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FCC Votes to Loosen it's Regulations on Media Outlet Ownership
Aired June 02, 2003 - 15:02 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.
JUDY WOODRUFF, CNN ANCHOR: Well, the rules governing who owns the nation's TV stations and other media outlets received a major overhaul today. The FCC voted to loosen its own regulations, making it easier for big names like Disney, Fox and CNN's parent, AOL Time Warner, to get even bigger. Well, are the new rules a good deal for consumers? It depends on whom you ask.
For the latest on the vote and its effect, I'm joined by CNN's Bob Franken -- Bob.
BOB FRANKEN, CNN NATIONAL CORRESPONDENT: And if the FCC was asking the three-quarters of a million people who commented on this via e-mail or by regular mail, they would have said it is absolutely a bad idea, hugely unanimous. Almost 100 percent of those who contacted the FCC said that.
Still, the vote was three to two. Three Republicans voting for the changes; two voting against were Democrats. The changes, which would consolidate media power, would, in effect, make for more stations to be eligible for ownership. And specific, some of the most important parts of them.
One company, TV stations could now reach 45 percent of the U.S. population by its ownership in various markets, up from 35 percent. It would allow the cross-ownership of newspapers and TV stations in the same markets. There are some markets where that's already allowed, but those were ones that occurred before the old rules went into effect.
And it allows the ownership of multiple TV stations in a particular market. One entity can own two stations in most markets. And the biggest markets, they could have what could be called a triopoly. That is, that it can own as many as three stations.
Of course, this is highly controversial. The critics say that it's going to mean that news ideas and programming ideas are going to be in the hands of too few people. Those who support these changes say that the whole idea of media has changed since the old rules went into effect, that there are so many different voices out there right now that the old rules never worked.
The critics say that those many voices are still controlled by a dwindling number of companies. The chairman of the FCC, Michael Powell, who was the one who engineered this, says it's not that big a deal. (BEGIN VIDEO CLIP)
MICHAEL POWELL, FCC CHAIRMAN: Much of the consumers just never really fully appreciated the depth of the what we were doing. That could be a failing on our part. But I do think that they're going to be confident that, as they watch TV in the next coming days, months and weeks, they're not going to see something radically different than they have seen for decades. And indeed, in our judgment, in some local markets you'll see some improvement in what you see on television.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
JONATHAN ADELSTEIN, FCC COMMISSIONER: People will notice every time a new merger goes through that eliminates a voice in their community. Their anger will flash as people surf through the channels only to find more sensationalism, more commercialism, more crassness, more violence, more homogenization and noticeably less serious coverage of news and local events.
(END VIDEO CLIP)
FRANKEN: There was a demonstration at the end of the vote, which occurred during the noon hour. But what was remarkable about it is how small it was. The protests that actually showed up at the FCC were quite small, considering just how strong the reaction had been in the number of people who contacted the Federal Communications Commission.
Now, the FCC does not seem to think that it has the last word on all of this. There are inevitable lawsuits that are going to occur, and Congress is taking this up also, Judy. So this is just, as one commission said, not the end, but the end of the beginning.
WOODRUFF: A very bitterly argued decision there. All right. Bob Franken, thanks very much.
And we have a reminder. FCC commissioner Michael Copps will join me next hour on "INSIDE POLITICS" to explain why he voted against today's rules changes.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Ownership>
Aired June 2, 2003 - 15:02 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JUDY WOODRUFF, CNN ANCHOR: Well, the rules governing who owns the nation's TV stations and other media outlets received a major overhaul today. The FCC voted to loosen its own regulations, making it easier for big names like Disney, Fox and CNN's parent, AOL Time Warner, to get even bigger. Well, are the new rules a good deal for consumers? It depends on whom you ask.
For the latest on the vote and its effect, I'm joined by CNN's Bob Franken -- Bob.
BOB FRANKEN, CNN NATIONAL CORRESPONDENT: And if the FCC was asking the three-quarters of a million people who commented on this via e-mail or by regular mail, they would have said it is absolutely a bad idea, hugely unanimous. Almost 100 percent of those who contacted the FCC said that.
Still, the vote was three to two. Three Republicans voting for the changes; two voting against were Democrats. The changes, which would consolidate media power, would, in effect, make for more stations to be eligible for ownership. And specific, some of the most important parts of them.
One company, TV stations could now reach 45 percent of the U.S. population by its ownership in various markets, up from 35 percent. It would allow the cross-ownership of newspapers and TV stations in the same markets. There are some markets where that's already allowed, but those were ones that occurred before the old rules went into effect.
And it allows the ownership of multiple TV stations in a particular market. One entity can own two stations in most markets. And the biggest markets, they could have what could be called a triopoly. That is, that it can own as many as three stations.
Of course, this is highly controversial. The critics say that it's going to mean that news ideas and programming ideas are going to be in the hands of too few people. Those who support these changes say that the whole idea of media has changed since the old rules went into effect, that there are so many different voices out there right now that the old rules never worked.
The critics say that those many voices are still controlled by a dwindling number of companies. The chairman of the FCC, Michael Powell, who was the one who engineered this, says it's not that big a deal. (BEGIN VIDEO CLIP)
MICHAEL POWELL, FCC CHAIRMAN: Much of the consumers just never really fully appreciated the depth of the what we were doing. That could be a failing on our part. But I do think that they're going to be confident that, as they watch TV in the next coming days, months and weeks, they're not going to see something radically different than they have seen for decades. And indeed, in our judgment, in some local markets you'll see some improvement in what you see on television.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
JONATHAN ADELSTEIN, FCC COMMISSIONER: People will notice every time a new merger goes through that eliminates a voice in their community. Their anger will flash as people surf through the channels only to find more sensationalism, more commercialism, more crassness, more violence, more homogenization and noticeably less serious coverage of news and local events.
(END VIDEO CLIP)
FRANKEN: There was a demonstration at the end of the vote, which occurred during the noon hour. But what was remarkable about it is how small it was. The protests that actually showed up at the FCC were quite small, considering just how strong the reaction had been in the number of people who contacted the Federal Communications Commission.
Now, the FCC does not seem to think that it has the last word on all of this. There are inevitable lawsuits that are going to occur, and Congress is taking this up also, Judy. So this is just, as one commission said, not the end, but the end of the beginning.
WOODRUFF: A very bitterly argued decision there. All right. Bob Franken, thanks very much.
And we have a reminder. FCC commissioner Michael Copps will join me next hour on "INSIDE POLITICS" to explain why he voted against today's rules changes.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Ownership>
