The financial interest and syndication rules are back in play
The FCC Mass Media Bureau last week circulated a paper containing options on modifying the 1991 fin-syn rules. A paper from the Office of General Counsel offered its legal analysis of each of the options.
Among the bureau's options is the fin-but-no-syn proposal that Acting Chairman James Quello floated at the NATPE convention last January, but subsequently cooled to (Broadcasting, Feb. 22).
Under the proposal, networks would be allowed to acquire equity interest in any program they air, but would be restricted from syndicating the programs for at least several more years.
The two papers are to provide the catalyst for discussions this week among the three commissioners who will vote on new fin-syn rules April 1--Quello, Andrew Barrett and Ervin Duggan. Commissioner Sherrie Marshall has recused herself from fin-syn and other mass media issues to pursue job opportunities.
The three have not seen eye-to-eye on fin-syn in the past. Barrett and Duggan voted for the 1991 rules; Quello, against.
"I'm ready to listen to any proposal," Quello said. "I still have a very strong feeling it's time to let the networks into financial interest, and probably into syndication."
Quello said the fin-but-no-syn proposal may satisfy syndicators and independent broadcasters, but he is concerned about its impact on Fox.
The U.S. Court of Appeals in Chicago last November struck down the 1991 rules as "unreasoned and unreasonable," but gave the FCC until the first week of April to draft new rules or a more convincing rationale.
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