Media Consolidation

Media consolidation, also known as media conglomeration, is the term used to refer to the concentration of ownership in the media—more specifically, to the series of policies that have facilitated ownership of the majority of the major media outlets by a small number of corporations. In the field of communication, political economists look at the role of the media in promoting capitalism, the circulation of commodities, and consumerism. Political economists examine issues related to the production (ownership and structure) and distribution (what is selected and where is it seen) of media. They argue that media industries are important because they contribute to the national economy in promoting ideas and products and may contribute to democracy by influencing contemporary public discourse. This latter role is vital, because a functioning democracy depends on the people being informed: People must be able to understand the messages, afford to use the media, and have geographic access to the technologies through which media are disseminated. However, it has been argued that media conglomeration negatively affects the comprehensiveness, accessibility, and balance of media messages. An important aspect of the concentration of power is the consolidation of media outlets into conglomerates. Looking at conglomeration gives insight into the economic aspects of ownership and their effects on the content and structure of media.

The Radio Act of 1927 constituted the first attempt by the federal government in the United States to regulate and nationalize the airwaves. The Federal Radio Commission (FRC) was in charge of regulating a growing number of radio stations and took control of the airwaves. After passage of the Communications Act of 1934, the commission was renamed the Federal Communications Commission (FCC), and its role was expanded. The new agency was charged with regulating the public airwaves, administering licenses, regulating standards, and imposing penalties for infringements of those standards. As a requisite for granting licenses to broadcasters, the Communications Act of 1934 also established that broadcasters must reflect the public interest by providing news programming.

The Telecommunications Act of 1996 reduced and deregulated the media market. The act provided concessions that allowed the consolidation of the media and the mergers of large companies. In 2003, the FCC approved the elimination of the restrictions to limit ownership of media within a local area, a decision that, after some court rulings, was upheld by the Supreme Court in 2004. In 2007, the FCC expanded the deregulation of the media by passing legislation that eliminated media ownership rules that prevented a single company from owning both a newspaper and a television or radio station in the same city.

In 1978, the FCC approved the “Statement of Policy on Minority Ownership of Broadcasting Facilities.” This policy attempted to remedy the underrepresentation of women and minorities by recognizing that most of the broadcasting licenses were originally awarded during a historical time when the nation lived under segregation. The Telecommunications Act of 1996 contained measures aimed at increasing female and minority ownership of broadcast licenses. However, the FCC has done very little to promote female and minority broadcast ownership. As a result of the 2003 changes in policies, the FCC has relinquished its responsibility to monitor and foster increased minority and female broadcast ownership.

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