FCC Chairman Kevin Martin wants to make it easier for radio and television broadcasters to own newspapers—but only if involves a top 20 market. His proposal would allow cross-ownership of one radio or TV station and a newspaper in one of those markets. The proposal would amend the 32-year-old ban on cross-ownership, imposed when “cable was a nascent service, satellite television did not exist and there was no Internet.” He offers it as a way to help struggling newspapers: “Permitting cross-ownership can preserve the viability of newspapers by allowing them to share their operational costs across multiple media platforms.”

That’s the only change offered: “All other proposed newspaper/broadcast transactions would continue to be presumed not in the public interest.”

The fine print:  Under Martin’s proposal, a transaction involving a television station has to leave at least 8 independently owned and operating major media voices in the DMA and that the station not be among the top four stations in the DMA. The evaluation process would include whether a transactions shows a commitment to maintaining independent editorial voices.

Opposition: Commissioners Michael Copps and Jonathan Adelstein, the two Democrats, oppose the plan. From their statement: “This is portrayed as a moderate proposal, but it is a wolf in sheep’s clothing. Don’t let the wool be pulled over your eyes. The proposal could repeal the ban in every market in America, not just the top twenty. Any city, no matter how small, could be subjected to newspaper broadcast ownership combinations under a very loose standard.”

Update: NYT:  The proposal “may actually force some large media conglomerates to shed stations or newspapers.” While critics of consolidation say it will encourage larger conglomerates and reduce diversity, proponents say Martin didn’t go far enough with both the newspaper industry’s main trade association and an executive at the Tribune Company (NYSE: TRB) criticizing the plan. “Under the proposal, Tribune will have to sell media companies in Hartford and possibly Chicago. The head of the News Corporation, (NYSE: NWS) Rupert Murdoch, will have to fight for an exemption if he wants to continue to control The New York Post and two television stations — WWOR and WNYW — in the metropolitan area. Other companies, including Gannett (NYSE: GCI) and Media General, (NYSE: MEG) would have to seek exemptions if they want to continue to hold newspapers and broadcast stations in smaller markets.”