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FCC Established Diversity Index Case Study

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The establishment of specified standards:
In order to measure the diversity of the media, the FCC established Diversity Index (DI) in 2003. Diversity Index reflects the degree of concentration in the viewpoint diversity in local markets. availability of outlets of various types is measured and assigned a weight to each output (radio, press, television, etc.) based on their value relative to consumers. FCC DI scores calculated sample of ten markets, and use the results to set the Cross-Media limits. Using these sample scenarios, the FCC found that in small markets with three or fewer TV stations, all consolidation scenarios resulted in high increases to the average score DI. In large markets containing nine or more TV channels, all consolidation scenarios resulted in "acceptable" to the score DI is increased so no limits on cross-ownership of media in …show more content…

In mid-sized markets, of between four and eight television stations, the Commission found that scores DI scenario only newspaper / television duopoly increased to an unacceptable level. As a result, the FCC prohibits combinations newspaper / television, press / radio and radio / television in these markets.

The impact of Internet on traditional media:
Internet is not currently a substitute and is not likely to be soon a substitute for traditional media. For this reason, the Internet should not be used as a pretext to further increase the limits of media ownership, which have already proven to result in less local news on television and radio. New media offers the opportunity to produce alternative content cheaply and the proliferation of websites and Internet chat rooms demonstrates the will to seize the opportunity. However, it is difficult to attract significant number of consumers. As a result, the penetration of dough alternate

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