cities and communities. The Commission must conduct studies and collect statistics that would build a solid case for any new rules, taking into full account the principles of "localism, diversity, and competition" in the formulating of a new media policy that would truly benefit the public interest.
I urge my constituents to follow the development of these new rules closely. Until then, the Commission must adhere to the order issued by the Court and continue to apply the old cross-ownership limits as established prior to June 2, 2003. It is time to make sure that the American public will have the opportunity to fully participate in the process of formulating media concentration rules, a process that is central to the core of our democracy whose future has always depended on the lively exchange of ideas in a free, open, and accessible forum.