FCC’s Cross-Ownership Rule Is All About Politics

0

Speaking before the Kansas Association of Broadcasters this week, FCC Commissioner Ajit Pai said the Commission’s decision to retain the newspaper-broadcast cross-ownership rule was a “profound mistake.” “Put simply, it makes no sense for the federal government to discourage investment in the newspaper industry.” Pai said that’s precisely what the newspaper-broadcast cross-ownership rule does, adding broadcasters are well-situated to partner with newspapers.

Pai believes investments in newsgathering are more likely to be profitable when a company can distribute information over multiple platforms. He says, from the combos that were grandfathered in before the adoption of the 1975 rule, there are at least 15 studies that show cross-ownership increases the quantity and/or quality of news.

Pai then compared the FCC’s approval of some very big deals to them not allowing a small-market radio or TV station to own a newspaper. “The FCC’s view of the media marketplace is quite remarkable. The FCC is willing to approve the $13.8 billion purchase of one of our nation’s top four broadcast networks (NBC) by our nation’s largest cable operator (Comcast). It will sign off on the $49 billion merger of our nation’s second- and fifth-largest multichannel video programming distributors (AT&T and DIRECTV). And it will bless a single $79 billion transaction combining our nation’s second-, third-, and sixth-largest cable providers (Charter, Time Warner Cable, and Bright House). But a newspaper purchasing a single AM radio station in rural Kansas? That’s where the Commission decides to put its foot down. In my view, the FCC’s decision to retain the newspaper-broadcast cross-ownership rule had nothing to do with the facts, nothing to do with the law, and nothing to do with common sense. Instead, it was all about politics. And I fear that at the rate we’re going, the newspaper-broadcast cross-ownership rule will outlive newspapers themselves, absent judicial intervention.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here