Archive for July, 2010
Wednesday, July 28th, 2010 by Matt Schafer
In front of a crowd of 2,000 bloggers and citizen activists at Netroots Nation last week, Sen. Al Franken (D-Minn.) delivered an explosive speech about media consolidation, Net Neutrality and corporate influence over policy. “Now, corporations with government permission pose the greatest threat to your First Amendment rights,” he said.
Franken was not only citing the Supreme Court’s recent Citizens United decision, which will allow corporations to inject millions of dollars into the election process, but also the likely ramifications of the proposed Comcast-NBC Universal merger on free speech and the open Internet.
“If no one stops them how long to do you think it would take before four or five corporations effectively control the flow of information in America not only on television, but online?” Franken asked his audience.
Watch the speech.
A prominent opponent of the Comcast-NBC merger, Franken argued that it could open the door to even more mega mergers that would unite on a massive scale content creators and content distributors, while relegating independent content to the dark corners of the Internet and other platforms. A merger like Comcast-NBC, Franken said, is likely to lead to the favoring of corporate content over that of individuals.
Without vital Net Neutrality protections, and tough but fair regulation for corporations like Comcast, Franken sees a dark future where the flow of information in the United States will be controlled by just a few multinational corporations. Without Net Neutrality and other protections, Franken told the Netroots audience that the foundation of their movement – the open Internet – is next in line for a corporate takeover.
In what can only be called a wake up call for the concerned citizens across the United States, Franken repeatedly brought attention to the Comcast/NBCU merger, saying that empty promises from both Comcast and NBCU are not going to be enough. Instead, he said, it is absolutely necessary to proceed with the greatest amount of caution and skepticism.
“If we don’t protect Net Neutrality now, how long do you think it will take before Comcast-NBC Universal, or Verizon-CBS Viacom or AT&T-ABC-DirecTV or BP-Haliburton-Walmart-Fox-Domino’s-Pizza start favoring its content over everyone else’s?” Franken said.
If the government and the people do not voice their opposition to the Comcast-NBC merger, it is all too possible the media landscape will be dotted with even larger mega companies that control every form of our communications systems. Franken argued that the Comcast merger is just the first domino in a line of future mergers that will stifle innovation, investment, and Internet freedom.
“If [Comcast-NBC] falls, the rest will soon follow,” he said. “It’s almost too late to stop this from happening, but not quite.” Take action.
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Thursday, July 22nd, 2010 by Matt Schafer
In a blow to local journalism and quality reporting, the Federal Communications Commission is supporting an old media cross-ownership rule that allows companies to own more media outlets in communities across the country.
Yesterday, the FCC filed a brief with a U.S. appeals court defending the agency’s 2007 decision under former Chairman Kevin Martin to weaken the Newspaper-Broadcast Cross-Ownership (NBCO) Rule.
The Martin NBCO Rule, which was adopted as part of the FCC’s 2006 media ownership review, is marred by procedural irregularities, ambiguous provisions and loopholes — all of which run counter to the rule’s purpose: to protect local communities from media monopolies and to increase diversity in the marketplace of ideas. The watered-down rule allows media outlets to merge based on promises that the FCC cannot monitor or enforce.
In 2008, Congress passed a resolution of disapproval of the adoption of the Martin NBCO Rule. Earlier this week a bi-partisan groups of senators reiterated their support for a diverse media system and strong ownership protections. In a letter sent to current FCC Chairman Julius Genachowski, Sens. Olympia Snowe (R-ME), Byron Dorgan (D-ND), and Maria Cantwell (D-WA) questioned the wisdom of FCC rule changes in 2003 and 2007 that removed many of the ownership laws that promoted diversity, localism and competition.
Yet, despite congressional disapproval and the FCC’s new leadership, yesterday Chairman Genachowski supported the FCC’s defense of Martin NBCO rules, saying, “While the rules being challenged were adopted before I became Chairman, I support our General Counsel in arguing that the order was within the discretion of the Commission.”
However, FCC Commissioner Michael Copps criticized the FCC’s decision to defend the flawed rule. Copps, a commissioner since 2001, voted against loosening media ownership rules in both 2003 and 2007. He said in a statement:
It is difficult for me to believe that our new FCC, with its new majority, is in court today basically accepting the validity of the pro-consolidation decision of a previous Commission,” Copps said today. “Three decades of hyper-speculation have diminished media diversity, put investigative journalism on the endangered species list and significantly dumbed-down our fact-based civic dialogue.
The FCC has a long history of attempting to erode media ownership rules that protect journalism and the public’s interest. In a 2003 vote along party lines, the FCC attempted to allow the cross-ownership of both a newspaper and a television or radio station.
