Profs, tankers bat around ownership regs

As was to be expected, yesterday's session on media ownership at the Senate Commerce Committee focused on the philosophical underpinnings of the argument. The question boils down to this: Where is the point at which the principals of an open market and the need for regulation meet?

The panel invited as witnesses at this sparsely-attended session was ideologically balanced. Two - - C. Edwin Baker of Pennsylvania Law School and Geneva Overholser of the Missouri School of Journalism - - were foes of further consolidation. Two others - - researcher/writer Ben Compaine and Adam Thierer of the Cato Institute - - argued that the FCC was merely updating rules for a changing business environment on 6/2/03.

The pro-ruling arguments were these: Media ownership is remarkably unconsolidated compared to most other industries, and the rapid consolidation of radio after 1996 appeared drastic only in that it's consolidation level prior to that date was ridiculously and artificially low. Despite consolidation since 1996, consumers have more media choices than ever before in history, with cable, satellite TV and radio and especially, the Internet providing new competition to traditional over-the-air media.

The anti-ruling arguments were there: Sure there is a proliferation of new media, but most of what is actually watched, read or listened to still belongs to one of five companies. Journalistic quality is sinking, and a large part of the reason is that bottom-line considerations, many of which are enable by consolidation and cross-ownership, are trumping journalistic considerations. The diversity of opinion also suffers, as does localism in programming, particularly quality local journalism.

The pro-dereg forces argued that existing antitrust law should govern the concentration of power in a media cluster. Anti-dereggers responded that antitrust is strictly an economic safeguard and that an industry such as the media, which traffics in ideas, needs special treatment.

At one point, Sen. Byron Dorgan (D-ND) praised Committee Chair John McCain's appearance at the Republican Convention. "I know John McCain agrees because he gave a great speech, and I wish he gave it at our convention." His point was that many in America did not see the speech because the big broadcast networks opted not to show it.

McCain concluded the session saying, "I think that radio is the miner's canary," and by slamming the NAB's attempts to block the widespread implementation of LPFM. He told reporters after the session that there was no news on indecency fine increases, or whether Senate amendments to the indecency bill would remain after conference committee.