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Effects of the Telecommunications Act of 1996
Discuss one or more of the major effects of the Telecommunications Act of 1996 on technology, content, or industrial policy. Why do you think the FCC enforced more regulation on content at the same time that they ushered in less regulation on media corporations? What seems similar and/or different in today's media environment concerning these issues?
The various elements of the Telecommunications Act of 1996 seem incongruent from an outside perspective at first. The act was part of a broader political movement to deregulate industries that had been heavily regulated so that Americans could have more choice and businesses could become more competitive. Truly though, the act was created so that the broadcasting industry (which was heavily regulated) would not wither and die at the feet of the newly popular invention of the heavily unregulated internet. Clinton made it very clear his intentions of the bill were to “promote competition as the key to opening new markets and new opportunities,” (David McCabe, 2016). Some major provisions of the act were allowing big companies to merge, and removing barriers to entry in local markets. It required interconnected networks with a cap on a network reaching 35% of the population (a greater percentage than before) and limits bundling practices.
ReplyDeleteI believe the FCC enforced more regulation on content than on corporations because they did not want the internet to squash television’s profitability and cause networks to go out of business. However, I believe that the regulatory content of the act was also a response to the internet. It scared people because it was so new and unknown and I believe Clinton wanted to regulate the internet and television for obscenity once he realized that the barriers to entry in media (especially on the internet) would be nearly eliminated.
Mainstream media television shows do seem to be more conservative and careful about showing obscene content than media that is less mainstream. HBO and Showtime, for example, show far more sexually explicit scenes, drug use, and violence than shows that can be found on ABC. I believe this is a remnant of the 1996 Act.
The Clinton era, long hailed by liberals as a time of social progress and economic victory, is beginning to come under scrutiny by a contemporary left dissatisfied with neoliberal economic norms that have resulted in widening wealth inequality. One exemplary piece of centrist legislation that lead to our current Gilded Age is the Telecommunications Act of 1996, a bipartisan measure that permanently binded social and economic conservatism to the American media industries. The Decency Act, an article within this legislation, was a deeply unconstitutional and immoral censorship measure that put onerous content restrictions on artistic works on television and the internet. The economic end of the legislation ensured our current situation - six media companies controlling virtually all popular sources of information and entertainment. Now, in the Trump era, we’re seeing more threats to a free and fair media space by a government convinced that any deregulation is good deregulation. Net Neutrality will simply be the next cyclical deregulatory measure that will crush what modes of expression our struggling populace has.
ReplyDeleteThis happened because the Clinton democrats have never been on the left. Reagan’s popularity as he demolished the country’s economic future ensured that democrats will always punch to the left before punching right and will never side with obvious measures the government could take to help heal a broken constituency.
The telecommunication Act of 1996 can be seen as an political movement along with Clinton’s intension to enlarge the competition. One of the most important issue is the allowing for media-cross ownership. It let anyone enter any communications business and compete in any market against any other. The competition lead to the historic industry consolidation reducing the number of major media companies while allowing the growth of the telecommunications sector.
ReplyDeleteIn terms of the technology, internet speeds have risen, with Americans making the switch from dial-up to broadband, which in turn has disrupted the old order in other industries, like broadcasting.
I think the FCC enforced more regulation on content at the same time as they ushered in less regulation on media corporation because of they want to separate the business of internet and media. Even though it allows for more competition, it don’t want the competition to go too far so that it might break the balance between internet and television.
In today’s media environment, I think the act influence the media a lot by making it more media concentration, less diversity, and higher prices, just like what it is now. Also, the content is more direct and bold when it comes to sex, violence, and political issues.
The last time that the United States ran a surplus, Bill Clinton was in office. the combinations of reckless tax cuts and war expenses under Bush thwarted that progress. Clinton, like his conservative predecessors, was a fan of deregulation. The Telecommunications Act of 1996 fell right in line with the other policies passed at the time. By letting corporations run wild, record profits were seen (though very little of that went to the middle class workers at those companies), but there was also a push for corporations to grab as much of the audience on as many channels as possible, something that is still true today.
ReplyDeleteThere are two key parts of the Telecommunications Act of 1996 that are particularly relevant to a recent example. First, companies could own up to 35% of the television audience. Secondly, cable providers must carry local stations within a 60 mile radius. This means that consumers can access local news from all over. The combination of the two allowed for the Sinclair Broadcasting Group to purchase a number of local stations recently. Sinclair stations are notorious for having a political tilt, with former Trump campaign surrogates leading policy segments that air around the country. All national segments will have that hard-right tilt. The Telecommunications Act was intended to take power from the government and give it to a number of groups so that they feel the need to improve. Ultimately, this move has taken power from consumers and handed it to a select number of organizations, creating an oligarchy. Some would argue that his policy worked, but most would say complete deregulation did not work to the best interest of all.