Regulatory Change: Is It In The Air?

[Commentary] Broadcasting & Cable Magazine interviewed Sen Barack Obama (D-IL) last week and asked him how he intends to influence media regulation if he is elected President. "There is a clear need in this country," he replied, "for the reinvigoration of antitrust enforcement." He added: "I strongly favor diversity of ownership of outlets and protection against the excessive concentration of power in the hands of any one corporation, interest or small group...The media market is dominated by a handful of firms. The ill effects of consolidation today and continued consolidation are well-documented...We can do better." That's about, uh, 180° degrees opposite the 8-year incumbent. Now, line that stance up against these comments from ex-FCC attorney Blair Levin, a media regulatory analyst at Stifel Nicolaus. Speaking at a Pike & Fisher conference in Washington last week, Levin noted that investors are feeling good these days because broadband "is about as competitive as it ever is going to be and with mergers, it's going to be less competitive." He added that "BPL (broadband over powerline) is dead. Muni Wi-FI dead. Overbuilders dead. Satellite, not really dead, but not likely to be a full-scaled competitor." Precursor CEO Scott Cleland, speaking on the same panel, agreed there's not much going on in D.C. now, but he expect more interest as the presidential election heats up. Add to this environment, what could be the Bush administration's last gift to media dealmakers: FCC Chairman Kevin Martin finally backing the Sirius-XM satellite radio merger. It's not too soon to be thinking about Washington's impact on media deals, because the current woes in the financial markets are breeding a whole new era of wannado-deals. TV, radio, newspapers, cable, telco, wireless, consumer electronics, content networks, movie studios and Internet plays of all kinds either desperately expect to merge, acquire or be lifted from their lethargy...just as the keys in the nation's capital are likely to change hands. It's something to think about because Washington has a way of over-correcting on prior miscues. For reference, revisit the events of the summer of 2002.
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