Caught in the Act & What's Behind Newport TV's Covert Consolidation? 28 &14JUL11

MORE on the campaign to stop media consolidation and the reaction from some of the TV networks caught in the act by FreePress. Check this out and the story about Newport, FL...

Since its launch last month ChangetheChannels.org has been making serious waves.
One broadcaster tried — and failed — to shut down our videos. And activists like you have uncovered more than 20 new cases of covert consolidation in cities across the country!
More emails have been pouring in from others wanting to investigate broadcasters who may be illegally cutting corners on local news in their communities.
The next few months will be crucial as the Federal Communications Commission reviews its media ownership rules. That’s why we need you to continue to shine a light on covert consolidation.
We need to show the FCC exactly how newsroom consolidation undermines independent journalism and harms communities.
Already your efforts have exposed this practice in cities like Burlington, Vt., Knoxville, Tenn. and Montgomery, Ala. (For details check out our growing database at ChangetheChannels.org.)
To make our case we rely on your help. Email me at channels@freepress.net if you’re interested in reporting on abuses, collecting video evidence and telling your own story. Free Press has compiled a Change the Channels Toolkit to help you document covert consolidation, mobilize friends and neighbors and educate lawmakers. You can download the toolkit here: freepress.net/files/ctc_toolkit.pdf
Please join me in exposing covert consolidation and demanding FCC action.
Thanks for all you do.
Libby Reinish
Program Coordinator
Free Press
www.freepress.net

What's Behind Newport TV's Covert Consolidation?

Libby Reinish and Mike Soha, July 14, 2011

When Free Press’s Change The Channels initiative shined an uncomfortable spotlight on Newport TV’s business practices, the company responded with threats and demanded that YouTube take down our video exposing it. In the week since, buzz has been building around how Newport used a baseless copyright threat to try to silence a critic.

The Change The Channels campaign highlights covert consolidation going on in over 80 communities involving 200 stations. It is worth looking into why Newport reacted so strongly to being identified as a covert consolidator. 

Take a look at the Change The Channels covert consolidation map and you’ll see a pattern. Newport has six Shared Services Agreements in place with stations owned by a company called High Plains Broadcasting. Coincidence?  Unlikely.

Here’s how Newport used covert consolidation tactics to maintain control of TV stations it acquired from mega conglomerate Clear Channel Communications. In 2006, Clear Channel announced plans to sell all of its 42 TV stations. Providence Equity Partners, a $22 billion "global private equity firm," created a new company to acquire and manage the Clear Channel stations. That is how Newport Television was born. 

The acquisitions placed Newport in violation of the FCC’s media ownership limits in six media communities. But Newport found a way to maintain control over the stations, notwithstanding the FCC’s rules.

Newport sold the six stations to a newly minted company called High Plains Broadcasting (which, not coincidentally, has a permanent board seat for a representative of Newport’s parent, Providence Equity Partners).  In a simultaneous move, Newport and High Plains entered into Shared Services Agreements for all six stations. This “sell to rent” tactic rendered High Plains essentially a just name on the license, while Newport continues to run the stations by controlling programming and operations.

What’s the result of this scheme? Let’s look at Jacksonville's WAWS and WTEV - the two stations who we featured in our video that so upset Newport.

WAWS (the local Fox affiliate) and WTEV (CBS) share content, a single newsroom and reporting staff. Their main website is a joint operation - www.actionnewsjax.com – where you can see their shared news staff and both logos listed at the top. And while WAWS also has it’s own site, the two websites are nearly identical. The only major difference between them is the color schemes.

So what kind of local news do WAWS and WTEV provide? Looking at the joint ActionNewsJax website for Monday, July 11, their "top stories" were; a 16 pound baby born in Texas, an elderly woman killed, a couple fight over the outcome of the Casey Anthony trial, a house fire, and a story about a man who called 911 after seeing a toddler take a sip of beer. Other featured stories on their site included stories like "World's ugliest dog," "trial begins for girl strangled by python," and a "barking cat video".

The Newport/High Plains deal reduces local media competition and diminishes the quality and quantity of independent and diverse TV news sources in places like Jacksonville. What’s more, Newport and its shell company High Plains Broadcasting have made a killing by consolidating newsrooms and undercutting their service to local communities. That’s why they don’t want us shining a spotlight on what they are up to. 

This summer the FCC has an opportunity to close the covert consolidation loophole that lets companies get away with these types of shady deals. Help us keep up the pressure to end covert consolidation.