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FCC Eases Rules on Media Ownership

Aired June 02, 2003 - 14:19   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.


MILES O'BRIEN, CNN ANCHOR: Controlling the media, the Federal Communications Commission has voted to ease rules on the ownership of media outlets, but some critics say the new plan could result in the end of democracy over the airwaves. CNN's Bob Franken, live now from Washington with more on this. Hello, Bob.
BOB FRANKEN, CNN CORRESPONDENT: Hello. And there has been a flood of comments to the FCC, about three quarters of a million e- mails and regular mail comments, almost all of them against the proposals that were approved by the FCC. Three Republican members of the commission voting for them and two voting against.

That vote came around the noon hour today, and it was followed by a very, very small demonstration. In the FCC chambers, very small, just a small handful of people who were quickly taken out. You can see that there. But the small demonstration really belies the huge amount of interest that the FCC fielded with that. In essences, what this does, it does give, in fact, more ability for fewer companies to own different news media in different cities.

It allows for cross ownership, again, for newspaper, radio station and television stations in a particular market. It allows for the large companies to, in fact, own up to 45 percent of the media in the country, 45 percent of the markets, in other words, to own media. That will particularly benefit, we're told, the networks, and also allows for a radio station, television station, and newspaper to be owned by the same people, as I said.

Also, two television stations owned in most of the markets in the country by one entity. And three in the largest markets. Now, all of this, according to the supporters, was mandated by the courts. The critic say that in addition to that, that this will not mean monopolies, that there's so many more media these day, including the CNNs of the world, that there really is a diversity. There wasn't in the old days when these rules were written.

But the critics say that there are fewer companies like CNN, owned by AOL Time Warner, fewer companies that control more of these media. It was a lively exchange in the commission before the vote.

(BEGIN VIDEO CLIP)

MICHAEL COPPS, FCC COMMISSIONER: Today the Federal Communications Commission empowers America's new media elite with unacceptable levels of influence over the ideas and information upon which our society and our democracy depend. This morning we are at a crossroad for television, radio, and newspapers and for the American people. The decision we five make today will recast our entire media landscape for years to come.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

KATHLEEN ABERNATHY, FCC COMMISSIONER: The federal court opinion specifically tell me that any restrictions we place on ownership must be based on concrete evidence. Not on fear and speculation about hypothetical media monopolies intent on exercising some type of broken line control on the American people.

(END VIDEO CLIP)

FRANKEN: Well the federal courts had ordered, over the years, the FCC to justify the old rules with a 35 percent cap, for instance, on ownership instead of the 45 percent that is now the FCC rule. The FCC is hoping, the Federal Communications Commissioners who voted for it, are hoping that will satisfy the courts. They agree that inevitably, it will go back to the courts, probably to the Supreme Court, and Congress is expected to weigh in. There is legislation pending that would return to the old rules. So this is, as somebody said, paraphrasing Winston Churchill, not the end, but the end of the beginning. Miles?

O'BRIEN: CNN's Bob Franken, Washington. Thank you very much.

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 - 14:19   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Controlling the media, the Federal Communications Commission has voted to ease rules on the ownership of media outlets, but some critics say the new plan could result in the end of democracy over the airwaves. CNN's Bob Franken, live now from Washington with more on this. Hello, Bob.
BOB FRANKEN, CNN CORRESPONDENT: Hello. And there has been a flood of comments to the FCC, about three quarters of a million e- mails and regular mail comments, almost all of them against the proposals that were approved by the FCC. Three Republican members of the commission voting for them and two voting against.

That vote came around the noon hour today, and it was followed by a very, very small demonstration. In the FCC chambers, very small, just a small handful of people who were quickly taken out. You can see that there. But the small demonstration really belies the huge amount of interest that the FCC fielded with that. In essences, what this does, it does give, in fact, more ability for fewer companies to own different news media in different cities.

It allows for cross ownership, again, for newspaper, radio station and television stations in a particular market. It allows for the large companies to, in fact, own up to 45 percent of the media in the country, 45 percent of the markets, in other words, to own media. That will particularly benefit, we're told, the networks, and also allows for a radio station, television station, and newspaper to be owned by the same people, as I said.

Also, two television stations owned in most of the markets in the country by one entity. And three in the largest markets. Now, all of this, according to the supporters, was mandated by the courts. The critic say that in addition to that, that this will not mean monopolies, that there's so many more media these day, including the CNNs of the world, that there really is a diversity. There wasn't in the old days when these rules were written.

But the critics say that there are fewer companies like CNN, owned by AOL Time Warner, fewer companies that control more of these media. It was a lively exchange in the commission before the vote.

(BEGIN VIDEO CLIP)

MICHAEL COPPS, FCC COMMISSIONER: Today the Federal Communications Commission empowers America's new media elite with unacceptable levels of influence over the ideas and information upon which our society and our democracy depend. This morning we are at a crossroad for television, radio, and newspapers and for the American people. The decision we five make today will recast our entire media landscape for years to come.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

KATHLEEN ABERNATHY, FCC COMMISSIONER: The federal court opinion specifically tell me that any restrictions we place on ownership must be based on concrete evidence. Not on fear and speculation about hypothetical media monopolies intent on exercising some type of broken line control on the American people.

(END VIDEO CLIP)

FRANKEN: Well the federal courts had ordered, over the years, the FCC to justify the old rules with a 35 percent cap, for instance, on ownership instead of the 45 percent that is now the FCC rule. The FCC is hoping, the Federal Communications Commissioners who voted for it, are hoping that will satisfy the courts. They agree that inevitably, it will go back to the courts, probably to the Supreme Court, and Congress is expected to weigh in. There is legislation pending that would return to the old rules. So this is, as somebody said, paraphrasing Winston Churchill, not the end, but the end of the beginning. Miles?

O'BRIEN: CNN's Bob Franken, Washington. Thank you very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com