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CNN Sunday Morning
FCC to Vote on Expanding Ownership Rules
Aired June 01, 2003 - 08:12 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.
ARTHEL NEVILLE, CNN ANCHOR: The FCC will vote Monday on media rules changes. The vote could change the way you and I watch and read about the world.
At issue, increasing the number of TV stations that can be owned from 35 percent of the national market to 45 percent, allowing cross- ownership of newspapers and TV stations in the same market and allowing ownership of multiple TV stations in a particular market.
ANDERSON COOPER, CNN ANCHOR: Some advocates say the proposed changes bring the broadcast world into the 21st century. CNN's Kathleen Hays filed this report for us.
(BEGIN VIDEOTAPE)
KATHLEEN HAYS, CNN CORRESPONDENT (voice-over): Back in the days when just three networks dominated the airwaves, the FCC passed rules to prevent them from dominating the local markets.
Now the FCC says those rules outdated and must be changed. But they not only predate the Internet, they also predate cable television.
MICHAEL POWELL, FCC CHAIRMAN: When 87 percent of Americans are receiving content over cable television or satellite television, it's just irresponsible for the commission or the government not to take that into consideration.
HAYS: The FCC's new rules will would allow big media companies to reach up to 45 percent of the U.S. television market, compared to the current 35 percent cap.
They would be permitted to own both TV stations and newspapers in all but the smallest markets. And in large markets, they could own several TV and radio stations.
Critics, including several consumer groups, say it will allow the nation's big broadcasters to gobble up smaller competitors in local markets and stifle diversity. And they fear that cost-cutting could eliminate some small, local news operations.
BRENT BOZELL, PARENTS TELEVISION COUNCIL: In 1989 the big three network, ABC, CBS and NBC, owned 17 percent of the market. By the year 2002, with deregulation, their ownership share went up to 48 percent. Throw in the big three cable companies and that's two out of every three viewers is controlled by six companies in America. HAYS: The push to change the rule springs from the sweeping Telecommunications Act passed by Congress in 1996 when Bill Clinton was in the White House.
In keeping with the Telecom Act's mandate to deregulate, the now Republican-dominated FCC and its supporters say it has no choice.
ADAM THIERER, CATO INSTITUTE: The reality is that this was all thrown in the FCC's lap by the courts, who have struck down these rules again and again for a variety of reasons, including First Amendment rationales, saying that really, that there's a threat to free speech and the First Amendment when the government limits the size of the soapbox that someone can build to speak to the American people on.
HAYS (on camera): Whatever the FCC does on Monday is certain to be challenged in the courts, and if Congress doesn't like the final outcome, it could change the rules all over again.
Kathleen Hays, CNN financial news, Washington.
(END VIDEOTAPE)
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 1, 2003 - 08:12 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ARTHEL NEVILLE, CNN ANCHOR: The FCC will vote Monday on media rules changes. The vote could change the way you and I watch and read about the world.
At issue, increasing the number of TV stations that can be owned from 35 percent of the national market to 45 percent, allowing cross- ownership of newspapers and TV stations in the same market and allowing ownership of multiple TV stations in a particular market.
ANDERSON COOPER, CNN ANCHOR: Some advocates say the proposed changes bring the broadcast world into the 21st century. CNN's Kathleen Hays filed this report for us.
(BEGIN VIDEOTAPE)
KATHLEEN HAYS, CNN CORRESPONDENT (voice-over): Back in the days when just three networks dominated the airwaves, the FCC passed rules to prevent them from dominating the local markets.
Now the FCC says those rules outdated and must be changed. But they not only predate the Internet, they also predate cable television.
MICHAEL POWELL, FCC CHAIRMAN: When 87 percent of Americans are receiving content over cable television or satellite television, it's just irresponsible for the commission or the government not to take that into consideration.
HAYS: The FCC's new rules will would allow big media companies to reach up to 45 percent of the U.S. television market, compared to the current 35 percent cap.
They would be permitted to own both TV stations and newspapers in all but the smallest markets. And in large markets, they could own several TV and radio stations.
Critics, including several consumer groups, say it will allow the nation's big broadcasters to gobble up smaller competitors in local markets and stifle diversity. And they fear that cost-cutting could eliminate some small, local news operations.
BRENT BOZELL, PARENTS TELEVISION COUNCIL: In 1989 the big three network, ABC, CBS and NBC, owned 17 percent of the market. By the year 2002, with deregulation, their ownership share went up to 48 percent. Throw in the big three cable companies and that's two out of every three viewers is controlled by six companies in America. HAYS: The push to change the rule springs from the sweeping Telecommunications Act passed by Congress in 1996 when Bill Clinton was in the White House.
In keeping with the Telecom Act's mandate to deregulate, the now Republican-dominated FCC and its supporters say it has no choice.
ADAM THIERER, CATO INSTITUTE: The reality is that this was all thrown in the FCC's lap by the courts, who have struck down these rules again and again for a variety of reasons, including First Amendment rationales, saying that really, that there's a threat to free speech and the First Amendment when the government limits the size of the soapbox that someone can build to speak to the American people on.
HAYS (on camera): Whatever the FCC does on Monday is certain to be challenged in the courts, and if Congress doesn't like the final outcome, it could change the rules all over again.
Kathleen Hays, CNN financial news, Washington.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
