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Future of Music Newsletter #26 (June 3, 2003)

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06.03.2003

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Dear friends:

In the words of Phil Collins: "I can feel it coming in the air tonight...Hold On!"

Or better stated, in the words of Patti Smith: "The people have the power."

A good friend of FMC -- John Nichols -- once said, “The civil rights movement didn’t start in the 60s.” In other words, there were good people in America fighting segregation and racism for years and years and years before they finally reached the historic moment when a national movement came together and change was possible. This change didn't happen by accident. It was the cumulative result of years of preparation, education and organizing which finally came to full flower as a bus boycott that captured the imagination of a country.

In the wake of the FCC’s June 2nd decision to side-step the will of the people and hand more of the public airwaves over to media giants we challenge you to see Chairman Powell’s deeply cynical action as the modern equivalent of the first television footage of water cannons and police dogs let loose on peaceful civil rights protesters.

His action has galvanized a movement. This time last year it was very difficult to explain media concentration as a phenomenon or a threat. Today, thanks to the arrogance of Clear Channel and the deaf ears of our FCC commissioner, not only does everyone “get” this issue, they are lining up to get in the fight.

So if there’s anything we want you to take away from what happened this Monday it’s that Chairman Powell just delivered us a movement and that this movement is going to win the battle against media concentration. With this many people on our side, it’s inevitable. So, welcome to the white hats. We’ve got work for you.

PS: To the thousands of folks who have recently joined our mailing list after co-signing our FCC musicians’ letter, we’re really excited to have you on board. Tell your friends that we’re going to win this thing, because we are.

  1. FCC Alters the Majority of Broadcast Ownership Rules

    Yesterday – June 2 – the Federal Communications Commission (FCC) narrowly approved the most important changes to US media ownership rules in a generation, relaxing many of the most significant restrictions on the ownership of newspapers, radio, local television and TV networks.

    In a 3-2 partisan vote, the FCC approved a package of rule changes that previously limited the number of broadcast stations a company could own in a city and restricted a company from owning both a newspaper and a radio or television station in the same market. The rules limiting the size of television networks were also relaxed to enable the networks to buy more stations.

    Commissioners Copps and Adelstein – the two Democrats – forcefully dissented from these changes. “Today the Federal Communications Commission empowers America's new media elite with unacceptable levels of influence over the ideas and information upon which our society and our democracy depend,” said Commissioner Michael Copps before launching into a laser-like critique of the rule changes.

    There’s a good review of the rule changes at this link.

    Ironically, now that the vote is over, there are hundreds of news stories about this decision available for review. Here are a few good sources:

    The New York Times has built a special section about the media ownership rules:

    FCC Votes to Ease Media Ownership Rules
    By Frank Ahrens
    Washington Post, June 2, 2003
    Includes a great sidebar with links to ownership rules and all the commissioners’ statements.

    Michael Powell and the FCC: Giving Away the Marketplace of Ideas
    By Tom Shales
    Washington Post, June 2, 2003

    After attending today’s FCC proceeding and watching the Capitol Hill press conferences, the Future of Music Coalition released its own statement about the decision. In it we say:

    “Today the Republican majority at the FCC made a cynical and short-sighted decision to push forward with their campaign to reduce and eliminate time-honored rules and safeguards which have defended citizen’s access to diverse, competitive and local media. In doing so they blatantly ignored the will of public and warnings from industry leaders, congressional representatives, city councils, consumer advocates, academics, creators and community groups. These rules were originally enacted to prevent the growth of media monopolies and ensure a diversity of voices. In their absence we anticipate a period of unprecedented consolidation and a swift transformation of our existing media to one that is less representative, less responsive, less diverse, and less competitive. The negative impact of these changes on culture, civic participation and democracy cannot be understated.” […]

    You can read the entire statement here.

    This statement is just the most recent effort in our ongoing work to highlight media ownership issues and their effects on citizens and musicians. Over the past year, the FMC has conducted research, written testimony, sent letters, organized artists and talked to the press about the negative consequences of the FCC’s effort to remove media ownership rules. To recap:

    Research
    ---------------------------------------------
    In November 2002, the FMC released “Radio Deregulation: Has it Served Citizens and Musicians?” This report was a thorough analysis and documentation of the state of the radio industry since its deregulation following the 1996 Telecommunications Act. The FMC concluded that radio’s unprecedented consolidation since 1996 should serve as a “cautionary tale” for policymakers considering deregulation of other media.

