FCC Okays Media Ownership Rules, Limits Cable Growth; Martin to Stick Around

Though there are many who would love to see FCC chair Kevin Martin dethroned now that his two pet proposals have gained FCC approval, he says he will stick around until the end of President Bush’s time in office.

Both of Martin’s media proposals - one that allows a single company to own both broadcast stations and newspapers in the biggest U.S. markets and one that limits growth for cable television companies - passed yesterday.

In passing the media ownership proposal, the FCC disregarded 25 U.S. senators who vowed, in a letter released yesterday, to block the decision should the FCC pass it, Bloomberg points out. Martin said that the media marketplace is considerably different than when the original media ownership rule was put into place in 1975. His proposal allowing cross-ownership may “help to forestall the erosion in local news coverage by enabling companies to share news-gathering costs across media platforms,” he is quoted as saying.

The FCC also approved the continuation of 42 newspaper-broadcast combinations that already exist through waivers or exceptions. Companies owning such combinations include Gannett Co. and Media General Inc. That move may have been the most important thing the FCC did for newspapers, relieving them of concerns that they might one day have to divest and removing a potential hurdle to a sale, according to the Los Angeles Times.

Two major publishers, Tribune Co. and News Corp., have said that the media ownership proposals don’t go far enough, and the Newspaper Association of America has said that, while it’s a step in the right direction, it’s a very small step.

Martin’s plan that limits cable growth also passed, in a 3-2 vote. The plan bans cable companies from serving more than 30 percent of the U.S. market. Comcast, the largest U.S. cable service, currently controls between 27 percent and 30 percent of the market, depending on who’s counting.

Both new regulations are likely to be challenged in court.

Martin, who acknowledged that there are plenty of people who want him to “ride off into the sunset,” says he plans to stay on through President Bush’s term.