Competition. This cornerstone of our nation’s economy means lower prices, more motivation for improvement and innovation and a built-in safeguard against monopolies. In the modern-day American media, however, a foundational principle of capitalism is quickly vanishing.
It’s been seven years since the Federal Communications Commission loosened the reigns on merger regulations for radio stations, creating as it did a nationalized playlist, determined each week by ClearChannel Communications and Infinity Broadcasting, which together now control most of the nation’s broadcast stations. In the years that followed this move, the two corporations (and several others like them) began gobbling up locally-owned stations across the country, slowly destroying a distinction between radio stations from New Orleans to Raleigh to San Francisco to Detroit.
Not surprisingly, the decreased competition in radio markets has led to – surprise – less improvement and innovation, fewer choices for consumers and virtual monopolies in many markets. This bold experiment in deregulation has been a disaster for members of the listening public with any discerning taste in the music and information they hear on the radio. This group of consumers, though, has little to do with the FCC’s governing process.
Deregulation, however, has been an unprecedented success for conglomerates like ClearChannel, whose vast wealth and resources make them a major player in the political processes that determine the fate of the American communications industry. In the seven short years of anything-goes, merge-happy radio, this undisputed king of American radio has grown from 43 stations to almost 1,200.
It is no surprise, then, that television conglomerates would be the next to line up at the bottomless trough of deregulation.
Until this summer, the TV giants were held, albeit loosely, in check by a provision that prohibited the same company from owning both a major newspaper and major network affiliate in the same major market. They were also limited to one station per market and their combined holdings could never reach more than 35 percent of the U.S. television audience at anytime.
A 3-2 FCC vote on June 2nd changed all that by eliminating the restriction on dual TV-newspaper ownership in a major market, raising the percentage of the market one conglomerate can reach to 45 percent, and allowing one company to own up to three TV stations in the same market.
Despite the bleak landscape that many predicted after the landmark vote, an unexpected counterpunch was dealt to the FCC – and the evil, three-headed Viacoms of the world – from an unlikely source last week: bipartisan legislation approved by the U.S. Senate.
One week ago, the Senate overturned all of the June 2nd changes with a rarely-employed tool called a “resolution of disapproval,” which allows them to invalidate the policies and regulations of federal agencies. Although sponsored by Byron Dorgan (D-ND), much of the credit for this rare moment of Senatorial coherency should be given to Trent Lott (R-MS), who co-sponsored the legislation and led 12 Republicans who pushed the resolution over the top by a 55-40 vote.
Not only did these courageous Republicans refute the FCC, which is controlled by members of their own party, but they also stood firm against the White House, which supports media deregulation and has stated that President Bush would veto such a measure if it managed to pass both houses.
Sadly, the Senate vote will likely be a Pyrrhic victory for forces dedicated to local control and media competition. Although more and more Senate Republicans have begun to realize that the “ClearChannelization” of American radio might not be the best model to transfer to television, their counterparts in the House, led by Billy “Big Business” Tauzin (R-LA), remain unconvinced.
Commenting on the chances of the approved Senate legislation being addressed in the House, Tauzin’s spokesman said, “It can be held at the speaker’s desk collecting dust and cobwebs for the rest of recorded time.”
Kudos to Lott and Co. for standing up to big business, Big Billy and Big Bush, even if it’s all for naught in the long run. My advice for the day is to enjoy the Fox News-CNN or New York Times-Wall Street Journal debates while you can – pretty soon, the same stock abbreviation will own them all.