    Hearings and Testimony
    ---------------------------------------------
    In January 2003, Jenny Toomey joined Eagle’s rocker Don Henley, Clear Channel’s Lowry Mays, NAB’s Eddie Fritts and broadcaster Robert Short in front of the Senate Commerce Committee on radio ownership issues. Over the following months FMC board members also participated in many other hearings. Jenny testified at the only FCC-sanctioned hearing in Richmond, VA. She also participated in the raucous FCC hearing in Seattle, a forum on ownership at Columbia University Law School, and the hearing in Durham, NC. Peter DiCola testified at the hearing in Detroit, MI. Kristin Thomson attended the public hearing in Philadelphia organized by Media Tank, and Michael Bracy participated in a roundtable at the FCC last week and attended yesterday’s vote. You can review various testimony and statements here.

    Coalition Efforts
    ---------------------------------------------
    In March 2003, the FMC joined a broad coalition of consumer advocates, unions, and community groups to send letters to Chairman Powell and members of Congress expressing our concern about the proposed ownership changes. You can review the letters here.

    Getting Musicians’ Message to FCC
    ---------------------------------------------
    In April 2003, the FMC worked with other music organizations to send a letter co-signed by an impressive list of well-known and respected musicians to FCC’s chairman Michael Powell. The letter urged the FCC to grant Congress and the public a full opportunity to review any proposed changes of media ownership rules before they are enacted. The letter was co-signed by Jackson Browne, Jimmy Buffett, David Crosby, Neil Diamond, John Doe, Don Henley, Indigo Girls, Billy Joel, Lenny Kaye, Toby Keith, Ian MacKaye, Ray Manzarek, Ellis L. Marsalis, Jr., Mya, Tim McGraw, Paul D. Miller, Sam Moore, Thurston Moore, Stevie Nicks, Joan Osborne, Van Dyke Parks, Pearl Jam, Sandy Pearlman, Tom Petty, Bonnie Raitt, Kevin Richardson, Patti Smith, Stephan Smith, Michael Stipe, Tom Waits, Jennifer Warnes, Saul Williams, and Nancy Wilson.

    The FMC also invited any musicians equally concerned about media ownership issues to co-sign this letter. To date over 4100 musicians added their signatures to the document, which was re-delivered to the FCC on May 28. You can read the letter or review the list of signatories here.

    Here’s a bit of press about it:

    Musicians blast FCC plan

    Members of R.E.M., Pearl Jam decry radio consolidation
    By Joanne Ostrow
    Denver Post, May 22, 2003

    Rock stars rap FCC proposal

    by Greg Gatlin
    Boston Herald, May 22, 2003

    Rock against media deregulation
    Steve Terrell
    Santa Fe New Mexican, May 9, 2003
    (scroll down to second half)

    Musicians Against Media Monopoly
    By John Nichols
    The Nation, May 1, 2003

    Prominent musicians ask FCC to delay eliminating rules for deregulation in radio
    By Rick Karr
    NPR’s Morning Edition, April 30, 2003


    More Research
    ---------------------------------------------
    In late April the FMC did what it seemed like nobody else had done, including the FCC itself – we actually read and evaluated the comments filed by citizens in the FCC’s docket on this rulemaking. With the help of nearly 20 FMC volunteers, we were able to review and rate each public comment in the docket as of May 8, which totaled nearly 10,000 comments. On May 14 we released the results of this analysis. Of the 9360 citizen comments reviewed, 9065 citizens unaffiliated to a corporation, organization or association opposed changing existing media ownership rules that would pave the way for further consolidation, while only 11 unaffiliated citizens supported changing the rules, which indicated overwhelming public opposition to these rule changes.

    You can check out more about this research project on the FMC website.

