Return to Transcripts main page
CNN Live Sunday
FCC Expected to Vote to Ease Restrictions on Media Ownership
Aired June 01, 2003 - 16:03 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.
SOPHIA CHOI, CNN ANCHOR: The Federal Communications Commission is expected to vote to ease restrictions on media ownership. Now, depending on who you listen to, it's either the best or the worst thing to happen to your favorite newspaper and TV station. Let's turn to CNN's Greg Clarkin in New York for a look at the pros and cons -- Greg.
GREG CLARKIN, CNN CORRESPONDENT: Hi there, Sophia. That is right. It's widely expected tomorrow that the FCC will change some of the decades' old rules governing the ownership of the nation's TV and radio stations, as well as and newspapers. Now, under the proposed changes, there is really three major areas that are being targeted.
Under the new rules that are being proposed tomorrow, is to allow a single company to own television stations, reaching 45 percent of the nation's audience. Right now, the cap is about 35 percent. A new rule is also expected to allow a single company to own up to three TV stations in the country's largest markets. Right now, they can own two. And also it expected to give the green light to a company to own a broadcast outlet and newspaper in a single market.
Now, these rules were put in effect between the years of 1941 and 1975. They were put in effect basically to insure competition by allowing a number of diverse groups -- a number of diverse companies to own the nation's media outlets so one single company cannot dominate.
And right now, what we're seeing opponents saying that is exactly what you are opening the doors to with these changes is to allow for further consolidation in already consolidated business, and allow a couple of companies to control the content -- much of what we read, see, and hear.
And right now, some of the big media companies already control a fair amount of what is out there. Viacom, News Corp., AOL Time Warner, parent of this network, as well as Gannett and now Walt Disney Company.
Now, opponents say changes again open the door to deals where a few companies will control a lot of the content, but FCC Chairman, Michael Powell, he wants to make these changes. He says that the rules outdated and with so many media outlets out there today, be it cable TV, free TV, and the Internet, he says no one company can really corner the market.
And again, all this is expected to be decided by about midday tomorrow, and it is widely expected that Powell does has the three votes necessary for the FCC to push these changes through, much to the stiff opposition of a lot of civil rights groups as well as religious groups and consumer advocates. Sophia, back to you.
CHOI: Greg, though, in recent years, we have seen kind of a proliferation of a bunch of different, even independent outlets, especially on the Internet.
CLARKIN: We have. And that's what Michael Powell says. You have got a number of different places to get your news and get your information out there today, so it will really be tough for one company to consolidate to a point where they can control a lot of what you read, see, and hear. Now, the opponents to the changes say that, you know, you have to insure that smaller companies can still thrive out there and they won't be pushed down and crushed by the larger media giants. So that's what they fear.
CHOI: All right. Greg Clarkin. Thank you so much for giving us the break down.
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 1, 2003 - 16:03 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOPHIA CHOI, CNN ANCHOR: The Federal Communications Commission is expected to vote to ease restrictions on media ownership. Now, depending on who you listen to, it's either the best or the worst thing to happen to your favorite newspaper and TV station. Let's turn to CNN's Greg Clarkin in New York for a look at the pros and cons -- Greg.
GREG CLARKIN, CNN CORRESPONDENT: Hi there, Sophia. That is right. It's widely expected tomorrow that the FCC will change some of the decades' old rules governing the ownership of the nation's TV and radio stations, as well as and newspapers. Now, under the proposed changes, there is really three major areas that are being targeted.
Under the new rules that are being proposed tomorrow, is to allow a single company to own television stations, reaching 45 percent of the nation's audience. Right now, the cap is about 35 percent. A new rule is also expected to allow a single company to own up to three TV stations in the country's largest markets. Right now, they can own two. And also it expected to give the green light to a company to own a broadcast outlet and newspaper in a single market.
Now, these rules were put in effect between the years of 1941 and 1975. They were put in effect basically to insure competition by allowing a number of diverse groups -- a number of diverse companies to own the nation's media outlets so one single company cannot dominate.
And right now, what we're seeing opponents saying that is exactly what you are opening the doors to with these changes is to allow for further consolidation in already consolidated business, and allow a couple of companies to control the content -- much of what we read, see, and hear.
And right now, some of the big media companies already control a fair amount of what is out there. Viacom, News Corp., AOL Time Warner, parent of this network, as well as Gannett and now Walt Disney Company.
Now, opponents say changes again open the door to deals where a few companies will control a lot of the content, but FCC Chairman, Michael Powell, he wants to make these changes. He says that the rules outdated and with so many media outlets out there today, be it cable TV, free TV, and the Internet, he says no one company can really corner the market.
And again, all this is expected to be decided by about midday tomorrow, and it is widely expected that Powell does has the three votes necessary for the FCC to push these changes through, much to the stiff opposition of a lot of civil rights groups as well as religious groups and consumer advocates. Sophia, back to you.
CHOI: Greg, though, in recent years, we have seen kind of a proliferation of a bunch of different, even independent outlets, especially on the Internet.
CLARKIN: We have. And that's what Michael Powell says. You have got a number of different places to get your news and get your information out there today, so it will really be tough for one company to consolidate to a point where they can control a lot of what you read, see, and hear. Now, the opponents to the changes say that, you know, you have to insure that smaller companies can still thrive out there and they won't be pushed down and crushed by the larger media giants. So that's what they fear.
CHOI: All right. Greg Clarkin. Thank you so much for giving us the break down.
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>
