musicNEWS:
Senator Calls For Anti-Trust Probe of Clear Channel
01-13-03
antiGUY
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Senator Russ Feingold (D-Wisc.) is calling
for a probe into anti-competitive behavior by Clear Channel Communications
who have over the past few years taken over control of a large number of
radio stations in the U.S. as well as obtained a large portion of control
of live concert venues across America through their concert promotion arm,
SFX.
Last week Feingold told an audience at
the Future of Music Coalition policy summit in Washington D.C. that he
plans to go forward with legislation he introduced last year that calls
for an investigation into anti-competitive behavior by radio station owners
and concert promoters, with the largest player in the field being Clear
Channel Communications.
Feingold is expected to move forward with
his legislation during the new Congress. There is speculation that he will
get bi-patrician support from Arizona Senator John McCain as a co-sponsor
of the bill. McCains support would go along way with moving the
legislation forward as he chairs the Senate Commerce Committee. If things
go as planned we can expect hearings on this matter sometime during this
Congress.
Many industry insiders blame another Democrat,
former President Clinton with aiding the creation of the Clear Channel
monster when he signed the 1996 Telecommunications Act, which weakened
restriction on concentrated ownership of radio stations in the U.S.
Feingold addressed the Act during his remarks
and the unfortunate consequences of its passage. When the 1996 Telecommunications
Act became law there were approximately 5,100 owners of radio stations.
Today, there are only about 3,800 owners, a reduction of about 25%. Many
of the same corporations that own multiple radio stations in a given market
also wield their power through their ownership of a number of businesses
related to the music industry.
For example, the Clear Channel Corporation
owns over 1200 radio companies, more than 700,000 billboards, various promotion
companies, and venues across the United States. Also, just three
years ago, in 1999, Clear Channel bought SFX productions, the nation's
largest promotion company.
Below are excerpts from Feingolds remarks
at the summit where he further described his legistlation and his plans
to move forward on this issue:
over the last year, I have learned what
most of you know firsthand, that concentration of ownership in the radio
and concert industry has made it difficult for individuals, artists, and
organizations to find outlets to express their creativity and promote diversity.
Because of these concerns, last year I
introduced legislation, the Competition in the Radio and Concert Industries
Act, which would reduce the levels of concentration and curb some of these
anti-competitive practices.
My legislation prohibits those who own
radio stations and concert promotion services or venues from leveraging
their cross-ownership to hinder competition in the industry. For example,
if an owner of a radio station and a promotion service hinders access to
the airwaves of a rival promoter or artist, then the owner would be subject
to penalties.
My legislation will also helpto curb the
concentration that leads to these anticompetitive practices.
It would strengthen the FCC merger review
process by requiring the FCC to scrutinize the mergers of any radio station
ownership group that reaches more than 60% of the nation.
My legislation will also curb consolidation
on the local level by preventing any upward revision of the limitation
on multiple ownership of radio stations in local markets. The bill would
also prohibit the current shakedown system, where the big radio corporations
leverage their market power to require payments from artists in exchange
for playing their songs. And it will also close a loophole that allows
large radio ownership companies to exceed the cap by 'warehousing stations'
through a third party. In these cases, they control the station through
a third party, but the stations are not counted against their local ownership
cap.
Songs and ideas should not be broadcast
on the radio based on how much money has changed hands. Airplay should
be based on good songs and good ideas what the local audience wants to
hear.
My legislation will slow the levels of
concentration and address a number of concerns that I have heard from artists
and others, although it does not address all the barriers we face.
Passing this legislation will not be easy.
Last year, my legislation had two cosponsors, Senator Durbin of Illinois
and Senator Miller of Georgia. But we have heard from more than a dozen
other Senators who are interested in signing on.
I will be re-introducing my legislation
in the coming weeks and my hope is that we will have Congressional hearings
early this year. We need your help.
Some say that we need more Washington
lobbyists to pass this bill. But I don't think so.
We don't need more Washington lobbyists
to advocate for my legislation. To pass this bill, people like you, who
want to restore localism and diversity to our airwaves, must speak out
for change. We must speak out to give our airwaves back to the public,
and the only way that we can do that is if we work together to help channel
the public's voice in Washington.
So, let's work together to restore competition
to the radio and concert industry by putting independent radio stations,
local concert promoters, and artists on a level playing field.
People should have choices, listeners should
have a diversity of options, and Americans should be able to hear new and
different voices. Radio allows us to connect to our communities, to our
culture, and to our democracy. It is one of the most vibrant mediums we
have for the exchange of ideas, and for artistic expression. We must fight
to preserve it, and together I believe we can do just that.
Radio is a public medium, and we must ensure
that it serves the public good. That's a democratic vision of American
radio well worth fighting for.
You
can read the full text of Senator Feingolds remarks by clicking here.
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