    Press release about the FCC docket analysis – check out the pie chart!
    FAQ about the docket analysis
    A chart showing the state-by-state tallies

    The FMC would like to THANK all our amazing volunteers for helping us with this monumental data analysis project. The research was not only referenced publicly by members of Congress – Senators Barbara Boxer and Wayne Allard, most notably – and FCC commissioners, but was also highlighted in Billboard, Radio and Records, Congress Daily, NPR’s Talk of the Nation and Morning Edition, The Nation, Salon.com, CNN, The Washington Post, and ABC’s Sunday morning talk show hosted by George Stephanopoulis. A PDF of these press clips is downloadable at:
    http://www.futureofmusic.org/images/pressFCCdocket.pdf

    And a couple of key press stories about the public and the FCC:

    FCC: Public Be Damned
    by John Nichols and Robert W. McChesney
    The Nation, June 2, 2003

    Last stop before the media monopoly
    FCC chairman Michael Powell is likely to get media ownership deregulated -- even though public comment is running 97 percent against it.
    By Eric Boehlert
    Salon.com, May 23, 2003

    The big blackout
    Surprise, surprise: The TV networks that will benefit from the new FCC rules on media ownership have been keeping their viewers in the dark about the changes.
    By Eric Boehlert
    Salon.com, May 22, 2003

    Rule Changes Already Under Attack
    -------------------------------------------------------
    Many have speculated that today’s rule changes would be swiftly challenged in court. But even before any telecom lawyers could get their briefs in order, a number of senators called a press conference on Capitol Hill announcing their concern about certain portions of the rule changes. Less than an hour after the FCC hearing was over, Senators Lott, Dorgan and Hollings were suggesting that they might have enough votes in the Senate to overturn rule that increased the national TV ownership cap from 35 percent to 45 percent.

    Things might get even more interesting on Wednesday morning at 9:30 AM ET when all five FCC commissioners will appear before the Senate Commerce Committee. Chaired by Senator John McCain, the commissioners will most likely be grilled by committee members on yesterday’s rule changes – something we wish had happened before the rule changes were voted upon but we appreciate the Committee’s continued interest in this topic. This hearing will be webcast via http://www.capitolhearings.org and most likely be broadcast live on CSPAN.

    And if that wasn’t enough for one day, two key members of the Senate Judiciary Committee – Senators Mike DeWine (R-OH) and Herb Kohl (D-WI) – expressed “serious reservations” about the FCC decision and said future media mergers should get close scrutiny from antitrust regulators at the Justice Department and Federal Trade Commission. The senators issued a joint statement saying the agencies should “stand guard to prevent deals which will substantially injure competition in these industries that are so vital in providing the news and information relied upon by millions of Americans.”

    What You Can Do
    -------------------------------------------------------
    With Congress all hot under the collar about these rule changes, the next few days are an excellent time for you to write or call your federal representatives to express your views on media ownership. It’s critical that they hear from constituents who can offer personal stories and experiences about how media consolidation has impacted the quality of radio, newspapers and TV in their communities. This can happen either via phone or email.

    Not sure how to get in touch with your elected officials? Go here and type in your ZIP

    If you call, explain that you are a constituent and you would like to speak to the staff person who handles media ownership issues. If you get voice mail, leave your name and number along with a brief message. Most members will also provide email address or webforms on their personal web pages.

    If you'd like some more information about these issues before sending your message or calling, go to our media activism page or visit the Free Press website at http://www.mediareform.net

    The FMC pledges to keep on top of these issues as they develop. As more of our mass media is controlled by multinational conglomerates, it becomes much more critical for policy makers to promote structures that guard independent and non-commercial voices. Over the next few months, FMC will work to promote issues such as webcasting and low power FM, both of which provide new ways for alternative voices and music to be heard.

  2. California State Senate Passes Record Label Accounting Legislation

    On May 29, the California State Senate passed SB 1034. Introduced by Senator Kevin Murray, the bill “would specify that the obligation of a recording company to accurately account for royalties earned under a recording artist contact is a fiduciary duty.” In other words, record labels would have to account properly to their artists.
    There’s a great analysis of the bill here.

    The FMC has joined AFTRA, AFM, Artists’ Empowerment Coalition, Recording Artists’ Coalition, California Labor Federation, Department of Professional Employees of the AFL-CIO, Music Managers’ Forum, Professional Musicians Local 47, Screen Actors Guild and many individual recording artists to express support for the passage of these new accounting rules.

    What’s Next and What You Can Do
    -------------------------------------------------------
    SB 1034 now moves to the California State Assembly where the bill may not have as much support. AFTRA urges musicians, songwriters, recording artists and managers -- especially those living in California or under contract in California -- to send a letter or a fax to Senator Murray and express their opinions about these proposed rules.

