Controversial FCC Action Pleases Nobody

Implications: The FCC voted to amend the long-standing newspaper=broadcast cross-ownership rules to allow combinations in the top 20 markets subject to certain conditions being met. The action was met with disdain by just about every stakeholder involved.

Analysis: FCC Chairman Kevin Martin's party-line vote to allow newspaper-broadcast combinations in the top 20 markets subject to certain conditions was passed by the FCC on Thursday.  Martin appears to be the only one happy, although the White House supports the FCC action.

The Newspaper Association of America wanted more than just the top 20 markets.  The National Association of Broadcasters didn't really care about this issue, but feigned interest.  The NAB wanted limits on national ownership for radio revisited, but that didn't happen.

Critics say the vote does nothing to improve the dismal record of minority media ownership in the US.  Anti-consolidation groups are upset.  So are several members of Congress.  Legal challenges and efforts to stave off the rule are sure to follow.

With the exception of the Tribune properties, Gannett and a few other companies, there are few broadcast-print companies, primarily due to the 1975 rule that prohibited cross-ownership.  Recently, Belo and Scripps have announced splits of their holdings because the print operations are dragging down stock prices.  There are no broadcasters clamoring to buy newspapers, especially if they are not one of the top four stations in the market as the new directive requires.

It's a dumb rule that comes at a bad time that will likely not hold up to legal challenges.  If it does survive, unless the Republicans can again capture the White House in 2008 the measure will be short-lived.