FCC Chicago Media Ownership Hearing Recap

FCC MEDIA OWNERSHIP HEARING RECAP

_Coverage_
Hundreds Line Up to Speak To FCC About Media Rules (includes video)
FCC urged to restrict media consolidation
Tribune’s Truthiness: Blame the Internet

_Statements of FCC Commissioners_

_Testimony_

Obama Calls for Tighter FCC Regulation of Broadcasting
Teamsters Urge FCC To Keep Cross-Ownership Ban
Chicago’s Local Broadcasters Speak Up
WGA Pushes Branded Integration Identification

_Coverage_

HUNDREDS LINE UP TO SPEAK TO FCC ABOUT MEDIA RULES
[SOURCE: CBS2Chicago]
Hundreds of people sounded off Thursday night before the Federal Communications Commission at a hearing in Chicago. Minority ownership of media outlets was on the mind of many. "I really wanted to find out or get an idea of what the FCC is going to do as far as to allow more people to own various radio stations, newspapers, things of that sort," said hearing attendee Derrick Smith. Melody Spann-Cooper of WVON-AM and WRLL-AM, is the only African-American woman to own and operate two radio stations in the City of Chicago. "If I can do what I've done with as little as I have," Spann-Cooper said. "Imagine if the playing field was level, just a tad bit, what I could do in this marketplace."
http://cbs2chicago.com/topstories/local_story_263233103.html
* FCC Hearing Attracts Hundreds in Chicago
http://www.myfoxchicago.com/myfox/pages/Home/Detail;jsessionid=71D0BC25B...
http://wgntv.trb.com/
* Concerns raised about media ownership in Chicagoland
[SOURCE: Associated Press]
http://abclocal.go.com/wls/story?section=local&id=5668062
* FCC urged to restrict media consolidation
it is unlikely any media company is watching any closer than Chicago-based Tribune Co., owner of the Chicago Tribune, WGN-AM 720 and WGN-Ch. 9, among other media properties across the nation. The company needs temporary FCC waivers on its ownership of newspapers and broadcast outlets in Chicago and four other markets in order to move ahead with its plan to go private, and it is looking for long-term relief when rules are redrawn. Earlier Thursday, in a meeting with the Chicago Tribune's editorial board, FCC Chairman Kevin Martin acknowledged that newspapers are increasingly under financial strain because of the Internet and said "they provide a very unique and important service" that he wants taken into account in the commission's new rules. "The Tribune transaction raises many of the issues that are teed up in relation to newspaper cross-ownership rules," Martin said. "Many of the properties that Tribune owns date back to that original cross-ownership here in Chicago, [and] there have been many positive aspects of that cross-ownership, as demonstrated by the ability to try to have other outlets for the news, which has been very important in trying to sustain the investment in news-gathering that's occurred." Chairman Martin also pointed to how, since 1996, the commission has changed all its ownership rules, except one. "And that's the rule on newspapers being able to own a broadcast property," he said, noting that when the FCC's last overhaul of media ownership rules was overturned in 2003, the only thing upheld by the court "was a determination the commission's decision that the absolute ban on" cross-ownership were no longer justified.
http://www.chicagotribune.com/business/chi-fri_fccsep21,0,840482.story
* 800 attend FCC media ownership hearing in Chicago
http://www.uspirg.org/html/consumer/archives/2007/09/800_attend_fcc.html
* A Night At The (FCC) Opera -- Tribune At Center Stage
[SOURCE: Editor&Publisher, AUTHOR: Mark Fitzgerald]
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...

TRIBUNE'S TRUTHINESS: BLAME THE INTERNET
[SOURCE: StopBigMedia.com]
Blame the Internet. That’s Big Media’s latest excuse for why there shouldn't be any limits on their holdings or pesky public interest requirements. Big Media insists that the Internet has turned the media world on its head — and that they have no more power than a blogger in the basement. At least that’s what Tribune Co. claimed in an October filing with the FCC, arguing that media ownership rules are obsolete because the once-mighty Trib — which in Chicago alone owns its flagship newspaper, WGN-TV, WGN-AM, cable news channel CLTV and Chicago Magazine — now faces fierce competition from Chicago Ray and Gapers Block. Not so fast. A new study by Adam Lynn and S. Derek Turner of Free Press debunks Tribune’s claims and shows definitively that a handful of Big Media giants still dominate the local news market — online and off. Local independent Web sites and blogs are often great sources of fresh opinions and a different slant on the headlines. But they simply don't have enough local news or a large enough audience to compete with traditional media.
http://www.stopbigmedia.com/blog/?p=121
* See the Free Press study:
http://www.freepress.net/docs/local_chicago_websites_study.pdf

