FCC'S 8TH FLOOR SCENE OF DUELING LOBBYIST MEETINGS ON OWNERSHIP

Minority & Media Telecom Council (MMTC) Exec. Dir. David Honig said he hoped Adelstein’s assessment proved in the long run to be “overly pessimistic.” Still hopeful that the order due out Mon. wouldn’t harm efforts to promote women and minorities in broadcasting, Honig said all 5 commissioners’ offices had been “receptive” to MMTC’s visits. A spokeswoman for the National Organization for Women (NOW) hadn’t returned a message for comment by our deadline.

As the sunshine window on media ownership was snapping shut at the FCC Fri., a crush of broadcasters, consumer groups and others descended on the agency, trying to make last-min. pitches to sway the commissioners. Whether all that effort would bear fruit remained to be seen, as some sources at the agency said the broad framework of the new media ownership rules was all but cemented. “It’s done,” one source said. Some sources at the agency and in industry were doubtful any sort of compromise could be reached. “There’s a lot of blood on the floor,” a source said. Others said that despite a wide gulf between the 3 Republican majority commissioners and 2 Democratic commissioners, negotiations continued, at least around the edges of the order. Some sources questioned the sincerity of the negotiations, though, one saying it looked like “just a big game” was being played. The commissioners and their legal advisers on media matters were in wall-to-wall meetings Thurs., listening to one another and to as many constituencies as possible before the final vote Mon.

The NAB and Network Affiliated Stations Alliance told the Commission in an ex parte filing that the commissioners should disregard large portions of the Big 4 TV networks’ filings relating to raising the 35% station ownership cap. The networks refused to supply supporting data, NAB and NASA said. They cited what they said were 18 specific instances of the networks’ claims that the FCC should disregard. In addition, they said, 10 other issues were raised by the affiliates dealing with preemptions and local news that had been left “largely or totally unanswered” by the networks. The networks’ strategy has been to focus on affiliate preemptions of their prime-time programming and a comparison of the “quantity” of news aired by network-owned stations, while ignoring the quality of that news, NAB and NASA said. Since the networks have “chosen to disclose only selective data, it is clear that the networks possess highly relevant, nonproprietary data about [their owned stations'] preemption rates… that they are refusing to make public because the data would favor retention” of the 35% cap, the filing said.

Another group of broadcasters submitted what they said was a new empirical analysis of a proposal by Commission staff that would prohibit 2 of the top 4 stations in a market from combining. The FCC’s proposed new duopoly rule (CD May 13 p1) “ignores marketplace realities… and will undercut the very objectives” it’s designed to accomplish, 5 small and medium-sized TV station groups said in an ex parte filing. They told the agency that the “practical effect” of requiring a minimum of 6 stations in a market to qualify for a duopoly, and to prohibit common ownership of 2 of the top 4 rated stations, would be to deprive such markets of voices that already existed and would “preclude opportunities for enhanced local service.” If the staff proposals are adopted, the groups said, many stations in small and medium markets “will either not survive or will cut back on local news.” The petition was signed by Chelsey Bcstg., LIN TV, Montclair Communications, Raycom Media, Waterman Bcstg.

While it appeared there was little to prevent the FCC from acting, there still was evidence of resistance on Capitol Hill, including several high-profile Republicans. They said they were particularly concerned about raising the 35% ownership cap, and Republicans have introduced bills in each chamber to preserve the cap. Both House Commerce Committee Vice Chmn. Burr (R-N.C.) and Senate Appropriations Chmn. Stevens (R-Alaska) have bills to do that. Hill sources told us the climate following the FCC’s vote would go a long way toward determining whether legislation would undo at least some of the FCC’s actions.

House Commerce Committee Tauzin (R-La.) was working to quell opposition to the rule changes. Tauzin, who has issued several letters and statements urging the FCC to maintain its June 2 deadline for a ruling, released another statement Thurs. Committee spokesman Ken Johnson said Tauzin did so because “the debate over media ownership rules has turned political and partisan,” and Tauzin was trying to get to refocus the debate back to the issues. “Only in Washington, D.C., would those who ostensibly want to preserve free speech seek to do so by regulating broadcast rules,” Tauzin said.

Tauzin sent a letter to colleagues urging them not to support Burr’s bill (HR-2052). “HR-2052 clearly implicates First Amendment values and Congress should be extremely careful before it treads in that sensitive area,” he said. Hill staffers said the letter showed there was noteworthy support among Republicans and Democrats alike for keeping the broadcast ownership cap at 35%.

Activists who believe restrictions on ownership should be retained held a series of protests around the country Thurs., targeting radio station owner Clear Channel. Although FCC sources have told us the commissioners are likely to tighten up radio station ownership rules, the protesters held out Clear Channel as a “poster child” of what they said was wrong with deregulation. They complained that all of the company’s stations sounded the same, while its representatives said there was a reason their stations were so popular, because they play what people wanted to hear. The protests were in 7 cities, at Clear Channel stations and offices. In Washington, some 40 people, many of them from a group called Code Pink, chanted and sang songs outside Clear Channel’s govt. relations office. A woman bearing a brown paper bag full of peanut butter and jelly sandwiches said she wanted to meet with the staff for lunch. “If they can meet with Chairman Powell for lunch, then why not us,” a Code Pink spokeswoman said. The woman entered the building but was told to leave, and did so of her own accord.

Judging by the co-sponsorship of recent bills, there still was support among congressional Republicans for keeping the cap. Joining Stevens on his 35% cap bill (S-1046) are Senate Communications Subcommittee Chmn. Burns (R-Mont.), Sens. Lott (R-Miss.), Allard (R-Colo.), Bunning (R-Ky.) and Dole (R-N.C.). The bill has 14 co-sponsors, including Senate Commerce Committee ranking Democrat Hollings (S.C.) and Sen. Wyden (D-Ore.) Senate Commerce Committee Chmn. McCain (R- Ariz.) has said he was unsure where he stood on media ownership (CD May 23 p7). Burr’s bill has 11 Republican co- sponsors, including Reps. Deal (R-Ga.), Wilson (R-N.M.), Ballenger (R-N.C.), and Pitts (R-Pa.). Commerce Committee ranking Democrat Dingell (Mich.), Judiciary Committee ranking Democrat Conyers (Mich.) and Markey also are co-sponsors.

FCC staff said the media ownership order was expected to come out shortly after the vote Mon., unlike the Triennial Review, which has languished for months.