Washington

Editorial: Time for a Vote

12/03/2012 12:01:00 AM Eastern

FCC chairman Julius Genachowski last week continued
to take flak from minority groups, media
activists and unions for a proposal to loosen some
media-ownership regulations.

They called on him and the FCC commissioners to not vote for the proposal,
which is currently circulating among the top FCC offices.

According to multiple sources, the chairman has proposed, and likely has
the votes to pass, an order that would loosen the newspaper/TV station crossownership
ban along the lines of an effort by his Republican predecessor, Kevin
Martin; remove restrictions on newspaper/radio station cross-ownership; and lift
the ban on TV station/radio cross-ownership, while also making some joint sales
agreements subject to the local ownership caps.

The steps are not sufficient to appease broadcasters, but they are at least a
move in the right direction—with the exception of making joint sales agreements
attributable, but more on that later.

It has now been over a decade since broadcasters had any regulatory certainty
about what they could and couldn’t own. That is when the FCC first tried to
reform its rules. Since then they have been in and out of court more often than
the cast of Law & Order. The FCC has been sued by both sides of the argument
in a Goldilocks scenario: They are always offering too little for broadcasters and
too much for media activists who, since they believe the industry is already too
consolidated, see any more deregulation (regardless of how modest) as too much.

The current issue raising the ire of the advocates is their belief that the FCC has
not sufficiently studied the impact of ownership changes on women and minorities,
pointing to the Third Circuit Court of Appeals’ directive that the FCC study the issue.

But the current rule change review is actually two reviews in one—a response
to the court and to Congress’ mandate of a quadrennial regulation review. The
chairman’s order is about looking to finish that congressionally mandated review
and provide some regulatory certainty by, primarily, loosening the newspaper/TV
station cross-ownership rule, a step the Third Circuit didn’t have a problem with.
Its problem was with how that move was once telegraphed by Kevin Martin in a
newspaper editorial without sufficient notice or opportunity for public comment.

But the proposal was informed by input on diversity, the FCC pointed out last
week, and the commission likely will tee up further diversity-related changes
based on that input. The FCC can do two things at once, and it should. Who
knows? Allowing more newspapers and broadcasters to join financial forces may
even help preserve voices, though it would have more effect if the FCC allowed
more mergers in smaller markets.

We urge the FCC commissioners to vote to approve the majority of the chairman’s
draft proposal—though we would suggest breaking off the joint sales
agreements portion into a further notice to allow more comment. The FCC’s
inclination toward at least some deregulation does not need the counterbalance
of new regulations on the joint agreements and sharing arrangements that are
at least some relief from the local ownership caps the FCC continues to keep on
the books.

September
October