Media Ownership

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On December 22, 2011 Federal Communications Commission Chairman Julius Genachowski issued a Notice of Proposed Rulemaking (NPRM) that proposes to loosen current media ownership rules.

Several MADCo members have signed on to Free Press’ letter to the Chairman asking the FCC not to lessen current ownership rules which prevent media companies from owning television and newspapers in the same market.  You can take action too, and tell the FCC that you support strong media ownership limits.
 

Why Does This Matter?

Just a few corporations own the vast majority of television, radio and print media outlets. When these corporations own too much of our media system, news and cultural programming is duplicated and homogenized for large markets, rather than covering the issues or arts most vital to local communities.  Diverse perspectives are lacking when just a few corporations dominate ownership of media outlets, and newsroom staff are slashed to increase profit margins.

Local Journalism Slashed
In an effort to increase profit margins, large media corporations have slashed the number of journalists on staff, decreasing the quality and quantity of news coverage. Between 2009 and 2010, hundreds of newsroom staff at ABC, CBS and NBC lost their jobs, and it’s estimated that local television news job losses were over 1600 over 2008 - 2009.

Vibrant Arts and Culture Shut Out
For most artists, the idea of getting on the radio or television today is a pipe dream.  Just nine corporations own a vast number of our nation’s radio stations, and just 13 companies own most of the nation’s television stations.  These nationally-owned outlets tend to favor programming that appeals to the widest national audience.  That often leaves newer artists, or genres such as jazz, classical, global music, or television shows about local topics or that are relevant to niche communities, unavailable in mainstream corporate media. 

Diverse Perspectives Lacking
Who owns the media often determines which perspectives is presented. Racial or ethnic minorities own just 7.7 percent of all full-power commercial broadcast radio stations, and own only 3.15% of television stations, though they account for 33 percent of the U.S. population.  So it’s no surprise that content not just relevant to people of color but also created by them, is severely lacking in mainstream media. A thriving media landscape requires access to many voices and viewpoints.  Without disparate voices audiences are left without crucial information that can inform their thinking and enhance democratic participation.

“Covert” Consolidation A New Trend
Corporate media outlets have even been skirting our weak media ownership laws even further through “covert” consolidation, whereby stations in the same media market may be owned by multiple entities, but broadcast the same exact content. MADCo member Free Press notes on their Change the Channels campaign site:  “During the last gubernatorial election in Hawaii, a Honolulu viewer tuned in to Channel 5 for coverage of the contested race. When she switched to Channel 7, she found the same reporter conducting the same interview. And on Channel 9? Identical news coverage.”

In order to stop covert consolidation, the Federal Communications Commission (FCC) must revamp its media ownership rules to prevent Covert consolidation, which is, perhaps, the biggest loophole in the FCC’s media ownership laws. Traditional media consolidation occurs when two media outlets merge or one absorbs another. With covert consolidation, news broadcasts are licensed out to stations across the nation, effectively multiplying the reach of one media source without buying out a competitor.  This action does not serve the interest of local communities and member groups are asking the FCC to curtail this practice.

What Do MADCo Groups Want?

Members of the Media and Democracy Coalition are fighting to stop any further weakening of media ownership rules, which have already led to entirely too much consolidation of ownership in too few hands.  We also want the Federal Communications Commission to propose solutions that could increase the number of women and people of color that own U.S. media outlets, as well as put an end to “covert” consolidation that deprives viewers of diverse points of view.
 

What’s Happening Now

Federal Communications Commission Prepares to Weaken Ownership Rules Again
Every four years the FCC is required to review its media ownership rules, which are intended to ensure that ownership of our media outlets is diverse and competitive, and benefits the interest of the public. The current “Quadrennial Review” began in 2010, and recently concluded a public comment period.

On Deceber 22, 2011 the FCC issued a Notice of Proposed Rulemaking, which includes specific proposals from the Commission on how they intend to change the media ownership rules.  Now the public can tell the Commission what they think of those rules.

The NPRM from Chairman Julius Genachowski contains recommendations very similar to those adopted in 2008 by then-former Chairman Kevin Martin.   The rules lifted a ban on newspaper-broadcast cross ownership, and would have allowed a television station to own a major daily newspaper in the same community.  Martin’s weak rules were thrown out in court in 2011 thanks to a lawsuit filed by the Media Access Project on behalf of the Prometheus Radio Project.  But now Chairman Genachowski is attempting to relax newspaper-broadcast cross ownership rules yet again.
 
Despite high levels of media concentration there has been a constant movement to loosen or eliminate ownership limits that protect diversity in media since the 1980’s. But MADCo members have fought back against consolidation and by holding the FCC accountable in its rule-enforcement, MADCo members seek to ensure a more diverse and vibrant media environment.

How You Can Help

Write to the Federal Communications Commission and tell them you oppose weakening of media ownership rules. Take Action Here.

Resources

Outsourcing the News showes how covert consolidation is destroying newsrooms and circumventing media ownership rules and provides in-depth case studies of three covert consolidation deals and its harm to the American people.

Free Press CEO and President Craig Aaron and News for All People author Joe Torres further question the FCC’s plans, which could include lifting the ban on newspaper-broadcast cross ownership.

Out of the Picture examines the devastating impact of consolidation on minority and female television station ownership.

Media Access Project covers media ownership basics, the historical 2006 ownership review, and the pivotal Prometheus case.