Lasar Letter on the Federal Communications Commission    
 


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Media giants to FCC: stop complaining about media concentration

by Matthew Lasar  Dec 3 2007 - 4:49pm     

The executives of four top media companies have sent a letter to the Federal Communications Commission warning the agency not to implement "ill considered and unjustified government interventions" in the cable industry.

"We are alarmed at recent press accounts and public statements by FCC officials purporting to find undue concentrations of market power that would justify a wide range of government interventions into the media market place," wrote execs from News Corporation, the Walt Disney Company, Viacom, and NBC Universal on November 20th.

The four content giants delivered the missive to the FCC a week before the agency prepared to vote on whether to accept data suggesting that cable had surpassed the "70/70" rule—cable TV providers have reached 70 percent of households and 70 percent of households subscribe.

Once that threshold is passed, Federal law says that the FCC can pass additional regulations insuring greater diversity in cable transmitted video content. The Commission did not accept the data, but has required all cable companies to submit detailed stats on their subscriber levels over the next two months.

The quartet's letter statement claimed that "consumers today enjoy a wider range of media choices than at any time history," including cable, satellite, phone company video services, and the Internet.

"Because of the vibrant competition in both programming and distribution, and because of the myriad options and alternatives available to consumers, there is no conceivable justification for government intervention into this marketplace," their commentary concluded.

It appears that the protest was issued in vain. Broadcasting and Television reports that the FCC has voted to put a 30% cap on the number of multichannel video subscribers to whom any entity can sell service.

B&T cites unnamed sources claiming that FCC Chair Kevin Martin has voted for the provision, supported by the agency's two Democrats, Michael Copps and Jonathan Adelstein.


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