Final answer:
The Telecommunications Act of 1996 relaxed media ownership rules, allowing a single entity to own more radio and TV stations than before, leading to greater media consolidation and changing the role of the FCC from regulator to monitor. Criticisms include increased media monopolies and decreased focus on public interest.
Step-by-step explanation:
The Telecommunications Act of 1996 significantly changed the media landscape by relaxing restrictions on media ownership. Prior to the Act, there were strict limits; for example, a single company could own only up to forty radio stations and twelve television stations. However, the Act removed these limits, allowing companies to increase their control over the market. The Federal Communications Commission (FCC), established by the Communications Act of 1934, plays a critical role in regulating the media industry, tasked with overseeing radio, television, and telecommunications in the interest of the public. Post-1996, significant mergers and acquisitions took place, leading to a concentration of media ownership, exemplified by companies like Clear Channel Communications, which at one point owned around 1,150 stations.
Even after deregulation, the FCC continues to monitor to avoid monopolies and ensure a diversity of voices and opinions in the media. The FCC was, and still is, concerned with media monopolies, though its role has shifted more towards monitoring rather than direct regulation. This change has led to criticisms that public interest obligations have become less of a priority for media companies. Moreover, the presence of large corporations owning vast numbers of media outlets, like the merger of Comcast and NBC Universal, has significantly narrowed the sources of media content available to the public.
Overall, the loosening of media ownership rules has resulted in a more consolidated industry, with a handful of conglomerates controlling a significant share of the market, as reflected in the fact that by 2021, just four conglomerates controlled 90 percent of U.S. media outlets. While the FCC still regulates and licenses radio and television stations, the Act indeed paved the way for increased corporate control over media.