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The Problem With Fox News Goes Way, Way Back

The Atlantic

www.theatlantic.com › ideas › archive › 2023 › 08 › fox-news-cnn-richard-nixon-deregulation › 674995

The cable-news industry that Americans know today is a cautionary tale in what happens when democracy collides with consumerism. For years, CNN, MSNBC, and Fox News raked in profits while amplifying partisan rancor in varying ways. Starting in 2015, CNN pumped its ratings by playing up Donald Trump, whose presidency then buoyed all three cable-news giants. But now CNN is in turmoil after a recent change of ownership and the departure of its president, Chris Licht, after 15 months. After the 2020 election, Fox News amplified false claims about voting irregularities rather than offend its disproportionately pro-Trump audience—and subsequently settled a defamation suit by Dominion Voting Systems for more than $700 million. These cable-news networks have long relied on receiving fees from cable companies for each basic-cable subscriber. Now the networks need to replace that income with subscription dollars as more and more Americans cut the cord, and the scramble for money does not bode well for investment in deep, factual reporting about the United States and the rest of the world.

Cable news, in short, is in a crisis—but not a new one. Indeed, the story goes back years, to a time before Fox News or CNN was even founded. More than half a century ago, the United States had decisions to make about how the emerging medium would operate: Should the government strictly regulate it as a common carrier to cultivate a more informed and engaged citizenry, or should cable be a for-profit industry driven by the bottom line?

[Read: Inside the meltdown at CNN]

Richard Nixon settled the issue in the latter direction. The electronic-media landscape has always existed within parameters determined by regulators, and politicians bend regulatory policy to their own political needs. That’s what Nixon did with cable. His motives were mixed: A believer in free competition, he also despised the main broadcast networks and believed that embattled politicians like him could more easily manipulate a fragmented television world. Some of the paths not taken during cable’s early development should remind us that the current cable-news landscape was not inevitable—and that largely forgotten government decisions from earlier eras turned out to have enormous consequences.

By the late 1960s, federal broadcast-television regulations had fostered a marketplace dominated by the Big Three. The government had effectively allowed CBS, NBC, and ABC to control the national television marketplace in exchange for their promise to serve the public interest. Today’s polarized politics has inspired some nostalgia for an era when Americans all got their TV news—and their entertainment, for that matter—from common sources. But at the time, discontent abounded. Many on the left saw a network culture steeped in racial and gender stereotypes that news and entertainment programs tended to perpetuate. Conservatives were eager to disrupt a media culture that they viewed as ideologically exclusionary. Many economists lamented that new entrants were frozen out, while free-expression advocates reasoned that, as television became the main venue in which national politics played out, average Americans needed ways to present their ideas on the nation’s screens.

A new technology, cable television, offered exciting possibilities. Wired television first emerged in the late ’40s, when entrepreneurial engineers in out-of-the-way communities sought to extend broadcasting’s reach. In 1948, for example, a man in Astoria, Oregon, found a way to bring in distant television signals from a hotel roof and then send the connection via a coaxial wire to businesses and homes for a fee. Seeking to protect local broadcasters from competition, the Federal Communications Commission initially regulated which programs cable could offer and where systems could even operate. But by the late ’60s, reform-minded FCC commissioners, think-tank researchers, and political activists alike began to see that wired infrastructure, which could offer far more channels than rabbit-ear antennas, could bring about a communications revolution. All of the power, according to the 1970 Sloan Commission on Cable Television, lay with the government, which could “prohibit” cable, “permit it,” or “promote it almost by fiat.”

[Read: Nixon is gone, but his media strategy lives on]

In the early ’70s, the progressive writer Ralph Lee Smith urged the government to subsidize the creation of a “Wired Nation,” just as it had built the nation’s interstate-highway system. Liberal organizations such as the Americans for Democratic Action, the ACLU, and the Ford Foundation all extolled how the technology could deliver essential employment and educational opportunities to fulfill Lyndon Johnson’s Great Society promises.

Others hoped that cable would bring about more radical social changes. Activists calling themselves “video guerrillas” wanted to use new art forms distributed on the cable dial to criticize capitalism, imperialism, and racial discrimination. To push the boundaries of acceptable content and decentralize production, they built community production centers, shared resources in volunteer collectives, and got support from foundations to underwrite operations.

