FCC to Examine Cable Attribution; Action Seen Before Cap Rules
The FCC likely will review cable ownership attribution rules, and act on them before setting national ownership limits, Commission sources said. Separating the 2 items would help align broadcast TV and cable system rules on the thresholds for media properties to be considered owned by a media firm for antitrust purposes, a source said. There are some “slight” differences in considering attribution of cable systems versus TV stations, a source said.
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The FCC sought public comment on national cable caps after a 30% limit was remanded in 2001 by the U.S. Appeals Court, D.C., in Time Warner v. FCC. FCC officials have said they'll consider those limits apart from media ownership rules remanded to the FCC in another case upheld earlier this year by the Supreme Court (CD June 16 p4). Media activists, who've urged lower limits, want prompt action, while cable operators including Comcast and other pay-TV providers have said limits aren’t needed. FCC Chmn. Martin is expected by analysts to address cross- ownership rules, which could let one firm own a newspaper and TV station in the same market, before tackling controversial national limits. A push for broad media deregulation by Martin’s predecessor, Michael Powell, failed when Congress intervened and courts rejected some regulations.
“Martin understands the lessons that Powell taught us in that regard,” said Adam Thierer of the Progress & Freedom Foundation. PFF said in an FCC filing that there shouldn’t be cable ownership limits. “It is politically more expedient and practical in all likelihood to take each issue individually and see what you can get done,” he said: “The Hill doesn’t have an appetite for this, but the FCC doesn’t really have a choice, the court case has basically forced their hand.”
At least one media activist disliked the delay. “We've been waiting 4 years, and because it’s to the benefit to the cable industry that no rules be in place, this has been given extremely low priority,” said Andrew Schwartzman, exec. dir., Media Access Project (MAP). “The delay in acting on this is outrageous, and it’s all the more outrageous that the only piece the cable industry would like to have resolved, attribution, gets bumped ahead of the caps.” MAP may “have to seek assistance from a higher authority if they drag their feet indefinitely,” Schwartzman said, declining to be more specific. His group and NATOA want a 20%-30% national cable ownership cap. MAP hasn’t made its filing; at his request, the FCC comment period was extended.