Golden State job blues
WGA blames congloms for California cuts
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"More jobs will be lost if consolidation continues," said WGA West assistant exec director Charles Slocum in testimony on Wednesday before the State Senate committee on banking commerce and international trade. "The economy is less robust when it depends on a few large companies rather than a web of a thousand small firms."
The hearing was the latest chapter in the ongoing debate over consolidation of congloms, with the FCC expected to vote this summer on easing ownership caps, such as those preventing media congloms from owning multiple properties in one market.
As he opened Wednesday's confab via teleconference, FCC commish Michael Copps, who is wary of relaxing ownership rules, emphasized that the issues need further public examination.
The WGA West, Producers Guild and several indie produces have asked the FCC that 50% of a broadcast or cable net's programming be produced by a company independent of the distributor or its affiliates. Slocum attacked the validity of the congloms' argument that the increase in TV channels has led to an increase in diversity and choice, noting that 80% of the highly viewed channels are owned by just six companies -- with five of those companies also producing 80% of primetime TV.
"What seems like 100 channels is really five if you measure by who owns the channels or the programs on them," Slocum added. "The major economic implication of this consolidation is the gradual exclusion of small businesses from the entertainment industry. There are a thousand small businesses that operate in the entertainment industry in California, and they are all threatened by consolidation."
Slocum also told the committee that an industry structure with a greater number of smaller firms is more stable.
"A bad year at one studio can lead to hundreds of layoffs with the stroke of one Mont Blanc pen," he added. "Small independent firms typically work for more than one studio. If one studio cuts back, an independent supplier is likely able to adjust its business and keep going. The job losses and the withdrawal of money from the community will only increase as the entertainment industry consolidates further."
Committee chair Sen. Dean Florez (D-Shafter) told Daily Variety that he will introduce a resolution to the State Legislature asking the FCC to hold a formal hearing in Los Angeles due to the massive potential impact of the rule changes. "Right now, 90% of Californians believe these changes will have no impact on them, so I think it's unconscionable that the FCC has not held a hearing out here," he added.
The FCC has held only one such event, a meeting last month in Richmond, Va. FCC chief Michael Powell has opposed further hearings on the grounds that ample opportunity has been afforded to offer written opinions.
The FCC also is considering whether to lift a national cap barring a broadcaster from reaching more than 35% of the national aud. Congloms argue vertical integration in fact ensures a future for local news and other content by providing a strong financial foundation
Opponents of consolidation contend that local TV news will disappear if the congloms are allowed to own multiple stations, newspapers and radio stations in the same market.
