Ownership

Disney just took control of 21st Century Fox’s media empire, and the Federal Communications Commission voted to repeal net neutrality regulations that prevent internet providers from discriminatory behavior. These two industry-shaking events will set media companies on a dramatic collision course with ISPs. It is the conflict that threatens the internet.

[Commentary] This holiday season, the Federal Communications Commission has made it clear they have massive broadcast conglomerates like Sinclair Broadcasting on their “nice” list while an independent and local media will only be receiving coal. Currently, the national media ownership cap is set at 39% of television households in the US. The FCC is proposing blowing the cap off the rule that ensures there is more than one source of information.

Two big earthquakes shook the media industry Dec 14. They are not directly connected but will combine to reshape the industry’s landscape. Net neutrality, the idea that internet distributors should not discriminate between different kinds of content, was voted out. The dramatic deal between Walt Disney Co. and 21st Century Fox, inked on the same day, should be seen at least in part as a response to this.

President Donald Trump called to congratulate 21st Century Fox owner Rupert Murdoch on Dec 14 following the announcement that Disney will buy most of Fox for more than $50 billion. White House spokeswoman Sarah Huckabee Sanders said that the president is hopeful about the deal's effects on job creation.  "The president spoke with Rupert Murdoch earlier today, congratulated him on the deal and thinks that, to use one of the president's favorite words, that this could be a great thing for jobs," she said.  "And he certainly looks forward to and is hoping to see a lot more of those created."

The Federal Communications Commission adopted a Notice of Proposed Rulemaking initiating a comprehensive review of the national television audience reach cap, including the so-called UHF discount used by broadcasters to determine compliance with the cap. The national cap limits entities from owning or controlling television stations that, together, reach more than 39 percent of the television households in the country. The Commission’s last review of this rule occurred when the video marketplace looked very different and most Americans had fewer options for watching video programming.

A Q&A with Columbia Law School professor Tim Wu. 

Disney's $52.4 billion holiday shopping spree puts 21st Century Fox's entertainment assets under Mickey Mouse's Christmas tree but leaves the Fox broadcast network, Fox News and Fox Business with Rupert Murdoch.  “This merger seems to be explicitly not about the news businesses,” said Ben Gomes-Casseres, a former World Bank economist who specializes in mergers and acquisitions at the Brandeis International Business School. Ah, but what about side effects? What might Murdoch do with his pared-down company? And will Disney, with all its new toys, devote sufficient attention to ABC News?

Sen Richard Blumenthal (D-CT) is calling on the Justice Department to investigate whether the 2011 Comcast-NBC merger has hurt market competition. Sen Blumenthal sent a letter to the Trump administration's top antitrust prosecutor, Makan Delrahim, on Dec 13, asking him to revisit the deal and to try to keep in place behavioral conditions that are set to expire next year.

In a Declartory Ruling and two Orders, the Federal Communications Commission reversed its 2015 Open Internet rules.

Declaratory Ruling

T-Mobile is launching a TV service in 2018, becoming the latest company to marry wireless and video. The service will target people who aren't interested in traditional cable and satellite TV packages. T-Mobile promises to address consumer complaints such as “sky-high bills” and “exploding bundles.” The company did not provide details on its upcoming offering, such as how it would differ from existing online TV alternatives from Hulu, YouTube, Sony, AT&T and Dish. The nation's No. 3 wireless carrier said Dec 13 that it bought cable-TV start-up Layer3 TV Inc.