More On Radio

1
More On Radio

• Extending the Conversation
• The Telecommunications Act of 1996
• Clear Channel Radio

2
Review

• Communications Act of 1934
• Set up the FCC (no longer FRC)
• Radio stations promised to give time for
  educational/religious/etc. programming
  
• Lower end of FM dial later reserved for
  non-commercial radio (1941)
  
• Set ambiguous guidelines on indecency
• No person...shall utter any obscene, indecent or
  profane language by means of radio
  communication.
  
• Radio still for the common good of all people.

3
Telecommunications Act of 1996

• What were its intended goals?
• To produce more competition, more diversity of
  viewpoints, lower prices for consumers, and more
  wealth and jobs for the economy.
  
• Over 10 yrs supposed to save consumers 550
  billion, including 333 billion in lower
  long-distance rates, 32 billion in lower local
  phone rates, and 78 billion in lower cable
  bills.
• Supposed to create 1.4 million jobs and increase
  the nations GDP by as much as 2 trillion.
  
• Consolidation would supposedly boost the radio
  industrys profitability (was losing money)

4
Telecommunications Act of 1996
It is a great day. It will be competition. It
will give the American consumer greater choice.
... It is the greatest jobs bill we are likely t
o pass in this decade. Rep. Thomas Bliley, (R
-VA), chair of the House Energy and Commerce Com
mittee February 1, 1996
5
How passage of the act proceeded

• Made without consulting and/or informing the
  public
  
• Special interest group lobbying corporate
  donations issues
  
• Made with 1.5 hours of discussion
• (Congress was railroaded no one read it!)
• Couldnt foresee dramatic changes and advances in
  the industry

6
What the 1996 TC act changed

• Lifted the limit on how many radio stations one
  company could own
  
• 1 company could now own as many as 8 stations in
  the nations largest local markets, up from a
  local limit of 4 per market
  
• Lifted from 12 the number of local TV stations
  any one corporation could own, and expanded the
  limit on audience reach.
  
• 1 company had been allowed to own stations that
  reached up to 1/4 of U.S. TV households. The Act
  raised that national cap to 35 percent.

7
What the 1996 TC act changed (cont)

• Deregulated cable rates
• Permitted the FCC to ease cable-broadcast
  cross-ownership rules
  
• Gave broadcasters (free) digital TV licenses
• Extended the term of a broadcast license from
  five to eight years
  

8
Consequences of the TC Act of 1996

• HUGE media mergers increased concentration
• Less Diversity
• Higher Prices
• The first week after the act became a law, 700
  million worth of buying selling took place.

9
TV-Related Consequences

• Network Television
• Less than 6 companies control 75 of prime-time
  viewing
  
• Cable Television
• Deregulated cable rates increased prices by 50
• 90 of top 50 cable stations are owned by same
  parent companies that own broadcast networks

10
Radio Consequences

• Radio
• Leads to media mergers, conglomerations, and
  monopolies.
  
• Does not increase competition dramatically
  shrinks it.
  
• Issues with diverse voices in radio
• Issues w/community safety

11
Radio Consequences

• Affected minority radio ownership
• Minority ownership declined 14
• Significantly reduced local ownership
• Cant compete with huge corporations

12
Radio Jobs / Radio News

• Supposed to ad 1.5 million jobs
• Half a million overall jobs lost in
  telecommunications
  
• 10,000 jobs lost in radio
• News is more profit driven less devoted to
  it
  
• News is no longer local
• Radio news staff shrinking
• 4 companies control news format stations

13
Licensing

• Longer licensing 8 years
• Less accountabilty
• More difficult for revocation

14
Technology Music/Related Issues

• US lags behind in technology
• More difficult to get airtime
• Concert ticket prices rise dramatically

15
It Isnt All That Bad

• Universal Service Fund
• Subsidizes telecommunications access
• V-Chip mandates

16
The Bottom Line

• The Telecommunications act of 1996 needs to be
  updated to reflect current technology so the
  competitive market the Act originally sought can
  be realized.

17
Radio EMPIRES

• Clear Channel Owns
• More than 1,200 radio stations
• Reaches 100 million listeners daily
• Operates more than 240 radio stations in
  Australia, Mexico New Zealand.
  
• 17 million listeners weekly / 2,000 employees
• 40 TV stations in 25 markets
• Affiliated w/7 networks 2 Independents
• Full service news departments operate in 24
  markets including 2 in Spanish Language
  

18
Clear Channel

• Nations concert promoter
• 2002 sold 30 mil tkts
• Owns 44 amphitheatres
• Owns 51 theatres
• Owns NUMEROUS clubs arenas
• Owns 775,000 billboards

• From their website
• Clear Channel is the 1 out of home media
  company in the world. From the time people leave
  their homes in the morning until 7pm at night no
  other company in the world reaches more people
  than Clear Channel.

19
How Big is Clear Channel?

• Bought SFX promotions in 2000 (226,000
  events/yr)
  
• Clear Channel Satellite
• Clear Channel Wireless (high speed internet)
• Inside Radio industry trade pub.
• Katz Media Group ad firm in NYC
• 2100 radio stations / 350 TV stations / 1,700
  cable stations
  
• Motor Sports Group
• 600 car/cycle racing events each year

20
still going

• Premiere Radio Networks
• Rush Limbaugh (7,800 stations)
• Prophet Systems
• SFX Sports Group
• Talent mgmt/marketing agency (500 athletes)
• Produces TV
• Satellite XM
• Owns Touring Rights to Broadway productions
• Owns theatres on Broadway and in Chicago
• http//129.79.148.32/cc/CCradioForm.html

21
What CC says about this

• Were not in the business of providing news and
  information. Were not in the business of
  providing well-researched music. Were simply in
  the business of selling customers products.
• Clear Channel CEO Lowry Mays

22
Consequences of the Process

• No one can compete
• Without competition, can do whatever they want.
• Rock and Roll the Corporate American Way?

23
Interesting Relationships

• Patriotic Rallies
• Yeah, right.
• Close ties w/the current administration

24

• The FCC has functioned much more as a lap dog to
  the media industry than any kind of watch dog on
  behalf of the public.