Martin: Let’s Ease TV-Newspaper Rule
FCC Chairman Proposes Relaxing Cross Ownership Ban
By Ted Hearn -- Multichannel News, 11/13/2007 6:07:00 AM
Washington – Federal Communications Commission chairman Kevin Martin on Tuesday proposed relaxing the agency’s total ban on the ownership of a daily newspaper and a TV station in the same local market. If approved by the agency and affirmed by the courts, the new rule would ease a core media regulation for the first time since adoption in 1975.
Under the new rule, the FCC would allow the largest newspaper to buy a local TV station provided: the transaction occurred in a top-20 market; the station was not among the top four in terms of ratings; and at least eight independent “major media voices” remained the market.
Martin called the rule a “relatively minor loosening of the ban,” noting that the FCC failed in 2003 to relax the rule in 170 markets because a federal appeals court rejected it.
Andrew Schwartzman, president the Media Access Project, a public interest law firm that helped scuttle the 2003 rule, said Martin’s proposal could use some tightening.
“It’s not as modest as Martin seems to be letting on,” Schwartzman said. “It greatly liberalizes the policy for granting waivers in all 210 markets in the U.S.”
A TV-newspaper combination today would need to demonstrate that one of the properties is a “failing” business in order to qualify for a waiver, Schwartzman said. Martin, he added, has proposed four factors that the FCC would consider when evaluating a waiver from the new rule.
Martin’s proposal would also allow a newspaper-radio station combination in a top-20 market but without the eight-voice or station ranking tests.
FCC Democrats Michael Copps and Jonathan Adelstein have strongly opposed relaxation of media ownership rules, especially if the FCC had not tried to enhance local and minority ownership of TV and radio stations.
Martin’s rule could help Tribune Co., which is awaiting FCC action on its sale to Chicago real estate magnate Sam Zell. Tribune has five newspaper-TV station combinations, including one in a Hartford, Ct.
“Hartford is outside the top 20,” Martin said in a press call Tuesday. “There would be a strong presumption against it.”
Late last week, Martin announced his support for a range of new cable regulations, including a cap on the size of the largest company; forced carriage of certain cable networks through arbitration; and a sharp reduction in the fee companies pay to leased cable channels.
Martin has also disclosed that cable penetration has reached a high enough level to trigger a provision in federal law that allows the FCC “promulgate any additional rules necessary to provide diversity of information sources.”
Some cable attorneys believe that is Martin offering to tighten regulation of cable in a trade to convince Copps, Adelstein or both to vote to relax the newspaper-TV rule, giving both a bipartisan sheen.
Martin’s proposal did not appease Sen. Byron Dorgan (D-N.D.), who has introduced a bill designed to postpone an FCC vote on Dec. 18.
“[Martin] has yet to make the case for why any further media consolidation is necessary. Indeed, he is relying on an assumption that newspapers are doomed and that cross-ownership is necessary to save them. I believe this is not the case,” Dorgan said in a statement.
The Newspaper Association of America, which supports total repeal of the newspaper-TV station rule, said Martin’s plan was “extremely limited and does not go nearly far enough to deal with the issues…”
The newspaper-broadcast rule has a substantial loophole and Martin’s proposal would not close it.
The FCC does not have direct control over the newspaper industry. Thus, a TV station in any market can buy the largest newspaper and hold the property for up to eight years. When the station’s license comes up for renewal, the FCC can force the sale of the newspaper. But during the eight-year holding period, the TV station can use the time to lobby Congress and the FCC for a waiver.
“I would call it a shortcoming,” Schwartzman said.
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