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Future of Music Newsletter #23 (March 6, 2003)

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03.06.2003

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Things never seem to slow down at the FMC. With the media deregulation issues still on the front burners, we've been submitting testimony, preparing documents and participating in a variety of events, including the FCC hearing in Richmond, VA, the upcoming hearing in Seattle and events at South by Southwest. There are lots of details about the importance of these efforts to musicians and citizens below, so read on!

  1. FMC Delivers Testimony at FCC Field Hearing in Richmond, VA

    On February 27, FMC's Jenny Toomey participated on a panel on localism at the FCC Field Hearing in Richmond, VA. Before we get to a report from the hearing itself, let's review what this was about. The Federal Communications Commission is the agency charged with managing the public spectrum, which includes radio, TV, satellites, cable, wi-fi, and telephones – in other words, a LOT of stuff. In recent years, Congress and the federal courts have required the FCC to review their existing ownership policies, usually taking the position that current regulations should be abolished because it's believed they artificially restrict the telecommunications/broadcast marketplace. Critics of this position say ownership caps and other regulations are necessary to preserve the core elements of the public spectrum: competition, localism and diversity.

    Decisions about the rules governing the use of the public spectrum have, for many years, rolled through Congress and the FCC without much public debate. Even with the diligent work of media justice organizations and key academics, these crucial decisions about how the public spectrum is used have been made with very little input from citizens themselves.

    But the landscape is changing. Over the past year and a half, there's been an unprecedented amount of attention on media ownership issues; the result of more scrutiny in the mainstream press, fantastic investigative journalism from Salon's Eric Boehlert, Los Angeles Times' Chuck Philips, The Nation's John Nichols and Robert McChesney and others, and the insistence of key policymakers that the FCC must not make these decisions hastily or without significant public comment.

    What's currently on the table at the FCC is a required review of existing broadcast ownership rules. According to the FCC, this review has generated one of the most exhaustive records in the agency's history. The FCC has received more than 15,000 comments in this proceeding, the majority of which are from the general public. But Commissioner Copps, knowing the long-term impact of these proposed rule changes to the entire media landscape, thought that the process of submitting public comments via the FCC's website was not enough. That's why he pressed the FCC to hold field hearings, which would take the five commissioners out of the Beltway and to communities where citizens could express their opinions directly to policymakers.

    FCC Chair Michael Powell agreed to attend not many, but one, public hearing, and so on February 27 the five commissioners trudged down to Richmond, VA for a field hearing. It was all-day affair, during which representatives from various media corporations and consumer groups sat on panels covering topics like "TV", "Newspapers" and "Localism", delivering short statements and taking questions from the commissioners. The FMC's Jenny Toomey joined Frank Blethen (Seattle Times), Thomas Herwitz (Fox Television Stations), Mark Mays (Clear Channel), Deborah McDermott (Young Broadcasting), Chris Powell (Journal Inquirer) and John Sturm (Newspaper Association of America) for a panel focusing on "Localism". As we did in front of the Senate Commerce Committee at the end of January, our testimony emphasized the negative consequences that the 1996 Telecommunications Act had on musicians and citizens.

    "There is scant evidence that the basic regulatory principles of competition, diversity and localism have been improved in any way, shape or form by the radical restructuring of the industry that has taken place over the past six years," Jenny said. "Rather, we are very concerned that this restructuring has created significant harm to this critical public resource. We see a dramatic loss of localism. We see an industry that has lost one-third of its owners over the past six years. We see virtually every local market under the control of four companies or fewer. And we have yet to find a compelling argument that radio listeners, professional broadcasters, local governments, social service agencies or musicians benefit from these changes."

    FMC's press release about the Richmond hearing

    FMC's testimony submitted to the FCC at the Richmond hearing

    A webcast archive of the Richmond hearing

    Time was set aside between panels for citizens to express their opinions about media ownership from the floor. From the comments given by various citizens – from media activists, to teachers, to labor union members, to concerned parents – it was clear that media concentration and further consolidation were issues that resonated loudly with them. The vast majority of citizens urged the commissioners not to cast off existing regulations, but to preserve rules that would protect localism, diversity and competition. Citizens also registered a variety of complaints about the current state of radio and TV, from general homogeneity of the airwaves to the rise in vulgar language and offensive content on TV and radio.

