Posted April 16, 2001

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By AL TOMPKINS
Broadcast/Online Group Leader

When television was still a baby, most TV stations were owned by newspapers. Some papers saw TV as a threat that could gobble up advertising dollars so they took no chances. But 26 years ago, the Federal Communications Commission banned newspapers from buying TV stations in the same city where the paper operated. Now, the FCC is sending out signals that the ban may end within a few weeks.

Once newspapers are free to buy TV stations again, we will likely see a new land grab for stations that has not been seen in years. Newspapers might be willing to pay handsome prices for smaller, less profitable stations that cash starved station groups would love to sell. Newspapers may be willing to pay the healthy prices in order to launch "convergence" projects that would provide them with video and audio content to be delivering across multiple platforms. Media General, Tribune Company and others are doing just that with their newspaper, broadcast and online properties.

Another big sea change in ownership rules may arrive even sooner. Today's New York Times reports: "on Thursday the FCC will relax a regulation known as the 'dual-network rule' that prohibits a network from buying another. The change will permit Viacom to own CBS and have a large interest in UPN, a second, far smaller network." (Full story; free registration required.)

For some time, the FCC has found it difficult to argue in favor of the restrictions, especially in a time when the Internet enables anyone with a computer and a phone line to be in the publishing and news business. In the past, the regulations have remained in place because opponents to dual ownership have persuaded Congress that big media companies would not be attentive to community needs.

In some cities, newspapers and TV stations slug it out for news coverage and advertising dollars.

These rulings may be very good for media companies. But it remains to be seen if the changes will be good for journalism.