A few weeks ago, we reported on the Federal Communications Commission's (FCC) efforts to allow television giants such as Viacom's (NYSE:VIA) CBS, General Electric's (NYSE:GE) NBC, Disney's (NYSE:DIS) ABC, and News Corp.'s (NYSE:NWS) Fox to dominate regions of America, potentially reducing the different points of view available to viewers.
Right now, media companies are not allowed to own so many local television stations that they reach more than 35% of the national population. The new FCC rules would hike that limit to 45%, and would permit companies, in most places, to also own newspapers or radio stations. According to a recent New York Timesarticle (free registration required), "Two networks, Fox, a unit of the News Corporation, and CBS, a unit of Viacom, are already above the old 35 percent limit."
The deregulation was scheduled to go into effect very soon, but on Wednesday the Third U.S. Circuit Court of Appeals in Philadelphia granted a stay, preventing the rules from taking effect on schedule and requiring a full judicial review. Cue applause from those who don't want to eventually see only one or two companies controlling most of the news and entertainment they see or hear.
Interestingly, the other thorns in the side of FCC chief Michael Powell span a wide spectrum, from the United States Conference of Catholic Bishops to the National Organization for Women to Common Cause to the pro-life Family Research Council to the National Rifle Association.
Stay tuned to see what happens next in this battle -- Congress is already working on undoing some of the FCC's plans. You're also invited to share your thoughts on the matter on our Current Events discussion board -- check out our vibrant board community via our free trial.
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