FCC is owning up

Media regs are outdated, studies find

By PAMELA MCCLINTOCK

Powell

WASHINGTON -- In another sign of its intent to take on key media ownership regulations, the FCC Tuesday released 12 studies suggesting that several rules have outlived their usefullness.

The studies are the starting point for the reg agency's unprecedented review of regs holding back media congloms from further growth.

The FCC isn't expected to take an up-or-down vote on the various ownership rules until next spring at the earliest. But consumer advocates, said the intent of the market-friendly FCC chair Michael Powell is clear.

"Prior to developing any decision on media ownership, we believe the Commission must engage in a thorough and nonpartisan fact-finding effort. The studies released today reveal a deeply flawed perspective that while ratifying the chairman's view fails to adequately assess the realities of the news and entertainment media marketplace," Center for Digital Democracy topper Jeffrey Chester said.

FCC insiders insisted, however, that the studies are a starting point, and not not necessarily indicative of the panel's final position.

The implications of the studies included:

• There is probably no harm in abandoning a national cap blocking the big broadcasters from reaching more than 35% of the national aud. Cap is designed to ensure that local audiences receive local programming, and not just a network feed. Study of this particular issue concluded that network owned-and-operated stations produce more local news programming than network affiliates.

  If the cap were to loosen, congloms such as Viacom and News Corp. are sure to increase their stable of TV stations. Conversely, the National Assn. of Broadcasters has fought hard to keep the cap intact, leading to a bitter feud between nets and affils.

• Another study found that in general, there are plenty of media outlets, whether TV, radio, cable or satcasting. Surveying 10 top markets, the study found that the number of such outlets has increased by an average of 195% since 1960, and that the number of independent owners of these outlets has increased by 139%.

  Hence, there could be little need to keep on the books a duopoly rule limiting the number of TV stations or radio stations a company can own in one market.

  Several of the studies seemed contradictory in nature, including one that took a peek at life since the repeal of the financial interest and syndication rules (fin-syn), which were abolished by Washington in the mid-1990s, clearing the way for networks to have a financial stake in the programming they carried.

  While the fin-syn study concluded that the "networks are influenced to a significant extent by the financial incentives associated with the ownership of programming," it also there remains a diversity of programming.

  Groups such as the Caucus for TV Producers, Writers & Directors have charged that independent and creative programming has been stamped out by the repeal of fin-syn.

• Another study considered the impact of an FCC rule barring companies from owning a newspaper and TV station in the same major market. Looking at 10 markets where waivers have been granted, researchers evaluated news coverage of the 2000 presidential campaign to see if there was a unified slant to the news.

  Study split down the middle, with five of the combos showing a similar slant and five showing a divergent slant.

  Of all the ownership rules up for grabs, Powell has expressed the most displeasure with the broadcast-newspaper cross-ownership ban.

• Another study considered massive consolidation of the radio biz, concluding that consolidation hasn't been a major cause of increased advertising rates.