Ownership Reversal Looking Less Likely

By: Todd Shields (Mediaweek) Efforts to reverse the recent easing of media-ownership rules may be foundering, key U.S. senators said last week. Their comments indicate that the Federal Communications Commission's June 2 decision to relax ownership regulations may survive this congressional session intact after all.

Sen. John McCain (R-Ariz.), speaking to reporters on Oct. 2, said he had blocked the full Senate from considering a spending bill that includes a provision limiting TV network size. McCain said it is "inappropriate" to lard must-pass spending bills with policy directives, and he said he would seek to excise the measure.

Whether McCain can succeed is unclear. Sen. Ted Stevens (R-Alaska), chairman of the Appropriations Committee, which earlier approved the spending measure, still hopes for a vote, a Stevens aide said. If the measure comes before the full Senate, "we think we have the votes [to defend the 35-percent provision]," said an aide to a Democratic senator. Senate passage would align it with the House, which passed a 35% limit in July, and leave little but a presidential veto to defend the expanded ownership cap. Viacom's CBS and News Corp.'s Fox each own stations reaching about 40% of the country and could be forced to sell stations to meet a lower limit.

"If we roll back the cap to 35%, CBS and Fox will sell UPN affiliates," Victor Miller, an analyst for Bear Stearns, told McCain's committee on Thursday. "There's a good chance UPN won't survive."

Another congressional attempt to roll back the FCC decision faces poor prospects. A resolution to reverse all aspects of the FCC's June 2 vote is stuck in the House, denied a vote by GOP leaders who defend media deregulation, despite its passage by the Senate. "I think we probably won't see success on this issue," said Sen. Byron Dorgan (D-N.D.).

But the FCC's escape may not be permanent. The 3rd U.S. Circuit Court of Appeals in Philadelphia is moving toward a hearing, perhaps in December, on legal challenges. In Congress, McCain vows more hearings, and rumblings continue in the House.

Last week, Rep. Frank Wolf (R-Va.), who chairs the appropriations subcommittee that oversees the FCC, sent colleagues a letter decrying the NBC show Coupling and its frank discussion of sexuality.

"I asked myself why the Bush administration -- which espouses family values and morals -- would support allowing media conglomerates to have an opportunity to control even more of the programming now on public airwaves," Wolf wrote. The political message is clear: Congressional pressure over media ownership will continue in some form.