Slashdot Mirror
The FCC and Media Consolidation
An anonymous reader writes "A story on this evening's All Things Considered but also at Now with Bill Moyers reports this June, the FCC will choose whether to keep or drop longstanding rules limiting the number of media outlets (radio stations, TV stations, etc.) a company may hold in a single area. That means all the radio stations in your area, for example, may one day be controlled by one company, like Clearchannel or Rupert Murdoch's FOX Communications. One irony is virtually no news outlet is covering the story. Another is the justifying argument for this move comes from the emergence of new media, like the Internet and Cable/Satellite. Yet with all 100's of new TV channels available, there are only five major media companies out there controlling them all, and recent copyright rules applying to the Internet have all but squelched-out Internet radio. So the old rules might not be so outdated after all. But the only voices being heard in this argument are coming from the media giants." In a related story, AOL/Time-Warner is petitioning the FCC to lift the restriction forbidding AOL from launching "advanced" IM services without letting others access the IM network.
All the FCC rules for divying up the airwaves is based on the notion that bandwidth is a very scarce resource, and ultimately owned by the public. This "extreme scarcity" however is changing.
Once television stations are transmitted digitially, there will be far, far more bandwidth available. There will no longer be these so-called "natural monopolies" in each locality, encouraging government regulation of the resource.
When we go digital, there is no longer even any half-justifiable reason for restricting who gets what. There is plenty more to be gotten, and far more oportunity for competition.
Moreover, freedom of speech does not require restrictions placed on the private sphere -- just the opposite. If anything, government restricting who is allowed to run a media outlet in a free market is an attack on the first amendment.
quiquid id est, timeo puellas et oscula dantes.
This article brings up some important points that need to be addressed about government regulation of media. Nobody wants a consolidation of media so that one company ends up controlling all the media in a given area. This would be similar to if K-Mart bought up every retail store in a metropolitan area.
There is a distinct difference between the retail environment and the media environment. If government decided to limit the number of grocery stores in a given area with a new agency called the GCC (Grocery Control Commission) there would be obvious problems. Corporations with the most money would immediately suck up all of the licenses and every mom & pop store would immediately go out of business.
The way things stand now, city councils have some regulatory power over rezoning but for the most part there are no limits on the number of grocery stores in a given area. The market sets the price. Unfortunately, due to the huge amount of regulations by the FCC the radio and televison stations are limited by something that the government calls bandwidth.
The effect is that the barrier to entry to start your own radio station, television channel, etc. is very high due to licensing costs and bandwidth "availability". Thus we really don't have anything resembling a free market in the area of media. As long as the government controls the licenses, the people will not have a voice. I have heard arguments recently on slashdot that there is no such thing as a bandwidth problem. This begs the question exactly what is the government doing limiting the number of radio or television stations in a given area?
I'm not sure what the solution is to the problem with the FCC and giant media companies buying up stations around the country. One thing is clear, though: The present situation is nowhere near capitalism, nor the fault of the free market.
Long, long ago (early 1910's to be exact) the US parcelled out its radio frequencies. They were/are supposed to be resources dedicated to the benefit of us all, like our national parks.
Of course that ideal has eroded considerably over the years. The commercial US media has proven time and time again that it can't be relied upon for substantial news or even decent entertainment content. To all my laissez faire friends, look no further than Clear Channel to see how this actually hurts the market...
After the FCC relaxed ownership regulations, the radio industry is actually smaller, less jobs are available, and musicians' barriers to radio play are higher than ever.
PBS and NPR are merely bones thrown out to the public, a meaningless gesture. The Corporation for Public Broadcasting has no more interest in providing decent news than FOX or CNN-look no further than the 2000 Presidential debates, where Jim Lehrer supported the blocking of third-party candidates from the discussion for proof.
So what needs to happen? A lot of people have noted that the amount of spectrum available through digital 'modulation' makes it possible to broadcast an almost unlimited number of radio channels...and this technique could be applied to television as well, to a lesser extent. With limited spectrum a thing of the past, public and commercial interests can share the media, each supporting the other. Here's what I'd like to see happen:
1)Corporation for Public Broadcasting/PBS/NPR dismantled. Public funding allocated for those organizations should be used to build a strong public access infrastructure. This new public access project awards grants to budding television producers. This public access network could also serve as a 'farm league' for larger commercial interests. Successful public-access producers could be picked up by the larger networks-allowing risk-free, cost-free market research for Big Media. Everybody wins!
2)FCC laws limiting media ownership strengthened. Let's limit how many media outlets, and what kind of outlets each corporation can own. Media outlets should be required to report their owners, as well as what other media outlets are owned by their owners, on "public service announcements" several times per day. You'd be surprised at how many people don't know that AOL owns CNN, Time Magazine, many local cable companies, etc.
3)Classrooms teach semiotics/media literacy. Knowing how to dissect and critique popular media is very important for a free-thinking society. As (somebody? Gramsci?) said, "The power of ideology is that it presents itself as normal." People need to know that 'objective' news is impossible, and how to spot astroturfing, shilling, and other forms of deception.
So...that's my long-winded take on how to 'fix the media'. Appoint me as FCC chairman in 2004!
(-1, Raw and Uncut is the only way to read)