| FCC to propose easing US television caps | 0 comments |
 13 May 2003 @ 17:17, by Raymond PowersFCC to propose easing US television caps By Demetri Sevastopulo in Washington Published: May 11 2003 Michael Powell, chairman of the US Federal Communications Commission, is expected to propose an increase in the US television cap to 45 per cent when he presents a draft of new media ownership rules to his fellow commissioners on Monday. The proposal will be welcomed by News Corp and Viacom, which stand to benefit. The existing cap prevents one company from reaching more than 35 per cent of the US national television audience. Increasing the cap would allow large television networks to buy more local stations. It would also eliminate the need for CBS (Viacom) and Fox (News Corp), who are currently in breach of the cap, to divest stations. On June 2, the FCC's five commissioners will vote on Mr Powell's proposals to ease decades-old rules that the Republican chairman says have become obsolete with the emergence of cable and satellite television and the internet. While Mr Powell is understood to have the support of his two fellow Republican commissioners, it has not come without a cost. The chairman, who argues that free-to-air television is under threat from cable and satellite networks, favoured a larger increase or elimination of the cap. But he was forced to compromise at 45 per cent with fellow Republican Kevin Martin. Another regulation that will see significant changes is the newspaper-broadcast rule, which prevents one company from owning newspapers and television stations in the same market. The Senate commerce committee, which monitors the FCC, will hold a hearing on Monday about media ownership at which some senators are likely to call on the FCC to put its rules out for public comment. Meanwhile, the White House has privately urged Mr Powell not to delay the proceedings. |