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CNN Live Today
FCC Relaxes Ownership Restrictions
Aired June 02, 2003 - 11:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: Right now, as we said moments ago the Federal Communications Commission has just decided in a vote that major companies will be allowed to own more than one media outlet in a city, in one town a company can own a newspaper in addition to other media outlets.
Now this has gotten quite a few critics on the outside saying that this could mean more monopolization in the media, fewer voices out there, less diversity.
Let's go down and bring in our Greg Clarkin, who's covering the story for us right now. He is covering those hearings in Washington live. Greg, what's the word there?
GREG CLARKIN, CNN CORRESPONDENT: Leon, just moments ago the FCC voting by a 3-2 margin to change the ownership rules for media properties. Now this vote breaking down, as expected, along party lines. The three Republicans, including FCC chairman Michael Powell, voting to overturn these rules and change these rules. The two Democrats opposing them.
Now three major areas that these rules focus on. One, they now allow a single company to own TV stations reaching 45 percent of the nation's viewers. The old limit was set up 35 percent.
Also, the cross ownership rule is changed. That allows a single company to own a broadcast outlet and a newspaper in a single market in a single city.
And then also, they allow companies to own up to three TV stations in large markets.
Now the vote followed about 90 minutes of opinion from the FCC commissioners. It happened extremely quickly. If you blinked you missed it. Chairman Powell polled the five commissioners. Three voted in favor of changing the rules. Two voting against it. Protesters rose up, they were quickly escorted.
So again, as expected, the FCC rolling back and changing a lot of rules that have been in place for decades in many cases. Opponents say you're going to see a lot of concentration with these media companies and fewer voices out there and fewer companies controlling what the nation reads, sees and hears -- Leon.
HARRIS: What's interesting is that in the last few days we've heard some voices out there, and more and more of them have been speaking out against allowing this vote to go down this way. And some of these voices are key people, leaders in the industry, leaders who I should say would probably profit quite handsomely from this. Talking about guys like Barry Diller, Ted Turner himself, they've been out there saying this is a bad idea.
Is there any way that this is going to just lie, now, the way it is or is there further action down the road to come?
CLARKIN: This is going to be a source of much public debate. Senator John McCain has a hearing on Wednesday to question the five commissioners on their feelings on this.
And you mentioned the opponents, it's a diverse group. I mean, the opposition to this was very, very substantial. The FCC receiving more than 500,000 e-mails and postcards, the vast, vast majority of that opposing overturning these rules. And you have groups as diverse as religious groups, civil rights groups, as well as the National Rifle Association all on the same page, saying this is not a good idea.
But again Chairman Powell and the others in favor of this saying that these rules go back to a bygone black and white time before there was the Internet and the multiple outlets that people could get their news from. The opponents keep coming back and saying, listen, you're going to see consolidation, you're going to see just a handful of companies controlling a lot more of what's on in terms of local news and national news -- Leon.
HARRIS: All right. Good deal. Thanks, Greg.
There's a lot more to come on that and a lot more to explain as well. Greg Clarkin you'll be doing that for us down the road. Greg Clarkin in Washington.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired June 2, 2003 - 11:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: Right now, as we said moments ago the Federal Communications Commission has just decided in a vote that major companies will be allowed to own more than one media outlet in a city, in one town a company can own a newspaper in addition to other media outlets.
Now this has gotten quite a few critics on the outside saying that this could mean more monopolization in the media, fewer voices out there, less diversity.
Let's go down and bring in our Greg Clarkin, who's covering the story for us right now. He is covering those hearings in Washington live. Greg, what's the word there?
GREG CLARKIN, CNN CORRESPONDENT: Leon, just moments ago the FCC voting by a 3-2 margin to change the ownership rules for media properties. Now this vote breaking down, as expected, along party lines. The three Republicans, including FCC chairman Michael Powell, voting to overturn these rules and change these rules. The two Democrats opposing them.
Now three major areas that these rules focus on. One, they now allow a single company to own TV stations reaching 45 percent of the nation's viewers. The old limit was set up 35 percent.
Also, the cross ownership rule is changed. That allows a single company to own a broadcast outlet and a newspaper in a single market in a single city.
And then also, they allow companies to own up to three TV stations in large markets.
Now the vote followed about 90 minutes of opinion from the FCC commissioners. It happened extremely quickly. If you blinked you missed it. Chairman Powell polled the five commissioners. Three voted in favor of changing the rules. Two voting against it. Protesters rose up, they were quickly escorted.
So again, as expected, the FCC rolling back and changing a lot of rules that have been in place for decades in many cases. Opponents say you're going to see a lot of concentration with these media companies and fewer voices out there and fewer companies controlling what the nation reads, sees and hears -- Leon.
HARRIS: What's interesting is that in the last few days we've heard some voices out there, and more and more of them have been speaking out against allowing this vote to go down this way. And some of these voices are key people, leaders in the industry, leaders who I should say would probably profit quite handsomely from this. Talking about guys like Barry Diller, Ted Turner himself, they've been out there saying this is a bad idea.
Is there any way that this is going to just lie, now, the way it is or is there further action down the road to come?
CLARKIN: This is going to be a source of much public debate. Senator John McCain has a hearing on Wednesday to question the five commissioners on their feelings on this.
And you mentioned the opponents, it's a diverse group. I mean, the opposition to this was very, very substantial. The FCC receiving more than 500,000 e-mails and postcards, the vast, vast majority of that opposing overturning these rules. And you have groups as diverse as religious groups, civil rights groups, as well as the National Rifle Association all on the same page, saying this is not a good idea.
But again Chairman Powell and the others in favor of this saying that these rules go back to a bygone black and white time before there was the Internet and the multiple outlets that people could get their news from. The opponents keep coming back and saying, listen, you're going to see consolidation, you're going to see just a handful of companies controlling a lot more of what's on in terms of local news and national news -- Leon.
HARRIS: All right. Good deal. Thanks, Greg.
There's a lot more to come on that and a lot more to explain as well. Greg Clarkin you'll be doing that for us down the road. Greg Clarkin in Washington.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
