[Congressional Record (Bound Edition), Volume 154 (2008), Part 7]
[Senate]
[Page 9552]
[From the U.S. Government Publishing Office, www.gpo.gov]


                       BROADCAST MEDIA OWNERSHIP

  Mr. KYL. Madam President, the current newspaper-broadcast cross-
ownership rule prohibits the coownership of a newspaper and a broadcast 
station in the same market. This rule is the only local ownership rule 
that has not been modified by the Federal Communications Commission, 
FCC, since the ownership rules went into place over 30 years ago. 
Despite massive innovation in the media marketplace, the advocates of 
S.J. Res. 28, the Dorgan resolution, want to preserve an archaic rule 
that is no longer relevant or useful in today's media world.
  On December 18, 2007, the FCC issued an order to provide a modest 
relaxation of the newspaper-broadcast cross-ownership prohibition in 
the top 20 markets. To ensure that one company doesn't control the 
local media, the prohibition is only relaxed if there are eight 
independent television stations in the market. The rule change only 
applies to the acquisition of a television station not ranking in the 
top four in any market, which essentially excludes network affiliated 
stations. The FCC's order further mandates that all proposed newspaper-
broadcast combinations be reviewed by the Commission on a case-by-case 
basis with the opportunity for public comment. Simply put, the new FCC 
rule provides a modest relief in a limited number of markets and 
ensures that any changes are carefully scrutinized.
  After 18 months of review and more than 150,000 filed comments, 10 
empirical studies, and 6 field hearings, the FCC fully vetted its 
decision to relax the newspaper-broadcast cross-ownership rule. It 
determined that the ``harm'' envisioned by cross-ownership is directly 
contradicted by simple facts. Currently, there are a number of 
newspaper-broadcast station ownership combinations that are exempt from 
the ban through grandfathers and waivers. These combinations have 
served the needs of the local communities well.
  The FCC also found that the ban on newspaper-broadcast combinations 
was established at a time when communications in any town consisted of 
a newspaper and, at best, a handful of local television and radio 
stations. The rule is antiquated in today's media world where there are 
multiple sources of news and viewpoints, such as the Internet, 
satellite radio, blogs, cable, and other forms of communication.
  Finally, upholding the ban would also largely ignore the dire 
financial condition of the newspaper industry. Due to the multiple news 
and information outlets available to consumers, local newspapers are 
finding it harder to make a profit. What is at stake here is the long-
term health of newspapers and their ability to provide the kind of 
journalism that has served our democratic society well for more than 
200 years. Permitting cross-ownership with broadcast stations allows 
greater financial efficiency in the market, allowing some newspapers to 
survive.
  For all of these reasons, I will not support the Dorgan resolution. 
The FCC's narrow rule will not lead to mass consolidation, and I would 
encourage my colleagues to consider the ramifications of reversing the 
FCC's order.

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