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The Honolulu Advertiser
Posted on: Wednesday, November 26, 2003

GOP push lets media giants keep stations

By Jonathan D. Salant
Associated Press

WASHINGTON — A congressional compromise on how much of the TV-viewing public a media company may reach has set the limit at 39 percent, a seemingly random number that is not random at all.

It means two media giants won't have to sell any of their stations.

Viacom Inc., owner of CBS and UPN, owns stations reaching 39 percent of viewers. And News Corp., owner of Fox, has stations reaching 37 percent. Both faced the possibility of being forced to sell some of their stations.

They and other networks fought to get the Federal Communications Commission to raise the level from 35 percent to 45 percent. The FCC, backed by President Bush, did so in June.

Opponents, concerned the change would allow a handful of conglomerates to control what Americans see on TV, urged Congress to roll back the change. Lawmakers listened, but under a veto threat from Bush negotiated the compromise and settled on 39 percent.

Congress still must approve the agreement, but passage is expected next month or in January.

"It just shows the power of the broadcast lobby," said Celia Viggo Wexler, research director for Common Cause, an advocacy group that supported the lower cap. "It's an early Christmas present."

White House Office of Management and Budget spokesman Chad Kolton said Bush believed the 45 percent cap "more accurately reflects the changing media landscape and the current state of network station ownership, while guarding against undue concentration in the marketplace."

The 39 percent cap was "a reasonable compromise," he said.

Sen. Ernest Hollings, D-S.C., the top Democrat on the Senate Commerce Committee, criticized the change.

"All had agreed to the 35 percent cap," he said. "The Republicans went into a closet, met with themselves, and announced a 'compromise.' "

Senate Appropriations Committee Chairman Ted Stevens, R-Alaska, a leading supporter of the lower cap, said he was satisfied. "All in all, I don't like it going up 4 percent, but 39's a lot better than 45 percent," he said.