Political Shift to Impact American Broadcasting

Michael Hedges - November 13, 2006

As the political wind changes in Washington DC so might the domestic “industry” and US government international broadcasting. Further de-regulation, in particular cross-media ownership, will grind to a halt. US media analysts, largely of the Wall Street variety, see an ominous shift away from the staunchly partisan, pro-big business US Congress.

US commercial broadcasting refers to itself as an “industry.”  Nearly two decades after rolling back nearly all regulation, the industry is facing the prospect of not only an end to further de-regulation but, possibly, old rules returning. All of this is taking place as US broadcasting tries to find its sea-legs during a tidal wave of advertising revenue shifting to new media and a business cycle model hit by a cyclone. Taken in total it might just be the perfect storm that either sinks a business in the decline phase or floats radical changes.

American broadcasting is less and less about enticing viewers and listeners with compelling programming and more and more about value perceived by the investor class. Share prices trump audience figures. Success is measured by the buy-out value and US broadcasting has long been a transaction business.

Clear Channel Communications’ recent announcement that it is entertaining offers from private equity funds came not from anxiety over regulation, even though the company has paid a fortune in indecency fines. Nor did NBC’s announcement that it’s dropping prime time drama for less expensive programming. The market place, fair or not, rules and the investor market sees break-up value and values cost cutting.

Some Congressional Democrats have gone on record as favoring a return, in some sense, of the Fairness Doctrine. When this rule was scuttled in 1988 broadcasters were no longer obligated to provide “equal time” to opposing views. This led to a pandemic of right-wing radio talk shows and, of course, Fox News. Radio stations on the AM band were certainly spared extinction but the level of public discourse inside the US fell to painful depths.

Arguments against the Fairness Doctrine are compelling. Advanced nearly 100 years ago when air-waves were thought to be scarce, the digital age renders that point moot.  “The Congress shall make no law abridging the freedom of speech, or of the press,” says the First Amendment to the US Constitution, allowing newspapers to tout their owners’ views and endorse political candidates. Broadcasters were unable to dip their toes into controversial positions without raising the certainty of legal action.

Eliminating the Fairness Doctrine and its related rules (i.e. equal time) brought freedom of speech to broadcasters but only in so far as that “speech” could survive in a marketplace. Political attack ads have become common fare throughout US rule by the President’s political party advisors, notably White House advisor Karl Rove. Post election polling indicates the American electorate voted against the “sleaze.”

With the executive and legislative branches of the US government separated by political party Senate and House of Representatives committee chairmanships and memberships, soon to change, will have amore direct effect on policies. The President nominates members and chairman of executive branch agencies - like the FCC – but House and Senate committees have the joy of picking them apart. Another political casualty is likely FCC Chairman Kevin Martin.

Changes at the Senate Commerce Committee, overseer of the FCC, will raise further the industry’s anxiety. Chairmanship will likely go to Hawaii Senator Daniel Inouye, consistently pro-business. But deeper in the loss of Virginia Senator George Allen and Montana Senator Conrad Burns, heavily supported by the National Association of Broadcasters, and the elevation of North Dakota Senator Byron Dorgan within the committee will cause heart-burn among those seeking further loosening of ownership rules.

Outgoing Chairman Alaska Senator Ted Steven’s Telecom Reform bill allowing national video franchising will see neither a committee vote nor the full Senate.

For US public television and radio, political tests will likely end. Republican political operative Kenneth Y. Tomlinson, a Karl Rove ally, was forced out as Public Broadcasting System (PBS) chairman after meandering into political waters, illegally hiring another political operative to report “liberal bias in PBS programming.”

Over at the Broadcasting Board of Governors (BBG), where the same Mr. Tomlinson ran his horse racing business from the Chairman’s office, the Senate Foreign Relations Committee has refused to bring forward Tomlinson’s reconfirmation hearings. With the chairmanship of that committee like to be in the hands of Delaware Senator Joseph Biden in January President Bush will need to either give Tomlinson what is called a “recess confirmation” – essentially avoiding the oversight committees – or withdraw the nomination altogether. Controversial UN Ambassador John Bolton received a recess confirmation last year when it became clear that even senators in the President’s party wouldn’t support open confirmation. Senator Biden was a supporter of BBG member Norman Pattiz who often clashed with Tomlinson and resigned last year.

The BBG oversees all US government international broadcasting. Public diplomacy observers have noted the shift of BBG resources away from Voice of America and Radio Free Europe/Radio Liberty broadcasting, for example, and toward specialized services that may or may not be effective.

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