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CNN Live At Daybreak
Federal Court Blocks New Media Ownership Rules
Aired September 04, 2003 - 06:18 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.
FREDRICKA WHITFIELD, CNN ANCHOR: Well time now to get some business buzz. Today was the day new rules that would allow relaxing of media ownership were to go into effect, but that won't happen, at least for now.
To find out why, let's go to Carrie Lee at the Nasdaq market site.
What's the explanation -- Carrie?
CARRIE LEE, CNN FINANCIAL NEWS EDITOR: Well, Fredricka, this is certainly a big blow to the FCC as well as to big media companies and a big break to the smaller companies. A federal appeals court has blocked the FCC's new media ownership rules.
Now the court decided that blocking the rules for now while the appears court -- appeals court considers the case will cause less harm than letting them go through.
What are the rules? Well here's an upshot. Basically they relax media ownership restrictions. Television networks could own stations that reach 45 percent of the national market, up from 35. Companies can own both a newspaper and a TV station in the same market. And companies can own as many as three stations in big cities.
Now the FCC approved the rules back in June by a vote of three to two along party lines. It said they were needed because the landscape of the media market had changed and Americans are now getting a lot of their news and entertainment from cable as well as the Internet. But those who oppose the rules say they would decrease diversity.
So as you said, Fredricka, rules were set to go into effect today, and if nothing else, they are going to be delayed until they work this out. Back to you.
WHITFIELD: All right, delayed just a bit. Let's look ahead, though, anyway, for the futures.
LEE: Yes, stocks look a little bit mixed right now at the open. After pretty decent gains yesterday, the Dow up about one half of a percent, the Nasdaq up two-thirds of a percent. In fact, both indexes hitting new highs for the year.
Today, before the open of trade, we'll get a report on weekly jobless claims as well as a revised reading of worker productivity for the second quarter of the year. And then half an hour into the trading session, we'll get a reading on the services sector of our economy as well as factory orders. So a lot happening today. But so far, things look pretty mixed -- Fredricka.
WHITFIELD: All right, thanks a lot, Carrie.
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 September 4, 2003 - 06:18 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Well time now to get some business buzz. Today was the day new rules that would allow relaxing of media ownership were to go into effect, but that won't happen, at least for now.
To find out why, let's go to Carrie Lee at the Nasdaq market site.
What's the explanation -- Carrie?
CARRIE LEE, CNN FINANCIAL NEWS EDITOR: Well, Fredricka, this is certainly a big blow to the FCC as well as to big media companies and a big break to the smaller companies. A federal appeals court has blocked the FCC's new media ownership rules.
Now the court decided that blocking the rules for now while the appears court -- appeals court considers the case will cause less harm than letting them go through.
What are the rules? Well here's an upshot. Basically they relax media ownership restrictions. Television networks could own stations that reach 45 percent of the national market, up from 35. Companies can own both a newspaper and a TV station in the same market. And companies can own as many as three stations in big cities.
Now the FCC approved the rules back in June by a vote of three to two along party lines. It said they were needed because the landscape of the media market had changed and Americans are now getting a lot of their news and entertainment from cable as well as the Internet. But those who oppose the rules say they would decrease diversity.
So as you said, Fredricka, rules were set to go into effect today, and if nothing else, they are going to be delayed until they work this out. Back to you.
WHITFIELD: All right, delayed just a bit. Let's look ahead, though, anyway, for the futures.
LEE: Yes, stocks look a little bit mixed right now at the open. After pretty decent gains yesterday, the Dow up about one half of a percent, the Nasdaq up two-thirds of a percent. In fact, both indexes hitting new highs for the year.
Today, before the open of trade, we'll get a report on weekly jobless claims as well as a revised reading of worker productivity for the second quarter of the year. And then half an hour into the trading session, we'll get a reading on the services sector of our economy as well as factory orders. So a lot happening today. But so far, things look pretty mixed -- Fredricka.
WHITFIELD: All right, thanks a lot, Carrie.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
