After much public debate, the FCC voted 3-2 today to reconsider and reverse the prior decision of the Wheeler FCC to leave the broadcast ownership rules largely unchanged in the 2010/2014 Quadrennial Regulatory Review. As detailed in an FCC Fact Sheet released after the FCC’s action this morning, the FCC’s ultimate order will hew closely to the draft released several weeks ago which we discussed briefly here. As a result, the FCC will be eliminating the Newspaper/Broadcast Cross-Ownership Rule and the Radio-Television Cross-Ownership Rule, eliminating the Eight-Voices Test for owning a local TV Duopoly, eliminating the attribution of joint sales agreements as a regulated ownership interest, and will consider allowing broadcasters to own two Top-4 rated TV stations in a market on a case-by-case basis.
The FCC is also launching a Diversity/Incubator program to facilitate entry by new players into the broadcast industry, adopting a Notice of Proposed Rulemaking today to gather comments on how that program should be structured and implemented.
Given the extended and very public debate over modernizing the FCC’s broadcast ownership rules, including a forum on Capitol Hill yesterday debating the merits, today’s vote was not a surprise. Indeed, regardless of the outcome, the Commission is to be congratulated for finally grappling with tough issues that past Commissions have found easier to ignore while continuing to maintain the status quo. Unfortunately, much of the public debate outside the FCC has been beset with jingoism and shallow analysis that, among other things, presumes broadcasters operate in a walled garden (to borrow a phrase from the tech industry, another player with which broadcasters must now compete).
In an effort to bring greater depth to the discussion, Pillsbury’s John Hane agreed to give his personal views on broadcast ownership regulation at yesterday’s Capitol Hill forum, but unfortunately was unable to participate due to illness. Before the event, however, John had asked me to look at his opening statement, and it brought home to me how wonderful it would be if jingoism could be replaced with real-world analysis, and politics be sidelined by informed debate. With John’s gracious permission, reprinted below is his opening statement for yesterday’s forum debate. You may not agree with him, but he makes a compelling argument with which — based on this morning’s vote — a majority of the current FCC commissioners may well agree.
From the pen of Mr. Hane:
