Media consolidation: Is FCC's latest decision an opening for more?

Published: 2007-12-26

WASHINGTON (CNS) -- The Federal Communications Commission has unzipped the media consolidation tent open far enough for the proverbial camel to stick its nose into it. Will more consolidation follow? By a party-line vote Dec. 18, the FCC -- three Republicans and two Democrats -- allowed cross-ownership of a newspaper and a TV station in the top 20 U.S. markets, provided that the TV station is ranked fifth or below in its market. It also grandfathered in the 42 cross-ownership deals that were already in place, but dependent on FCC waivers for their continued existence. Most of those waivers were for cross-ownership combos that predated the FCC's 1975 ban on cross-ownership. All 42 of the situations fall outside the criteria of the new cross-ownership guidelines. The FCC, in addition, set the national ownership cap for cable TV companies at 30 percent of all cable households that could be wired by a single company. The largest U.S. cable firm, Comcast, has 27 percent; the FCC action gives it more room to grow, but at least in theory keeps that growth in check. The day after the FCC votes, action decrying the moves was swift and pointed. Before Congress wrapped up its legislative business for 2007, bills were introduced in both the Senate and the House to reverse the FCC cross-ownership deregulation.

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