History of FCC regulations Media cross-ownership in the United States

1 history of fcc regulations

1.1 communications act of 1934
1.2 cross ownership rules of 1975
1.3 telecommunications act 1996
1.4 since 2000
1.5 uhf discount

history of fcc regulations

the first amendment united states constitution included provision protected “freedom of press” congressional action. newspapers , other print items, in medium practically infinite , publishers produce many publications wanted without interfering other publisher s ability same, not problem.

the debut of radio broadcasting in first part of 20th century complicated matters; radio spectrum finite, , limited number of broadcasters use medium @ same time. united states government opted declare entire broadcast spectrum government property , license rights use spectrum broadcasters. after several years of experimental broadcast licensing, united states licensed first commercial radio station, kdka, in 1920.

prior 1927, public airwaves in united states regulated united states department of commerce , largely litigated in courts growing number of stations fought space in burgeoning industry. in earliest days, radio stations typically required share same standard frequency (833 khz) , not allowed broadcast entire day, instead having sign on , off @ designated times allow competing stations use frequency.

the federal radio act of 1927 (signed law february 23, 1927) nationalized airwaves , formed federal radio commission, forerunner of modern federal communications commission (fcc) assume control of airwaves. 1 of first moves of frc general order 40, first u.s. bandplan, allocated permanent frequencies u.s. stations , eliminated of part-time broadcasters.

communications act of 1934

the communications act of 1934 stepping stone of communications rules in place today. when first enacted, created fcc (federal communications commission). created regulate telephone monopolies, regulate licensing spectrum used broadcasting. fcc given authority congress give out licenses companies use broadcasting spectrum. however, had determine whether license serve “the public interest, convenience, , necessity”. primary goal fcc, start, has been serve public interest . debated concept, term “public interest” provided general definition federal radio commission. commission determined, in 1928 annual report, “the emphasis must first , foremost on interest, convenience, , necessity of listening public, , not on interest, convenience, or necessity of individual broadcaster or advertiser.” following reasoning, fcc regulations reflected presumption not in public’s interest single entity hold more 1 broadcast license in same community. view public benefit diverse array of owners because lead diverse array of program , service viewpoints.

the communications act of 1934 refined , expanded on authority of fcc regulate public airwaves in united states, combining , reorganizing provisions federal radio act of 1927 , mann-elkins act of 1910. empowered fcc, among other things, administer broadcasting licenses, impose penalties , regulate standards , equipment used on airwaves. act mandated fcc act in interest of public convenience, interest, or necessity. act established system whereby fcc grants licenses spectrum broadcasters commercial use, long broadcasters act in public interest providing news programming.

lobbyists largest radio broadcasters, abc , nbc, wanted establish high fees broadcasting licenses, congress saw limitation upon free speech. consequently, “the franchise operate broadcasting station, worth millions, awarded free of charge enterprises selected under standard of ‘public interest, convenience, or necessity.’”

nevertheless, radio , television dominated big 3 television networks until mid-1990s.

cross ownership rules of 1975

in 1975, fcc passed newspaper , broadcast cross-ownership rule. ban prohibited ownership of daily newspaper , full-power broadcast station serviced same community . rule emphasized need ensure broad number of voices given opportunity communicate via different outlets in each market. newspapers, explicitly prohibited federal regulation because of guarantee of freedom of press in first amendment united states constitution, out of fcc s jurisdiction, fcc use ownership of newspaper preclusion against owning radio or television licenses, fcc , did regulate.

the fcc designed rules make sure there diversity of voices , opinions on airwaves. “beginning in 1975, fcc rules banned cross-ownership single entity of daily newspaper , television or radio broadcast station operating in same local market.” ruling put in place limit media concentration in tv , radio markets, because use public airwaves, valuable, , now, limited resource.

telecommunications act 1996

the telecommunications act of 1996 influential act media cross-ownership. 1 of requirements of act fcc must conduct biennial review of media ownership rules “and shall determine whether of such rules necessary in public interest result of competition.” commission ordered “repeal or modify regulation determines no longer in public interest.”

the legislation, touted step foster competition, resulted in subsequent mergers of several large companies, trend still continues. on 4,000 radio stations bought out, , minority ownership of tv stations dropped lowest point since federal government began tracking such data in 1990.

since telecommunications act of 1996, restrictions on media merging have decreased. although merging media companies seems provide many positive outcomes companies involved in merge, might lead negative outcomes other companies, viewers , future businesses. fcc found indeed negative effects of recent merges in study issued.

