Regulation and deregulation, part 2

Courtesy of Shelley P.

In 1996, Congress amended the media ownership law known as The Telecommunications Act of 1996. This legislation lessened the limitations on how many media outlets one company can own. The cause and effect of this change caused massive media mergers and less local news coverage. We need the government to impose limits on how many outlets one company can own because local news coverage is in jeopardy.  (FCC 2009)

  1. What types of limits have been imposed on media Companies in the past?
  2. When have people proposed changing those limits?
  3. Why have people proposed changing those limits?
  4. Are there specific event that demonstrate the value of limits?

What types of limits have been imposed on media Companies in the past?

Since 1912, the government has been involved in enforcing regulations on media outlets.  These regulations were to protect and serve the American people.  The best way to serve the American people is through localism, competition, diversity and providing opportunities for independent owners. (FCC 2009)

In 1941, ownership restrictions were enforced on radio and television license holders by the Federal Communications Commission (FCC).  A broadcaster couldn’t own a station that reached more than 25 % of the nation’s homes.  The purpose behind this law was to keep localism intact and prevent cookie cutter stories.

When have people proposed changing those limits?

The Telecommunications Act of 1996 signed by President Clinton changed these regulations and increased the size from 25 % to 35%.  (Moyer 2004)

Clear Channel, a company based in San Antonio, Texas took advantage of the Telecommunications Act of 1996 and purchased 49 radio stations in 20 different markets. Today, Clear Channel reaches 125 million users. (Clear Channel)

Why have people proposed changing those limits?

You may be asking yourself why it is wrong that one company can own numerous media outlets.  On January 18, 2002, a train derailed in Minot, North Dakota.  This accident released 210, 000 gallons of anhydrous ammonia into the air, killing one and hospitalizing 300. Local emergency procedures needed to be activated immediately. When authorities attempted to contact their local radio stations to inform the public on the accident and how to respond, no one answered the phone.  (Moyer 2004)

At the time of this incident, Minot had seven radio stations and six of them were owned by Clear Channel.   When Clear Channel purchases local stations they reduce staff and implement a computerized satellite feed system. Therefore, when the local community has an emergency, no one is at the station to respond. (Moyer 2004)

Senator Byron Dorgan, a Democrat from North Dakota gave testimony on January 14, 2003 citing the Minot incident and highlighting the dangers of big media.  He emphasized that local news coverage is adversely affected when you have a media monopoly. (Moyer 2004)

With the consolidation of media outlets, local news coverage is destined to decline. The Project of Excellence in Journalism  analyzed 23,000 stories on 172 new programs over five years and found that big media news organizations  relied more on syndicated feeds and were more likely to air national stories with no local connection.  (Turner 2004)

Local coverage is expensive to produce, and therefore it is the first to be cut to improve the profit margin. When you eliminate local coverage, the mission of providing a public service to the people is hampered.

Mergers have also meant more news-sharing and less independent reporting. Fewer independent reporting means more media concentration.

The role of government is to enforce regulations to serve the best interest of all the people. Who is the government? The government is you and me. You and I elect the president of the United States.  The President of the United States appoints the five commissioners which make up the FCC.   We need to select our president wisely and we need to make our voices heard.

Is there a specific event that demonstrate the value of limits?

Presently, Comcast and NBC are considering merging. This would be a mega merger because Comcast it the largest cable and internet company in the United States and  NBC is a huge television and movie producer. What would the merger mean for you and me?  There would be less local and independent voices and programs. If we don’t make a stand now big media will stifle local news stories.

Big media needs to be broken up. We need to support independent media owners, insist on local news coverage, and demand unbiased news reporting.  How do we do this? We need to be involved in our local and national elections.  We can also join groups like Free Press and New Public Media. We need the government to impose limits on how many outlets one company can own because local and diverse news coverage is in jeopardy!

References

Clear Channel Communications Inc. http://www.clearchannel.com/

Federal Communication Commission. (2009). Telecommunications Act of 1996 . http://www.fcc.gov/. retrieved 11/12/2009,  http://www.fcc.gov/telecom.html

(2007, October, 17) Senator Dorgan Taking on Big Media. Retrieved November 16, 2009 from  http://www.youtube.com/watch?v=1whqOAC6fgk

Bill Moyers. (2004). Media Regulation Timeline. http://www.pbs.org. retrieved 11/02/2009,  http://www.pbs.org/now/politics/mediatimeline.html

Turner, Ted. (2004, July/August) My Beef with Big Media. The Washington Monthly,  pp.1-9 starting page-ending page.

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