Govt will need to help shape U.S. media: Waxman
From Reuters US Online Report Politics News | 2009-12-02 17:13:47
<div><p>WASHINGTON (Reuters) - A top Democratic lawmaker predicted on Wednesday that the government will be involved in shaping the future for struggling U.S. media organizations.</p><p>House Energy and Commerce Committee Chairman Henry Waxman, saying quality journalism was essential to U.S. democracy, said eventually government would have to help resolve the problems caused by a failing business model.</p><p>Waxman, other U.S. lawmakers and regulators are looking into various options to help a newspaper industry hurt by the shift in advertising revenues to online platforms.</p><p>Tweaks to the tax code to allow newspapers to spread losses over a greater number of years, providing a nonprofit structure to allow for public and foundation funding, and changes to antitrust laws are being considered by lawmakers and policymakers.</p><p>"Eventually government is going to have to be responsible to help and resolve these issues," Waxman told a conference hosted by the U.S. Federal Trade Commission on the future of journalism.</p><p>Free Press, a public interest group, said the search for solutions to the crisis in journalism should be premised on the idea that news-gathering is a public service, not a commodity.</p><p>Waxman's "indication that government has a role to play is both bold and soberly sensible," said Free Press Policy Director Ben Scott on the sidelines of the FTC conference.</p><p>At the Federal Communications Commission, officials are embarking on a quadrennial review of the state of U.S. media. The study, which is mandated by Congress, seeks to determine whether current rules should be changed to allow for a more vibrant media industry serving a diverse audience.</p><p>As advertising sales shrink and more people get information and entertainment online, media companies want more freedom to merge and own multiple outlets in particular locations.</p><p>Sentiment also is growing that the Internet and other technological advances have rendered media regulation debates obsolete, industry observers say.</p><p>The FCC rules have come up for review before, but the stakes are higher now, with broadcasters and publishers like Tribune Co in bankruptcy.</p><p>U.S. media ownership rules generally prohibit a company from owning a television broadcaster and a newspaper in the same market but exemptions have been granted over the years.</p><p>Waxman was wary of such cross-media ownership structures.</p><p>"Even greater consolidation of the business has not helped," Waxman said.</p><p>(Reporting by John Poirier; Editing by Tim Dobbyn)</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=64610182&bid=informcom" /></div><div id="copyright"><div>
Copyright 2009 <a href="http://www.reuters.com/finance">Reuters US Online Report Politics News</a></div></div>
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