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  Raise Your Voice: Act Now!
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Media Tank's online guide to...
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Why is Media Ownership Important?

The media industry is big business (click here to see just how big). That means that media companies, like any other big business, affect our lives in important ways. The handful of media companies that control nearly all of the media we see, have millions of customers, tens of thousands of employees and the access and money to affect politics at the local, state and national levels.

For these reasons alone, we should care about who controls and owns these corporations. But there's another reason as well. The products that these companies produce are not sneakers you put on your feet, or gasoline that you fill your car up with, or even soda that you guzzle down. The products that media companies produce are made for you to consume with your mind; the newspapers, TV shows, movies, websites, magazines and video games that these companies own, shape our perception of the world. These companies decide what's cool, what's news and what matters.

The fact that just a few corporations have such a big say in shaping our culture, political systems and our perceptions of ourselves and our world is troubling. Media consolidation affects every one of us. It threatens democracy by limiting the voices we hear and undermines our best efforts to create a just media system.

To learn more about media ownership, and to find out what you can do to fight consolidation, please read through these materials and send the link to a friend. For any feedback, please email info@mediatank.org.

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The FCC and Media Ownership

On June 21, 2006, the Federal Communications Commission announced that it would once again be reviewing the rules that determine how large media conglomerates are allowed to grow. If these rules are further relaxed, media giants like News Corp., Clear Channel, General Electric and CBS Corporation (formerly Viacom) will be allowed to buy up more media outlets and grow even bigger. This poses a major threat to our media system and our democracy.

This is the first time the FCC has revisited these rules since 2003, when the commission voted to loosen a number of the remaining media ownership limits. However, the FCC’s attempt to relax the rules was thwarted when a federal judge ruled that they had not adequately justified their decision to loosen the rules.

The FCC’s announcement means that we are at risk of losing these important public safeguards yet again. We must act now to ensure that this won’t happen!
 
FCC Background

The Federal Communications Commission was established with the passage of the 1934 Communications Act. The FCC has five commissioners, who are appointed by the President and confirmed by Congress. They are appointed for five year terms, except when replacing a commissioner departing before their term is over.

By law, only three commissioners can belong to the same party. In practice this means that the sitting President's party has three commissioners, including the Chairman, and the opposing party has a minority of two seats. The President selects which commissioner is designated Chairman.

The current FCC commissioners are:

Name
Party
Term
On FCC Since
Kevin J. Martin*
Rep.
Second
2001
Jonathon S. Adelstein
Dem.
Second
2002
Michael J. Copps
Dem.
Second
2001
Robert M. McDowell
Rep.
First
2006
Deborah Taylor Tate
Rep.
First
2006
* Designated chairman by President Bush on March 18, 2005
 
Telecommunications Act of 1996
The 1996 Telecom Act was a landmark piece of legislation that drastically altered U.S. media and communications policy. The Act, signed into law by Bill Clinton on February 8, 1996, deregulated the media and communications sectors, leading to increased consolidation in both industries. In the years that followed, radio companies like Clear Channel ballooned in size (Clear Channel now owns over 1,200 radio stations) because radio ownership limits had been removed. The new policies also led to a number of mega-mergers among telephone companies and other media businesses.

The 1996 Act also mandated that the FCC review it's media ownership limits every two years (now every four). In this way, the 1996 Telecom Act made the fight to maintain media ownership limits an ongoing battle.
 
2002-2003 Ownership Review

On September 13, 2001 the FCC launched the review of several rules that limit the size of media companies. A year later, they opened up that review to include all of the remaining broadcast ownership rules.

The FCC, led by former Chairman Michael Powell, only held one official public forum on the issue in the months leading up to their June 2, 2003 vote on the rule changes. Still, through the efforts of media activists and concerned citizens accross the country (including Media Tank), over 2 million public comments were filed with the FCC over the proposed rule changes. In lieu of official hearings, groups held public hearings accross the country. Media Tank hosted a very well-attended hearing in Philadelphia featuring FCC Commissioner Michael Copps (click here for more information).

Despite the public outcry against further media consolidation, the Republican-majority approved significant rule changes in a 3-2 vote. However, the new, significantly relaxed rules were challenged in both Congress and the courts. The new rules raised the National TV Ownership Limit from 35% to 45% of the national population. There were major efforts in Congress to reverse this rule change, and eventually a law was passed that limited it to 39% (which allowed companies like News Corp. and Viacom to not have to relinquish any of their holdings since they were already over the 35% mark).

The battle over the rules raged on in the courts and on June 24, 2004 a Third Circuit U.S. Court of Appeals rejected the remaining rule changes in the case Prometheus Radio Project vs. Federal Communications Commission. The court’s ruling meant that the FCC had to redraft the ownership rules once more. The legal decision to reject the rules rested on the court's opinion that the FCC had not fully justified the proposed rule changes. For more on the case, visit Prometheus or the Media Access Project.


