FCC Cross-Ownership Decision Could Boost Newspapers

FCC CROSS-OWNERSHIP DECISION COULD BOOST NEWSPAPERS
[SOURCE: MediaDailyNews, AUTHOR: Erik Sass]
It may take a year or two to iron out the details [that is, litigate] of the Federal Communications Commission's crossownership decision, but the decision could be a boon to newspaper owners. By making it easier for newspapers to merge their operations with TV stations, the rule changes will "allow them to produce both story content, video content and audio content, out of a single enterprise with a single management, single newsrooms and a single sales staff," says Ken Doctor, a newspaper analyst with Outsell. If they can pull that off, Doctor says newspapers can reduce overhead and produce a substantial cost savings. Publishers could further benefit from combining their Internet presence with broadcasters. In the best-case scenario, this will in turn "give a boost to papers like The Washington Post, which has a long tradition of public service and real commitment to producing good journalism." Doctor added that a number of big newspaper publishers could also benefit from capital infusions if purchased by another media company. But Doctor questioned whether this generation of media leaders "has the vision and the drive to pull off such a transition." The alternative would not benefit the consumer. He predicts the industry would endure if "outsiders with no real interest in journalism come in, buy up, and roll up newspaper publishers with TV broadcasters, with no concern except maximizing profits."
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