Moyers on America . The Internet @ Risk . Resources . Timeline
In 1984 the number of companies owning a controlling interests in America's media was 50 today that number is six. (See Who Owns Your Media.) Critics of consolidation say that it has resulted in a scarcity of voices and a lack of local news coverage. Proponents say it's give the market freedom to deliver what audiences want.
Some media watchers are worried that the much-touted "free for all" of the Internet will go the same way. Proponents of "net neutrality" worry that the cable and telecom companies providing the bulk of Internet connectivity will use new fee structures which may favor some content providers over others. Below you'll find a timeline of media consolidation in the U.S., and information on the current legislative battle over the future of the Internet.
For more information on matters referred to in "Internet @ Risk" and the MOYERS ON AMERICA Citizens Class, visit the Documents, Glossary, and Sites of Interest sections.
|1941||Local Radio Ownership Rule, National TV Ownership Rule enacted. A broadcaster cannot own television stations that reach more than 35% of the nation's homes.|
|1946||Dual Television Network Rule enacted, prohibiting a major network from buying another major network.|
|1964||Local TV Multiple Ownership Rule enacted, prohibiting a broadcaster from owning more than one television station in the same market, unless there are at least eight stations in the market.|
|1970||Radio/TV Cross-Ownership Restriction enacted, prohibiting a broadcaster from owning a radio station and a television station in the same market.|
|1975||Newspaper/Broadcast Cross-Ownership Prohibition enacted. Bans ownership of both a newspaper and a television station in the same market. |
|1981||Reagan Administration deregulation under the leadership of FCC Chairman Mark Fowler. Deregulatory moves, some made by Congress, others by the FCC included extending television licenses to five years from three in 1981. The number of television stations any single entity could own grew from seven in 1981 to 12 in 1985. (Museum of Television and Radio)|
|1985||Guidelines for minimal amounts of non-entertainment programming are abolished. FCC guidelines on how much advertising can be carried per hour are eliminated.|
|1987||"Fairness Doctrine" eliminated. At its founding the FCC viewed the stations to which it granted licenses as "public trustees" and required that they made every reasonable attempt to cover contrasting points of views. The Commission also required that stations perform public service in reporting on crucial issues in their communities. Soon after he became FCC Chairman under President Reagan, Michael Fowler stated his desire to do away with the Fairness Doctrine. His position was backed by a 1987 D.C. Circuit Court decision, Meredith Corp. v. FCC, which ruled that the doctrine was not mandated by Congress and the FCC no longer had to enforce it. (Full history of the Fairness Doctrine)
|February 8, 1996||President Clinton signs the Telecommunications Act of 1996. It is generally regarded as the most important legislation regulating media ownership in over a decade. The radio industry experiences unprecedented consolidation after the 40-station ownership cap is lifted. Clear Channel Communications owns 1200 stations, in all 50 states, reaching, according to their Web site, more than 110 million listeners every week. Viacom's Infinity radio network holds more than 180 radio stations in 41 markets. Its holdings are concentrated in the 50 largest radio markets in the United States.
In 1999, Infinity owned and operated six of the nationís Top 10 radio stations. |
|July 17, 2001||Senate Commerce Committee hears panelists speak about media ownership. Senator Fritz Hollings (D-SC) expresses concerns about media consolidation. Mel Karmazin (President and COO, Viacom), Alan Frank (CEO, Post-Newsweek Stations, Inc.), Jack Fuller (President, Tribune Publishing Company), William Baker (President, WNET, New York City), Gene Kimmelman (Co-Director, Consumer's Union), and Professor Eli M. Noam (Columbia Business School) in attendance. |
|October 29, 2001||FCC conducts a roundtable on media ownership policies. Government officials, business analysts, academics, and media advocates in attendance.
|January 18, 2002||A train carrying hazardous materials derails at 1:30 a.m. in Minot, North Dakota, spilling 210,000 gallons of anhydrous ammonia in an incident federal regulators call "catastrophic". Clear Channel Communications owns six out the seven commercial stations in Minot. Minot authorities say when they called with the warning about the toxic cloud, there was no one on the air who could've made the announcement. Clear Channel says someone was there who could have activated an emergency broadcast. But Minot police say nobody answered the phones. (The Associated Press, January 14, 2003 - "A year after derailment, the land has healed, mostly, but what of the people who live in Minot?" by Blake Nicholson). (At the Senate Commerce Committee hearing on January 14, 2003, Senator Byron Dorgan (D-ND) cites Minot as an example of how consolidated media can negatively affect a local community. THE NEW YORK TIMES reported on the Minot radio station market again on March 29, 2003 in
"On Minot, N.D., Radio, a Single Corporate Voice")|
|September 7, 2002||THE NEW YORK TIMES reports that the FCC will conduct a review of media ownership rules, as mandated by the Telecommunications Act of 1996. The FCC commissions several studies of the media marketplace to review the rules on an empirical basis. They start the review in September, 2002.
