Today, Media Council Hawai`i (MCH) filed a complaint with the Federal

Communications Commission (FCC) to stop the proposed merger of MCG

Capital’s KGMB TV with Raycom Media’s KHNL-TV and KFVE-TV.

On behalf of MCH, Georgetown Law’s Institute for Public Representation

(IPR) filed with the FCC in Washington, DC a “Complaint and Request for

Emergency Relief Regarding Shared Services Agreement between Raycom

Media and MCG Capital for Joint Operation of Television Stations KHNL,

KFVE, and KGMB, Honolulu, Hawai`i.”

The Petition requests that the FCC order Raycom and MCG to show cause

as to why a “cease and desist order” should not be issued to stop its “shared

services agreement” announced on August 18, 2009. Because the

agreement is expected to take effect in mid-October, the Petition requests

that the FCC issues a “standstill order” to prevent Raycom and MCG from

taking any further action to implement the agreement, pending FCC review.

Chris Conybeare, MCH president, said: “"We are taking this action to save

local television, local news, and local programming from concentrated

control in the hands of a few offshore corporations.

“This is a major step forward in our effort to involve the public in the media

policy debate. Broadcast licenses are granted on the basis of the public

interest, convenience, and necessity. For too long the public has let

corporate owners define what is in the public interest.

“We are pleased that Hawai`i people and organizations have decided to

stand up, and raise their voices in protest to this deal that will rob us

of diversity of opinion, stifle competition, and lock up control of the local

market!"

Angela Campbell, IPR attorney and MCH chief counsel, said: “Prompt FCC

action is needed to ensure that the residents of Hawai`i have access to

diverse, high quality sources of local news. If the FCC fails to act, stations

in other communities will enter into similar agreements, thus undermining

the FCC’s local ownership rules.”

MCH and IPR assert that this unprecedented agreement would give

Raycom, the licensee of KHNL (an NBC affiliate), and KFVE (a

MyNetworkTV affiliate that broadcasts UH sports), control of KGMB (a

CBS affiliate, that is licensed to MCG Capital). The agreement would result

in the shutdown of one newsroom, and will result in having all news

operations on all three stations controlled by Raycom.

Raycom and MCG state that no FCC approval is needed for this agreement.

transfer of the license for KGMB. In such cases, federal law requires that

the parties file an application with the FCC. The FCC can only approve

such an application if the FCC finds that the transfer serves the public

interest.

This transfer of control is not in the public interest. In fact, Raycom’s

control over KGMB violates the FCC’s local television ownership rules in

two ways. First, Raycom will control three stations serving the same area,

even though the rule prohibits common control of more than two. Second,

Raycom’s control over two major network affiliates—CBS and NBC—will

violate FCC rules against owning more than one of the top-four ranked

television stations.

MCH and IPR believe Hawai`i residents will be harmed by the agreement.

Television is the main source of local news. Reducing the sources from four

to three reduces competition and reduces local coverage.

“Reduced competition in local news will mean less local coverage, less

diversity in the viewpoints presented, and lower quality news

programming,” according to the Complaint.

“Moreover, Raycom’s control over approximately 44% of the advertising

revenues decreases competition in the sale of advertising time and raises

serious antitrust concerns.”

There is growing community support for MCH’s efforts to stop the merger.

Community organizations that have joined in supporting MCH include

Common Cause Hawai`i; the Society for Professional Journalists, Hawai`i

Chapter; the Newspaper Guild; the Interfaith Alliance; the Oahu County

Democrats; the Screen Actors Guild, Hawai`i; IBEW Local 1260; and

Americans for Democratic Action, Hawai`i Chapter.

Media Council Hawai`i was established in 1970 as the Honolulu

Community Media Council. It is the oldest of the five volunteer media

councils in the United States. MCH members include individuals from the

community and the media industry. It is a non-partisan, non-profit, nongovernmental

independent group, which seeks to improve public access to

information, strengthen public support for First Amendment rights and

freedoms, broaden public understanding of the role of the media, and

promote accurate and fair journalism in Hawai`i.

IPR is one of the nation’s premier public interest law centers. It was

founded by Georgetown Law in 1971. It has both a public interest law firm

and a clinical education program. IPR works in the areas of First

Amendment and media law, environmental law, civil rights, and general

public interest matters. Professor Angela Campbell is co-director of IPR and

is head of IPR’s First Amendment and Media Law Project. Adrienne

Biddings is the Graduate Fellow in IPR.

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