MEDIA
MONEY
How
Corporate Spending Blocked Political Ad
Reform
& Other Stories of Influence
BY CHARLES LEWIS
In
his January 1998 State of the Union address,
after decrying the campaign fundraising
"arms race," President Bill Clinton proposed
a major new policy that would address a
big part of the problem -- the high cost
of campaign commercials. "I will formally
request that the Federal Communications
Commission act to provide free or reduced-cost
television time for candidates," the president
said. "The airwaves are a public trust,
and broadcasters also have to help us in
this effort to strengthen our democracy."
Within twenty-four hours, Federal Communications
Commission chairman William Kennard announced
that the FCC would develop new rules governing
political ads.
But
days later, the powerful broadcast corporations
and their Capitol Hill allies managed to
halt this historic initiative. In the Senate,
Senator John McCain of Arizona, the Commerce
Committee chairman, and Conrad Burns, a
Republican from Montana and the chairman
of that panel's communications subcommittee,
announced that they would legislatively
block the FCC's free-air-time initiative.
"The FCC is clearly overstepping its authority
here," McCain said. In the House of Representatives,
seventeen Republicans -- including Majority
Whip Tom DeLay, Appropriations chairman
Bob Livingston, future House Speaker Dennis
Hastert, and Billy Tauzin, chairman of the
House Commerce Committee's telecommunications
subcommittee -- sent a blunt letter to Kennard:
"Only Congress has the authority to write
the laws of our nation, and only Congress
has the authority to delegate to the Commission
programming obligations by broadcasters."
John Dingell, the Michigan Democrat and
ranking House Commerce Committee member,
also sent an opposing letter to Kennard.
Faced with the very real threat that his
agency's budget would be cut, Kennard had
no choice but to retreat from the proposed
rule making.
It
was a humiliating and metaphorical moment
for the FCC. The threat of a shrunken budget
and a congressional backlash -- "the likes
of which would not be pleasant to the Federal
Communications Commission under any circumstances"
is the way Livingston described it -- was
too much for the FCC. Many politicians in
power tend to fear free air time for the
leg up it would give to challengers. More
than that, free air time for political candidates
would directly affect the bottom line of
a very important industry and Washington
player -- the media industry. It would cost
broadcasters millions of dollars in lost
advertising revenue, and they were not about
to allow a direct affront to their financial
self-interest become law. Free air time
quickly went from the fast track to the
back burner. In a very public way, the agency
and the White House had been "rolled like
a pancake," recalls former FCC chairman
Reed Hundt, Kennard's immediate predecessor.
Indeed,
the media's success in handling the threat
of free air time for candidates is but one
of a stack of pancakes that media companies
have rolled in Congress and the White House
in recent years. Which is why the media
industry is widely regarded as perhaps the
most powerful special interest today in
Washington.
How
do media corporations win friends and influence
people in our nation's capital? The old-fashioned
way, by using the time-honored techniques
with which business interests routinely
reap billions of dollars worth of subsidies,
tax breaks, contracts, and other favors.
They lobby vigorously. They give large donations
to political campaigns. They take politicians
and their staffs on junkets.
LOBBYING
-- An investigation by cjr and the Center
for Public Integrity found that since 1996,
the fifty largest media companies (defined
as companies that derive half or more of
their revenues from broadcasting, cable
operations, publishing, online media, and
their content providers) and four of their
trade associations have spent $111.3 million
to lobby Congress and the executive branch
of the government. The number of registered,
media-related lobbyists has increased from
234 in 1996, the year the historic Telecommunication
Act became law, to 284 in 1999. And last
year, the amount of money spent on lobbyists
was $31,408,965, up 26.4 percent from the
$24,835,961 spent in 1996.
By
way of comparison, in 1998, when media firms
spent $28.5 million for lobbying, securities
and investment firms spent $28 million,
labor unions spent $23.7 million, and lawyers
spent $19.1 million. Media companies weren't
the biggest lobbying interests (airlines
spent $38.6 million, defense contractors
$48.7 million, and electric utilities $63.7
million). But no other sector of the economy
has the perceived power to shape coverage
in the news, a factor that greatly increases
the media companies' lobbying weight.
