Bear Stearns' Media Analyst Warns Operating Pressures and Media Regulation Threaten 'Free TV'; Victor Miller Supports Media Deregulation at FCC Hearing.Business Editors NEW YORK, New York--(BUSINESS WIRE)--Feb. 27, 2003 Bear, Stearns & Co. Inc.'s radio and television broadcasting analyst Victor Miller today outlined seven operating pressures affecting broadcast networks and local stations as reasons why rules governing media ownership should be eased. Testifying at a Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. hearing on media ownership in Richmond, Virginia, Miller identified audience fragmentation, rising programming costs, high operating costs, a consolidating cable business, new technology, poor broadcast economics and a failure to make money on digital TV as evidence supporting media deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. . "If these seven operating pressures continue unabated, and no deregulatory relief is afforded the industry, the viability of 'free-over-the-air-television' could be threatened," said Miller. "In order to preserve the long-term viability of the broadcast networks, we believe the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. should relax the national station ownership rule." Miller also said the FCC should substantially relax duopoly Duopoly A situation in which two companies own all or nearly all of the market for a given type of product or service. Notes: This is very similar to a monopoly, where only one company dominates the market. rules and ease or completely eliminate newspaper-broadcast cross-ownership rules affecting local station operators. For a copy of the testimony, members of the press may contact Monica Orbe at (212) 272-9294 or morbe@bear.com. Founded in 1923, Bear, Stearns & Co. Inc. is a leading worldwide investment banking and securities trading and brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE NYSE See: New York Stock Exchange :BSC (Binary Synchronous Communications) See bisync. ). With approximately $30.6 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales, trading and research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers prime broker and broker dealer services, including securities lending. Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , the company has approximately 10,500 employees worldwide. For additional information about Bear Stearns, please visit the firm's Web site at http://www.bearstearns.com. |
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