|September 9, 2002||According to our survey, ABC's WORLD NEWS THIS MORNING is the only network show to acknowledge the FCC's announcement - at 4:40 in the morning. The report, in its entirety:
Liz Cho, ABC News: "Government regulators reportedly are likely to allow the country's media giants to get even bigger. THE NEW YORK TIMES says the Federal Communications Commission is reviewing media ownership rules this week. Among other things, current rules prevent a newspaper from owning a TV station in the same city or a network from owning stations that serve more than 35 percent of the national market."
|October 1, 2002||FCC releases 12 studies on the media marketplace. The studies comment on how Americans get their news, the state of television, newspaper, and radio industries, and a variety of other media issues.
|January 2, 2003||Comments on media ownership due to the FCC. Viacom (owner of CBS and UPN), General Electric (owner of NBC), and News Corporation's Fox Entertainment Group, among others, file a request with the FCC that all media ownership rules be eliminated. They argue that the rules are outdated in the internet age, when average Americans have access to media through countless forms and outlets. (WALL STREET JOURNAL, January 3, 2003 - "Media Companies Seek End to All Ownership Rules," by Yochi J. Dreazen) (Read the comments filed.)|
|January 14, 2003||Senate Commerce Committee hearing - Chairman Powell and Commissioners Abernathy, Adelstein, Copps, and Martin in attendance. Senators Ernest Hollings (D-SC), John McCain (R-AZ), Byron Dorgan (D-ND) and Ron Wyden (D-OR) are among the participants. Powell declares there won't be radical changes to the current media ownership rules in response to Senators' concerns. Senator Byron Dorgan (D-ND) cites Minot as an example of how consolidated media can negatively affect a local community.|
|January 16, 2003||Columbia Law School holds forum on media ownership. Chairman Powell and the four other FCC Commissioners attend. Discussions on news and civic discourse, entertainment, localism, and the business of media. Panelists include television executives (including Martin Franks from CBS Television), journalists, academics, union representatives, advertisers, media advocacy groups, and business analysts. Listen to the forum.
|January 21, 2003||Chairman Powell writes an op-ed in USA TODAY:
"The time has come to honestly and fairly examine the facts of the modern marketplace and build rules that reflect the digital world we live in today, not the bygone era of black-and-white television."
"Joe Friday knew that only the facts would help him unravel a case. It is the same with this critically important FCC policy review. Only the facts will enable us to craft broadcast-ownership restrictions that ensure a diverse and vibrant media marketplace for the 21st century."
|January 30, 2003||Senate Commerce Committee hearing on media ownership - L. Lowry Mays (Clear Channel), Edward Fritts (National Association of Broadcasters), Don Henley (Recording Artists Coalition), Robert Short (Short Broadcasting), and Jenny Toomey (Future of Music Coalition) testify. |
|February 3, 2003||Thirty Congressmen sign a letter to Chairman Powell criticizing the FCC for not adequately publicizing the media ownership debate and rushing the rules-changing process to favor major media outlets. |
|February 17, 2003||The Project for Excellence in Journalism releases a five-year study of local television news, "Does Ownership Matter in Local Television News?" They found that TV stations owned by smaller media firms generally produce better newscasts; are better at local reporting; produce longer stories ; and do fewer softball celebrity features. The study concludes that ... "Changes that encourage heavy concentration of ownership ... In local television ... By a few large corporations ... Will erode the quality of news Americans receive." LA TIMES, February 17, 2003 - "Smaller Stations Fare Better in Local TV News," by Edmund Sanders) |
|February 27, 2003||FCC holds its only official public hearing on media ownership rules in Richmond, VA. Chairman Powell and the other four commissioners make statements, panels discuss diversity, competition, and localism. Panelists include television and radio executives, journalists, academics, union representatives, media advocacy groups, and economists. (Press release, program, and presentations)
|March 19, 2003||Senator Wayne Allard (R-CO), Senator Susan Collins (R-ME), and Senator Olympia Snowe (R-ME) write a letter to Chairman Powell calling for a broader public debate in the FCC's media ownership review.