CAMPAIGN
CONTRIBUTIONS -- Since 1993 through
June 30th of this year, media corporations
have given $75 million in campaign contributions
to candidates for federal office and to
the two major political parties, according
to data provided by the Center for Responsive
Politics. The next president of the United
States will have gotten to 1600 Pennsylvania
Avenue with more than a million dollars
in political donations from media interests;
Vice President Al Gore has taken in $1.16
million, Governor George W. Bush has received
$1.07 million. The sitting member of Congress
with the biggest haul in media money --
including his presidential campaign -- is
Senate Commerce Committee chairman McCain,
who has collected $685,929. Over all, the
amount of campaign cash from the media industry
is skyrocketing every election cycle, which
is typical of political giving in general.
For example, media corporations gave $18,937,449
in 1997-1998, a 61 percent increase over
the previous, 1993-1994 mid-term election
cycle.
No
media corporation lavishes more money on
lobbyists or political campaigns than Time
Warner, Inc. The media giant spent nearly
$4.1 million for lobbying last year, and
since 1993 has contributed $4.6 million
to congressional and presidential candidates
and the two political parties. The second-heaviest
media spender in Washington is the Walt
Disney Co., Inc., which paid $3.3 million
for lobbying and just under $4.1 million
in political donations during the same period
of time. This is not a subject either company
appears anxious to discuss. Calls to Gerald
Levin, chairman of Time Warner, and to Michael
Eisner, chairman of Disney, were not returned.
Nor would the c.e.o.s of the other big media
political spenders answer our questions:
AT&T/Liberty Media (formerly Tele-Communications,
Inc.) chairman John Malone; Viacom's Sumner
Redstone; Seagram's Edgar Bronfman; Ralph
Roberts, chairman of the board of Comcast;
DreamWorks' part-owner David Geffen; and
News Corporation's chairman Rupert Murdoch.
JUNKETS
-- Since 1997, media companies have taken
118 members of Congress and their senior
staff on 315 trips to meet with lobbyists
and c.e.o.s to discuss legislation and the
policy preferences of the industry. Lawmakers
and their staffs have traveled near and
far, to events as close as Alexandria, Virginia,
and as far away as Taiwan. They've spoken
at anniversaries of news organizations,
gone fact-finding in Capetown, South Africa,
and toured movie studios. Blaine Merritt,
chief counsel to the courts and intellectual
property subcommittee, wrote that the purpose
of his trip to Burbank, paid for by Walt
Disney, was to "learn about Disney production
facilities and review relevant legislative
issues which affect the company's operations."
The
cumulative cost of these 315 trips was $455,867.
The top three sponsors of the all-expense-paid
jaunts were News Corporation, the National
Association of Broadcasters, and the National
Cable Television Association.
No
member of Congress traveled more frequently
on the media industry's nickel than Congressman
Billy Tauzin, the Louisiana Republican.
He and his senior staff have been taken
on forty-two trips -- one out of eight junkets
the industry has lavished on Congress. In
December 1999 Tauzin left with his wife
Cecile on a six-day, $18,910 trip to Paris,
sponsored by Time Warner and Instinet, ostensibly
for a conference there on e-commerce. Another
member attending the same meeting, Rep.
John E. Sweeney, a New York Republican,
reported half the costs incurred by Tauzin,
$7,445. Tauzin's wife and his son Michael
have accompanied him on several industry-sponsored
trips to New York, New Orleans, and Palm
Springs, California.
Despite
calls to his office and home, Tauzin declined
to be interviewed. Andrew Schwartzman, a
public interest lawyer and the director
of the Media Access Project, who has been
watching Tauzin for years, says he is not
the least bit surprised about Tauzin's trips.
"Billy Tauzin is an active, knowledgeable,
and involved member of Congress who spends
a great deal of time on telecommunications
issues," he says. "But unlike some other
members, he is not the least bit embarrassed
about accepting large quantities of their
generosity. This is the Eddy Edwards, Huey
Long kind of streak in these guys of 'wink,
wink, I'm a rogue' . . . Billy just kind
of revels in it."
The
second most frequent flier in Congress courtesy
of the media has been Thomas J. Bliley,
the Republican who chairs the House Commerce
Committee. Bliley and his staff have logged
nineteen junkets over the last three years.