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What are the FCC's Media Ownership Rules?

Here are the media ownership rules that are currently on the books. Many of these rules have already been relaxed from their original levels of restriction. Now, with the FCC's review, they are all at risk of being relaxed or eliminated entirely.
 
Local Television Ownership Limit
This rule limits how many television stations a single company can own in a local market. Right now, companies are allowed to own two stations in only the biggest cities, and can own only one in all other communities.
 
Local Radio Ownership Limit
This rule limits how many radio stations a single company can own in a local market. Currently, a single company can own up to eight stations in the biggest markets, and up to five stations in smaller markets.
 
Newspaper/Broadcast Cross-ownership Ban
This rule prohibits a single company from owning a broadcast television or radio station and a major daily newspaper in the same city.
 
Dual Network Ban
This rule prohibits any single company from owning more than one of the four major television networks (ABC, CBS, Fox and NBC).
 
Radio Television Cross-ownership Limit
This rule limits the ownership of both TV and radio stations by one company in a local market. The current limit permits a company to own up to two TV stations and six radio stations (or one TV station and seven radio stations) in a single community, as long as there are at least 20 independent outlets (including TV, radio, newspapers, etc.) in the market.
 
UHF discount on the National Television Ownership Limit
UHF stands for Ultra High Frequency (as opposed to Very High Frequency, or VHF). When this rule was established in the 1970s, UHF stations were not able to reach as many households as their VHF counterparts because of weaker signal strength. Because of that, this rule gives station owners an automatic 50% discount for measuring the viewership reach of UHF stations. Because of technological advances like cable, satellite and digital broadcasting, weaker signal strength no longer keeps UHF stations from reaching their entire market area.

A single company is currently not allowed to own television stations that together reach over 39% of the national population. Because this rule was passed in legislation (following the 2002-2003 ownership rule review), the FCC will not address it during this review of the ownership rules. However, the UHF discount is up for review.

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Why do we Need Ownership Limits?

Diversity of Views
Media consolidation threatens democracy by limiting the number of viewpoints on important issues that we see and hear in the media. If nothing limits the size of these media giants, we may only get one version of the news. Issues that matter can be buried or distorted, and differing and dissenting views can be silenced.
 
Erosion of Journalism
Media consolidation means fewer foreign news bureaus, investigative reporters and resources for journalists. Giant media companies have only one goal: profit. This undermines any sense of public or civic duty, and means we get more info-tainment and less real news.
 
Minority Ownership
As our media system has become more consolidated, media ownership by women and people of color has sharply decreased. If these media giants are allowed to get even bigger, these numbers will continue to fall.
 
Localism and Community
Without local owners and local newsrooms, media are disconnected from communities. Huge media corporations are less likely to cover local issues and feature local artists. Even worse, radio and television giants often try to disguise news stories and other programs as locally-produced when they are not.
 
Workers Rights
When media companies merge, not only do consumers suffer, but so do workers. Fewer media companies means fewer jobs for communications workers, thousands of whom have already been laid off.
 
Independent Voices
We don’t need censorship to combat violent, sexist, racist and commercialized media—we need access to independent producers and artists. Media consolidation makes it harder for independent voices to be heard. We need real choices—not more channels from the same owners.
 
Corporate Accountability
With the recent wave of corporate malfeasance and corruption scandals, we need watchdogs more than ever. Media outlets owned by giant corporations are less likely to bring these scandals to light, and the public invariably ends up paying the price.

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Act Now!

Watch the Jan. 18th Public Forum on Media Ownership in Philadelphia

Media Tank hosted a Public Forum on Media Ownership on January 18th, 2007 with FCC Commissioners Michael J. Copps and Jonathan S. Adelstein and additional panelists to discuss media diversity, ownership, and consolidation.

Click to Watch the Forum Archive

 
File a comment with the FCC
The FCC has extended the period for people to file comments on these ownership rules. Tell the FCC to protect the public interest and keep media ownership limits.

To file comments online, please use
Media Tank's new FCC comment form.

To send paper comments, write to the FCC at:
FCC Docket 06-93
Federal Communications Commission
445 12th Street SW
Washington, DC 20554.
 
Write or call Congress
Let your elected officials know you are concerned about media consolidation and urge them to stand up to big media. They hear from industry lobbyists on these issues all the time—now it’s time they hear from you!

To contact your U.S. Representative click here.

To contact your Senator click here.
 
Request Public Hearings in Your Home Town

When you correspond with the FCC and Congress, tell them we need more public hearings to solicit the widest public input possible. We are the ones most affected by their decisions and we deserve to have our voices heard!

