When the story of the collapse of local news is told, there are usually two villains: internet companies, especially Facebook and Google, and media consolidation. In recent years, a handful of large corporations have acquired most of the media outlets in the United States, leading to concerns about the concentration of power and the potential for bias in news reporting.
Here are some of the world's top news companies, arranged in decreasing order of available market capitalization figures as of June: Comcast, Walt Disney, AT&T, ViacomCBS, Discovery, News Corp, and Liberty Media. These conglomerates own a significant portion of the media landscape in the US.
However, there are also smaller, independent media companies that are making a name for themselves. For example, The Plug is a media company focused on reporting on Black innovation, and it recently raised $4 million in funding. It's one of the largest capital raises for a Latina-owned and operated startup in the US.
Media consolidation has been a controversial issue for decades. In 2017, the Federal Communications Commission (FCC) voted to ease rules on cross-ownership of radio and TV stations and newspapers, which critics said would lead to even more consolidation. However, the decision was later upheld by the Supreme Court. The justices said the commission had adequately considered the potential effects on competition and diversity of viewpoints.
While billionaire owners of media companies are not uncommon, a recent case in which a billionaire secretly funded a lawsuit to take down a news outlet raised eyebrows. This is a new way of using money to influence the media business, and it has sparked concerns about the potential for wealthy individuals to use their resources to silence opposition.
Like mergers in other industries, mergers involving media companies are reviewed by the Antitrust Division of the Department of Justice to ensure that they do not violate antitrust laws. The division examines whether a merger would result in a significant decrease in competition and diversity of viewpoints.
One example of a media company with a long history is KHQ radio, which was one of the earliest stations in Washington state, first serving Seattle and then Spokane. Louis A. Wasmer, who owned and operated the station for many years, was a pioneer in the radio industry.
The FCC has been involved in several recent high-profile cases related to media ownership. In 2019, the commission voted to allow the merger of T-Mobile and Sprint, a decision that was criticized by some who said it would lead to higher prices and less competition. However, the decision was ultimately upheld by a federal court.
Another recent FCC decision that was controversial was the decision to allow the Sinclair Broadcast Group to acquire Tribune Media. The decision was a big win for the FCC and reversed a finding from the 3rd Circuit that the agency had not adequately considered the effects on competition and diversity of viewpoints.
The First Amendment Handbook provides a basic primer on the laws affecting reporters' rights to gather and disseminate news. It covers topics such as libel, invasion of privacy, access to government documents, and the right to protest. The handbook is an important resource for journalists and others who are interested in understanding their legal rights and responsibilities.
In conclusion, media consolidation is a complex issue with many different viewpoints. While some argue that it leads to a more efficient and profitable media industry, others worry about the potential for bias and the concentration of power in the hands of a few large corporations. As the media landscape continues to evolve, it will be important to continue to monitor the role of media ownership and to ensure that the public has access to a diverse range of viewpoints.