At
the GOP convention in Philadelphia, Tauzin,
who hopes to succeed chairman Bliley, hosted
a Mardi Gras-style celebration, complete
with floats from Louisiana. The affair,
attended by lobbyists and pols and reportedly
costing $400,000, was underwritten by, among
others, SBC Communications, which owns cable
properties; BellSouth Corp.; and Comsat
Corp. Not to be outdone, Tauzin's rival
for the top job on Commerce, Michael Oxley,
threw an American Bandstand-themed bash,
complete with the show's host, Dick Clark,
the day before. Oxley's dance party was
paid for by contributions of up to $75,000
a pop, according to Legal Times,
from the likes of COMSAT Corporation, Satellite
SuperSkyway Alliance, and SBC Telecommunications;
the total cost was estimated in the $300,000-to-$400,000
range.
The
largess extended by the media industry is
not limited merely to Congress. We also
found that Federal Communications Commission
employees were taken on 1,460 all-expenses-paid
trips sponsored by media corporations and
associations since 1995, costing a total
of $1.5 million. A group called the Institute
for International Research paid for sixty-two
trips at a cost of more than $95,000. The
innocuous sounding IIR is a privately held,
global conference organization group, designed
to allow corporate clients "an excellent
opportunity to showcase your products in
front of key decision makers . . . and to
ensure maximum networking opportunities."
The FCC's Office of Policy Planning chief,
Bob Pepper, tops IIR's list of favorite
regulators, with eight trips totaling more
than $23,500.
JUNKETS
1997-2000 Sponsors
of Trips
| SPONSOR |
TOTAL
COST OF TRIPS |
| 1.
News Corp |
$68,175 |
| 2.
National Assn. of Broadcasters |
$56,212 |
| 3.
National Cable Television Assn. |
$48,168 |
| 4.
Media One |
$41,159 |
| 5.
Walt Disney |
$33,868 |
| 6.
NBC |
$26,929 |
| 7.
World College of Journalism & Communication |
$18,700 |
| 8.
Assn. of Local Television Stations |
$18,490 |
| 9.
Instinet |
$15,260 |
| 10.
Discovery Channel Foundation |
$13,900 |
1997-2000
Congressmen and Staff Trips
| CONGRESSMEN |
TOTAL
COST OF TRIPS |
| 1.
W.J. "Billy" Tauzin (42) |
$77,389 |
| 2.
Thomas J. Bliley (19) |
$18,110 |
| 3.
Elizabeth Furse (3) |
$14,710 |
| 4.
Orrin G. Hatch (12) |
$12,846 |
| 5.
John M. Conyers Jr. (12) |
$12,616 |
| 6.
Michael G. Oxley (7) |
$12,488 |
| 7.
John F. Kerry (3) |
$11,340 |
| 8.
J. Dennis Hastert (6) |
$10,540 |
| 9.
Henry J. Hyde (9) |
$10,134 |
| 10.
John M. Shimkus (6) |
$9,332 |
THE
BIG PLAYERS
The
intermeshing of public and private sectors
has, of course, been an endemic problem
in Washington for years, and the social
and professional interaction between the
media business and the government that regulates
it is, not surprisingly, quite extensive.
For example, Podesta & Associates, now
known as Podesta.com, is the outside lobbying
firm representing the widest array of media
behemoths. Since 1996, the company has received
$1.62 million as the Washington representative
for Viacom, Time Warner, and NBC. It is
headed by Tony Podesta, whose brother John
happens to be the White House chief of staff.
Twenty-three members of its staff of thirty-three
formerly worked on Capitol Hill for one
party or the other. One of them, Kimberley
Fritts, is the daughter of the president
of the National Association of Broadcasters,
NAB.
No
media organization spends more money lobbying
or has more people covering Washington than
the NAB, which has spent $19.42 million
to persuade government officials since 1996.
NAB president Eddie Fritts was a college
classmate and is a close friend of Senate
Majority Leader Trent Lott, and on occasion
this relationship has been immensely helpful
to the broadcasters. There are twenty registered
lobbyists at the NAB, seven of whom came
from congressional staffs, the FCC, and
the Federal Trade Commission. Until recently,
their ranks included Kimberly Tauzin, daughter
of Billy Tauzin.