In 2007, the FCC attempted to deregulate the media industry by again removing rules against cross ownership of a broadcast outlet and a newspaper, a rule change the appeals court had ruled against in the 2003 proceedings. At the time, the New York Times said the rule change “would be a big victory for some executives of media conglomerates.” The appeals court is currently reviewing the changes. Earlier this year, however, the court lifted a stay on the rule change, allowing consolidation to move forward while they continue their review.
In the last fifteen years of media ownership deregulation, the number of television owners has dropped by one third from 450 owners to just over 300. Before the relaxation of ownership rules, there were over 5,000 radio owners, while today there are 3,143 owners – a decline by almost 40%. Currently, there are 175 broadcast duopolies where the same owner operates two stations in markets across the country.
While FCC deregulation in the past has reduced competition, diversity and localism in the market, Sens. Snowe, Dorgan and Cantwell reminded Genachowski that the FCC is “under no obligation to follow the footsteps of its predecessors.” All three senators had also joined the bipartisan resolutions of disapproval of the FCC’s previous attempts at relaxing ownership rules.
Media advocacy groups like Free Press are applauding the senators’ letter to Genachowski and are disappointed by the FCC’s move to support failed media policy that developed under the previous FCC leadership.
“All communities, large and small, deserve diverse, competing and independent local media,” Corie Wright, Free Press’ policy counsel said. “As such, we are disappointed that Chairman Genachowski directed the agency to defend a defective [policy] that has been widely criticized both for its substance and for the manner in which it was adopted.”
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Tuesday, July 13th, 2010 by Megan Tady
Free Press President and CEO Josh Silver testified today before the Federal Communications Commission’s public forum on Comcast’s proposed takeover of NBC. Silver didn’t hold back in criticizing the deal, saying it would result in higher prices for consumers and fewer choices in programming and services, and would limit innovation in the emerging online video market.
The forum was held in Chicago, a city that typifies the negative impacts the merger could have on local media landscapes. Comcast is Chicago’s dominant cable and Internet provider, and now the company wants to acquire NBC 5 Chicago and Telemundo Chicago. If this deal goes through, nearly a quarter of Chicago’s commercial cable channels in the most popular cable package will be owned by Comcast.
In excerpts from his prepared testimony, Silver said:
Policymaking at the behest of the largest companies – across industries – is threatening our economy, our oceans, our security and the very viability of our democracy. Just look at the ongoing recession or the Gulf of Mexico for the most recent examples. … Insufficient government oversight has already allowed companies like Comcast to overcharge customers who have no alternative providers when bills are too high or service quality is too low.
The merger would allow a single company to own a huge array of popular content, and to exert excessive control over how it is distributed over the airwaves, cable and Internet. Such dominance over any one of these provides sufficient reason for the FCC to block the transaction. The merged giant’s power over all three platforms requires that regulators stop the deal.
Comcast and NBC bear the burden of proving to the Commission that this transaction not only will not harm consumers and competition, but that it will actually advance public interest goals. Comcast and NBC have not made and cannot make this showing. … Some have suggested that if we place conditions on the deal, everything will be OK. But requiring conditions to neutralize the harms of a bad merger is not the same as ensuring that the merger affirmatively produces real public interest outcomes. Importantly, such conditions would expire in a few years. With this deal, the anticompetitive incentives would be part of the DNA of the merged company, making conditions with a shelf life about as helpful as putting a Band-Aid on a broken leg.
Read his full testimony here.
The merger is so dangerous for local and diverse media in Chicago and across the country that more than 20 public interest groups and private organizations have joined forces to launch the Coalition for Competition in Media (CCM) to oppose Comcast’s acquisition. The coalition includes Free Press, the National Organization for Women, the National Coalition of African American Owned Media (NCAAOM), Parents Television Council; Rural Independent Competitive Alliance; the Sports Fans Coalition; and, Bloomberg.
The coalition placed an ad in several Washington, D.C. media outlets this week chiding Comcast for its big media takeover. Check out the ad.
Last month, Free Press and other public interest groups filed a Petition to Deny with the FCC, and, along with allies, filed nearly 70,000 public signatures opposing the merger.
During his opening remarks at the forum, FCC Commissioner Michael Copps came out strong in protecting the public’s interest. He said the Comcast-NBC merger would be a “scene-setter for the future” of all media. He asked, “Should the FCC bless more media consolidation, or should the FCC begin pushing back the tide?”
Tell him and the entire FCC what you think by taking action here.
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Thursday, July 8th, 2010 by Nick Russo
Next Tuesday, July 13th, the Federal Communications Commission will hold a public hearing at the Northwestern University Law School in Chicago regarding Comcast’s proposed merger with NBC and the impact it will have on the city.
