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Stop conglomerates from
dominating local media

THE ISSUE The U.S. Supreme Court has declined to hear appeals by major media groups to restore rules easing local media ownership limits.

MEDIA conglomerates have failed in their attempt in court to increase their domination of the market, but the threat is not about to evaporate. Although the U.S. Supreme Court has refused to reinstate expanded ownership rights proposed by the Federal Communications Commission, the FCC is expected to try again. Congress may need to intervene to protect media competition and diversity.

The FCC eased media ownership limits two years ago so a single company could own more than one station affiliated with the four major networks, and a media company could own major newspapers and TV stations in the same market. A federal appeals court in Philadelphia quickly stopped the FCC from implementing the new rules, and the high court refused this week to overturn that ruling.

Alabama-based Raycom Media Inc. was the first company to make use of a 1999 FCC decision allowing a single company to own two TV stations in the same market when it acquired KHNL and KFVE. Indiana-based Emmis Communications Corp. received a waiver to purchase KHON and KGMB -- two major network affiliates that top the Nielsen ratings in Hawaii -- and last month offered them up for sale.

FCC approval is required for the sale of the stations by Emmis. Adherence to current rules would require that they be sold to separate companies, reinjecting a desirable level of diversity into the Honolulu market.

Gannett Co. Inc., owner of the Honolulu Advertiser, 101 other newspapers and 21 television stations, was among the media giants seeking to overturn the appeals court ruling. Gannett has made known its desire to buy more TV stations, but current rules forbid it from buying stations in cities where it owns a daily newspaper.

Proponents of deregulation contend that cable television and the Internet have rendered the old rules obsolete by injecting more viewpoints into the marketplace. However, the networks and many cable channels are under the same ownership, and the most popular Web sites are extensions of major media companies.

Michael Powell, who recently resigned the FCC chairmanship, pushed through rule changes to broadly affect nearly every kind of media. Kevin Martin, the new chairman, is expected to emphasize ending the ban on cross-ownership of newspapers and television stations in the same market.

Any decision to revamp the rules is not likely to be made very soon. The FCC is now divided between two Republicans who favor lifting controls and two Democrats opposed to greater media conglomeration. President Bush has yet to nominate a fifth member. Whoever that might be, confirmation hearings should be contentious.

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