The
Newspaper Association of America has spent
$6.5 million on lobbying since 1996, using
four in-house lobbyists and four outside
firms, most notably Wiley, Rein & Fielding,
whose founding partner, Richard Wiley, once
served as chairman of the FCC. They've lobbied
on everything from the Freedom of Information
Act -- certainly an understandable concern
for journalists -- to postal reform bills
and amendments to the Fair Labor Standards
Act that could change the rules governing
independent contractors. They've also sought
to overturn FCC rules that limit the number
of stations any broadcaster -- including
newspapers -- can own.
Media
corporations have spared no expense in Washington,
hiring all of the "usual suspects" kind
of big-name lobbyists. They include former
Republican party chairman Haley Barbour
(CBS); Tommy Boggs, son of the long-deceased
House Majority Leader Hale Boggs and U.S.
Ambassador to the Vatican Lindy Boggs, and
brother of ABC News correspondent Cokie
Roberts (National Cable Television Association;
Magazine Publishers of America); a former
Reagan White House chief of staff, Ken Duberstein
(Comcast, National Cable TV Association,
Time Warner); a former Nixon White House
aide, Tom Korologos (Cox Communications);
a former Carter White House aide, Anne Wexler
(Comcast, Univision); and former FCC chairman
Richard Wiley (CBS). After all, from copyright
issues to broadband access to media ownership
rules, billions of dollars are at stake
in the changing media industry.
Corporate
executives are often directly involved in
the lobbying process, and media moguls are
no different. In his recent memoir, You
Say You Want A Revolution (Yale University
Press), former FCC chairman Hundt recounts
important conversations he had with Turner
Broadcasting System, Inc., chairman and
president (at the time) Ted Turner; QVC
Network, Inc., chairman Barry Diller; TCI
chairman John Malone; DreamWorks executive
Steven Spielberg; and Disney vice president
(at the time) Michael Ovitz.
Hundt
candidly describes the atmosphere of influence-peddling
at his agency: "I learned quickly that the
volume of lobbying defined the major issues
before the agency . . . . A single company
might send soldiers from its regiments to
the commission as many as 100 times, visit
or phone the chairman on a dozen occasions,
call some member of the chairman's staff
perhaps daily. Congressional staffers made
tens of thousands of telephone calls to
the commission staff. Congressmen wrote
letters on behalf of different parties,
up to 5,000 or more a year. Sometimes, when
the members wanted a particular result they
phoned the commissioners to solicit votes
as they might call each other on the Hill.
Smart and well-financed lobbyists also ran
media strategies to persuade the commission
to write rules in their favor. Industries
might spend millions of dollars on television
advertising to influence a handful of commissioners."
The
nature of the media's political power remains
fascinating to Hundt. "The media industry
does not mobilize great numbers of voters
and it actually is not comprised of America's
largest, economically most important companies
. . . ." The media's significance and political
clout, he argues, come "from its near ubiquitous,
pervasive power to completely alter the
beliefs of every American." Members of Congress
and presidential candidates, he believes,
are afraid to take on the news media directly
for fear that they will simply "disappear"
from the TV or radio airwaves and print
news columns.
MEDIA
DONATIONS
The Top Recipients,
1993-2000
| PRESIDENTIAL |
CANDIDATES |
AMOUNT |
| Al
Gore, D |
Democratic
nominee |
$1,163,490 |
| George
W. Bush, R |
Republican
nominee |
$1,070,728 |
| Bill
Bradley, D |
Primary
challenger |
$1,034,004 |
|
Bill
Clinton, D
|
42nd
President |
$634,456 |
| Bob
Dole, R |
'96
Republican nominee |
$294,095 |
| SENATORS |
COMMITTEE |
AMOUNT |
| John
McCain, R |
Chair,
Commerce |
$685,929* |
| Edward
Kennedy, D |
Judiciary |
$529,970 |
| John
Kerry, D |
Commerce |
$470,944 |
| Charles
Schumer, D |
Judiciary |
$435,550** |
| Barbara
Boxer, D |
Foreign
Relations |
$417,249 |
| REPRESENTATIVES |
COMMITTEE |
AMOUNT |
| Howard
Berman, D |
Judiciary |
$315,598 |
| Richard
Gephardt, D |
Minority
Leader |
$252,997
|
| Edward
Markey, D |
Ranking,
Commerce |
$250,350 |
| John
O'Dingell, D |
Commerce |
$193,136 |
| Mark
Green, R |
Science |
$157,340 |
Through
6/30/00.