_Statements of FCC Commissioners_

* Statement of Chairman Martin
[SOURCE: Federal Communications Commission]
"At our previous ownership hearings, many people argued that the impact of the media consolidation that has already occurred has had several negative impacts. First, they argued that consolidation has limited the number of channels available to minorities and new entrants. Second, they argued that it has made it more difficult for independent programmers. And third, they argued that it has made it easier for large media companies to advertise products by integrating them into programs without notice. Regardless of whether the Commission makes any changes to its ownership rules, these are important issues that the Commission should address."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276771A1.doc

Adelstein: "The FCC's Legacy Does Not Make Us Proud"
[SOURCE: RadioInk]
FCC Commissioner Jonathan Adelstein places the blame for the lack of ownership diversity, in Chicago and nationwide, squarely on FCC policies. "In 2003, over my strong objection and that of my colleague Commissioner Copps, the commission changed the ownership rules to permit big media companies to get even bigger," he said. "Opportunities to promote small, female, and minority-owned businesses were cast aside." Commissioner Adelstein went on, "When it comes to ensuring that the composition of the people who use the public's airwaves to serve the American people also look like the American people, the FCC's legacy does not make us proud."
http://www.radioink.com/HeadlineEntry.asp?hid=139295&pt=todaysnews

* Statement of Commissioner Adelstein
"So today, as one who believes that we should no longer shirk our responsibility to the American people, I am calling on Chairman Martin and my colleagues to join me in creating a bipartisan, independent panel to review the more than 40 policy recommendations that were proposed by the FCC's Diversity Committee and the Minority Media and Telecommunications Council. We need to put the past behind us and establish a panel of outside experts to conduct a thorough review of these regulatory proposals, the dozens of diversity enhancement recommendations that have been collecting dust at the FCC since as far back as 1992. I believe 15 years is long enough - justice deferred is justice denied."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276765A1.doc

* Statement of Commissioner Copps
"To me, serving the public interest means the public interest of everyone in this great land. Some folks see America's diversity as a problem to be overcome; I say our diversity is an opportunity to be harnessed. It's our strength; it's who we are and it's what we can be. This city contains a rich and vibrant multitude of races, religions, traditions and stories. I want all your perspectives on whether the public airwaves here in Chicago are being used to reflect those races, religions, traditions and stories, or whether they only distort and caricature them. Here's the rub: I don't believe that we're anywhere near taking advantage of our great diversity when it comes to media, and we can start by looking at who owns the media in the first place."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276762A1.doc

* Statement of Commissioner Tate
"Whether in small towns or major media markets, people today, especially the I-Generation, continue to have access to more news and information outlets than ever before not just here in the United States but globally."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276757A1.doc

* Commissioner McDowell
"I look forward to hearing from you this evening about how the ownership of [Tribune] media properties affects you as viewers, listeners, readers, businesspeople, consumers and citizens. Are broadcasters providing this community with the local information and support it needs? Are broadcast stations still your primary source for local news and information? Is the Internet, with blogs and other alternative sources of content, really competing with traditional broadcasting for local coverage? Armed with this information, and guided by our policy goals of competition, localism and diversity, we at the FCC will analyze today’s media marketplace and determine if and how our rules should change."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-276785A1.doc

_Testimony_

* Obama Calls for Tighter FCC Regulation of Broadcasting
In a statement delivered by a staffer, Democratic presidential candidate and Illinois Sen. Barack Obama laid into the Federal Communications Commission for its dereguatory policies under chairman Kevin Martin, saying that it promoted "the concept of consolidation over diversity," and he heartily endorsed tightening FCC regulations on broadcasters. "I believe the FCC media-ownership rules remain necessary and are critical to the public interest," he said. "We should be doing more to encourage diversity in ownership in broadcast media, promote the development of new media outlets and the expression of diverse viewpoints," as well as provide "greater clarity" of broadcasters' public-interest obligations. Sen Obama said he "fully endorsed" new rules "promoting greater coverage of local issues and greater responsiveness of broadcasters to the communities they operate in. I also believe that broadcasters' license-renewal requests ... should require greater FCC scrutiny and public input should occur more frequently." He added that he "strongly requested" that the FCC "put out any specific changes they intend to vote on in a new notice of proposed rulemaking."
http://www.broadcastingcable.com/article/CA6480419.html?rssid=193
* Obama warns FCC on endgame for media ownership proceeding
"In the spirit of transparency and because of the importance of this issue to our democratic discourse, I strongly request that the FCC put out any specific changes they intend to vote on in a new notice proposal rulemaking, so that the American people have the opportunity to review them," Obama's spokesperson Corey Bennett told the audience at today's FCC hearing on media ownership, held at Operation Push's Chicago headquarters.
http://www.lasarletter.net/drupal/node/471

