FCC Media Ownership Review May Take Longer Than Expected
The FCC media ownership review may run longer than expected (CD June 26 p5), said agency and industry officials. A vote on a final order may not come until 2009. Among steps Chmn. Martin vowed to take before an order makes the 8th floor rounds are 4 field hearings on ownership, 2 localism hearings, a report on broadcast localism and 10 economic studies. His Feb. 1 declaration to a Senate Commerce Committee hearing that he hopes to finish media hearings this year spurred industry and FCC speculation that an order may not come before the 2008 election. Media activists and broadcasters had predicted the rulemaking would be wrapped up by mid-2008.
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Martin’s remarks signaled an order won’t circulate until early 2008, and perhaps far later, an FCC official who works outside the chairman’s office said: “He surprised all of us.” Martin has indicated privately that his watch may end before issuance of an order on the question of whether one company can own more TV and radio stations in one town, an industry source said. The presence of a Democratic Congress may delay action, said agency and broadcast officials. Martin seems reluctant to risk tarnishing his legacy by rushing an order, as some think predecessor Michael Powell did with his media ownership rules, subsequently bucked back to the agency -- and Martin -- by a federal court, an FCC staffer said: “Everyone saw what happened to Powell last time, and I don’t think the chairman is eager to get on the wrong side of that again.”
Most of 2007 may go for field hearings on media ownership and localism, said industry and FCC officials. A 3rd session on media ownership is set for Feb. 23 in Harrisburg, Pa., and Martin has said he wants to hold such meetings once every 2 months. Given the 8th-floor haggling over logistics that has preceded previous hearings, the last media ownership meeting might not happen until year-end. And Martin has committed to holding, in D.C. and Me., the final 2 hearings Powell promised on media localism, an FCC official said.
“The ownership proceeding is a big bite because it involves so many issues,” lawyer Robert Rini said: “What I hear consistently on all levels is a strong desire for a sustainable record.” The firmer its foundation, the greater an order’s chances of surviving judicial review, lawyers said. The current review arose when the 3rd U.S. Appeals Court, Philadelphia, remanded Powell’s ownership order to the FCC.
Broadcasters hope to enlist the FCC and Congress as allies in arguing that their financial survival demands less stringent rules, said lawyers, including Rini, who represents the Smaller Market Bcstrs. Coalition of 100-plus TV stations. “There is a desire among the parties to have a serious discussion about localism and what that means to broadcasters before they tackle ownership,” he said: “Many of my clients are willing to engage in that discussion.” His clients found a receptive audience in meetings Feb. 7 with Commissioners and the next day with legislators, he said. Newspapers want to erase rules keeping them from owning a broadcaster in the same city. Cross ownership is “the most efficient way of serving the broadest range through multimedia we can think of” John Sturm, Newspaper Assn. of America pres., said: “It’s being done all over the world,” except in the U.S.
Some say Martin may be shying away from deregulation amid heightened public and legislative anxiety about consolidation. Foes of deregulation have “more traction,” an FCC official said: “Outside the FCC world, outside the building -- that does not favor his position.” Martin’s comments are seen as acknowledging political reality. “A contributing factor to the chairman’s increasing reluctance to move is the realization that significant deregulation is not supported by the record,” Media Access Project Pres. Andrew Schwartzman said: “If he’s going to go through the motions and come up with very little, there is less reason to do it.”
The lag vexes some deregulation advocates, and Martin himself has said ownership limits may be outdated. “I'd be much happier if the Commission could move a lot quicker on the hearings and the preliminary stuff,” Sturm said, citing Martin’s to-do list. “What concerns me the most is that I think there has been a commitment to do a number of things even before we get to the conclusion of the rulemaking, whenever that might be,” he said. Some broadcasters share Sturm’s concerns. “My frustration is palpable,” Tribune Vp Shaun Sheehan said: “The only area of concern to me, which is major market cross-ownership relief, the court said they got it right. And here we are, years later, with big-city newspapers” in obvious distress, “and the Commission dawdles.” - Jonathan Make