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GAO-08-330R 1 (2007-12-14)

handle is hein.gao/gaocrptavth0001 and id is 1 raw text is: i= i Accountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 December 14, 2007 The Honorable Edward J. Markey Chairman Subcommittee on Telecommunications and the Internet Committee on Energy and Commerce House of Representatives Subject: Telecommunications: Preliminary Information on Media Ownership Dear Mr. Chairman: The media play an important role in educating and entertaining the public and fostering an informed citizenry; thus the ownership of media outlets has been a long- standing concern of the Congress. The Federal Communications Commission (FCC) regulates many aspects of the media industry, including radio and television stations and cable and satellite service. In the Telecommunications Act of 1996 (1996 Act), the Congress required that FCC periodically review its media ownership rules. In 2003, FCC released an order that altered its existing media ownership rules. This order generated significant public debate, and more than 500,000 comments were filed with FCC. The U.S. Court of Appeals for the Third Circuit affirmed some of FCC's rule changes while remanding others for further justification or modification;' most of the rule changes have not gone into effect. In response to the court's decision and the congressional mandate for periodic review of its rules, FCC has another proceeding underway to assess its media ownership rules. This proceeding has attracted significant attention from both the public and the Congress, and has raised concerns about the level of consolidation in the media industry. While today's media environment provides the public with numerous programming choices from across the country, media outlets in local markets remain a concern for policymakers. With cable and satellite service, the public can receive programming from nationwide outlets, such as CNN and FOX News, and television stations in adjacent markets. However, media outlets located in a market are more likely to provide local news, public affairs, and political programming addressing the needs of residents in that market, such as coverage of local political campaigns, compared to nationwide and adjacent-market outlets. Reflecting the importance of local media outlets, localism is one of FCC's three policy goals for media ownership. You asked us to examine the current status of media ownership. In this report, we provide preliminary information on (1) the presence and ownership of various media 'Prometheus Radio Project v. FCC, 373 F.3d 372 (3rd Cir. 2004), cert. denied, 545 U.S. 1123 (2005). GAO-08-330R Media Ownership

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