FCC May Loosen Station Ownership Rules

Television broadcasters could soon legally own and operate multiple stations within one market, under regulations being considered by the Federal Communications Commission. At present, FCC rules allow only one station per owner per market (a market being defined as a geographical area within transmitter range). The proposed changes were submitted for review by the FCC's Mass Media Bureau to the commissioners on Monday, July 19.

In recent months, the Commission has been heavily lobbied by the broadcasting industry to loosen the ownership cap. Traditional broadcast-television viewership has declined as interest in the Internet, satellite broadcasting, home theater, and other forms of information and entertainment delivery have become more attractive. Broadcasters see consolidation as a way of remaining profitable in a shrinking market. The changes being considered are "markedly more liberal than a proposal the FCC considered in December," according to Kathy Chen of the Wall Street Journal.

Radio broadcasters have already benefited from a loosening of the rules. The Telecommunications Act of 1996 liberalized limits on station ownership, prompting a wave of buyouts, mergers, and consolidations. "The proposed relaxation on TV-station ownership would apply to bigger markets that feature a certain number of broadcast outlets," according to Chen. "It would allow a company that owns a major network station to acquire a second, smaller station in the same market, but still prohibit one company from buying two big network stations in a market."

"We're pleased the FCC is moving forward," National Association of Broadcasters President Eddie Fritts says of the possible changes. "It's a difficult issue, but we think they will resolve this in a manner consistent with the public interest." It should be noted that Fritts' concept of "public interest" is synonymous with whatever is good for big broadcasters. Present rules prevent one company from owning TV and radio stations in the same market, but the FCC routinely grants waivers allowing the practice. Waivers might no longer be necessary under what could become the new rules.

Several news stories have emphasized the FCC's desire to ensure "diversity and competition" in broadcasting. Whether these goals are consistent with the consolidations that will certainly follow the liberalization of ownership restrictions is the main focus of consideration at the agency now. Its five commissioners are expected to vote on the changes August 5.

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