FCC Backs Away From Aiding Media

Two years ago, the Federal Communications Commission and the Federal Trade Commission launched reviews of the media industry with an eye toward changes in laws or tax code that could help struggling traditional media companies. Since then, the federal government's interest in helping the newspaper industry appears to be waning.

On June 9, the Federal Communications Commission will release its long-awaited report on the "Future of Media," but according to people who have seen the voluminous document, it holds little more than minor suggestions for rule changes, such as requiring broadcasters to put more information online. The report will also suggest that the Internal Revenue Service consider helping struggling media companies get an easier path to becoming non-profits. The report's recommendations aren't binding. "It's more of a history of media than a future of media [report]," said one FCC official who has read the report. The report also is expected to tip-toe around possible changes to the FCC's media ownership rules, which limit the number of TV stations and newspapers that a company can own. The agency was supposed to revisit those rules last year but that review has been delayed until later this year.

The FTC's review appears to have stalled after conservatives blasted a staff report last May which suggested increased government funding of news outlets and new taxes on broadcasters, consumer electronics gadgets or cell phones to pay for it. At the time, the FTC noted the draft did "not represent conclusions or recommendations" of the agency. The agency hasn't released a final report. An FTC spokesman said the agency couldn't say when it will be released.