New Economic Antitrust Study Shows: Bigger Media Is Bad for Florida

2006-10-19

Executive Summary

Florida will suffer if the Federal Communications Commission (FCC) completely eliminates or even further relaxes key limits on media ownership, according to new research examining the impact of potential media mergers in Miami, Tallahassee, and Panama City, prepared by economic experts on behalf of Florida members of the Media and Democracy Coalition.

Dwindling Newspapers, TV and Radio Stations

Since 1996 the FCC has quickly whittled away at what FloridaFlorida by reducing the number of media organizations that serve them. Diversity of ownership in media organizations equals diversity of viewpoints, which ensures that Florida receives robust debate on issues of community concern. residents are able to read, hear and see. Further media consolidation will affect every resident of

Diversity of Media Protects Democracy

Local radio, television and newspapers provide crucial information informing voters of an incumbent’s track record or the background and platform of challenging candidates. The study reveals how Florida’s cities will lose choice and supply of critical local media if the FCC’s proposed regulation takes effect, allowing the largest newspapers and largest TV stations to merge.

Key Findings: What Are The Impacts of Big Media Mergers In the Florida Cities Studied?

Miami: One of Florida’s most diverse and populous cities, it is also one of the largest media markets in the country. In the aftermath of proposed FCC rules Miami will end up with homogenous media unable to address the needs of this city’s diverse and growing population.

In Miami the major papers in the newspaper market are The Miami Herald and The South Florida Sun-Sentinel. In TV, the major outlets are WLTV, WFOR, WTVJ/WSCV, and WPLG.

Impact of Mergers: In Miami, any cross media merger involving the top newspaper and TV outlets would increase concentration close to the monopoly limits in the DOJ/FTC Merger Guidelines, possibly creating media monopolies.

Tallahassee: Florida’s capital: it is especially critical that there is diversity of media outlets to ensure fair coverage and reporting of the government’s activities. After consolidation Tallahassee media outlets would be vulnerable to dominance by politicians or their deep pocket supporters.

•The dominant newspaper is The Tallahassee Democrat. In TV the dominant TV outlet is KCTV.

Impact of Mergers: The Tallahassee market would be severely impacted by cross-media mergers. Every merger between the dominant TV station and the leading newspaper would violate the DOJ/FTC Merger Guidelines by a wide margin and leave the area with only one owner for all the media outlets.

 
Panama City: The impact of possible media mergers in this city reflects the media battle that lies ahead for most of the smaller cities across Florida. The city’s media offerings are already slim due to years of consolidation; further consolidation will essentially create a media monopoly.

In Panama City the dominant newspaper is The News Herald Republic. The major TV outlets are WMBB and WJHG.

Impact of Mergers: Because of the dominant position of the newspaper and two major television stations, any single merger violates the DOJ/FTC Merger Guidelines by a wide margin.

 
Why This Matters:

How big the media gets matters to our democracy at all levels of government, including the local level. The Supreme Court has long held that “the widest possible dissemination of information from diverse and antagonistic sources is essential to the public welfare.”

Broadcast licenses give their holders powerful public voices that are not available to every citizen. They pose a challenge in a society whose democracy relies on vigorous debate over public policy and social issues. The Courts have long accepted limitation on ownership of media outlets by those who hold broadcast licenses as “a reasonable means of promoting the public interest in diversified mass communications.” Further, localism is important because of our federal system of government that elects representatives on a local basis and places a great deal of emphasis on local policy for critically important issues – like public safety and education. Localism remains vital in media policy because citizens rely overwhelmingly on traditional outlets for information – local television stations and daily newspapers.