1927 Radio Commission
The FCC followed the Federal Radio Commission (FRC) of 1927, which focused on radio regulation and broadcast licensing. The 1927 Radio Commission was created after the negative aftermaths of unregulated wireless radio during the early twentieth century. The Federal Communications Act of 1934, which created the FCC, built upon the acts and the FRC.
acquisition
Acquisitions, like mergers, involve the changed ownership of companies. While a merger refers to the combination of two or more companies to create a new business entity, an acquisition describes the situation of a company taking over another business. Therefore, acquisitions do not result in a new company like mergers. Acquisitions may occur to allow a company to reach different audiences or to compete in a new market that they previously lacked access to. For example, Google acquired Android in 2005 for over $50 million dollars, which allowed Google to work within the cell phone market for the first time.
antitrust
Antitrust laws or antitrust polices refer to legislation that monitors business acquisitions and mergers to ensure that the changing market decisions are legal and beneficial for the industry environment (e.g., not creating an unlawful monopoly power). Antitrust laws were created to help monitor and maintain the competition within industries, ensuring companies aren’t taking too much market power and participating in illegal activities. Antitrust laws work to ensure that companies are not completing violations like price fixing, which establishes prices among vendors that are unlawful and inappropriate for the product. Three pieces of legislation comprise the prominent antitrust legislation, including the Sherman Antitrust Act, the Federal Trade Commission Act, and the Clayton Antitrust Act. Therefore, antitrust laws — as such — work to avoid anti-competitive mergers, which occur when companies merge and lessen the competition within the relevant market.
Blue Book
The Blue Book, also known officially as the Public Service Responsibility of Broadcast Licensees report of 1946, was issued by the FCC. Within the report, the FCC noted a desire to require United States radio broadcasters to follow established public service requirements. The report focused on one of the FCC’s principles relating to ensuring communication systems followed and adhered to the public interest—what would benefit a majority of people and democracy. The report shared values that stations should put limits on advertising, contain children’s programming, showcase the diversity of the area, possess local content, and showcase the economy of the time.
Chevron Doctrine
Also referred to as the Chevron Deference. When a legislative document is ambiguous and unclear about its proper meaning, the Chevron Doctrine allows governmental bodies and agencies to interpret the law.
It was established by the United States Supreme Court through Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, which occurred in 1984. It allows agencies like the FCC to interpret and consider the meaning of an unclear legal matter’ within the agency’s expertise and jurisdiction.
Comcast-NBC Universal Merger
Also known as: the acquisition of NBC Universal by Comcast.
Comcast began acquiring NBC Universal in 2011, purchasing shares in the company. However, the telecommunications company publicly announced its decision to acquire the company from General Electric (NBC Universal’s previous owner) a few years prior. Some regulators addressed concerns that the acquisition would eliminate competition among video competitors. To make the deal go through and be approved by the government, Comcast agreed to dissolve its rights and stakes within Hulu.
competition
Competition refers to the activity or quality of making one’s product or service stand out amongst the target audience of consumers compared to other businesses and organizations in the industry. When multiple companies with comparable products are competing for consumer support, they may attempt to lower their costs to be most desirable or improve the quality of their content to garner the most support. Antitrust laws help ensure that companies compete against others, rather than being the sole face in the industry as a monopoly. Competition sparks increased variety and innovations within a market, besides helping to maintain fair price points and quality products.
controlling
To control means to direct and supervise how something runs or behaves.
The internet is not controlled by a singular entity; however, access and regulation of the internet can be controlled and influenced by governments through laws and by corporations that own internet infrastructure.
Some experts believe that mega-corporations like Alphabet (Google), Amazon, and Meta Platforms (Facebook, Instagram, and WhatsApp) currently have the majority of power and influence over the internet.
Internet Service Providers (ISPs) provide the majority of the internet infrastructure including cables and routers, and are owned in part by telecommunication companies (like AT&T, Comcast, etc.).
Net neutrality is a hot topic. This is the concept that ISPs should treat all data the same and not prioritize certain data over others. Antitrust policies can ensure that no single ISP can control the entire market.
Some governments have attempted to regulate parts of the internet through laws that prohibit certain sites or certain users. Because this can become a type of censorship, this kind of regulation creates concerns about free speech.
democracy
Democracy is a form of government in which people have a voice in the deliberation about political decisions. In some democratic settings, constituents choose legislative representatives to vocalize the groups’ viewpoints during political deliberations.
diversity
Diversity refers to the quality of capturing multiple perspectives and including people from a wide range of different backgrounds and demographics. When capturing a news story, the organization could capture diverse sources by ensuring they talk to people of multiple ethnicities, genders, and social classes.
