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Politics : War -- Ignore unavailable to you. Want to Upgrade?

To: Thomas M. who wrote (17112)	9/13/2002 4:37:53 PM
From: calgal	Read Replies (1) \| Respond to of 23908

By Brooks Boliek URL: story.news.yahoo.com WASHINGTON (The Hollywood Reporter) --- The FCC ( news - web sites) launched a massive procedure that could eventually reshape the television industry when the commissioners agreed Thursday to begin reviewing a half-dozen rules that restrict the ownership of broadcast properties. The review comes after a string of federal court defeats for the agency's rules. "The time is up for continuing to wink at public policy," FCC chairman Michael Powell said. "It's now time to embrace it and make it." Powell said he hopes that taking a broad approach will turn the commission's hodgepodge of broadcast regulations into a workable whole. The courts have been frustrated when they were asked to make a decision on a rule that counted one medium in one way for its purpose when it was counted another way in a different rule, Powell said. "I think the court is saying, 'I don't understand that on this rule newspapers are a voice, and in this rule, they are not,' " he said. The FCC is examining regulations that: o Prevent one company from owning a newspaper and television station in a single market. o Effectively limit the number of TV stations one company can own by capping the national audience reach of a broadcaster at 35%. o Limit the number of radio stations one company can own in a local market. o Prevent the Big Four networks from buying one another. o Limit the number of radio and TV stations one company can own in a single market. "The deeper you dig into our rules, the more confused you become," commissioner Kathleen Abernathy said. "We have an obligation to reconcile our ownership rules." While the commission unanimously voted to start the proceeding, technically known as a notice of proposed rulemaking, commissioner Michael Copps warned against rushing the procedure. Powell hopes to have a proposal before the commission in the spring. "At stake is how radio and television are going to look in the next generation and beyond," he said. "I don't want to vote on final rules -- unless and until I feel comfortable that we have the information and analysis to inform our votes." Copps urged Powell to hold hearings on the subject to get input from all the stake holders, including artists and entertainers. At a news conference afterward, Powell refused to commit to hearings, saying he had to hear from the other commissioners first. Writers Guild of America West president Victoria Riskin urged the commission to take special care with its review. "In the effort to modernize media ownership rules for the 21st century, we should also weigh decades of precedent and wisdom in rulemaking that has served the public interest," she said. "We cannot allow this process to be manipulated by a few megacorporations that seek to control ever larger sectors of our communication industries. The new ownership rules should enhance free competition and move America toward greater diversity of viewpoints in the media, not toward putting the power to decide what all Americans see on television and read in the newspapers into the boardrooms of a handful of powerful individuals." An extensive easing of the rules could also give entertainment companies more leverage in their negotiations with the creative community, said Leonard Hill, chairman of the legislative affairs committee of the Caucus of Producers, Writers and Directors. "The proceeding should set off alarms within the creative community," Hill said. "The prospect of wholesale deregulation has grave implications for all those who produce, write, act, direct or compose entertainment. The battle will be between the corporations, who seek deregulation that will allow consolidation and self-dealing, and the creative community that is dependent on regulations that maintain competition and access to the national audience. I am concerned that the corporations have amassed an army of lobbyists to make the case for deregulation when the creative community seems blissfully unaware of the significant decisions that will be made by the FCC in the next six months." While cable-ownership regulations -- one that prevented cable-broadcast cross-ownership was tossed out by the courts -- were not explicitly included in the review proposal, Powell said the industry would not be ignored. "It gets at the same thing but in a more comprehensive manner," Powell said. "We want to look at it in an integrated, comprehensive way." Many analysts think the Powell commission will significantly ease the regulations, ushering in another round of media consolidation. "The direction of the proceeding is clear -- greater deregulation of media ownership that will lead to greater consolidation and a dramatic restructuring of the media marketplace," said Blair Levin, a Legg-Mason analyst and former FCC staffer who tracks the media. "What is less certain -- and what will be critical -- is both where and how the FCC draws the line on consolidation." While many observers expect the Powell commission to ease the ownership rules, he denied that he has made up his mind. "I pride myself on being open-minded," he said. "How it comes out, we shall see." The industries that are regulated appeared to be happy with the new FCC undertaking, while public interest groups seemed more wary. "We are pleased the FCC is undertaking a review of all of its broadcast ownership rules," Viacom said in a statement. "Flexibility in the broadcast marketplace is critical in today's highly diverse media environment, particularly in light of changes that have taken place over the years. We look forward to demonstrating to the commission that the current rules are both arbitrary and outdated." The Consumers Union's Gene Kimmelman said he expected the move to lead to greater media concentration. "There's a selectivity here of picking the facts that will support a result," he said. "Powell has an inclination to pick the facts that favor deregulation and ignore the facts that don't