Source: Analysis of data provided by the
Center for Responsive Politics
* - Includes contributions to Presidential
campaign
** - Includes contributions to House campaigns.
Top
Ten Donors, 1993-2000
| COMPANY |
AMOUNT |
| Time
Warner, Inc.* |
$4,605,209 |
| Walt
Disney Co., Inc.* |
$4,086,195 |
| National
Cable Television Ass. |
$1,992,090 |
| National
Assn. of Broadcasters |
$1,932,057 |
| Tele-Communications,
Inc. |
$1,861,935 |
| Viacom
International* |
$1,851,310 |
| Dreamworks
SKG |
$1,754,150 |
| Joseph
E. Seagram & Sons |
$1,484,333 |
| News
Corp* |
$1,477,905 |
| Universal
Studios, Inc. |
$1,396,274 |
Through
6/30/00.
Source: Analysis of data provided by the
Center for Responsive Policits
* - Includes subsidiaries.
The
Money
| CYCLE |
INDIVIDUAL |
(WITH
SOFT) PAC |
TOTAL |
| 93-94 |
$9,334,507 |
$2,402,569 |
$11,737,076 |
| 95-96 |
$20,293,975 |
$2,902,250 |
$23,196,225 |
| Subtotal |
|
|
34,933,301 |
| 97-98 |
$16,051,540 |
$2,885,909 |
$18,937,449 |
| 99-00* |
$19,584,564 |
$1,695,560 |
$21,280,124 |
| Subtotal |
|
|
$40,217,573 |
| TOTAL |
|
|
$75,150,874 |
*
- Through 6/30/00.
Source: Analysis of data provided by the
Center for Responsive Politics
THE
BIG ISSUES
These
have been spectacular times for media corporations,
and the task of their Washington lobbyists
is to keep the party going for as long as
possible. The past decade has seen stunning
annual revenues and unprecedented corporate
concentration. No reasonable person would
accuse the FCC of overzealous enforcement
of the antitrust laws. In 1992, for the
first time in twenty-two years, the FCC
allowed network-cable TV cross ownership,
allowing a single company to own such outlets
in the same market (TV and newspaper ownership
in the same market is a violation of cross-ownership
rules.)
And
the FCC, the Justice Department and the
Congress generally have allowed media companies
to mate and merge like rabbits. To name
just a few, we have watched Time Warner
merge with Turner Broadcasting, and Disney
merge with Capital Cities/ABC, and News
Corporation acquire Heritage Media, and
AT&T merge with TCI, and CBS buy King
World, and Viacom buy CBS, and Tribune Co.
buy Times Mirror, and Time Warner and America
Online announce the mother of all mergers
-- a $350 billion deal to create the "world's
first fully integrated media and communications
company."
Today,
98 percent of Americans live in communities
with only one local newspaper. The same
percentage of citizens is served by a single
cable provider. Some fifty cable channels
are available in at least 40 million American
homes, and three companies -- Disney, Time
Warner, and Viacom -- own all or part of
twenty-eight of them. Not far behind is
General Electric, which owns NBC, CNBC,
and shares joint ownership of MSNBC, A&E,
the History Channel, and PAX-TV, a family-oriented
cable channel.
In
this marketplace milieu, media corporations
press for further advantage in Washington.
In the current Congress, more than sixty
bills aimed at the broadcasters, networks,
cable operators, and satellite operators
-- as well as at the FCC that regulates
them -- were proposed in the House and Senate.
And that number doesn't include the tax,
trade, labor, and non-binding resolutions
that draw the industry's attention.
Below
are some of the industry's legislative concerns:
INTELLECTUAL
PROPERTY -- Media companies spend
tens of billions of dollars each year securing
the right to content -- whether it's paying
reporters' salary while they get the story
or buying the rights to a free-lance magazine
piece, or the rights to air a Seinfeld
episode or Jurassic Park. They spend
millions more on lobbyists who seek legislation
designed to protect their investment in
such properties, a major concern to media
firms, especially as the Internet grows
in sophistication.
