FCC Chairman Kevin Martin has circulated a proposal to the other four commissioners that would relax long standing media-ownership regulations, including ease the limitation on the number of newspapers, TV and radio stations that companies are allowed to control in a particular market.
Martin wants to expedite the agency's review of media-ownership rules, hoping to conclude the long-running proceeding in November and a vote to be scheduled on December 18, FCC officials said today.
In the past, Martin has said he is in favor of scrapping a rule that prohibits one company from owning a television station and newspaper in the same market.
“We’ve had six hearings around the country already; we’ve done numerous studies; we’ve been collecting data for the last 18 months; and the issues have been pending for years,” Martin told the New York Times. “I think it is an appropriate time to begin a discussion to complete this rule-making and complete these media ownership issues.”
Martin's predecessor as FCC chairman, Michael Powell, previously attempted to radically loosen the limits on media ownership in 2003. And failed. It was halted by the 3rd Circuit Court of Appeals which ruled the FCC hadn't justified its attempt at reform sufficiently.
Martin may take a more drastic approach.
Blair Levin, a telecommunications analyst at Stifel Nicolaus told Bloomberg that Martin will likely be willing to reach a compromise with the two Democratic FCC panel members, who have expressed strong concerns over the issue of media ownership.
Commissioner Michael J. Copps, as we know, is adamantly opposed to loosening media consolidation rules. Jonathan S. Adelstein, the other Democrat on the FCC, has said that the agency first needs to address other media issues, including encouraging improved coverage of local events and greater ownership of stations by companies controlled by women and minorities.
Levin feels that some action on trying to facilitate greater access to the airwaves by minority groups and women could form part of Martin's compromise.
As advertising dollars shift from print newspapers to the Internet, the newspaper industry has undergone a wave of upheaval and consolidation (and, let's face it, a loss of jobs). Especially since online advertising dollars don't nearly produce the same amount of revenue as print ads did (and the level of accountability to deliver a return on investment is increased as well... always a challenge to ad sales folks). This has put new pressure on regulators to loosen ownership rules.
The same sort of logic can be applied to satellite radio and the "audio entertainment" market.
As our eyes and ears increasingly are faced with a widening array of alternatives (fragmentation), the old rules simply don't apply anymore. Technology companies are no longer simply technology companies. They're "media" now. Media companies are no longer confined to the old eco-system either, they need to find your ears and eyes through other distribution channels. Telecom companies look to capitalize on convergence as they provide audio/video services (and content) to mobile phones. Meanwhile the behemoth in the room is the Internet, poised to provide the ultimate distribution platform with little-to-no barrier to entry. And so on.
Distribution is increasing becoming less of a differentiator in the market. And that's at the basis of this debate.
The fact that Martin wants to get this through by mid-December, coincidentally around the time that the Sirius-XM 180-day window is expected to close, might very well say something about Martin's overall intentions.
[New York Times, Bloomberg]
Thanks Karl!
Bingo Ryan, it looks like the Chairman is going to throw the N.A.B and it's members a bone. Sirius + Xm =Done Deal