The current state of the cable-news industry in America is a cautionary tale that highlights the collision between democracy and consumerism. CNN, MSNBC, and Fox News have all profited from intensifying partisan division in different ways. CNN, in particular, saw a boost in ratings by capitalizing on Donald Trump’s presidency, which also benefited its competitors. However, CNN is now facing turmoil due to recent changes in ownership and the departure of its president, Chris Licht, after a short tenure.
On the other hand, Fox News faced a defamation lawsuit by Dominion Voting Systems, amounting to over $700 million. The network amplified false claims about voting irregularities after the 2020 election to appease its predominantly pro-Trump audience. These cable-news networks have traditionally relied on fees from cable companies for each basic-cable subscriber. However, with an increasing number of Americans cutting the cord, the networks now need to find alternative sources of income through subscriptions. This financial struggle poses a threat to investment in in-depth, fact-based reporting about the United States and the world.
The crisis in the cable-news industry is not a recent development; it has its roots in decisions made decades ago. Over fifty years ago, the United States faced a choice regarding the regulation of the emerging medium. Should the government tightly regulate it to promote an informed and engaged citizenry, or should it be left to operate as a profit-driven industry? Richard Nixon made a decisive move in favor of the latter. Politicians have always influenced regulatory policies to suit their own agenda, and Nixon used cable as a means to manipulate a fragmented television landscape that he believed would be more favorable to embattled politicians like himself.
Cable television emerged as an exciting technological advancement in the late 1940s. Initially, the Federal Communications Commission regulated cable to protect local broadcasters from competition. However, by the late 1960s, there was a growing realization that cable had the potential to revolutionize communication by offering a larger number of channels than traditional antennas. The government held the power to either prohibit, permit, or promote cable, as highlighted by the 1970 Sloan Commission on Cable Television.
During this time, various perspectives on the role of cable emerged. Some called for government subsidies to create a “Wired Nation,” similar to the interstate-highway system, to provide employment and educational opportunities. Others, known as “video guerrillas,” aimed to use cable’s expanded platform for distributing art forms that critiqued societal issues such as capitalism, imperialism, and racial discrimination. Nixon viewed cable as a means to undermine the network newsrooms that he perceived as biased against him. Under his administration, the cable industry lobbied for deregulation, and subsequent laws and regulations failed to cultivate a sense of common citizenship or promote diverse viewpoints.
Nixon’s influence on cable had far-reaching consequences, shaping the industry’s trajectory and its impact on American politics. Figures such as Brian Lamb and Roger Ailes, who worked for Nixon, exemplify the diverse paths that emerged. Lamb saw cable as an opportunity to shift power from elitist networks to individual viewers, leading to the launch of C-SPAN. This public-affairs channel allowed viewers to engage with Washington through call-in shows and live coverage of congressional proceedings. Meanwhile, Ailes had a different agenda, recognizing television’s political power and seeking to manipulate public opinion. His focus on the GOP’s visibility on TV news laid the groundwork for the establishment of Fox News.
In conclusion, the current crisis in the cable-news industry has deep roots in decisions made decades ago. The collision between democracy and consumerism has shaped the industry’s trajectory and its impact on American society. While cable offers exciting possibilities for communication and information dissemination, its future depends on striking a balance between profit-driven interests and the public’s right to diverse, factual reporting.
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