VIOLENCE
-- Lobbyists for the media industry
have consistently raised First Amendment
freedoms as a carte blanche protection against
any regulation of violent content broadcast
over the airwaves. The current system that
rates violence in programs was agreed to
voluntarily by broadcasters only after Senator
McCain threatened to have the FCC block
station license renewals for those broadcasters
who refused to participate.
THE
SATELLITE HOME VIEWER IMPROVEMENT ACT
-- Signed into law by President Clinton
last November, this permits satellite broadcasters
to offer local signals to subscribers. Cable
companies, who railed against the "must
carry" provisions that require them to provide
customers with all local broadcast channels,
were only too happy to see their satellite
competitors saddled with the same burden.
MEDIA
OWNERSHIP -- Under current FCC rules,
a single company is permitted to reach only
35 percent of the national audience through
the stations it directly owns, preventing
a handful of companies from owning all of
the television stations in the country.
With the CBS deal, Viacom went over the
cap. To meet regulatory muster, Viacom will
have to sell off some of its stations by
May 2001. Within a week of the merger's
announcement, Senate Commerce chairman McCain
introduced a bill that would help Viacom
skirt that requirement, raising the audience
cap to 50 percent of the national audience.
As noted in the Center for Public Integrity's
book, The Buying of the President 2000,
Viacom was McCain's fourth most generous
"career patron."
NBC
would also benefit from McCain's bill to
lift the ownership cap. NBC acquired a 32
percent stake in Paxson Communications,
the Florida-based broadcaster (whose interests
McCain has promoted, in a letter to the
FCC demanding action on one of the company's
pending license requests. The letter was
written just a day after the senator flew
on the company's corporate jet). NBC has
an option to purchase a controlling interest
in Paxson by February 1, 2002, "if FCC rules
then permit," the company's parent, GE,
announced in documents filed with the SEC.
Should McCain's bill pass, NBC won't face
any FCC hurdles exercising its option.
REPEAL
OF ESTATE TAXES -- Last July, the Senate
joined the House in passing legislation
to repeal estate taxes. The measure was
strongly supported by some well-known family-owned
publishers. Copley Newspapers, Cox Enterprises,
and Morris Communications have paid a lobbyist
$950,000 since 1996 to fight for the end
of the "death tax." In June the San Diego
Union-Tribune, a Copley newspaper, published
an editorial entitled, "The Death Tax: Repeal
the Most Unfair of All Federal Levies":
"House Republicans and Democrats were right
to pass legislation that phases out the
death tax not only on family farms, but
on all family-owned businesses and other
assets." Not mentioned was the direct financial
interest of the Copley family in the legislation,
and attendant lobbying efforts in that regard.
"We are contributors to a fund that is trying
to eliminate the estate tax," Hal Fuson,
Copley's chief counsel, told us. "There
was nothing particularly surreptitious about
it."
LOBBYING
What the Media Want: Top Ten Lobbyist
Issues Since 1996
| 1.
Intellecutal property: 556 lobby registrations* |
6.
Political ads/campaign finance: 220 |
| 2.
Violent programming restrictions:469 |
7.
Cable issues: 192 |
| 3.
Satellite systems: 287 |
8.
Tobacco/alcohol advertising: 178 |
| 4.
Tax issues: 272 |
9.
Antitrust/ownership issues: 170 |
| 5.
Telecommunications: 272 |
10.
Broadband/spectrum issues: 105 |
Lobbying Fees Paid
by Media Companies Since 1996
| 1996 |
$24,835,961 |
| 1997 |
$26,600,229 |
| 1998 |
$28,493,371 |
| 1999 |
$31,408,965 |
| TOTAL |
$111,338,526 |
Then
and Now: Media Lobbyists in 1996 and 1999
| YEAR |
LOBBYISTS
REGISTERED |
FEES
COLLECTED |
| 1996 |
234
lobbyists |
$24,835,961 |
| 1999 |
284
lobbyists |
$31,408,965 |
[Rate
of increase: 26.4%]
Top Ten Media
Lobbying Spenders in 1996 and 1999
| 1996 |
AMOUNT |
1999 |
AMOUNT |
| National
Assoc. of Broadcasters |
$5,280,000 |
National
Assoc. of Broadcasters |
$5,320,000 |
| Time
Warner |
$4,530,000 |
National
Cable Television Assoc. |
$4,130,000 |
| National
Cable Television Assoc. |
$3,463,054 |
Time
Warner |
$4,060,000 |
| Newspaper
Assoc. of America |
$2,110,631 |
Disney
World Services |
$3,300,000 |
| Cox |
$1,800,000 |
Comcast |
$3,240,000 |
| Disney |
$1,680,000 |
Assn.
