The FCC is once again talking about changing the rules that prevent companies from owning a TV station and a newspaper in the same town. But, according to the New York Times, the rule change might actually force some companies to sell off a TV station or newspaper in the same town. Here’s why:
In 1975, the commission adopted a rule that generally restricted a company from owning both a newspaper and a station in the same city. Many companies that already had such holdings at the time, including The New York Times Company, which owns a radio station in Manhattan, were unaffected because of a grandfather clause.
Since then, some companies have received what are supposed to be temporary waivers until new rules are adopted. Most media companies are operating under a waiver, the grandfather clause or both. Those waivers are reviewed any time a station changes hands.
Mr. Martin’s plan would enable a media company to own both a newspaper and either a radio or smaller television station in the nation’s 20 largest markets. If the company owns a TV station, then there must be at least eight independent TV stations and newspapers in the same market.
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