IT'S TIME FOR CROSS-OWNERSHIP RULES TO BE RESCINDED

Giving a place enough 'voices' puts opinion above quality

What constitutes a "voice?"

Last week's Federal Communications Commission proposal to ease the restrictions of newspaper and broadcast cross-ownership – coupled with the recent rise and fall of various newspaper joint operating agreements, which were legalized to increase the number of media voices in a community – brings the question to the forefront.

The position taken by media owners – that technology has increased the number of voices – is countered by the position that the consolidation of media in fact reduces the number of voices.

"Broadcasting remains the single most important source of information at the local level for many voters," the New York Times quoted Andrew Jay Schwartzman, president of the Media Access Project, as saying in response to the FCC's proposal. "And most of the rest get their information from newspapers.

"To have these voices controlled by fewer and fewer owners cannot help democracy," Schwartzman said. "The evolution of the Internet has yet to make any significant change on how people decide to cast their vote for the mayor. The degree to which a few large economic powers in any community can control the debate is no less today than it has been in the past."

Though perhaps not the best articulation of the cross-ownership naysayers, you get the idea: fewer owners mean fewer opinions (assuming, if you will, that news judgment is a form of opinion).

While Schwartzman and his allies are correct in saying that the Internet is not as pervasive as it will be in the future, what they are missing is that we have seen a complete change in the media landscape – and while that change has been influenced by technology, it hasn't been necessarily Internet technology.

Whether you are talking about the proliferation of cable television channels or the explosion of non-daily newspapers, the public is bombarded with a wide diversity of voices every minute.

For example, let's take Tribune Co. of Chicago. It is on the precipice of acquiring Times Mirror Co. of Los Angeles. Already, Tribune owns WTIC-TV, Channel 61, which serves the Hartford, Conn., market. When the merger with Times Mirror is completed, Tribune will then also own the Hartford Courant.

Now, let's look at the Hartford market: There appear to be 17 radio stations there, 12 daily and non-daily newspapers, nine magazines, 10 broadcast television stations and 75 cable channels. Of these 123 different outlets, the combined Tribune-Times Mirror will own parts or all of seven entities.

If Tribune is allowed to own one newspaper and one TV station, will there be too much concentration in opinion?

Secondarily, you have to assume that Tribune – and I could be citing Gannett or Scripps, or any other diversified media company here – is primarily interested in controlling opinion. As far as I can tell, the primary mandate of a publicly traded company is to increase shareholder value.

It is debatable whether the choice of mayor in – to continue with the example – Hartford has any bearing on the value of Tribune Co. shares. But my guess is that no, it doesn't.

And despite Schwartzman's theory that the Internet is yet to be pervasive, it will be soon. One of the biggest arguments against the Internet has been its lack of portability (it's difficult to take a personal computer along on your commute or into the toilet). As both Senior Editor Pete Wetmore and Columnist Steven E. Brier point out inside, wireless publishing – using cellular telephones, pagers and personal digital assistants – is gaining momentum, and will just become a bigger and bigger venue for information and news and opinion as time goes on.

If media businesses can increase profitability by owning more than one property in a market, and that profitability means a better quality product, who is served by preventing cross-ownership?

– David M. Cole

Inside ...

• Chilly initial response to fellowships has given way to respect
• Evening papers' gains aren't flukes --- customer attention cited
• Florida paper adds NPR affiliate as client and airs 5 daily newscasts
• New paper finds web, print are critical partners in covering deals
• Nando, 'newsroom for hire,' adds wireless services
• Newspapers need to get a wireless voice
• Persons

From NEWSINC., June 5, 2000, Copyright © 2000, The Cole Group. All Rights Reserved.