("Senators Want Input on Media Rules,"
|April 1, 2003||A group of lawmakers write to FCC Chairman Powell urging him to keep to his proposed schedule to present the ownership rules decision by June 2, 2003. (Read the full letter, signed by Rep. Billy Tauzin, R-La., Sen. John Breaux, D-La, Reps. Roy Blunt, R-Mo., John Shimkus, R-Ill., Vito Fossella, R-N.Y., Mary Bono, R-Calif., George Radanovich, D-Calif., and Pete Sessions, R-Texas, and Sens. Gordon Smith, R-Ore., John Ensign, R-Nev., and George Allen, R-Va.)
|June 2, 2003||The FCC revised its limits for broadcast ownership but multiple parties appealed this decision. The cases were consolidated and assigned to the U.S. Court of Appeals for the Third Circuit, which stayed the effective date of the new rules.|
|July 23, 2003||The House voted 400-21 to approve a spending bill that included a provision to block the FCC decision to allow major television networks to own up to 45% of the country's viewers. The Bush administration has voiced opposition to the attempt to rescind the FCC ruling. |
|September 3, 2003||A federal appeals court in Philadelphia issued an order blocking the rule changes from taking effect. (Read the ruling.) |
|September 4, 2003||The Senate Appropriations Committee passed a spending bill that contained a provision that would effectively block the ownership rule changes. |
|September 16, 2003||Congress introduced a "resolution of disapproval" to nullify the new FCC rules which passed in the Senate 55-40 (with overwhelming bipartisan support); however, Republicans in the House have vowed not to pass the legislation. Read the resolution.|
|October 6, 2003||In FCC v. Brand X, the Ninth Circuit rules that cable modems include a telecom component. According to CNET, "The case addressed the appropriate classification of cable modem service providers with respect to the Communications Act of 1934 and the Telecommunications Act of 1996. Specifically, the court focused on the question of whether a cable company provides 'telecommunications services' or 'information services.' According to the Telecommunications Act, providers of information services are subject to much less stringent regulations than companies that provide telecommunications services."|
|October 8, 2003||NBC said it would purchase the entertainment arm of Vivendi Universal for $3.8 billion. See what the "Big Six" own now. |
|November 5, 2003||A letter signed by 208 members of Congress is sent to House Speaker Dennis Hastert requesting the full House be allowed to consider the resolution of disapproval passed in the Senate on September 16, 2003. Read the letter. |
|November 24, 2003||In a last minute deal Senate Republican leaders and the White House compromised on the TV station ownership cap. It was increased just enough to allow Viacom and News Corporation to keep all their stations (39% limit). |
|December 8, 2003 - January 22, 2004||Omnibus spending bill incorporating the ownership cap adjustment passed first by the House on December 8, 2003, and by the Senate on January 22, 2004. |
|January 6, 2004||At the Smith Barney Citigroup Global Entertainment, Media and Telecommunications Conference, Sumner Redstone, Chairman and CEO of Viacom remarks that "2004 will be a breakout year for Viacom." Media reporters speculate that 2004 will be a year of mergers.|
|January 28, 2004||The Federal Communications Commission ("FCC") releases its tenth annual report on competition in the market for the delivery of video programming. The report examines the status of competition, discusses changes that have occurred in the competitive environment over the last year, and describes barriers to competition that continue to exist. The FCC released the report at an open meeting in San Antonio, Texas. |
|January 29, 2004||The Consumer's Union releases its new national survey of where people turn for local news. The survey found "newspapers are more than twice as important a source than the Federal Communications Commission determined when it relaxed its media ownership rules." |
|February 11, 2004||The Third Circuit Court of Appeals hears on Prometheus v. FCC. (Read the brief.) |
|Jan 31, 2005||SBC Communications Inc. (NYSE:SBC) and AT&T (NYSE:T) announces an agreement for SBC to acquire AT&T, a combination that creates the nation's premier communications company with unmatched global reach.|
|June 2005||The U.S. Supreme Court declines to review the Third Circuit decision on Prometheus v. FCC, thereby ending the appellate review stage. With this proceeding, the FCC is moving forward with its response to the Third Circuit Court of Appeals.
The Supreme Court rules in the "Brand X" case. In a 6-3 decision, the court overturned a federal court decision that would have forced cable companies to open up their networks to Internet service providers such as Brand X and EarthLink. According to CNET "The FCC has defined cable broadband as an 'information service'--a definition that, under agency guidelines, frees cable companies of regulations that would require operators to share their networks with competitors, including ISPs such as Brand X.
