Compromise Possible on Newspaper/Cross Ownership

Some eighth-floor Democrats may be open to a compromise on media ownership that would change or eliminate newspaper cross-ownership rules, and discussion of changing the draft media ownership order to reflect that means it's unlikely the order will be released Wednesday on its must-vote deadline, former FCC officials told us. The deadline was triggered by the item having received votes from all three Democratic commissioners two weeks ago, but lifting newspaper cross-ownership would be a change from the version of the item that was voted, and Chairman Tom Wheeler is expected to extend the deadline, the officials said. Rolling back newspaper/cross-ownership could pave the way for a partial approval of the media ownership order by all five commissioners, which Wheeler's office would prefer, the former FCC officials told us. An FCC spokesperson declined comment.

The draft item that was already voted but not released would keep newspaper/cross-ownership rules in place but make greater allowances for individual waivers of the rules. NAB has been aggressively lobbying against the rules, submitting articles on the failures of the newspaper industry nearly every day. ”Retaining a rule that deters investment by broadcasters in the struggling print newspaper industry certainly cannot serve the public interest,” NAB said in multiple filings in docket 09-182.

Public interest groups have been lobbying nearly as hard for the rules to stay in place. “There is a solid basis for retaining a rule affecting the two most powerful forces shaping local opinion,” said Georgetown Law Institute for Public Representation Senior Counselor Andrew Schwartzman. “There's no fundamental problem with the rule.”

Opening up the newspaper/cross-ownership rules would not have a huge effect on the industry because many companies that formerly involved such combinations, such as Gannett, have spun off their print arms to improve profits, one broadcast attorney told us. Relaxing those rules would be an easy way for Wheeler to “throw a bone” to broadcasters, a broadcast attorney told us. Numerous public interest groups have indicated they disagree. “Eliminating the newspaper broadcast rule will aid neither small broadcasters or newspapers, nor such outlets owned by women and people of color,” said a joint filing from numerous public interest groups, including Free Press, the American Civil Liberties Union and the National Urban League.