If a media company is covering a story about politics, they could interview diverse perspectives from various political parties to ensure they are better capturing the entire population. Diversity could also refer to age, religion, culture, social class, ethnic/racial identity, gender identity, disability status, and occupation, among others.
economies of scale
Economies of scale refers to the savings a company experiences in costs through increased production levels. In other words, economies of scale can be defined as the cost advantages that come with efficient production. The larger a company is, the more cost savings it will experience. Consequently, they will also experience larger production levels.
For instance, if a supermarket or department store buys products in bulk, then they may experience a discount for the larger order. Therefore, they saved money and produced a lower average cost for each of those goods. Economies of scale also explain why smaller businesses may charge more for a product than a larger company. The cost that they can charge per unit is higher, since the larger companies may receive discounts for ordering in a large bulk quantity.
Fairness Doctrine
As a policy issued by the FCC, The Fairness Doctrine demanded equal time and attention for different points of view within communication programming in service of the public interest. The Fairness Doctrine developed after monopoly concerns within broadcast network television with particular viewpoints gaining major publicity.
For instance, if a Republican point of view was showcased on a program, the organization would be urged to find Democratic, Libertarian, and Independent perspectives on the issue as well.
FCC
The Federal Communications Commission (FCC) was created in 1934 and acts as a government agency to regulate and monitor communication systems like radio, television, and wire systems within the United States.
The FCC works as an independent regulatory body consisting typically of five commissioners, although the number has varied throughout history. When five commissions hold office, there are typically 3 members from the majority political party that controls the White House and 2 from the minority party. Currently, there are only four commissioners operating within the FCC (with the Democrat party not filling their final majority spot) because of a holdout on the nomination for the fifth commissioner.
The FCC was established to bring order to the communication ecosystem and was later expanded to cover a wide breadth of telecommunication mediums. The organization works to advance telecommunications, helping it become available to the largest portion of people at reasonable and comparable prices to ensure competition and protect consumers. It also deals with national and international negotiations. They give licenses to airways, which are publicly owned by the people of the United States of America. A principle goal is to ensure that communication systems operate with the public interest in mind.
FCC commissioner
The FCC commissioners who the President of the United States appoints and the U.S. Senate confirms into office, manage the governmental agency, the FCC. They regulate and monitor interstate and international communication systems that occur via cable, radio, television, and more. Their role is to ensure a competitive and fair market that works in the public interest.
government agency
Government agencies refer to organizations within the federal or state governments that oversee sectors or areas of jurisdiction. Examples include the FCC, the U.S. Department of Homeland Security, the United States Department of Defense, and the United States Department of Labor. The agencies are created by legislatures, typically either via Congress or a state legislation system.
grassroots
A grassroots movement refers to a social, political, or economic initiative spurred by the people within a community. Rather than attempting to create change through legislation, people may individually participate in grassroots efforts. The often self-organized and localized movements act to mobilize individuals around a central cause, causing advocacy for causes like women’s rights.
Grassroots initiatives may involve making phone calls and distributing information via communication mediums like email to spread the word about the movement. People may hang posters or gather people to sign a petition. Essentially, individuals involved in grassroots movements attempt to organize people in their local communities toward the cause. A grassroots movement includes the Civil Rights Movement in the 1950s-60s where individuals were advocating for social change within their communities.
horizontal integration
Horizontal integration occurs when one (or a select few) businesses control a large part of the market at the production, distribution, or exhibition level of the supply chain. Horizontal integration often leads to monopolies and oligopolies with particular companies controlling a majority of a product or service. Oftentimes, companies obtain horizontal integration through mergers and acquisitions. Horizontal integration contrasts with vertical integration, which involves companies controlling multiple stages or components of the supply chain.
For instance, Marvel and DC Comics both possess horizontal integration at the production level because these companies control a majority of the content being produced in the industry. Other companies trying to produce comics would face trouble competing against Marvel and DC Comics due to the power they hold within the market. Comparably, another example of horizontal integration was Facebook’s acquisition of Instagram because both companies were part of the same industry, social media.
localism
Localism refers to the focus or concern dedicated to a smaller area or region. For instance, with regard to the food system, localism may refer to purchasing products from farmer’s markets or local community-supported farms. When reporting on the news or creating media that adheres to the public interest, organizations should cover local stories, including topics like community figures as well as the local economy and politics. When companies merge or are acquired within a larger corporation, fewer local issues are covered with the organization’s new focus often being on global or national topics. By focusing on broader content, corporations can take advantage of the economies of scale and use the content for larger audiences.
media landscape
The media landscape, or the digital landscape, refers to the online environment in which people communicate and obtain information, news, and entertainment. The media landscape refers to newspapers, books, radio, podcasts, television, social media platforms, and more. The media landscape includes the outlets or vehicles that media organizations (or individual creators) use to distribute their content and messaging.
media merger
A media merger occurs when multiple communication organizations (at least two or more) merge or are acquired. When multiple companies combine, people foresee concerns about declined localism, diversity, and competition. Media mergers cause decreased competition in the media industry, reducing the company’s concern about competitive pricing in many instances. After a merger, some potential disadvantages include increased price points, a lack of understanding of the customer base, and unemployment.
