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Study Shows Media Rule Changes Would Harm Florida

Consolidation of media outlets would mean less local news for Floridians

TALLAHASSEE—Local communities in Florida will be harmed if the Federal Communications Commission (FCC) relaxes or eliminates current limitations on media ownership, according to new research examining the impact of potential media mergers in Miami, Tallahassee, and Panama City. The report, prepared by economic experts on behalf of Florida members of the Media and Democracy Coalition, examines what would happen if the largest newspaper and largest TV station in each city merged, which would be allowed if a pending FCC proposal moves forward.

“Bigger, and fewer media outlets with less interest in local news would be bad for Florida’s consumers and bad for democracy,” said Brad Ashwell, Legislative Advocate for Florida PIRG. “Any public policy seeking to protect local media content must recognize the simple fact that limitations on media consolidation have played a critical role in balancing the public service mission of the media with their private profit motives,” added Ashwell.

The findings of the report, “How Bigger Media Will Hurt Florida: A Report on Florida Media Markets and The Impact of Newspaper/TV Cross-Ownership Mergers”, include the following:

• Many Florida citizens already live in highly concentrated media markets with few choices for news and views.

• Even in Miami, one of the largest and least concentrated markets in the country, any cross media merger involving the top two firms would increase media concentration in excess of the Department of Justice and Federal Trade Commission’s Merger Guidelines.

• The smaller media markets of Tallahassee and Panama City already exceed the DOJ/FTC Merger Guidelines; therefore, an additional merger in either market could significantly harm citizens in those communities.

“Giving citizens a variety of viewpoints and plenty of local views are two of our nation’s most important media policy goals,” said Rich Templin, an independent media radio show host and communications director for the Florida AFL-CIO. “If the FCC allows these mergers, it will be harder for citizens to even learn about, let alone respond to local issues such as crime, schools and traffic,” added Templin.

This research was prepared by The Media and Democracy Coalition (MDC) in response to a call by the FCC for public comments on proposed changes to its media ownership rules that would allow mergers between the dominant local newspaper and local television station and also allow media conglomerates to own a greater percentage of all the television stations in local markets. In 2003, the FCC had voted to weaken these rules, but its action was rejected by the U.S. Third Circuit Court of Appeals, in an action brought by coalition member Prometheus Radio Project of Philadelphia.

It is ironic that the FCC is poised to open the floodgates to wholesale consolidation when it has recently come to light that former Chairman Michael Powell buried studies by FCC staff showing that media consolidation is harmful to local communities and that locally-owned stations provided significantly more local news than national conglomerates,” said Dr. Andy Opel, a Professor of Communications and Media Studies at Florida State University. The FCC staff analysis found that local ownership of television stations adds almost five and one-half minutes of total news to broadcasts and more than three minutes of “on-location” news.

“Taken together, this report and the FCC research demonstrate that additional mergers in these Florida markets could significantly harm citizens in those communities,” said MDC study’s authors, Dr. Mark Cooper, research director of Consumer Federation of America, and Philip Napoli, assistant professor of communications and media management at Fordham University, leading experts on the structure and economics of our nation’s media.

With the FCC now again considering whether to relax or eliminate its ownership rules, this research answers the Appeals Court’s call for better analysis of media concentration in local communities. “The data clearly demonstrate that any further relaxation or elimination of media ownership limits by the FCC is not in the public interest,” said Ben Wilcox, Executive Director of Common Cause Florida.

In 2003, the FCC received over three million public comments opposing its attempt to increase media concentration. Florida PIRG and other MDC organizations are again urging all citizens to file comments at the FCC opposing its latest effort to loosen crucial media ownership limits.

“We need more, not fewer media outlets competing in the marketplace of news and ideas,” concluded Wilcox. “Localism and diversity are the cornerstones of a democratic media system, and we cannot afford to compromise them in any way.”

FLORIDA PUBLIC INTEREST RESEARCH GROUP
926 E. Park Ave.• Tallahassee • FL 32301 • 850-224-3321

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