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Topic: joint sales agreements

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March 31, 2014 at 6:02 AM

FCC should curb TV media consolidation by closing loophole

Watch what the Federal Communications Commission does on Monday. For the first time in years, the panel should move to slow down media consolidation by closing a loophole that has allowed a handful of the nation’s largest broadcasters to skirt laws limiting station ownership.

No surprise, the broadcast industry is vehemently opposed to ending the practice of Joint Sales Agreements, but this sort of business tactic (covered in-depth by The Wall Street Journal) has diminished local ownership and allowed a small number of big players to control the flow of information over huge swaths of the country.

Local television news is at risk of becoming more about profits for out-of-town corporate bosses than about informing communities with quality news. Why should viewers care about any of this? The fewer owners there are in broadcast news, the fewer perspectives will be featured on the public airwaves. Some argue it makes business sense for the industry to combine operations to be more efficient. But at what cost? With consolidation, women and minority ownership has dropped.

The Seattle Times weighed in on the JSA issue in a March 3 editorial, and encouraged the FCC to follow the advice of the U.S. Department of Justice’s anti-trust attorneys:

Federal attorneys advised the FCC to better scrutinize every deal that comes before its five-member panel. The regulators should force companies to report when they operate multiple stations jointly in the same market, as they already do for the U.S. Securities and Exchange Commission.

“Failure to account for the effects of such arrangements can create opportunities to circumvent FCC ownership limits and the goals those limits are intended to advance,” Justice Department officials wrote.

Consolidation shrinks newsrooms and deprives viewers of in-depth journalism that speaks truth to power. The FCC has failed miserably to protect the integrity of the public’s airwaves through promoting competition, local ownership and diverse viewpoints.

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