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KEY
FCC MEDIA OWNERSHIP CHANGED RULES FOLLOWING THE JUNE 2, 2003 VOTE
(The
Federal Communications Commission's new rules will likely be enacted
within two months, or roughly 30 days after their publication
in the U.S. Federal Registry.)
Document:
Read the entire FCC report on media concentration, published on
June 2, 2003. (MS Word)
Local Radio Ownership Rule
NEW RULE: Maintain or redraw radio
market maps to prevent further consolidation in the radio industry.
EXISTING
RULE: First adopted in 1941, this rule limits the number of radio stations
a company can own in a local market. The rule currently allows a maximum ownership
of eight radio stations in larger markets.
Power
to the People:
Terence Smith examines how local radio stations are working to serve as a platform
for community issues and why the stations provoke opposition from established
FM stations. (1/8/03)
Special
Report:
How consolidation has affected local radio news programs. (1/12/02)
Local Television Multiple Ownership Rule
NEW
RULE: Raises to two the number of local television
stations one company can own in markets with five or more TV stations.
In the largest markets with 18 or more TV stations, a company
can own three stations. When companies own multiple stations,
only one can be among the top four rated stations.
EXISTING
RULE: Originally adopted in 1964, the "duopoly" rule allows
a company to own two television stations in a single market -- only if one of
the two stations is not among the four top-rated stations and at least eight independent
stations would remain in the market. This
rule, in effect, restricts a company from owning more than one TV station in small
to medium-sized markets, and from owning more than one of the top four stations
in larger markets.
Update:
In
April 2002, a federal appeals court in Washington, D.C. ordered the FCC to review
the rule, remarking that "limiting common ownership of television stations
in a local market to those with eight independent voices is
arbitrary and capricious." The decision came after Baltimore-based Sinclair
Broadcast Group challenged the rule, which had kept it from buying stations in
smaller markets.
Outside
Link: Federal Appeals Decision from FindLaw (4/02)
Radio-Television Cross-Ownership Rule
NEW
RULE: Lifts all restrictions in markets with nine or more TV stations.
Maintains the ban in markets with three or fewer TV stations.
EXISTING
RULE: The cross-ownership rule, first implemented in 1970, allows a
company to own one television station (or two, if permitted under the local television
ownership "duopoly" rule) and up to seven radio stations in a market
provided that at least 20 independent voices remain after the acquisition. In
a smaller market, a company could own one television station and up to four radio
stations if at least 10 independent voices remain.
Daily Newspaper-Broadcast Ownership Rule
NEW
RULE:
Lifts
the restriction altogether in markets with nine or more TV stations,
but retains the ban in the smaller markets with three or fewer
TV stations.
EXISTING RULE: Adopted in 1975, this rule
bars a company from owning both a daily newspaper and a local television or radio
station in the same market. On
the NewsHour: How cross-ownership has
led to a converged newsroom for Tampa, Florida’s WFLA-TV and The Tampa Tribune.
(7/17/00)
National Television Multiple-Ownership Rule
NEW
RULE:
Raises
the national cap to 45 percent.
EXISTING
RULE: This rule prohibits a company from owning local television stations
that collectively reach more than 35 percent of the national audience. An earlier
form of the rule was first adopted in 1941. Update:
A federal appeals court ruled the FCC must revisit the rule and justify why an
audience cap needs to remain in place. (2/19/02)
Dual Network Rule
NEW
RULE:
The
existing rule is preserved.
EXISTING
RULE: The rule bars a company from owning more than one of the "Big
Four" broadcast networks: ABC, CBS, Fox and NBC. An earlier form of this
rule was first adopted in 1946. Update:
The commission relaxed an earlier version of the rule in April 2001 to allow one
of the larger networks to merge with a smaller one like UPN or the WB. The decision
stemmed from a petition by Viacom to allow it to own both CBS and UPN. (4/19/01)
The
following rules regarding the cable industry are not expected to be revised for
the final vote June 2.
Broadcast-Cable Cross-Ownership Rule
Prohibited
a company from owning a cable television system and a local television station
in the same market. Update:
A federal appeals court struck down the Local Cable-Television ownership rule,
saying it was unlikely the FCC could justify retaining it. (2/19/02)
Cable Ownership Limits
Bars
a company from owning more than a 30 percent share of nationwide cable, direct
broadcast satellite and multi-channel video programming distributor subscribers.
Also prohibits a company with a cable operation from carrying networks it owns
on more than 40 percent of its channels. Update:
The US Court of Appeals for the District of Columbia in March 2001 ordered the
FCC to better justify the 30 percent cap. The commission began a review of its
cable ownership rules in September 2001. (6/6/02) | 