* Teamsters Urge FCC To Keep Cross-Ownership Ban
[SOURCE: Editor&Publisher]
In testimony prepared for Thursday evening's Federal Communications Commission (FCC) public hearing, the International Brotherhood of Teamsters argued that the going-private deal for Tribune Co. is a perfect example of why media ownership regulations should not be loosened. The Teamsters oppose the Tribune buyout led by Chicago real estate mogul Sam Zell, saying the structure of the employee stock ownership plan (ESOP) being used to swing the deal gives workers no real voice in the management of the company. The deal, which was approved last month in a stockholders vote, is expected to close by the end of the year. "The proposed Tribune buyout is an example of why the FCC must concern itself with the ownership structure of media companies -- particularly when waivers of cross-broadcast ownership rules have been sought -- in order to fulfill its mission to protect localism, viewpoint diversity, media access and other issues of vital importance," the union's written testimony stated. "The structure proposed in the Tribune application provides insight into the potential dangers of approving an ownership structure that insulates an individual with total control of a company from the owners of that company as well as the diverse interests of the communities that company serves," the Teamsters added, referring to Zell becoming chairman when the deal closes.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...

* Chicago’s Local Broadcasters Speak Up
[SOURCE: StopBigMedia.com]
Local and independent broadcasters around Chicago spoke up at fifth FCC hearing on media ownership. They are eager to highlight the ways in which independent radio, TV and newspapers consistently serve the public interest, while Big Media turns its back on local communities. 1) WVON radio -- ‘Level the Laying Field’: "WVON is the only African-American-owned radio station in the third-largest market in America and, until last year, operated on a shared frequency,” said Melody Spann-Cooper, president of WVON. “We stand as the best example of why the FCC must look at alternatives that will increase minority participation and level the playing field. It is the only way to ensure that the broadcast industry becomes more inclusive and better reflects the true diversity of our country.” 2) Radio Arte -- Minorities Usurped by Big Media: “The voices of Latinos, youth, women and other groups are being usurped by the special interests of media companies that produce programming that is all too often homophobic, misogynistic, anti-immigrant and absent the diversity found in our communities,” said Silvia Rivera, general manager of Radio Arte 90.5 FM. “Radio Arte rejects any additional media consolidation and challenges the FCC to adopt rules that open up ownership opportunities for Chicago’s marginalized groups.” Chicago Independent Radio -- Let’s Foster Alternatives: The FCC is coming to Chicago at just the right time for the newly launched Chicago Independent Radio Project. The project’s founder, Shawn Campbell, argues that we must not only fight Big Media, but also work to foster vibrant alternatives to the corporate media conglomerates. “The media landscape has grown increasingly homogenized at a time in our country’s history when independent voices are more important than ever,” Campbell said. “It is crucial that we raise our voices in opposition to further media consolidation, while at the same time, working to ensure there will be more media outlets that truly are serving local communities and broadcasting in the public interest.”
http://www.stopbigmedia.com/blog/?p=120
* Indie media owners criticize consolidation
http://www.chitowndailynews.org/articles/show/9892
* Langmyer: WGN Is A 'Real Radio Station'
WGN Chicago VP/GM Tom Langmyer said the Tribune Co.-owned Talker is a "real radio station, with live, unique and originally produced programming" -- and said being co-owned with the Chicago Tribune helps it serve the community better. Langmyer said, "If WGN were sold because an FCC rule required it, WGN would most likely end up no longer being a standalone station, instead falling into the hands of a multistation conglomerate. It would be programmed out of a distant headquarters office and would likely lose its distinctiveness, local identity, and historic appeal. Is this good for the public? We don't think so, and we can't imagine the government would think so, either." The Tribune Co. has a grandfathered exemption from the newspaper-broadcast cross-ownership rules in Chicago, but when the company goes private -- shareholders overwhelmingly approved the deal last month -- the exemption may not carry over to the new ownership.
http://www.radioink.com/HeadlineEntry.asp?hid=139302&pt=todaysnews
* WGA Pushes Branded Integration Identification
Writers Guild of America West president Patric Verrone wants the Federal Communications Commission to force television networks to clearly disclose to viewers when shows include branded integrations. Verrone said he is not attacking product placement, where a branded product simply acts as a prop, but embedded advertising, where "the wacky next-door neighbor announces that this week he is a bottled-water salesman and extols the crisp refreshing taste of that particular brand of water." "When writers are told that we must incorporate a commercial product into the story lines we’ve written, we cease to be creators," he said."We become advertisers ourselves. Actors are subjected to forced endorsement when their character must shill the products without compensation or consultation. Consumers are required to watch commercial messages that are no longer identified as commercial messages. And in our experience people want (and deserve) to be told when they are being sold." Verrone said the FCC needs to step in to help viewers navigate the increasingly brand-heavy programming landscape.
http://www.broadcastingcable.com/article/CA6480425.html?rssid=193