Before the FCC comes to town let’s get some facts on the table. As the agency considers whether to let big media get even bigger, it’s important to understand the state of media consolidation in the city already. Warning: it’s not a pretty picture.
Chicago is the third-largest radio and television market in the country which means it wields significant social, political and economic power. Regardless of its size, much of Chicago’s traditional media is owned by just a handful of companies. Comcast is already a media giant in Chicago, dominating the cable and Internet service in the city – and now it wants to take over NBC 5 Chicago and Telemundo Chicago. Controlling content on three platforms – cable, Internet and broadcast – Comcast would turn Chicago into a media company town. This is not good for competition or consumers.
The bi-partisan Coalition for Competition in Media, which launched today, outlines the threats to Chicago this way:
“Imagine you live in Chicago. If this deal goes forward as proposed, you and your fellow Chicagoland residents will wake up one day to find Comcast is no longer just the dominant high-speed internet and cable company. Now, Comcast also owns WMAQ, your local NBC affiliate. It owns Telemundo WSNS, your local Spanish-language broadcaster. It owns Chicago Sportsnet, home of the Cubs, White Sox, Bulls and your Stanley Cup Champion Blackhawks. This one company now also owns dozens of cable channels across the dial and websites across the Internet . It also owns the Universal movies you see in your cineplex and the movies you download from the Universal catalogue.”
In Chicago, a city known for its diversity, people of color account for nearly two-thirds of the population in the city of Chicago. Unfortunately, yet not surprisingly, Comcast and NBC both have bad reputations when it comes to diversity in their programming and in their companies. In the past, media consolidation has hurt minority media ownership – this deal would be no different.
Chicago is a city already plagued with media consolidation: just four companies control nearly two-thirds of the local news market with the Tribune company owning some of the most prominent media properties across the city. If Comcast were to swallow up NBC, they would own nearly one quarter of Chicago’s commercial cable channels in the most popular cable package. Nationally Comcast could control one out of every five viewing hours on TV.
These stats just scratch the surface. For more information about the FCC hearing in Chicago click here. For more on media consolidation in Chicago, check out our research here.
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Thursday, July 1st, 2010 by Nick Russo
If you’re outraged by the proposed Comcast takeover of NBC-Universal and live anywhere near Chicago, you’ll have a chance to personally tell the Federal Communications Commission next week.
On July 13, the FCC will hold a public forum at Northwestern University Law School to discuss the potential implications of the merger on our media landscape. If you’re in the area, be sure to attend and speak out. The meeting is open to the public and will feature two panel discussions and a two-hour block of time dedicated to citizen commentary.
Ultimately, this merger will result in higher prices for consumers, fewer Internet freedoms and a lack of diverse voices in our broadcast media. Additionally, Comcast has hired a battalion of lobbyists to do their bidding in Washington to get this merger approved (while they meet behind closed doors with the FCC in talks to kill Net Neutrality). To make matters worse, many of these lobbyists are themselves former government officials, and some even worked as aides to FCC Commissioners.
In 2007, the FCC held a similar forum in Chicago on the topic of media ownership rules, and over a thousand Chicago citizens showed up – some waiting in line until 2 a.m. to talk face-to-face with the FCC. However, Comcast has a history of underhanded tactics designed to silence the public. In 2008, Comcast hired people off the street to fill up an FCC hearing and keep the public out.
Comcast already dominates much of the media market in Chicago, and swallowing NBC would further limit the scope and viewpoints Comcast promotes. The statistics regarding local and minority ownership across the United States are, to state it plainly, bleak. According to a 2007 report by Free Press, women comprise 51 percent of the entire U.S. population, but own less than 6 percent of all full-power commercial television stations.
In Chicago, 51.5 percent of the population is female, yet there are no full-power commercial television stations in Chicago that are owned by women. According to 2000 census information, 36.8% of people in Chicago are Black and 26% are of Hispanic or Latino origin, but only one commercial TV station is minority owned and operated. Clearly, there is a lack of representation of women and people of color in the media available in Chicago.
Both Comcast and NBC have woeful records when it comes to diversity, and it’s not a far leap to say they will certainly not be fit to serve the public interest if they cannot represent minorities and women in their corporate structure. And NBC lacks significantly in its programming geared toward minorities.
Diversity is something which Chicago’s citizens can boast about, but we should roast Comcast and NBC on their incompetence in representing the diverse communities they are required to serve.
The FCC hearing in 2007 featured prominent speakers from media organizations as well as members of the public who were not afraid to ask the big questions and take a stand against the FCC and demand better media. Let’s make this hearing an even bigger success and let the FCC know we don’t support this merger. They’re giving us this opportunity, so we shouldn’t let it pass us by. You can get more information by going to www.StopBigMedia.com and www.FreePress.net/Comcast.
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