Senators fighting corporate consolidation of media ownership are speeding the demise of Old Media 4/24/08Posted by Steve Boriss in MediaConsolidation.
If a business is sick, one of the best ways to restore its health is for it to be acquired by a larger, healthier company in the same business. Such an acquiring business would already know how to succeed in that business, and have the financial resources to invest the funds for a turnaround.
Of course, that’s too complicated for America’s geniuses in the U.S. Senate, who often demonstrate their ignorance while claiming they are the smartest people in the room. Case in point is a Senate Committee trying to reverse the recent FCC ruling that allowed the new owner of the Tribune company to own a broadcast station and daily paper in the same media market. This was not a random act by the FCC, but a measure to ensure that the struggling LA Times could find an interested, experienced buyer to save it.
The Senators’ rationale — concern about increasing concentration of media outlet ownership in fewer and fewer private hands — reveals their complete ignorance of the subject. Haven’t they ever heard of the Internet, which is spreading-out “ownership” of the news into more and more hands? Haven’t they noticed that corporate size seems to have little to do with success on the Internet as the wildly successful Drudgereport and TechCrunch have shown us? On the other hand, maybe we can be grateful to the Senators. Through regulation that prevents the healthy consolidation of outlets, they are killing-off Old Media outlets faster than they would die a natural death, clearing the way for superior New Media alternatives.