Letter Opposing S.J. Res. 28, Resolution of Disapproval Regarding the FCC's Decision on Newspaper/Broadcast Cross-Ownership

March 31, 2008

Dear Chairman Inouye and Vice Chairman Stevens:

The U.S. Chamber of Commerce, the world's largest business federation representing more than three million businesses and organizations of every size, sector, and region, opposes S.J. Res. 28, a Resolution of Disapproval that would annul a Federal Communications Commission (FCC) decision to slightly relax its 33-year old rule prohibiting the co-ownership of a newspaper and a broadcast station in the same market. This outdated restriction from the 1970s should not be reinstated because it is not needed in today’s competitive media marketplace.

On December 18, 2007, the FCC adopted an order that made modest changes to its newspaper/broadcast cross-ownership rule. Limited to the top 20 media markets, the order establishes a rebuttable presumption that cross ownership of one daily newspaper and one TV or radio station is in the public interest. Additionally, if the transaction involves a TV station, the station cannot be among the four top-ranked stations in the market and at least eight major independently owned and operated media outlets must remain in the market following the transaction. Except in certain limited situations, all other newspaper-broadcast combinations are presumed not in the public interest, and, therefore, are still prohibited.

The FCC thoroughly examined newspaper/broadcast cross-ownership before adopting its recent decision. The FCC has reviewed the issue for more than a decade. Since the FCC commenced its current ownership proceeding in June 2006, the agency has received thousands of public comments, held six public hearings, and commissioned ten economic studies. Moreover, the Third Circuit Court of Appeals has previously held that, based on the FCC’s record, newspaper/broadcast combinations can promote media localism and that eliminating the 1975 prohibition would not adversely impact local media diversity.

When the prohibition on newspaper/broadcast cross ownership was adopted in 1975, consumers had limited resources for news and entertainment. Today, consumers have access to a wide variety of content from over-the-air broadcasting, cable, satellite, newspapers, and the Internet. In this competitive marketplace, media companies compete vigorously for consumers by offering multiple sources of news and viewpoints as well as compelling content and entertainment.

The truth is that the FCC's efforts are too modest in the face of a highly competitive landscape. It would be far better if the antiquated broadcast media ownership restrictions were eliminated in the new world of cable, satellite TV and radio, and the Internet. A vibrant print media—a goal that we all share—is not sustainable in this competitive environment unless these rules are modified. In other words, the modest step taken by the FCC is but the smallest step it can take to help keep the newspaper industry viable in an ever-changing communications landscape.

For these reasons, the Chamber urges you to oppose S.J. Res. 28.

Sincerely,

R. Bruce Josten

Cc: Members of the Committee on Commerce, Science, and Transportation