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Conglomming onto the media

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I'm no fan of media consolidation. For much of my career as a journalist, I have worked for family-owned newspapers or groups rather than big corporations, and much prefer it that way. (That's not to say, however, that some family owned newspapers or broadcast stations aren't penny-pinching, low-quality efforts. It differs community to community, company to company.)

However, the action this week by the FCC by a 3-2 vote along party lines (with the GOP appointees prevailing) raises some interesting questions. Basically, it voted to ease in the 20 largest cities the 32-year-old ban on ownership of a newspaper and a broadcast outlet in a single market. Thirty-six newspaper-broadcast combinations grandfathered in under the earlier law will be exempt, as will six applications that were pending before the FCC.

There was a roar of protest from consumer groups and some members of Congress, guaranteeing that the last hasn't been heard about this law. But it made me wonder:

— Considering that so many people say that MSM (mainstream media) are dying, who cares who owns newspapers and TV? Heck, broadcast TV is hemorrhaging viewers faster than newspapers are losing readers. That's why media companies wanted the rule change — they need every edge they can get to stave off threats from Internet and cable.

— Do we REALLY want government telling the news media how to run their businesses? Seems like a slippery slope. Look how well it worked for broadcast TV — I predict their news operations will all switch over to cable within the next 5 years. Will anyone care about monopolies for cheesy sitcoms?

— Everybody is worrying about newspapers and TV, but what about radio? There are no limits on the radio stations you can own in a market — Clear Channel practically has a stranglehold nationwide, not to mention there are just two satellite radio networks. Cable television? Ninety-nine percent of the cable markets in the U.S. are served by only one cable company. Internet? If they wanted to, Microsoft, AT&T and AOL Time Warner could shut it down tomorrow.

There is no doubt, however, that media consolidation is scary. The Media Reform Information Center points out that Ben Bagdikian was called "alarmist" in 1983 when he pointed out in"The Media Monopoly" that 50 corporations controlled almost all the U.S. media. By 2004, his revised and expanded book showed it was down to five: AOL Time Warner, Disney, Rupert Murdoch's News Corporation, Bertelsmann of Germany, and Viacom (formerly CBS).

However, none of them own American newspapers except for Murdoch, and he only has two — both in New York City. So what's the fuss over this FCC rule change about again?

Comments

I would be very interested to hear your take on Sam Zell and his recent acquisition.. Did you work for the Tribune in your Chicago years? .

Freedom of the press is way overrated.

Too early to tell about the Zell takeover. He's saying the right things about reinvigorating the company, but all new owners do that. The fear with investment moguls buying newspapers (like Avista Partners buying the Minneapolis Star-Tribune from McClatchy) is whether they are in the deal because they believe in the news business, or because they see some profit to be squeezed out before discarding.

Upsides: Zell is taking the company private again; going public has meant nothing but grief to newspaper companies (ask Knight-Ridder). And at least in Zell's case, it returns the Tribune and its papers to a company run by a strong, cantankerous individual, like Colonel McCormick in the old days (or like Dean Singleton of MediaNews).

It'll be interesting to watch. There is a lot at stake, not just for the Tribune Co., but the news business overall.

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