Audio Video News

The erosion of long-standing regulatory policy that began with the Telecommunications Act of 1996 continues under the leadership of Federal Communications Commission chairman Michael Powell. The FCC has approved by a 3–1 vote the ownership of multiple networks by a single owner, thereby reversing one of the agency's oldest rules.

The decision, reached Thursday April 19, will permit media conglomerate Viacom Inc. to own and operate both the CBS television network and its smaller competitor UPN. Now the commission will allow any one of the four major US television networks (ABC, CBS, NBC, and Fox) to be part of the same parent company as a smaller network. The four major networks are still prevented from merging, however.

The current push toward deregulation follows a ruling by the US Court of Appeals for the District of Columbia Circuit earlier this year that found some FCC regulations violated the free-speech rights of companies seeking to expand beyond their heretofore legal limits. The FCC had formerly limited cable TV operators from serving more than 30% of the national market. The agency has not challenged the court's ruling.

The April 19 decision may pave the way for the further homogenization of broadcasting, according to some critics. "This is a blow against diversity and competition that will have a very negative impact on the democratic process," commented Jeff Chester of the Center for Media Education. In May, the FCC will begin examining its prohibitions against a single company owning both television stations and major newspapers in the same market. Media conglomerates vigorously oppose such restrictions.

Thanks to the commission's vote, UPN's 200 affiliate stations will remain under the Viacom umbrella. In addition to the two television networks, Viacom also owns Paramount Pictures and Paramount Home Video and operates cable TV services in several areas of the country.