since 2000

in september 2002, fcc issued notice of proposed rulemaking stating commission re-evaluate media ownership rules pursuant obligation specified in telecommunications act of 1996. in june 2003, after deliberations included single public hearing , review of two-million pieces of correspondence public opposing further relaxation of ownership rules fcc voted 3-2 repeal newspaper/broadcast cross-ownership ban , make changes or repeal number of other ownership rules well. in order, fcc noted newspaper/broadcast cross-ownership rule no longer necessary in public interest maintain competition, diversity or localism. however, in 2007 fcc revised rules , ruled take “case-by-case , determine if cross-ownership affect public interest. rule changes permitted company own newspaper , broadcast station in of nation’s top 20 media markets long there @ least 8 media outlets in market. if combination included television station, station couldn’t in market’s top four. has since 2003, prometheus radio project argued relaxed rule pave way more media consolidation. broadcasters, pointing increasing competition new platforms, argued fcc’s rules—including other ownership regulations govern tv duopolies , radio ownership—should relaxed further. fcc, meanwhile, defended right change rules either way.“ public interest fcc bases judgments on, whether media cross-ownership positive , contributive force, locally , nationally.

the fcc held 1 official forum, february 27, 2003, in richmond, virginia in response public pressures allow more input on issue of elimination of media ownership limits. complain more 1 forum needed.

in 2003 fcc set out re-evaluate media ownership rules specified in telecommunications act of 1996. on june 2, 2003, fcc, in 3-2 vote under chairman michael powell, approved new media ownership laws removed many of restrictions imposed limit ownership of media within local area. changes not, customarily done, made available public comment period.

single-company ownership of media in given market permitted 45% (formerly 35%, 25% in 1985) of market.
restrictions on newspaper , tv station ownership in same market removed.
all tv channels, magazines, newspapers, cable, , internet services counted, weighted based on people s average tendency find news on medium. @ same time, whether channel contains news no longer considered in counting percentage of medium owned 1 owner.
previous requirements periodic review of license have been changed. licenses no longer reviewed public-interest considerations.

the decision fcc overturned united states court of appeals third circuit in prometheus radio project v. fcc in june, 2004. majority ruled 2-1 against fcc , ordered commission reconfigure how justified raising ownership limits. supreme court later turned down appeal, ruling stands.

in june 2006, fcc adopted further notice of proposed rulemaking (fnpr) address issues raised united states court of appeals third circuit , perform recurring evaluation of media ownership rules required telecommunications act. deliberations draw upon 3 formal sources of input:(1) submission of comments, (2) ten commissioned studies, , (3) 6 public hearings.

the fcc in 2007 voted modestly relax existing ban on newspaper/broadcast cross-ownership. fcc voted december 18, 2007 eliminate media ownership rules, including statute forbids single company own both newspaper , television or radio station in same city. fcc chairman kevin martin circulated plan in october 2007. martin s justification rule change ensure viability of america s newspapers , address issues raised in 2003 fcc decision later struck down courts. fcc held 6 hearings around country receive public input individuals, broadcasters , corporations. because of lack of discussion during 2003 proceedings, increased attention has been paid ensuring fcc engages in proper dialogue public regarding current rules change. fcc commissioners deborah taylor-tate , robert mcdowell joined chairman martin in voting in favor of rule change. commissioners michael copps , jonathan adelstein, both democrats, opposed change.

uhf discount

beginning in 1985, fcc implemented rule stating television stations broadcasting on uhf channels discounted half when calculating broadcaster s total reach, under market share cap of 39% of u.s. tv households. rule implemented because uhf band considered inferior vhf broadcasting analog television. notion became obsolete since completion of transition analog digital television in 2009; majority of television stations broadcast on uhf band because, contrast, considered superior digital transmission.

the fcc voted deprecate rule in september 2016; commission argued uhf discount had become technologically obsolete, , being used loophole broadcasters contravene market share rules , increase market share through consolidation. existing portfolios of broadcasters exceeded cap due change grandfathered, including holdings of ion media networks, tribune media, , univision.

however, on april 21, 2017, under new trump administration fcc commissioner ajit pai, discount reinstated in 2-1 vote, led pai , commissioner michael o rielly. move, along plan evaluate increasing national ownership cap, expected trigger wider wave of consolidation in broadcast television. challenge rule s restoration filed on may 15 institute public representation (a coalition of public interest groups comprising free press, united church of christ, media mobilizing project, prometheus radio project, national hispanic media coalition , common cause), requested emergency motion stay uhf discount order – delaying june 5 re-implementation – pending court challenge rule. groups re-affirmed rule technologically obsolete, , restored purpose of allowing media consolidation. fcc rejected claims, stating discount allow forward regulatory review of station group acquisitions, , institute public representation s criteria stay fell short of meeting adequate determination in favor of court; claimed discount inextricably linked agency s media ownership rules, review of initiated in may of year.

the challenge , subsequent stay motion partly filed reaction sinclair broadcast group s proposed acquisition of tribune media (announced on may 8), – more 230 stations combined company have, depending on divestitures in markets both groups own stations – expand group s national reach 78% of u.s. households @ least 1 television set discount. on june 1, 2017, district of columbia court of appeals issued seven-day administrative stay uhf discount rulemaking review emergency stay motion. d.c. court of appeals denied emergency stay motion in one-page memorandum on june 15, 2017, however, merits of restoring discount still subject court appeal proceeding scheduled occur @ later date.