- In a devastating blow for media diversity, the FCC, on
a contentious 3 to 2 vote, approved a "$6.6 billion media mega merger"
between DirecTV satellite television service and Rupert Murdoch's News
Corporation. The merger will add DirecTV's 11 million subscriber to Murdoch's
U.S. empire which already includes local television stations reaching more
than 44 percent of the country, a major national broadcast network, numerous
cable and satellite channels, the most widely used electronic program guide,
newspapers, magazines, a publishing house and movie studios.
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- The unprecedented size and scope of Murdoch's holding
will, according to FCC Commission Jonathan A. Adelstein, put News Corp.
"in a position to raise programming prices for consumers, harm competition
in video programming and distribution markets nationwide, and decrease
the diversity of media ownership."
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- The FCC-approved deal allows News Corp. to effectively
shut out local programming -- especially in rural markets. Although News
Corp. initially pledged to provide local television stations to satellite
subscribers, they later revealed that they intended to do so by incorporating
conventional antennas into its devices and "hope the customer can
receive a signal." For people who live in rural areas, that will frequently
mean they receive no signal at all. Commissioner Adelstein says that News
Corp's position means that "what could have been the most important
public interest benefit of this merger turns out to be nothing more than
a sham."
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- News Corp. owns a vast array of television outlets, including
many which feature highly coveted regional sports programming. The acquisition
of DirecTV will give News Corp even more bargaining clout when it negotiates
retransmission fees with cable and satellite competitors. Even the FCC
recognized that this was a problem. In approving the merger, the FCC required
that "its Fox subsidiary offer its programming to other cable and
satellite operators on the same terms as it does to DirecTV." The
FCC also required that News Corp. accept "arbitration of any disputes"
and must continue to provide programming while the dispute is being resolved.
One problem: "the benefits of these conditions disappear without a
trace after six years."
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- When News Corp. pitched the merger to the FCC it claimed
that the merger "will give them the scale and scope to compete more
effectively." But News Corp. failed to "demonstrate that any
of these alleged savings would be passed on to consumers nor did they evince
great enthusiasm for doing so." News Corp. produced very little data
as to how the transaction "could possibly discipline rising cable
rates." FCC Commissioner Michael J. Copps said the likelihood News
Corp's acquisition of DirecTV would lower prices for consumers "is
so remote as to be invisible."
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- Ever wonder how Murdoch usually gets what he wants? News
Corp. spent nearly $10 million on lobbying from 1999 to 2002. Murdoch himself
has met personally with FCC commissioners and key lawmakers several times.
For the 2004 election, News Corp. has already contributed $200,000. For
the 2000 and 2002 cycles the company's contributions exceeded $1.7 million
dollars.
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- http://truthout.org/docs_03/122503E.shtml
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