    Here are a couple of press clips about the Richmond hearing, with the story on Richmond.com being the most detailed we've found:

    Not Enough: FCC public hearing allows only one hour for citizen input
    Jay-Anne Casuga
    Richmond.com, February 28, 2003

    Critics speak out on media concentration
    By David Ho/Associated Press
    Salon.com, February 27, 2003

    Media Meltdown Obscures FCC Debate
    …a new survey shows that 72 percent of Americans know "nothing at all" about the debate in which FCC Commissioner Michael Copps says "fundamental values and democratic virtues are at stake."
    By John Nichols
    The Nation, February 27, 2003

    And some more background about the turf battle royale going on between the FCC and Congress. Eric Boehlert's piece in Salon is particularly great:

    Clear Channel's big, stinking deregulation mess
    The sorry state of the radio industry today is sabotaging FCC chairman Michael Powell's plans to let media conglomerates run wild.
    By Eric Boehlert
    Salon.com, February 19, 2003

    FCC Chiefs Clash Over Media Rules
    As part of the Federal Communications Commission's review of decades-old media ownership restrictions, one of the agency's Democratic commissioners plans to seek more public input. The FCC's Republican chairman, however, thinks one public hearing is plenty.
    Wired, February 7, 2003

    Clear Channel: Not the Bad Boys of Radio
    Lowry Mays and sons made enemies building Clear Channel into an empire.
    By Christine Y. Chen
    FORTUNE, February 18, 2003

    Crunch Time at the FCC
    by FCC Commissioner Michael Copps
    The Nation, February 3, 2003

    Media Democracy's Moment
    by Robert W. McChesney & John Nichols
    The Nation, February 6, 2003

  2. Next Stop: Seattle! This Friday!

    Despite Michael Powell's insistence that one public hearing would be all he needed to hear on the matter before pressing on with his deregulatory agenda, FCC Commissioners Copps and Adelstein want to hear more. So, both commissioners will be attending additional public hearings to gather more input from citizens and musicians.

    The next stop is Seattle, WA *this Friday*, March 7 for a hearing and a big event at EMP. The FMC will be there as well so join us!

    What: FCC Media Ownership Hearing in Seattle
    When: Friday, March 7, 2003
    Time: 9:00 AM – 12:30 PM
    Where: HUB Auditorium
    University of Washington (Seattle, WA)
    Map: http://depts.washington.edu/sauf/hub/main_index.cgi?url=maps_main.html

    The hearing will be organized into three panels, focused respectively on how media consolidation has affected news, localism and music/entertainment. After each panel, the general public will be invited to comment. In addition, computers will be set up outside the Auditorium that will allow citizens to automatically log on to the FCC website where they can add their comments. And, microphones will be available in the lobby for audience members to give audio comments.

    There's a flyer about the hearing available here:
    http://www.reclaimthemedia.org/media/FCC-Flyer.pdf

    The hearing will be followed by a massive multimedia event at the Experience Music Project (EMP) where folks can file comments online, and learn more about how media ownership issues affect our ability to make democracy work for our community and our society.

    What: FUTURE OF MEDIA: Action for Media Democracy
    When: Friday, March 7
    Time: 7-10:30 PM
    Where: Experience Music Project, Seattle, WA
    Featuring:
    o Chuck D and the Fine Arts Militia
    o FCC Commissioner Jonathan Adelstein
    o Hard Knock Radio host and Hip Hop journalist Davey D
    o US Representative Jim McDermott
    o Jenny Toomey of the Future of Music Coalition
    o tactical immersion lab by Spaceboat, media action center and more
    Cost: Free (donations accepted)
    All Ages

    Webcast of the Seattle EMP event will be available here:
    http://www.spaceboat.tv/spaceboat.ram

    Public participation in these events is highly encouraged! This is the best opportunity that citizens and musicians have to express their opinions about media deregulation so check out the FCC website below, which has a page dedicated to the re-examination of media ownership: http://www.fcc.gov/ownership/


  3. FMC at South by Southwest

    From one end of the country to another! FMC members will be participating on a number of panels and music showcases at South by Southwest Music Conference, March 7-16, 2003 down in Austin, TX.

    On Friday, March 14, Jenny Toomey will join Mike Mills from REM, John Doe from X, musician/poet John Sinclair from the MC5, Pakistani musician and activist Salman Ahmad, the Chicago Tribune's Greg Kot, writer Neal Pollack and Wavy Gravy on a panel on Artists and Activism. Jenny will also be performing with her band at the Misra Showcase at The Hideout that evening.

    Peter DiCola will be hanging with Sandy Pearlman, Harvard's William Terry Fisher, Peter Jenner and John Nichols to talk about the possibility of a worldwide information industry tax. Here are some details:

    Brainstorming A Worldwide Information Industry Tax
    Friday March 14
    2:00 - 3:15 PM
    Room 13B, Austin Convention Center

    In the last few years two related trend lines in digital music have continued to inexorably unfold. The proliferation of file sharing and/or downloading "enablers" is relentlessly de-monetizing the music industry. Simultaneously this relentless ramp up in pirate action has been the prime mover in the generalized ramp up of, both, internet traffic and the sale of
    internet and "reproductive" appliances. The greatest beneficiary of of all this pirate action has in fact been the collectivity of the world information industries. But artists need to be compensated. Even if the conventional structures of compensation (i.e. the Record Companies) can no longer do the job. One solution would be a worldwide "micro" tax on the collectivity of the world information industries. The proceeds to be distributed to artists and copyright holders.