Nixon, too, saw the possibilities of cable to advance his agenda. The 37th president traced his political struggles to media bias and his own inability to control his media image. He worried that public television—the preferred response of Johnson, his predecessor, to the Big Three monopoly—would only give more power to the liberal elite. So Nixon attacked the credibility and budget of the newly established Corporation for Public Broadcasting and its television-programming partner, PBS.

He saw a different role for cable: undermining the network newsrooms. Nixon was waging a broader campaign against the Big Three’s business operations; his administration also threatened to revoke broadcasting licenses and filed an antitrust suit against them. But his advisers told him that the real dagger to the networks would be to encourage cable television’s expansion as a competitor. In December 1972, an economist for Nixon’s new Office of Technology Policy (OTP) laid out Project BUN (which stood for Break Up Networks), an initiative whose very name shows how Nixon’s media vendetta shaped his policies. It emphasized deregulation of cable, a goal further enshrined in a 1974 special Cabinet-committee report endorsing the idea of letting the medium “prove its worth to the American people” in the marketplace.

Nixon’s approach changed the whole conversation. The video guerrillas’ hopes for cable television as a venue for nonprofit and viewer-created programming soon faded. With the Nixon administration dangling the possibility of deregulation, the cable industry rushed to lobby for that outcome, frequently reminding elected officials how cable could serve their political agendas. Subsequent laws and regulations for cable made little effort to promote common citizenship. Notably, although the FCC once required the major networks to cover multiple points of view about matters of controversy in the name of advancing the public interest, subsequent cable legislation did little to cultivate that ethos.

By the time Nixon retreated to Southern California in disgrace, in 1974, politicians across the political spectrum understood, as he had, that the emerging cable landscape might give them more chances to be on television and more control over how they were presented. Still, Nixon’s motives—manipulating his image, punishing his opponents, decentralizing the television landscape to open it to new voices—pulled the emerging industry in multiple directions, as illustrated by the trajectory of two men who worked for Nixon: Brian Lamb, a former OTP staffer who went on to launch C-SPAN, and Roger Ailes, a former campaign adviser who later started Fox News.

For Lamb, cable television offered a meaningful path to shift power from elitist television networks to individual viewers, providing voters with more information and more transparency into Washington. C-SPAN, a public-affairs channel that aired call-in shows and brought footage of congressional proceedings into American living rooms, soon became proof of this concept. The channel, voluntarily underwritten as a public service by cable companies, delivered political benefits to the very lawmakers who would in 1984 pass a law explicitly lifting many local and state regulations on the industry. As the cable business flourished in the ’90s and early 2000s, the increasing number of subscribers meant that C-SPAN’s budget grew (operators paid a per-subscriber fee to fund it), and C-SPAN expanded programming to include such earnest shows as Book TV and American History TV.

[From the April 1973 issue: The president and the press]

Ailes had less noble goals for television. In 1970, he championed a White House “Plan for Putting the GOP on TV News,” which celebrated TV’s political power. “People are lazy. With television, you just sit—watch—listen. The thinking is done for you,” the plan explained. At the time, Nixon’s team worried that the partisan propaganda Ailes proposed would generate too much blowback. Three decades later, liberal and centrist criticism did not faze Ailes’s Fox News, which mixed news with entertainment in ways that played to conservative viewers’ fears and grievances and kept them glued to the screen.

Therein lies the dashed promise of cable: Despite Fox’s recent setbacks—and despite the fact that its divisive brand of programming and deliberate delivery of election falsehoods are, I would argue, toxic for democracy—the network’s approach is likely to retain a distinct, sustainable paying audience, even if shifting viewing habits change the delivery mechanism from cable to streaming. By contrast, C-SPAN, which gives viewers genuine information in a neutral way, faces a budding crisis: Because it is dependent on cable subscriptions, cord cutting has put its future into jeopardy.

In recent years, lawmakers in Congress have been debating whether and how to regulate big internet companies. The history of the cable industry highlights the consequences of allowing such a powerful medium to develop with little or no democratic oversight. For the past 50 years, boosters of the cable industry made the case that the marketplace could deliver for American consumers and citizens. But the pursuit of profits has resulted in cable news networks that overwhelmingly appeal to viewers’ worst impulses, overrunning efforts to inculcate good citizenship. That’s why another revelation from Project BUN also matters today as we look at the world it helped create: Technology and public policy together produced our media environment, and this same combination could also change it for the better.