Media Tank will be hosting a hearing in Philadelphia at 6pm on January 18th, 2007 with FCC Commissioner Michael J. Copps. We will have a panel discussion on media issues and will be taking official FCC testimony on the media ownership issue. Please RSVP and we will keep you informed about the event.

 
Donate
Groups working on these issues urgently need your support. To become a Media Tank member today, click here.
 
Spread the Word
These issues are crucial to our democracy, but the corporate-owned media is unlikely to give them adequate coverage. Talk to your friends and colleagues, write Op-Eds and Letters to the Editor, and tell reporters they need to cover this issue!

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Articles

Internet news supplements papers, TV
By Peter Johnson, USA Today, 7/31/2006
Mainstream media may be able to breathe a sigh of relief, at least for now: A study finds that although the Internet has grown significantly in the past decade, it is supplementing traditional outlets such as newspapers and television, not replacing them.
Click here for full article.
Click here for the Pew study referenced in the article.
 
Advocates want public to weigh in on the future of the media
By Erika Engle, The Honolulu Star-Bulletin, 7/27/2006
Here we go again. The Federal Communications Commission has opened a 120-day public comment period on complex issues surrounding media ownership. Last time, in 2003, more than 2 million Americans weighed in on the commission's move to relax ownership rules. Honolulu media watchdogs are hoping consumers who read newspapers and get local news from television and radio will respond again.
Click here for full article.
 
Grassroots Gears Up as FCC Revisits Ownership Rules
By Catherine Komp, New Standard News, 7/21/2006
Having forced government media regulators to rethink the relaxation of owner-concentration rules pushed through in 2003, reformers are wasting no time heading off another FCC attempt to facilitate media consolidation.
Click here for full article.
 
Mega-merger Mania
By Eric Klinenberg, The Nation, 7/3/2006
Since 1996 an unprecedented spate of media mega-mergers has made it difficult for anyone to know which conglomerate owns what outlet, even in our own cities and towns. Unfortunately, most Americans no longer need a map to know that consolidation has degraded the media ecosystem on which the nation's democratic and cultural life depends.
Click here for full article.
 
FCC Says “Play It Again, Sam” on Media Consolidation?
By Jean Coughlin, The Right of Way, 7/2006
On June 21, 2006, the FCC issued a Further Notice of Proposed Rulemaking (FNPRM) on media ownership limits. Curiously, the FCC does not offer a new version of regulations, but only requests comments on the attempted 2003 rules and promises to spend $200,000 on studies, some of which address the same topics they studied before.
Click here for full article.
 
Ownership Rule Review Launched
By John Eggerton, Broadcasting & Cable, 6/21/2006
Veteran media policy watchers could be forgiven a cry of "here we go again" as the FCC Wednesday officially launched its review of media ownership rules with some of the same fireworks and contentious talk that characterized its first attempt to deregulate media ownership in 2003.
Click here for full article.

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Links

Federal Communications Commission

The FCC is a federal agency in charge of regulating on many media and communications issues, including the broadcast ownership rules.

Click here for the FCC's official site.

Click here for the FCC's 2006 ownership review page.

 
Stop Big Media
The StopBigMedia.com Coalition is an alliance of consumer, public interest, media reform, organized labor and other groups that have joined together to fight runaway media consolidation and urge the FCC to put public service before the self-interest of large media corporations. Click here for a list of coalition members.

Click here to help Stop Big Media.
 
Media Access Project
MAP is a public interest law firm, based in Washington D.C., that focuses on media issues. They represented a number of public interest groups in the successful challenge of the FCC’s media ownership rule changes in 2003.

Click here to visit MAP.

Click here for MAP's media ownership resources.
 
PennPIRG

The Pennsylvania Public Interest Research Group is part of a national network of state PIRGs. They act as a consumer advocate and watchdog for the state of Pennsylvania.

Click here for PennPIRG's homepage.

Click here for PennPIRG's media ownership site.

 
Prometheus Radio Project
Prometheus is a nonprofit organization that works towards a more democratic media. Their focus is building LPFM radio stations for various communities. They were the lead group in the court case, Prometheus Radio Project v. FCC, which overturned the FCC's media ownership rule changes.

Click here for Prometheus' homepage.

Click here for Prometheus' media ownership resources.
 
Benton Foundation
The Benton Foundation is a private foundation which bridges the worlds of philanthropy, public policy and community action. Benton works to represent the public interest in a range of communcations and media issues.

Click here for Benton's website.

Click here for Benton's media ownership page.

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More Media Tank Ownership Resources
Click here to download our 2006 FCC Media Ownership Rules fact sheet in Word format.



Click here to learn more about who owns Philly's media.

Feeling Nostalgic? Click the links below to view our past media ownership resources:

Ownership Update
(July 2003)

FCC Media Ownership Rules Review
(2002-2003)








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