FCC relaxes media ownership rules

New FCC rules will allow broadcasters to combine with a newspaper in the same market and own up to two of the top four stations in a city.

Proponents, such as Republican FCC Chairman Ajit Pai, of the new rules argue that consolidation and mergers among broadcasters gives them greater scale to better compete with cable and internet companies for local ad dollars. As more people are now getting their news from websites, podcasts and social media, changes are needed that allow local stations to be more competitive.

Dissenters, including the two Democrats on the commission and some public interest groups, say it allows a single company to potentially own the only newspaper, multiple television and radio stations in a community, putting more power in the hands of a few corporations, such as Sinclair Broadcast Group, the nation’s largest owner of television stations.

The conservative Sinclair Broadcast Group currently owns or operates 173 TV stations across the country. If their proposed merger with Tribune Media is approved, Sinclair will control 42 stations across the U.S.

The proposed changes allow for:

·      Common ownership of a newspaper and a broadcast station in the same market.

·      Common ownership of two of the four TV stations in the same market, subject to a “case-by-case’ review by the FCC.

·      Greater leeway for joint sales agreements.

·      Restoration of the “UHF discount (station groups can count their UHF holdings as just half the outlet’s reach, presumably because those stations have a weaker signal reach, though this has changed after the transition to digital TV in 2009).

·      Elimination of rule requiring that broadcast stations have a main studio in their local coverage area.

In my opinion, this is a death sentence for local media. What do you think: does the loosening of the media ownership rules level the playing field between traditional and online media, or does it allow an individual or organization to have an unequal influence over public opinion?