of American Publishers |
$1,600,000 |
| CBS |
$1,592,837 |
Newspaper
Assoc. of America |
$1,556,000 |
| News
Corp |
$1,079,632 |
News
Corp. |
$1,510,000 |
| ABC |
$570,000 |
Viacom |
$1,380,000 |
| Gannett |
$520,000 |
CBS |
$1,300,000 |
| TOTAL |
$22,626,154 |
TOTAL |
$27,396,000 |
Top
Ten Media Organizations by Lobbying Costs
Since 1996**
| 1.
National Assoc. of Broadcasters, $16.92
million |
6.
News Corp./Fox/AskyB, $7.48 million |
| 2.
Time Warner Turner, $15.77 million |
7.
Newspaper Assoc. of America, $6.51 million |
| 3.
National Cable Television Assoc., $13.68
million |
8.
Cox Enterprises, $4.61 million |
| 4.
Walt Disney, $11 million |
9.
Comcast Corp., $4.12 million |
| 5.
Viacom/CBS, $9.29 million |
10.
Assoc. of American Publishers, $3.12
million |
*
-Lobbyists register with the Clerk of the
House of Representatives, and must list
specific bills that they are paid to try
to influence
**
- Includes
in-house lobbying operations and trade groups
CAMPAIGN
FINANCE REFORM
Still,
no single recent media issue more poignantly
portrays the clash between public and private
interest than the debate over free air-time
for political candidates. In early 1998,
before the president and FCC chairman made
their rule-making move, the broadcast networks,
ABC, CBS, and NBC, were already targets
of criticism. They were excoriated for reaping,
potentially, billions of dollars in 1997
when Congress gave them -- free -- the government-owned
digital spectrum, to use for the next generation
of technology. There was a rising public
clamor around the question, Do broadcasters
have public-interest obligations anymore?
Against
this backdrop, television stations and networks
separately have been making a financial
killing from political advertising. According
to data collected by a firm called Competitive
Media Reporting, local and national TV political
advertising will earn broadcasters $600
million this year. In fact, income from
political ads has been steadily rising for
twenty years -- from $90,570,000 in 1980
to $498,890,600 in 1998. In the first four
months of this year, TV stations in the
top seventy-five media markets took in $114
million for 151,000 commercials from the
candidates alone.
At
the same time, around the nation, news coverage
of political candidates is getting minuscule.
For example, the Annenberg School of Communication
at the University of Southern California
discovered that in the final three months
of the 1998 California governor's race,
local TV news on the subject comprised less
than one-third of one percent of possible
news time. In 1974, the amount of gubernatorial
coverage in California was ten times greater.
Another USC Annenberg finding: sixteen of
the nineteen top-rated TV stations in the
top eleven markets broadcast, on average,
only thirty-nine seconds a night (from 5
p.m. to 11:30 p.m.) about political campaigns.
Top stations in Philadelphia and Tampa averaged
six seconds a night.
As
Robert McChesney, a University of Illinois
professor, wrote in Rich Media, Poor
Democracy, "Broadcasters have little
incentive to cover candidates, because it
is in their interest to force them to purchase
time to publicize their campaigns."
Recent
research seems to bear this out. For example,
in the New Jersey Senate primary, in which
Jon Corzine spent more of his own money
than any Senate candidate in U.S. history,
local television stations in New York and
Philadelphia made $21 million from political
ads. In the last two weeks of the campaign,
citizens watching top Philadelphia and New
York TV stations were ten times more likely
to see a campaign ad than a campaign news
story.
