FCC official: Deregulation hurting media diversity

Kevin Rademacher

Thursday, Jan. 27, 2005 | 11:06 a.m.

The deregulation of the U.S. media industry is stifling its creativity, localism and diversity.

That was the message that Michael Copps, a member of the Federal Communications Commission, delivered on Wednesday to a crowd at the National Association of Television Program Executives.

"We're not talking about some future threat," he said, appearing via a satellite feed from Virginia. "We are talking present reality. Fewer companies own and control more media properties."

Copps said that as media companies continue to conglomerate, they are vertically integrating, taking control of not only distribution but also production of content. The result is programming designed for the profitable 18- to 34-year-old demographic, leaving behind young children, older Americans and minorities.

"This country's strength is diversity," Copps said. "America will succeed in the 21st century not in spite of our diversity, but because of our diversity. And our media have an obligation to reflect this diversity and to nourish it."

To that end, Copps proposed an FCC mandated "set-aside" that would require 25 to 30 percent of prime-time hours be reserved for independent producers.

"There's just so much more creativity and genius out there than our media currently reflect," he said.

"Years ago some of the experts told us not to worry because the rapidly expanding multi-channel universe of cable TV would save independent programming," Copps added. "It didn't happen. Instead, 90 percent of the top cable channels are owned by the same companies that own the TV networks and the cable distribution systems. More channels are great, but when they are all owned by the same people, we're not doing justice to diversity."

Michael Gardner, a Washington-based attorney representing NATPE, pointed to the "Powell Commission" as the starting point for such deregulation, referencing FCC Chairman Michael Powell, who announced his resignation last week.

He described Copps as a "sole voice opposing media consolidation."

Still, Dennis FitzSimons, chief executive of Tribune Co., said the claims of consolidation stifling diversity are unsubstantiated.

"Three networks used to control 90 percent of primetime viewing," he said. "Now it's much less."

Andrew J. Schwartzman, president of the Media Access Group, disagreed with FitzSimons assessment.

"What he is talking about is the number of outlets, not the number of people making programming choices," he said. "Reality show, after reality show, after reality show. You're talking about short-term profitability vs. long-term quality."

Victor Miller, broadcasting analyst for Bear, Stearns & Co., said that falling stock performance demonstrates the financial need for media companies to consolidate.

"It's not the robust, growth market is once was," he said.