US media rules are outdated, many argue

The Federal Communications Commission (FCC), which regulates radio, television, satellite and cable, voted by three votes to two in favour of replacing existing industry rules.

These rules restrict the number and type of media outlets that any one company can own, with the aim of ensuring that a diversity of opinion and information prevails.

Media companies have long complained about the regulations, which mean, for example, that one firm is not allowed to own both a TV station and a newspaper in the same city.

But campaigners, including some within the media industry itself, argue that the result will be damaging to democracy.

No free-for-all

The FCC's five commissioners were long believed likely to vote through the liberalisation.

Although the two Democrat party nominees have voiced their opposition to deregulation, the three Republican commissioners have long been in support.

The FCC's proposed rule change will not spark a free-for-all. Its key points include:

• Across 100 cities, allowing one company to own broadcasting and print in the same market;
• Allowing one company to own up to three TV stations in the largest markets;
• Raising the TV audience share any one company can control from 35% to 45%.

Yesterday's news

The proponents of the rule change argue that existing regulations, which were finalised in 1975, are no longer appropriate for an increasingly global industry.

The number of outlets has increased sharply, especially radio, which has risen from 7,500 stations in 1975 to 12,000 today.

A sensible update, its proponents argue; a threat to democracy, say its opponents Read more about opposing views

In 1975, the three largest TV networks had a combined 95% of the prime-time audience; now, the four largest have less than 50%.

Internationally, the business is increasingly dominated by large firms, such as Rupert Murdoch's News Corporation, and AOL Time Warner, which owns CNN.

At the same time, the evolution of media technology, with online news and interactive TV joining traditional print and broadcasting, has made cross-media ownership more attractive.

Some media owners say they will be able to provide better local news if they can build up more integrated operations.

Turner talks back

But opponents argue that too much media power in the hands of any organisation would both damage democracy and undermine healthy competition.

Ted Turner, who founded CNN, wrote in the Washington Post that liberalisation would "stifle debate, inhibit new ideas and shut out smaller businesses trying to compete".

"If these rules had been in place in 1970, it would have been virtually impossible for me to start Turner Broadcasting or, 10 years later, to launch CNN."

The FCC has been deluged with complaints from the public and from pressure groups, but has refused to bow to calls for a postponement.