FCC = Funding Corporate Coffers

Your FCC At Work

Marty Kaplan
Huffington Post

In the most bizarre example yet of GOP corporate welfare, FCC Chairman Kevin Martin has taken to the op-ed page of the New York Times to propose that -- in order to save the newspaper industry -- big-city papers should now be permitted to purchase a television or radio station in their market.

His rationale is breathtaking. To appreciate it, you first have to set aside some inconvenient truths. Like the finding of one of the FCC's own studies of localism (a quality that the law mandates the FCC to encourage) -- a study suppressed because they didn't like the results -- that television stations with distant owners (like, say, corporations that own chains of newspapers) do a worse job at localism than locally-owned stations. Or the finding of another FCC study that radio-newspaper cross-ownership "is associated with significantly less news coverage" on the radio station. Or the analysis of the FCC's own data that shows that cross ownership leads to less total newsgathering in a market, because the other stations realize they can't compete on news, so they focus on sports, weather or something else, like freeway chases or celebrity crime. You also have to ignore the underlying economic facts of the newspaper industry, which totally undermine Chairman Martin's "endangered species" argument.

But just put all that out of your mind, and focus instead on the nub of his argument: the reason that newspapers should be allowed to own television or radio stations is that those broadcast outlets are cash cows. And just why are they so profitable? Chairman Martin doesn't connect these dots, but let's do it for him.

It's because the FCC doesn't require them to pay a penny in exchange for their licenses to broadcast over the public's airwaves.

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