    John Nichols, Washington Correspondent, The Nation (mod)
    Sandy Pearlman, Multicast Tecnologies
    Terry Fisher, Harvard Law School
    Peter Jenner, Sincere Management
    Peter Dicola, Future of Music Coaltion

    Kristin Thomson will be joining NPR's Rick Karr, Texas Representative Lloyd Doggett and The Nation's John Nichols for a discussion about Government and Media Ownership on Saturday, March 15.

    Also on Saturday, be sure to attend the keynote speech by FCC Commissioner Jonathan Adelstein, set for 12 noon.

    If you're going to be down in Austin and want to hook up with us, please give us a shout!


  4. FMC in the News and Other Postings in the Newsstream

    More about digital distribution, the state of the music industry, and the current crackdown on college campuses:

    Labels Think Apple Has Perfect Pitch
    Executives of major record firms believe a speedy, simple online music
    service for Mac users will be a hit.
    By John Healey
    Los Angeles Times, March 4, 2003

    Congress targets P2P piracy on campus
    Key politicians chided universities on Wednesday for not doing enough to
    limit peer-to-peer piracy, calling unauthorized copying a federal crime
    that should be punished appropriately.
    By Declan McCullagh
    CNET News.com, February 26, 2003

    'Five years from now you'll see virtually no CD stores'
    On the eve of the Grammy Awards, the recording industry is under siege: As
    the Internet drives a file-sharing revolution, it's the end of the (music)
    world as we know it
    By Joan Anderman
    Boston Globe, February 23, 2003

    Colleges ambivalent about anti-piracy role
    By Dawn C. Chmielewski
    San Jose Mercury News, February 18, 2003

    Whose Song Is That, Anyway?

    A new system unveiled by the music industry seeks to streamline the way
    music sales are tracked on the Internet. By Katie Dean.
    Wired, February 12, 2003


  5. What We're Doing

    Jenny Toomey
    Jenny Toomey testified at the FCC Field Hearing in Richmond. Mark Mays of Clear Channel is rumored to have told her it was "always a slice of heaven" to have her around. Jenny will be speaking at the Seattle event.

    Peter DiCola
    Peter DiCola is working on writing a formal economic paper on radio. He'll be on a panel at the SXSW conference in Austin, TX on Friday, March 13th at 2pm to discuss the possibility of a worldwide information industry tax, along with William Terry Fisher, Peter Jenner, Sandy Pearlman, and moderator John Nichols.

    Kristin Thomson
    Kristin has a particularly full plate in March, with preparations for the FCC field hearing in Seattle, a seminar on the "future of the music industry" at Drexel University, a five-day journey to SXSW coming up, and lo! ...another Tsunami reunion in the works, this time at Ladyfest Philly on Sunday, March 23. For more info about that, see http://www.ladyfestphilly.org

    Brian Zisk
    Brian spent the last few weeks in Miami, where only a small part of it was devoted to meeting with musicians, including helping plot the future for some Rock and Roll Hall of Famers who are dealing with the fact that they're only getting paid a tiny fraction of what they're supposed to.

    Michael Bracy
    They say be careful for what you wish for…in our case it is the full flowering of public debate about the impact of radio deregulation on musicians and citizens. In the past eight months, we've seen Senator Feingold introduce a comprehensive radio reform bill, a hearing at the Senate Commerce Committee, and a series of public hearings led by FCC Commissioners Copps and Adelstein. Finally, it seems the question of consolidation's impact on musicians and music fans is being taken seriously. We cannot stress enough the importance of citizens contacting their elected representatives to discuss how changes in the radio and concert industries impact both their communities and their livelihoods – with the power of the broadcast lobby and Clear Channel's new lobby shop it will take a true groundswell to stave off further consolidation. Those of you going to Austin for SXSW will hopefully check out panel appearances from Commissioner Adelstein, Kristin and Jenny, plus (of course) the Misra showcase Friday, March 14 at the Hideout. Check out http://www.misrarecords.com for details. In the meantime, I will be missing the Seattle hearing this week plus SXSW for the best possible reason – the impending birth of our third child. But I'll be tracking everything very closely and will be enjoying Austin vicariously via Kristin, Kendall, Paige, Jenny, Timothy and everyone else in town.

    Walter McDonough
    Walter McDonough just appeared in Toronto at Canadian Music week where he moderated a panel of the future of the CD. He also appeared on a panel along with Ray Parker Jr. that was sponsored by the American and Canadian Federations of Musicians. He is continuing to work his book about where the record industry is heading.

  6. How are we doing?

If you have any feedback, questions, or suggestions please send an email to suggestions@futureofmusic.org, and let us know how we're doing.


Thanks for your support and see you next time.

Jenny Toomey
Michael Bracy
Brian Zisk
Walter McDonough
Kristin Thomson
Peter DiCola



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