Broadcasters,
says Paul Taylor, founder and executive
director of Alliance for Better Campaigns,
"are profiteering from democracy." Since
1998, his group, co-chaired by former presidents
Jimmy Carter and Gerald Ford and the former
CBS News anchor, Walter Cronkite, has been
calling for the networks and 1,600 TV stations
to give at least five minutes of political
news coverage a day during the last month
before the 2000 election. So far, only two
percent of the broadcasters have agreed.
The
free air-time reform idea is not altogether
dead. The FCC still seems to hold some interest,
as do a few members of Congress, who have
included proposals requiring broadcasters
to provide free air time to political candidates
in campaign-finance reform measures in the
current congress. But industry lobbyists
do not give an inch on any of them. In formal
comments before the agency in March, the
NAB said it "respectfully submits that there
is no lack of political news and information
available for persons who have any interest
in obtaining such information. Thus, a voluntary
or mandatory requirement for broadcasters
to offer additional free time for political
candidates is unnecessary." The Radio and
Television News Directors Association (RTNDA)
stated, "Proponents of mandatory air time
for political candidates would prefer that
the FCC ignore altogether the First Amendment
rights of broadcasters. They would have
the commission turn its back on political
coverage decisions made by experienced,
professional journalists."
Meanwhile,
some newspaper editorials about the free-air-time
proposal have been curiously consistent
with the extent of their ownership of broadcasting
properties. The Los Angeles Times,
with no TV stations, wrote supportively
of the initiative. The Chicago Tribune,
owned by the Tribune Co., which recently
purchased the Los Angeles Times and
Times Mirror and also contributes to political
candidates and parties and owns nineteen
TV stations, saw the issue differently.
It wrote in 1998, "It might be good if candidates
didn't have to raise and spend so much money
to finance broadcast ads. In that case,
let Congress provide public funds to subsidize
campaigns. If the public stands to gain
from improved candidate access to the airwaves,
the public ought to bear the cost." In other
words, let the citizens pay for the ads
they increasingly must watch.
The
dirty little secret is that from 1996 through
1998, the NAB and five media outlets --
ABC, CBS, A.H. Belo, Meredith Corp., and
Cox Enterprises -- cumulatively spent nearly
$11 million to defeat a dozen campaign finance
bills mandating free air time for political
candidates. One company lobbyist willing
to talk to us was Jerry Hadenfeldt, who
represents the Meredith Corporation, owner
of a dozen TV stations and twenty magazines,
and publisher of more than 300 books. "Free
political ads are basically picking the
pockets of a select group, namely television
broadcasters," he says. "They [candidates]
already get the lowest available rates,
and that's the way we believe it should
stay."
One
of the free-air-time bills he opposed was
introduced by Congresswoman Louise Slaughter,
a New York Democrat. She apparently did
not realize the extent of the industry maneuverings
against her. Told that $11 million had been
spent lobbying against her bill and others
like it, she was taken aback. "Oh, good
Lord," she said. "It seems excessive to
me. I am absolutely astonished. They paid
$11 million to kill it? Well, it sure worked,
didn't it?"
SOURCES AND METHODOLOGY: The source for
campaign contributions is the Center for Responsive
Politics, which provided data from 1993 through
June 30, 2000 on individual, PAC, and soft
money contributions from broadcasting, publishing,
cable, Internet, and entertainment companies
and their employees. Erring on the side of
caution, we did not include contributions
from some of the parents of media firms that
had other interests on Capitol Hill. Data
on lobbyists and trips came from the Clerk's
Office of the House of Representatives, the
Office of the Secretary of the Senate, and
the Office of Government Ethics. We limited
our search of trip reports and lobby registrations
to companies with revenues over $500 million,
of which more than half were attributable
to publishing, broadcasting, cable, or Internet
service provision. We also included trade
groups representing the interests of these
industries in our search.
Charles
Lewis, a former producer for 60
Minutes, is the executive director
of the Center for Public Integrity in Washington.
Bill Allison, Erin Gallavan, Shannon Rebholz,
Helen Sanderson, and Derrick Wetherell of
the Center contributed to this article.
The Joyce Foundation and the Town Creek
Foundation provided project support.
The
Center's complete investigative report on
media lobbying can be found at www.publicintegrity.org