Real Media Reform: Blocking The Paramount-Warner Merger Isn't Enough

Katie Wilson
Until a couple of months ago, we could get a dose of humor to help us get through the craziness, cruelty, and corruption of the Trump administration. But CBS pulled Steven Colbert off the air, not because of bad ratings; he had by far the most widely viewed network show at that hour.
The problem was Donald Trump is too thin-skinned to put up with a comedian poking fun at him regularly. As a result, he had Brendan Carr, his chair of the Federal Communications Commission, imply that the Ellison family’s effort to take over Paramount, CBS’s parent company, would be blocked if Colbert wasn’t fired. The Ellison family includes prominent Trumper, Larry Ellison, one of the richest people in the world, and David Ellison, his equally right-wing son who most immediately controls Paramount.
But taking over one of the country’s major broadcast networks wasn’t enough for the Ellisons. They also control TikTok, the fifth most widely used social media platform, which Trump wrestled away from a Chinese company and put in Larry Ellison’s hands.
And now, Paramount is looking to take over Warner Brothers. In addition to giving them control over two major Hollywood studios, the merger would allow Paramount to merge CBS’s newsroom with Warner-owned CNN. This would presumably mean arch-Trumper Bari Weiss would be in charge of CNN.
David Ellison put Weiss, who has long-established right-wing credentials, in charge of CBS News soon after taking over the network. In this role, she has already fired or driven away many serious reporters and repeatedly censored 60 Minutes, its highly regarded and widely watched investigative news show. We can expect more of the same at CNN if Paramount’s takeover of Warner is allowed to go through.
While Trump’s Justice Department’s antitrust division has greenlighted the Paramount-Warner merger, there is still a possibility it can be stopped. California and 11 other states sued to stop the merger on antitrust grounds. In addition to merging two of the major news networks, it would also consolidate two massive Hollywood studios.
An analysis by the Media and Consolidation Research Organization Lab, at the University of California, San Diego, found that the resulting reduction in competition would almost certainly mean fewer new movies are produced and less employment in the industry. It also would likely mean higher streaming prices for consumers. This is in addition to the problem of giving Trumpers even more control of the media.
There is at least some chance that the courts will block this merger on the merits. However, if it goes through the appellate process, the Republican Supreme Court may find the opportunity to provide another gift to Trump supporters irresistible. Still, the prospect of a years long delay could persuade Paramount to compromise and offer at least partial divestment of some of Warner Brothers holdings to facilitate the merger. In any case, the antitrust lawsuit raises the possibility of blocking the merger in its current form.
While further consolidation of the media and placing ever more of it in the hands of Trumpers is definitely bad news, it would be wrong to imagine that we previously had a golden age of media. News outlets owned and run by rich people tend to present news in a manner that is acceptable to the bosses. Stories about the upward redistribution of income over the last half-century, and anti-worker practices by businesses, tend to get short shrift. But there is no doubt they would get even less attention in a Trumper-controlled media universe.
However, we should be looking for something better. One route is a system of individual tax credits, say $100 per person, to support a person’s favorite news outlet(s). This would be a credit, not a deduction, and fully refundable, so even the poorest person would get a $100 to support the news outlet of their choice.
The model is the tax deduction for charitable contributions, except that everyone would get the same amount. There are many design issues that would have to be ironed out, but such a system could create a large pool of money to support news reporting in various forms that is not controlled by rich people.
This system also has the advantage that it can be done at the state or even local level. That means that cities run by progressives, like New York and Seattle, could pave the way by putting this sort of system in place. (Seattle’s new mayor, Katie Wilson, is a big supporter of this sort of system.)
It is hugely important to do what we can to block further consolidation of the media in the hands of the Trumpers. We also need to do other things, like reforming Section 230 to take away the special protection it gives the huge social media platforms. But the most important longer-term measure to protect a free press is to set up an alternative funding mechanism. An individual tax credit system is a promising route, but we need to get these alternatives on the table and start moving forward with them.
Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack.
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