Martin Wants Broad Media Ownership Inquiry Soon, Sources Say
FCC Chmn. Martin wants a vote on a broad media ownership inquiry soon after Robert McDowell’s delayed nomination gets Senate approval, said industry sources. After being rebuffed in his attempt to put a notice of proposed rulemaking on the Commission’s meeting agenda last year (CD March 20 p2), Martin wants to resuscitate the item within months of McDowell’s starting the job, said the sources. There was speculation the chairman would try to get a vote on the matter at McDowell’s first meeting, but we're told that’s now less likely. What’s unclear, according to Hill sources, is when the Senate hold on McDowell’s nomination will be lifted.
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Relaxing media ownership limits is a priority for Martin, said industry officials who back his views and activists who oppose some of them. Martin said last month that a ban on cross-ownership of TV and newspapers within markets is outdated. A “neutral” inquiry dealing with all rules sent back to the Commission by U.S. Appeals Court, Philadelphia is a crucial first step, he told newspaper publishers Tues. (CD April 5 p13). “It certainly is one of the front burner issues,” said Media Access Project Pres. Andrew Schwartzman.
Yet the Adelphia deal could upstage the media inquiry, Schwartzman said: “It could be the Adelphia merger, which is another front burner issue, will push ahead of it.” Sources said Comcast and Time Warner’s proposed $17.6 billion takeover of Adelphia systems isn’t yet circulating for a vote on the 8th floor, though the Commission is months past a self-decreed deadline for ruling on the deal. The U.S. Bankruptcy Court, N.Y.C. pushed off a deadline for some creditors to vote on Adelphia’s reorganization plan by more than a month to May 10.
Martin faces a challenge framing the media inquiry as “neutral,” said a regulatory source. A backlash on the 8th floor is possible if the query takes the same form as when Martin introduced it last year, said a source. That item never was voted on. Public concern is also a consideration. Comr. Copps, vehement on the dangers of media consolidation, heard last week in Norfolk, Va. from about 100 people who said they like the cross-ownership ban (CD April 3 p4).
The NTIA should conduct a minority broadcast media ownership study because the FCC is poised to change rules, National Assn. of Hispanic Journalists Pres. Veronica Villafane wrote Commerce Secy. Gutierrez, Martin and leaders of the House and Senate Commerce committees. A 2000 NTIA report found 3.8% of broadcast stations were owned by minorities, she said: “We are concerned that any action to further deregulate our nation’s broadcast ownership regulations will reduce the number of minority owners.” The group may get a temporary reprieve if McDowell isn’t confirmed soon, sources said. The FCC isn’t expected to take up contentious media ownership issues in the months leading up to the 2006 midterm elections, said the group.
Copps and activists want Martin to hold many hearings to seek public input. “The court of appeals was highly critical of the FCC” for not getting adequate data, Schwartzman said: “I think and I hope that Kevin Martin is smart enough not to repeat Michel Powell’s mistakes.” The FCC rulemaking is undergoing final revisions, said a source. “In addition to tweaking language in the NPRM,” said Stamford Washington Research Group’s Paul Gallant, “there is probably room for agreement on process issues - things like public hearings and independent studies.” - Jonathan Make