Mergers can help the company work with economies of scale, allowing them to reduce operating costs and expand into new areas. When mergers transpire, the company acquiring the other business(es) often argues that the financial decision will allow them to better plan and allocate finances to benefit the public good.
Therefore, the companies combine to form a new entity. An example of a media merger is the Comcast-NBC Universal merger, which involved Comcast Corp. and NBC combining to form a new company.
media reforms
Media reforms reference the efforts toward changing mass media systems, often toward meeting public needs rather than corporate biases. In News Over Noise episode 109, Michael Copps urged for media systems to inform rather than entertain. When smaller, localized media companies are consolidated within larger corporations, the companies tend to focus on sensational material that sparks increased viewership and thus, generates revenue. For democracy to flourish, Copps said that media companies need to inform and educate the public about modern issues and news relevant to decision making.
monopoly
A monopoly occurs when a single company holds significant market power within an industry, limiting competitors from entering or succeeding against them. When there is a monopoly, alternative products and companies are unavailable to consumers. This causes purchasers to be forced to pay the prices established by the single company. Without substitutes or alternatives, consumers must accept the quality of content available to them.
Companies can become monopolies by controlling the entire supply chain via vertical integration, which means they control the product’s creation from production to distribution and exhibition. A company can also become a monopoly through horizontal integration, which refers to when a company is the sole competitor in a particular sphere of the industry, which could be at the production, distribution, or exhibition level.
In the late nineteenth and early twentieth century, Standard Oil and American Tobacco acted as monopolies in their respective industries. These companies were eventually reorganized due to the 1890 Sherman Antitrust Act, which worked to eliminate monopoly control that dictated market power.
news avoidance
Selective news avoidance is the practice in which people selectively avoid the news on certain topics. Reasons for avoiding may be a result of feelings exhausted/worn out by the news, a lack of trust in the news, and/or a belief that the news is too negative or overabundant.
For more information, check out News Over Noise Episode 101.
public airways
Public airways refers to the medium that radio and television signals are exchanged through. For radio and television broadcasters to use public airways, they must apply for a license and follow guidelines established for public use. Once a license is distributed to use the public airways, the company does not own the airways. Rather, the airways are public property just like the highway roads.
public interest
To obtain a broadcasting license and communicate across the airways, broadcast stations must demonstrate that they will work in the "public interest, convenience, and necessity” when filling out their license application every few years. The standard was first developed through the Radio Act of 1927 in relation to the Federal Radio Commission, which preceded the FCC. Upon the FCC’s creation, the standard remained as a test for companies using public airways. Content that meets the public interest requirement often addresses local and newsworthy issues that help people better participate in democratic matters. For instance, a station may air a public service announcement urging people about appropriate steps to take in a heat wave, which would benefit its listeners as a whole. Other content in the public interest could be PBS programming that tells the history of the Civil Rights Movement or another crucial time in history that would not be covered otherwise.
public media
Public media organizations are partially or fully funded by the government. Government influence is limited by allowing an independent regulatory body to disperse funds to the affiliated media outlets. Public media organizations are generally more responsive to their local community because they depend on the public for funding. Some examples of public media include WPSU, WHYY, NPR, and PBS.
telecommunications
Telecommunications refers to the transmission and exchange of information through electronic mediums, typically over lengthier distances. Telecommunication systems refer to mobile networks, TV networks, and the internet, among other media forms.
Telecommunications Act
The Telecommunications Act of 1996 was enacted by the United States Congress and expanded media conglomerates’ rights to participate in the cross-ownership of media outlets. The Act raised the limitations on station ownership, allowing for lessened restrictions for media companies.
vertical integration
Vertical integration refers to one (or a few) company(ies) control of a product or service through multiple stages of the supply chain process. For instance, a company could be horizontally integrated if they have control of the production level as well as the distribution and exhibition levels.
For instance, a vertically integrated automobile company may work at the production level by making car parts for vehicles; however, they may also sell the parts directly to customers. Therefore, that company would be vertically integrated because they participate in multiple levels of the industry process: production (when it is made from raw materials), distribution (when the product makes its way between producers and customers), and exhibition (when it is directly shown to customers).
A media company may desire to be vertically integrated because if they help produce content like a movie, then they would need to rely on other companies to ensure it is distributed and obtained by customers. However, if they are vertically integrated and have a role in the distribution or exhibition process, then they will have a way to ensure their products are being shown appropriately. Therefore, the company may need less reliance on outside companies if they become vertically integrated. It may also lead to lower costs.
wire communication
Wire communication refers to the transmission and reception of information via wire-based communication technology (compared to wireless options). It entails communication that transpires via wire, including cable television, desktop computers, and landline phones.