CHICAGO (Reuters) - The U.S. media industry's top regulator said on Tuesday that newspapers were failing to lend their voices to his drive to relax a decades-old rule barring them from owning broadcast outlets in the same market.
Federal Communications Commission Chairman Kevin Martin promised to initiate the process of modifying the so-called cross-ownership rule, but blamed newspaper executives for not lobbying hard enough.
"Indeed, the failure of the commission to modify our rules is not our fault alone. The public has not been convinced of the need for the change, and if you all are unable to get this done, our prospects of doing so are dim," Martin told newspaper executives at their annual convention.
Critics of federal rules relaxing ownership of broadcast and newspaper outlets in the same city or market have argued that further concentration in the industry stifles the diversity of viewpoints.
Newspapers, many of which remain extremely profitable and operate popular Web sites, are suffering steady circulation declines amid a growing array of news and opinion available on the Internet. Large media companies like the Tribune Co. seek relaxation of ownership rules to allow them to display their news gathering across several media.
"Your challenge is to educate the public about the changes in the media landscape and the need for revisions to the rules. The public needs to understand the value your papers offer and the struggles you face in continuing to provide news in the increasingly competitive environment," Martin said.
Before becoming chairman last year, Martin was one of five commissioners in 2003 who modified the original 1975 media ownership rules. But federal courts overturned the change allowing cross-ownership, declaring the commission did not properly justify the new rule.
The commission has so far failed to revisit the issue, despite Martin's entreaties and his argument that existing newspaper-owned broadcast outlets offer more news and public affairs content than competitors.
The commission is awaiting U.S. Senate confirmation of nominee Robert McDowell, a communications lawyer, who would give Republicans a majority of the five commission seats.
Some newspapers have found ways around the cross-ownership ban, including obtaining waivers, but executives questioned Martin's appeal for their lobbying help on the issue.
"I'm not sure how we're going to do that because I don't think a whole lot that we write in the paper is going to do anything," said David Dunn-Rankin, publisher of the Charlotte (Florida) Sun.
Dunn-Rankin said his newspaper started a telephone company to get around the rules and lay the groundwork for using cable or broadband access to deliver news and other content.
