FCC Releases Studies On Media Ownership

By: David Ho, Associated Press Writer (AP) Federal regulators released a dozen media studies Tuesday that will guide a broad review of rules that limit the ownership of newspapers and radio and television stations.

The Federal Communications Commission is studying whether current ownership restrictions are appropriate in a market altered by the growth of the Internet, satellite broadcasts, and cable television. Last month, the agency began reviewing how ownership rules affect competition, advertising, local news outlets, and the diversity of voices providing news and information.

"These studies represent an unprecedented data gathering effort to better understand market and consumer issues so that we may develop sound public policy," FCC Chairman Michael Powell said. "It is critical that the FCC has a solid factual base to support its media ownership rules."

The agency wants to make rules governing various types of media more consistent and able to survive legal challenges. The FCC has said it expects the review and any potential changes to the rules to be completed by spring.

The agency is seeking comments on the studies as part of its review.

Blair Levin, a former FCC official and now an analyst with the Legg Mason investment firm, said the agency is moving toward opening the way for more media mergers. He said the 12 studies support that by showing connections among different types of media.

"They are putting all of the different media platforms in one bucket," he said. "The bigger the bucket, the less problem there is for consolidation."

Media companies that say outdated regulations restrict their ability to grow and stay competitive support revising the ownership rules. Critics warn, however, that mergers resulting from looser rules could leave a few huge companies in control of what people watch, hear, and read.

Mark Cooper, research director of the Consumer Federation of America, said the voluminous amount of data released by the FCC needs to be carefully reviewed, but just a quick look reveals shortcomings. "These are 12 studies done by mostly people on staff at the FCC, done with narrow methodologies asking narrow questions," Cooper said.

Dennis Wharton, a spokesman for the National Association of Broadcasters, said his group wouldn't comment until it had examined the studies.

Among the FCC's findings:

* When consumers substitute one form of media for another to get news and entertainment, the clearest evidence for such crossovers is found between broadcast television and the Internet; daily and weekly newspapers; and daily newspapers and broadcast TV news.

There is little or no evidence of such substitution between radio and the Internet; radio and cable; and weekly newspapers and broadcast television.

* A study of 10 media markets found that, on average, the number of media outlets available to consumers nearly tripled between 1960 and 2000 -- a 195% increase. The number of outlet owners increased 140%, a smaller amount because of industry mergers, the researchers said.

On the Net: http://www.fcc.gov