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U.S. History
editIn 1984, 50 independent media companies owned the majority of media interests within the United States. Now, there are only six big companies. [1]
Between 1941 and 1975, several rules restricting channel ownership within radio and television were enacted in order to maintain unbiased and diverse media. However that all changed under the Reagan administration. Between the years 1981 and 1985, Congress and the Federal Communications Commision began deregulation led by FCC Chairman Mark S. Fowler. The amount of television stations a single entity can own increased from seven to 12 stations.
The industry continued to shift towards deregulation with the signing of the Telecommunications Act of 1996. Signed by President Bill Clinton on February 8, 1986, it is considered by the FCC to be the "first major overhaul of telecommunications law in almost 62 years."[2] Now that the 40-station ownership cap was lifted, the radio industry experienced an unprecedented amount of consolidation. Since this period, Clear Channel Communications grew from 40 stations to 1200 stations, in all 50 states, while Viacom grew to owning 180 stations across 41 markets.
As media consolidation grew, the nation began to worry how it might negatively impact society at large. In the case of Minot, North Dakota[3], the concerns regarding media consolidation is realized. On January 18, 2002, a train containing hazardous chemicals derailed in the middle of the night, exposing countless Minot residents to toxic waste. Upon trying to get out an emergency broadcast, the Minot police were unable to reach anyone. They were instead forwarded to the same automated message, as all the broadcast stations in Minot were single-handedly owned by Clear Channel Communications, where nobody was apparently at the phones.
Between the years 2002 and 2006, the conglomerates only got bigger. As the FCC reviews media ownership rules, broadcasters petition for the elimination of all rules, while those who are against the decision cite the incident in Minot as how consolidation could be harmful. In 2005, top companies Verizon and MCI Inc. received approval to combine, while SBC Inc. acquired AT&T, respectively, giving the nation's premier communication company a global reach unmatched by any other.
As of 2017, 90% of the US's media is controlled by six companies- General Electric, News-Corp, Disney, Viacom, Time Warner, and CBS.[4]
- ^ "Timeline". Moyers on America. PBS. Retrieved 27 October 2017.
- ^ "Telecommunications Act of 1986". Federal Communications Commission. FCC. Retrieved 27 October 2017.
- ^ Fisher, Marc. "Sounds Familiar for a Reason". The Washington Post. The Washington Post. Retrieved 27 October 2017.
- ^ Lutz, Ashley. "These 6 Corporations Control 90% of the Media in America". Business Insider. Business Insider. Retrieved 27 October 2017.