Media Ownership

GAO has addressed the issues surrounding congressional efforts to rewrite the Communications Act of 1934 in several reports since 1976. The public interest standard of the Act has been interpreted by the Federal Communications Commission (FCC) to include control over the number of broadcast stations which a licensee can own. The basis for multiple ownership rules was the belief that the public should get the greatest number of viewpoints from diverse, competing sources. However, the direct effect of the rules on diversity of programming is not known. Because the rules did not generally require divestiture, they have not led to major reductions in ownership concentration. The FCC has been reluctant to employ divestiture because of its belief that it would be a harsh remedy which could cause industry disruption, owner hardship, and a reduction in service to the public. GAO felt that the appropriate role of divestiture was a matter of judgment and recommended that Congress decide its relative importance in formulating station ownership rules. The FCC was not analyzing ownership data or maintaining aggregate ownership statistics. GAO felt that these statistics would be useful in assessing ownership trends, reducing research time, and evaluating the impact of ownership policies. Therefore, GAO recommended that an information system be established to provide this data. The FCC adopted a policy to promote minority ownership. However, it did not collect minority ownership data that would be helpful in evaluating alternative ways for increasing minority participation and in determining the effectiveness of actions taken.