Subject: [NEXTEL-1] Commercial Radio Station Ownership Consolidation Shown to Harm Artists and the Public, Says FMC Study

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Commercial Radio Station Ownership Consolidation Shown to Harm Artists and the Public, Says FMC Study

WASHINGTON, Nov 18, 2002 (U.S. Newswire via COMTEX) -- The unprecedented consolidation of the commercial radio industry that followed the Telecommunications Act of 1996 has led to a loss of localism, less competition, fewer viewpoints and less diversity in radio programming in media markets across the country, according to "Radio Deregulation: Has It Served Citizens and Musicians?" a study released today by the Future of Music Coalition (FMC).

Source:

U.S. Newswire

Date:

11/18/2002 10:27

Price:

Free

Document Size:

Short (1 or 2 pages)

Document ID:

FC20021118910000033

Subject(s):

USN; Academic; Bandwidth; Business; Commercial; Communications; Community; Conference; Consumer; Democracy; District Of Columbia; Executive; Expansion; Government; Internet; Local; Market; Market Share; Media; Music; Nonprofit; Online; Policy; Programming; Radio; Research; Revenue; Technology; Television; Unions

Commercial Radio Station Ownership Consolidation Shown to Harm Artists and the Public, Says FMC Study

Story Filed: Monday, November 18, 2002 10:27 AM EST

WASHINGTON, Nov 18, 2002 (U.S. Newswire via COMTEX) -- The unprecedented
consolidation of the commercial radio industry that followed the
Telecommunications Act of 1996 has led to a loss of localism, less competition,
fewer viewpoints and less diversity in radio programming in media markets across
the country, according to "Radio Deregulation: Has It Served Citizens and
Musicians?" a study released today by the Future of Music Coalition (FMC).

"Our report clearly demonstrates that the radical deregulation of the radio
industry has not benefited the public or musicians," said Jenny Toomey,
executive director of the Future of Music Coalition. "Instead, it has led to
less competition, fewer viewpoints, and less diversity in programming."

The Federal Communications Commission (FCC) has recently commenced the third
biennial review of broadcast ownership rules and released a series of studies to
support its policy decisions. "The public deserves a full debate about how
consolidation has changed, and is changing, this critical public resource," said
Michael Bracy, Director of Government Relations of the Future of Music
Coalition. "We are filing our study today at the FCC as a public comment, and
look forward to reading the response from citizens and broadcasters alike."

"Radio Deregulation: Has It Served Citizens and Musicians?" utilizes industry
data to demonstrate that deregulation has failed to benefit both musicians, who
rely on access to radio to promote their music, and citizens. The FMC's report
has found that, contrary to the claims of commercial broadcasters, radio
consolidation has had profound and negative effects on this democratic medium.
Key findings include:

-- Ten parent companies dominate the radio spectrum, radio listenership and
radio revenues. An industry traditionally local in nature is now dominated by
ten parent companies that control two thirds of both listeners and revenue
nationwide. Two parent companies - Clear Channel and Viacom - control 42 percent
of listeners and 45 percent of industry revenues.

-- Oligopolies control almost every geographic market. In virtually every local
market, four or less firms control 70 percent of market share or greater. In a
majority of cases, these oligopolies include one or more of the dominant
national players. This has led directly to a loss of localism, as independent
station owners have difficulty competing with the resources of huge
conglomerates.

-- Virtually every music format is controlled by an oligopoly. Four companies or
fewer controlling more than 50 percent of national listeners in 28 of 32 formats
according to three separate measures. A very small number of gatekeepers control
access to the majority of listeners to specific formats.

-- Claims about increased format diversity are misleading. From 1996 to 2000
format variety - the average number of formats available in a market - increased
in both large and small markets. However, format variety is not equivalent to
true diversity in programming. Analysis of music chart data in the report
reveals considerable format homogeneity, with many songs overlapping on various
format playlists.

The state of commercial radio directly impacts musicians and citizens. The
consolidation of station management, coupled with industry trends toward shorter
play lists and streamlined program decision making, means a very small number of
"gatekeepers" control access to the public airwaves. Since one of the five major
labels release between 80 and 100 percent of songs on the charts, artists are
often forced to balance their hopes of gaining significant radio airplay against
having to sign much-maligned major label contracts and transferring their
ownership and control of their work over to their record company.

Consumer groups, unions, academic researchers and music-related organizations
applauded the release of the study. Author and media scholar John Nichols said:

The Future of Music Coalition has exposed the extent to which concentration of
ownership and rank commercialism has denied the democratic promise of radio.
This is a breakthrough study that will be referenced for years to come as the
document that quantified a growing sense of unease with what radio has become.

Ann Chaitovitz, National Director of Sound Recordings, American Federation of
Television and Radio Artists (AFTRA) said:

Royalty artists are a significant part of AFTRA's membership, and radio
consolidation has harmed them. The FMC study has proven what recording artists
have known -- radio consolidation has resulted in less variety of music being
played on the radio, shorter playlists, homogenization of playlists, and less
local music being broadcast.

The report also serves as a cautionary tale for other media on the verge of
deregulation. Mark Wahl, Project Director, Center for Digital Democracy said:

This report is a wake-up call, for the same FCC policies responsible for radio's
decline into homogenous oligopoly are now being imposed upon the high-speed
Internet. If allowed to proceed, this radical deregulatory agenda will result in
the Clear Channelization of broadband, threatening online openness and
competition, reducing diversity of expression and inhibiting democracy.

A collection of statements from other organizations and individuals including
Consumer Federation of America, Media Access Project, American Federation of
Musicians, American Federation of Television and Radio Artists, Artist
Empowerment Coalition and the Louisiana Music Commission is available at

http://www.futureofmusic.org/research/radiostudy.cfm

Results of a national telephone survey of 500 adults conducted by the Behavior
Research Center were released in May 2002. This survey found widespread support
for congressional action to hold the line on consolidation, outlaw payola-like
practices and expansion of community-based Low Power radio stations. The
complete survey is included in this report and is available online at

http://www.futureofmusic.org/research/radiosurvey.cfm

In addition to the morning's press conference, at 2 p.m. FMC will also host a
live, 2-way teleconference via telephone to service interested journalists who
are unable to attend the Washington, DC briefing. Dial 1-800-247-5110, code
220033. An audio recording of the teleconference will be available at within one
hour of the call at:
http://www.yourcall.com/real/players/mr111802.smil.

The Future of Music Coalition is a nonprofit collaboration that identifies and
promotes technologies, policies and business models that can benefit artists and
citizens. In January 2003, the FMC will host its third annual Future of Music
Policy Summit, a three-day conference focusing on policy issues of concern to
musicians and citizens. Information about the conference is available at

http://www.futureofmusic.org/events/summit03/index.cfm.

The entire study can be downloaded (PDF) at

http://www.futureofmusic.org/images/radiostudy.pdf

http://www.usnewswire.com /U.S. Newswire 202-347-2770/ 11/18 10:11

Copyright 2002, U.S. Newswire

CONTACT: Jenny Toomey, 202-518-4117,
or Michael Bracy, 202-429-8855,
both for the Future of Music Coalitio

Copyright (C) 2002, U.S. Newswire

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