But Brand X argued that cable networks should be regulated like phone lines, which, because they handle telecommunications service, fall under a different set of rules--rules that require carriers to allow competing services to ride over their networks." (Read more about the case and decision.)
|August 2005||Sprint Nextel Corporation (NYSE:S) announces that, in connection with the completion of the merger transaction between Sprint Corporation and Nextel Communications, Inc. on Aug. 12, 2005, based on preliminary calculations, holders of Nextel common stock will receive approximately 1.2675 shares of Sprint Nextel common stock and approximately $0.8463 in cash in exchange for each share of Nextel common stock.|
|December 23, 2005||With the approval by the Washington Utilities and Transportation Commission, Verizon and MCI have successfully completed all the state, federal and international approvals for the two companies to be combined.|
|January 1, 2006: ||Viacom Inc. and CBS Corp. began 2006 as two separate companies, completing a breakup of a major media conglomerate in hopes of winning back friends on Wall Street.|
|March 2, 2006: ||U.S. Senator Ron Wyden (D-Ore.) unveils new legislation that would ensure "net neutrality," or equal delivery of content on the internet, for consumers and business interests. Under Wyden's bill, the Internet Nondiscrimination Act of 2006, network operators would be prohibited from charging companies for faster delivery of their content to consumers over the internet or favoring certain content over others. |
|May 2, 2006||Senate Commerce Committee Chairman Ted Stevens (R-Alaska) introduces S. 2686, the Communications, Consumers' Choice, and Broadband Deployment Act of 2006. According to Stevens' press release, the legislation reforms existing communications laws to promote competition, cost savings for consumers and the speedy deployment of broadband services to all Americans.|
|May 19, 2006||U.S. Senators Olympia Snowe (R-Maine) and Byron Dorgan (D-ND), members of the Senate Committee on Commerce, Science, and Transportation, introduce The Internet Freedom Preservation Act. The bill would "ensure that all content, applications and services are treated equally and fairly on the Internet by prohibiting broadband network operators from blocking, degrading, or prioritizing service on their networks." |
|June 21, 2006: ||The Federal Communications Commission (FCC) adopts a
Further Notice of Proposed Rulemaking that seeks comment on how to address the issues raised by the U.S. Court of Appeals for the Third Circuit in Prometheus v. FCC, which two years ago stayed and remanded several media ownership rules that the Commission had adopted in its 2002 Biennial Review Order. The Further Notice also opens a comprehensive quadrennial review of all of the media ownership rules, as required by statute. Further Notice seeks comment on the following rules:|
- Local Television Ownership Limit
- Local Radio Ownership Limit
- Newspaper Broadcast Cross-ownership Ban
- Radio Television Cross-ownership Limit
- Dual Network Ban
- UHF discount on the National Television Ownership Limit
|June 28, 2006: ||WASHINGTON, DC - The Senate Commerce, Science, and Transportation Committee approves the Advanced Telecommunications and Opportunity Reform Act (H.R. 5252) by a vote of 15 to 7. The legislation, which Chairman Ted Stevens (R-Alaska) introduced in May, is the culmination of 26 hearings, six listening sessions, and bipartisan collaboration between the members of the committee. By an 11-11 tie, the Senate Commerce Committee failed to approve a Democrat-backed amendment that would have ensured all Internet traffic is treated the same no matter what its "source" or "destination" might be. A majority was needed for the amendment to succeed. |
|July 13, 2006||The Federal Communications Commission (FCC) approves the sale of substantially all of the cable systems and assets of Adelphia Communications Corporation to Time Warner Inc. and Comcast Corporation, the exchange of certain cable systems and assets between affiliates or subsidiaries of Time Warner and Comcast, and the redemption of Comcast's interests in Time Warner Cable and Time Warner Entertainment Company.|
|July 21, 2006||BellSouth shareholders approve the $67 billion sale of the company to AT&T, which would further expand the latter company's reach in the telecommunications sector and place Cingular under a single owner.|
|August 2006||The potential of the internet as an alternative news sources makes headlines when a whistleblower uploads video of himself to YouTube, and after thousands view it, the mainstream press picks up the story. The former Lockheed Martin engineer had previously tried to get the company, federal investigators and members of Congress interested in his charges.|
Sources: CNET, The U.S. House of Representatives; The U.S. Senate; The Federal Communications Commission; "The Frankenstein Syndrome," JOURNAL OF BUSINESS ETHICS, March 2002; THE ECONOMIST, April 13, 2002; Shorenstein Center on the Press, Politics and Public Policy; THE NEWSHOUR WITH JIM LEHRER; The Tyndall Report; THE OBSERVER, London; NEWSDAY; THE NATION; FORBES: NPR News; ON THE MEDIA