03/06/2003

US media ownership changes confirmed

In a move that have wide-ranging implications for the British media marketplace, the US Federal Communications Commission has narrowly voted to relax the country's media ownership regulations.

The FCC's three Republican members voted for the controversial changes, while the two Democrat members voted against.

The most important change is an alteration to the limit on how much of the US national television market one company can reach, which has been increased from 35% to 45%.

Another major change covers cross-platform ownership. Under the new rules, in all but the very smallest television markets, companies are now able to own two television stations, provided there are another six in competition, and can also now own combinations of those stations along with newspapers in that same market. In the largest markets, such as New York and LA, one company can now own three stations - provided there are another eight in competition - and cross-platform ownership restrictions have been similarly relaxed.

The changes were hotly contested, but America's big TV networks argued the changes were essential in order for them to compete against cable programming.

In announcing the changes, FCC Chairman Michael Powell outlined his view on the relevancy of ownership rules: "Keeping the rules exactly as they are as some suggest was not a viable option. Without today's surgery, the rules will assuredly meet a swift death."

The FCC stated that its new limits on broadcast ownership are carefully balanced to protect diversity, localism, and competition in the American media system, a view dismissed by many. Following the vote, Jeff Chester, the Director of the Center for Digital Democracy, a group that opposed the changes, said: "By allowing broadcast networks to amass even more power in the number of stations they can now control across the country, and by setting aside the prohibition against a single company owning both a newspaper and a television station in the same community, the FCC has weakened the very fabric of our democracy.

"Fewer owners of the mass media means fewer voices will be heard, fewer opportunities for discourse and debate will be available, and ultimately fewer options for those who seek alternative and minority viewpoints. A handful of companies will gain from today's decision, but the public at large will lose."

The rule changes clear the way for Rupert Murdoch's News Corporation, which already owns Fox, to expand further in the US market, should it wish to.

(GB)

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