Evaluating the Federal Communications Commission's National Television Ownership Cap: What's Bad for Broadcasting is Good for the Country

Abstract:     
In June 2003, the FCC issued a broad order on media ownership that aroused widespread opposition. After much public outcry, Congress voted to reject one of the changes - an increase in the percentage of households nationwide a company's stations could reach. In this article, I assess this dispute and the larger issues that it raises. I first consider what is really at stake in the national ownership cap, concluding that most of the proffered arguments against an increase are inapt, and that the only viable objection is that an increase in the cap makes it less likely that local stations will be able to exercise an effective veto over programming they deem unsuitable. At the same time, an increase in the cap does enhance the viability of the broadcast networks - a seemingly positive result. I argue, however, that we should avoid this enhancement of broadcasting's viability, as we should look forward to the demise of broadcasting.

JEL Classifications: K20, K23

Accepted Paper Series