A University of Maryland study  (PDF) published earlier this month found that people in the survey who  had the  most exposure to Fox News were more likely to believe falsehoods  and rumors about national and world affairs when compared to those who  paid attention to other news outlets.
The misconceptions being generated there are being intentionally generated by editors for the network, according to the evidence. So this literally qualifies as "propaganda," a term from the book.
Read this story for the details, and of course, be sure to watch the film, Out Foxed. 
http://www.rawstory.com/rs/2010/12/study-confirms-spin-fox-news-voters-stupid
 

 
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