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78
Chapter 11 Regulatory Influences on Media Management
OUTLINE
I. Regulatory Influences: The Federal Government
A. The federal government has played a major role in shaping the present
electronic and digital media landscape in the United States
B. By appointing the FCC chairman and other commissioners, the president
directly influences media policy
II. Role of State and Local Law
A. The U.S. Constitution gives power to the federal government to make laws
in areas of national concern, including matters pertaining to
III. Role of the Federal Communications Commission
A. Though several federal agencies influence media policy, the FCC exerts
the greatest influence
B. In 1934, Congress passed the Communications Act of 1934, which
established the FCC
C. The FCC comprises five members, one of whom is appointed as chairman.
D. Beginning with the Carter administration in the late 1970s, the FCC
entered a period of deregulation
2. Elimination of community ascertainment requirements ͒
4. Change license renewal procedures ͒
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© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
5. Elimination of the fin-syn rules
6. Promote new technology development
E. The FCC regulates interstate and foreign communications by radio,
television, wire, satellite, and cable television
F. In the broadcast industry, the most visible and important FCC actions
revolve around the licensing process. The FCC grants and renews licenses,
but it also can take them away. FCC has made many licensing policies.
H. Regulation of the cable industry differs greatly from that of broadcasting
1. Cable operators do not obtain a license from the FCC; instead,
they are awarded a franchise from a local governmental authority.
3. The 1996 Telecommunications Act also affected the cable
industry in the policies, such as rate deregulation for basic cable,
must-carry/retransmission consent, etc.
I. Telephone or telecommunications regulation is an extremely complicated
process because of different jurisdictional boundaries and market
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C. The National Telecommunications and Information Administration
ASSIGNMENTS/PROJECTS
1. Regulatory agencies like the FCC were created to act as intermediaries between the
public and the potential excesses of an unregulated marketplace. Form small groups
to discuss the following issues: In what ways do you believe the FCC should
regulate the electronic and digital media? What, if anything, should it regulate
regarding radio and television program content? Price caps on cable? Ownership
limits? Cross ownership of different media? Should the Internet be regulated in a
different way from the traditional electronic media?
2. The deregulatory emphasis of the Telecommunications Act of 1996 has enabled a
greater number of media properties to be owned by a handful of large companies.
3. Have the students contact the different local television stations to find out what
MULTIPLE-CHOICE QUESTIONS
1. This organization was the forerunner of the FCC, and was established by the Radio
Act of 1927.
2. Which of the following is not a criterion used to determine whether or not a contest
is a lottery?
a. chance
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© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
*p. 254 b. privilege
c. prize
d. consideration
e. none of the above
3. This governmental agency is concerned with possible antitrust violations.
a. FCC
4. In establishing the FCC, Congress recognized the _________ principle in its
legislation—the idea that more people would want to engage in broadcasting than
5. ________ required broadcasters to present programming that covered controversial
issues in a fair and balanced way.
6. Which of the following department of FCC handles spectrum management and
access?
7. ________ allow one station to take over the programming and advertising sales for
another station in the market without assuming ownership of the facility.
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© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
*p. 248 d. Local marketing agreements
e. Duopoly and triopoly rules
8. Which of the following is not the criterion to define obscene material?
a. The average person, applying contemporary community standards, finds
that the work as a whole appeals to prurient interests.
b. The work depicts or describes in an offensive way sexual conduct
9. Which of the following is not the informal regulatory forces that impact media
management?
10. Current FCC ownership rules limit the number of radio stations an individual or
group may own nation-wide to ________ of each class (AM and FM).
11. Advertising regulation is coordinated by this organization:
a. NTIA
12. Which of the following is not an example of deregulation from the last two
decades?
a. elimination of the Fairness Doctrine
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13. The FCC regulates the rates of the long-distance telephone market under a
framework known as
14. Which of the following is not a federal department or agency that influences the
regulation of electronic media?
15. The WLBT (Jackson, Mississippi) case established what important legal right for
citizens?
a. that citizens could sue broadcasters over programming decisions
TRUE/FALSE QUESTIONS
16. The President of the United States appoints commissioners to the FCC, with the
advice and consent of the Senate.
17. In the television industry, no individual or group may own stations that collectively
reach more than 39% of the national audience.
18. Telecommunications (telephone) regulation involves both federal and state
agencies.
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
False
19. The most visible and important FCC actions involve programming regulation.
20. Following the 1992 Cable Act, many television stations negotiated lucrative
retransmission consent agreements with local cable television systems.
DISCUSSION/ESSAY QUESTIONS
1. Identify any two items required by the FCC to be retained in a Public File.
2. Briefly, what’s the difference between obscenity and indecency?
4. Explain how price cap regulation differs from rate-of-return regulation in the
telephone industry. How can price cap regulation benefit consumers?
5. Explain the concepts of must-carry and retransmission consent as set forth in the
1992 Cable Act. Why did most television stations choose must carry? Why did so
few manage to negotiate retransmission consent agreements?
