MMTC Study Finds Small Impact From Cross-Ownership Rules

Cross-Ownership Study

A report that was underwritten by a grant from THE MINORITY MEDIA AND TELECOMMUNICATIONS COUNCIL and presented by BIA/KELSEY VP/Chief Economist MARK R. FRATRIK, Ph.D., examines the impact of cross-media ownership on minority/women owned broadcast stations.

The study notes, "The marketplace in which local radio and television stations, as well as local newspapers has changed quite dramatically in the past few years. Competition for audiences as well as for local advertisers has noticeably increased. At the same time, these traditional media are still important players in the advertising marketplace and the provision of news and entertainment to their local communities. The regulations governing the ownership of these traditional media have changed too, though the ban on broadcast-newspaper local ownership is still in place. Many analysts have examined the continuance of that ban and relaxing other local broadcast ownership rules on the impact on competition and the provision of diverse viewpoints. There has not been any specific study on the impact of relaxing these local cross-ownership rules on the impact on minority and/or women owned broadcasters."

MMTC came to the conclusion that the impact doesn't justify either tightening or retaining the current rules limiting cross-ownership, writing "There may be sound justifications relating to overall viewpoint diversity, localism or competition for why the cross-ownership rules should or should not be changed. However, it appears from this study that cross-media interests’ impact on minority and women broadcast ownership is not sufficiently material to be a material justification for tightening or retaining the rules."

Read the full study here.

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