The FCC and Media Consolidation

An anonymous reader writes "A story on this evening's All Things Considered but also at Now with Bill Moyers reports this June, the FCC will choose whether to keep or drop longstanding rules limiting the number of media outlets (radio stations, TV stations, etc.) a company may hold in a single area. That means all the radio stations in your area, for example, may one day be controlled by one company, like Clearchannel or Rupert Murdoch's FOX Communications. One irony is virtually no news outlet is covering the story. Another is the justifying argument for this move comes from the emergence of new media, like the Internet and Cable/Satellite. Yet with all 100's of new TV channels available, there are only five major media companies out there controlling them all, and recent copyright rules applying to the Internet have all but squelched-out Internet radio. So the old rules might not be so outdated after all. But the only voices being heard in this argument are coming from the media giants." In a related story, AOL/Time-Warner is petitioning the FCC to lift the restriction forbidding AOL from launching "advanced" IM services without letting others access the IM network.

Comments

Don't forget print/broadcast consolidation

[Zygote-IC-]

One part of the FCC rules that could be lifted prohibits a company from owning a newspaper or broadcast outlet in the same market. So not only could they own all the radio and television stations, but they could also own the newspaper in town.
Sounds great from a "diversity of voices" standpoint doesn't it?

Why this is a bad thing.

[SlashChick]

I do some contract work for a nationally-syndicated home improvement radio show, so I'm quite familiar with the whole Clear Channel buyout process. Since some of you may not know how this works, I'll explain it as succinctly as I can.

Let's say you own a radio station. Your radio station plays Top 40 stuff. You have hired some local DJs from the nearby college to play music, and you have some fun with various weekend and Friday night shows that showcase some local artists. You have a playlist that is based both on what other Top 40 stations are playing (the "popular" music), and requests from your listeners. You're doing well, but you have to maintain a staff to sell ads, and you're finding it harder and harder to do this.

Clear Channel comes in and offers to buy your radio station. Now, Clear Channel has enough money so that they can make you an offer you can't refuse. You acquiesce and agree to become a Clear Channel station.

Clear Channel places your station into one of seven formats. Everyone who listens to radio is now clear on what these formats are, because that's pretty much all that remains on radio today. There's "Top 40", which is what your station will be. There are also "easy listening", "talk", and four others.

Clear Channel fires 4 out of your 6 local DJs and replaces them with DJs from other areas. This is how Clear Channel makes its money: it can pay one "regional" DJ $15 an hour to broadcast out to 4 regional stations, or you and 3 other stations could each pay $12 an hour to 4 DJs to do the same thing. Thus, the complaints from the listeners start to arrive about losing the "local" feel, but by then there's nothing you can do--it's all in Clear Channel's hands.

Clear Channel takes a look at your programming and decides what you will and won't continue to play. In the case of Top 40, they give you a playlist. In the case of talk stations, they give you a list of syndicated shows and force you to drop everything that isn't on the list. (This is where On The House comes in-- every time Clear Channel buys a station out, they force the station to drop On The House in favor of their home improvement guy. We've lost several affiliates this way.)

Let's continue with the analogy of your (er, Clear Channel's) Top 40 station. You're now forced to drop the local bits since you only have two local DJs left (and in all likelihood, they're both doing the morning show, since that's the most lucrative time for radio.) You're now fed a playlist. Clear Channel has national playlists. That means that whatever your station is playing is the same stuff that every other Top 40 station owned by Clear Channel is playing. Do you wonder why all radio stations seem to play the same stuff? If they're owned by Clear Channel, it's because they are playing the same songs.

How does Clear Channel come up with these songs? They test-market in one market. ONE. In your case, the Top 40 stuff is tested in places like New Mexico. Yep, listeners in New Mexico are deciding what your station is going to play! Welcome to Clear Channel.

If you're wondering why radio seems to have gone downhill, you can look no further than Clear Channel. Sadly, DJs are pretty much corporate minions these days. They no longer get to spin new local tracks, and they don't have a choice on what to air. Many of them aren't even in the studio for half or more of the time they're on air -- they pre-record bits and play them as their segment progresses.

It's a sad time for radio. Fortunately, I believe the independents like On The House will survive. The independent radio stations will find their niche as well. I believe that Clear Channel will eventually feel the consumer backlash, much like we lashed out against high CD prices.

Please don't shrug your shoulders about the new FCC regulations being suspended, though. Loosening these regulations is a bad thing. Clear Channel doesn't need to hurt radio any more than it already has.