FCC Media Ownership Inquiry Begins; Limited Localism Criticized

The further notice of proposed rulemaking queries revisit 2003 rules remanded by the U.S. Appeals Court, Philadelphia, as expected (CD June 1 p2). The inquiry seeks comment on TV and radio ownership limits, a newspaper- broadcast property cross ownership prohibition, a ban on one firm owning more than 1 major broadcast network and raising caps on UHF station owners, FCC materials said.

“I am disappointed that localism is not front and center in this proceeding,” Copps said: “These are important questions that go right to the heart of the proceeding, but you won’t find them asked here.” Calling the rulemaking “thin gruel,” Adelstein said it’s “so open-ended that it will permit the majority of this Commission to allow giant media companies to get even bigger… It’s like submitting a high school term paper for a Ph.D. thesis.”

Martin heard few “specific” objections not resolved by his promises of hearings and studies, he said extemporaneously: “I think they want to grade our performance and give us an F, but this is just the first day of class.” The Commission will hold a “half dozen” hearings outside D.C. for public input, he said. The FCC will spend $200,000 studying topics including minority ownership, kid friendly shows, localism, industry competition and recent developments and independent programming, it said.

More questions will come in the ownership review, with queries on whether broadcasters must show there’s no out-of- market buyer to get FCC waivers for TV duopolies, Media Bureau Deputy Chief Rosemary Harold said. Waivers already granted likely will stand, Martin told media. Comments on minority ownership will be sought, said Harold, urging submitters to base their cases on the newest data possible.

Martin backed neither Democratic proposal to guarantee ownership tweaks won’t be made piecemeal and to seek public comment before putting deregulatory orders to a vote. That gives Martin leeway to tackle individual media issues, as FCC officials have envisioned, activists said. “I fully expect Chairman Martin to move broadcast newspaper ownership ahead of other items,” Media Access Project Pres. Andrew Schwartzman said. “The issues surrounding media ownership are not being addressed in the way they should,” said Benton Foundation Pres. Gloria Tristani, a former FCC comr.

Comments and replies will be due 120 days after the FCC releases the rulemaking, a nod to media activists who pushed for more time to chime in. Activists found much to dislike, saying the inquiry will mean more industry consolidation with no public participation. One firm could own a newspaper, 8 radio stations and 3 TV properties in one market if cross ownership rules are lifted, as many executives expect, said Free Press.

Inquiry specifics will be released “shortly,” Media Bureau Chief Donna Gregg told us, declining to give more detail. Other FCC items have lagged in arriving due to numerous revisions. Future drafts of the inquiry may or may not incorporate ideas such as Martin described at the meeting, Gregg said. “I don’t know exactly what it might contain that will be part of the editorial process that will take place,” said Gregg. So far Martin’s improvised promises don’t appear in the rulemaking, said FCC sources. “The order talks about the legal issues,” said Martin.

Meanwhile, the FCC may vote on the $17 billion Adelphia cable deal “by the middle of July,” said Martin. He hasn’t given up on multicast must-carry, removed from the meeting agenda after Comr. McDowell objected (CD June 20 p5), he said. “If the Commission were supportive of that, I think that’s what I'd try to do,” he told us. McDowell, participating in his first meeting, wouldn’t answer questions.