    You can review a sample letter here:
    http://www.aftra.org/resources/pr/0503/sample.html

    Send letters to:

    Honorable Kevin Murray
    California State Capitol
    Room 4082
    Sacramento, CA 95814

    Senator Murray can be faxed at: 916.445.8899

  3. Apple’s iTunes Has Big Launch

    In late April, Apple launched its own digital music service -- the iTunes Music Store. The service offers legitimate licensed downloads from all five major labels for 99 cents each and, unlike the deals with Musicnet and Pressplay, iTunes allows burning songs onto an unlimited number of CDs for personal use, listening to songs on an unlimited number of iPods, playing songs on up to three Macintosh computers, and using songs in any application on the Mac, including iPhoto, iMovie and iDVD.

    iTunes has been a smashing success, with over 3 million songs downloads in the first three weeks. Now, labels and artists of all sorts are rushing to figure out either a) why Apple has been so successful where others have wallowed and/or b) how they can get on board. Apple has stated that it wants to expand its library to include non-major label content, and that it’s working on a PC version of iTunes, which would greatly expand its consumer base.

    The FMC is very interested in understanding any new business models that could benefit the broad base of musicians, and we're very encouraged that Apple has introduced a system that could be the most promising legal distribution model yet. We are currently examining Apple’s model from the musician/label perspective and will be providing some comprehensive analysis of iTunes and other digital distribution services in the near future.

    In the meantime, check out some of these stories:

    Microsoft, again: Apple's old nemesis
    In a masterstroke of technological and marketing acumen, Apple Computer appeared to have seized the digital music industry last month by boldly creating its own retail download service.
    By Evan Hansen
    CNET, May 29, 2003

    Let Someone Else Do It: Dig Tunes
    Industry watchers say the decision by Sony and UMG to sell their service Pressplay to Roxio indicates a shift that the major labels are turning away from distributing music online. By letting someone else 'own the highway,' they can still reap some of the profits.
    Wired, May 26, 2003

    Music Biz Buzzing Over ITunes
    Apple's new online music store is a home run with customers: Opening-day downloads rival six months' worth of legal downloads from all the competing services. But it's still in its early days with holes in its catalog and limitations on song sharing.
    By Leander Kahney.
    Wired.com, May 3, 2003

    Dollar Songs: Bargain or Rip-Off?
    Apple CEO Steve Jobs made headlines this week when he unveiled a sleek music download service that charges users 99 cents a song. But some experts say that's just not cheap enough to lure away users from free peer-to-peer file-trading networks.
    By Joanna Glasner
    Wired.com, May 1, 2003

    And in related news:

    Roxio buys Pressplay, to relaunch Napster
    Santa Clara-based Roxio bought pressplay for $12.5 million in cash and approximately 3.9 million shares of Roxio common stock. Pressplay, based in Los Angeles, is the joint venture of Universal Music Group and Sony Music Entertainment, record companies that were seeking a legal alternative to Napster. Roxio bought the Napster brand on the cheap after the company dissolved, and appears ready to relaunch the brand as an online music store.
    Associated Press
    Salon.com, May 19, 2003

  4. Other Articles in the Newsstream

    Singer Elvis Costello Defends Outspoken Artists
    "We all live in fairly dangerous times in terms of freedom of speech and freedom of expression," Costello said. "A lot of the songwriters that I've admired and learned from ... are people who spoke in matters of conscience as well as matters of the heart. I think that it's essential that we defend that right."
    Reuters, May 21, 2003

    A TiVo Player for the Radio
    Several new devices let users record programs and listen to them whenever they want. Like digital video recorders, these digital audio recorders let listeners fast-forward past commercials.
    By Elisa Batista
    Wired.com, May 12, 2003

    P2P Whipping Boy: Know the Risks
    Sued by the music industry trade group RIAA for running a 'Napster-like' network on campus, Joe Nievelt agreed to pay $15,000 to settle the lawsuit. But the Michigan Tech junior says he doubts his high-profile case will have much impact on file trading.
    By Katie Dean
    Wired.com, May 10, 2003

    Book Excerpt: All the Rave
    What were the behind-the-scenes machinations that led to several music publishers suing Bertelsmann earlier this year? In this excerpt from All the Rave: The Rise and Fall of Shawn Fanning's Napster, author Joseph Menn explains how the German publishing conglomerate's alliance with Napster went wrong.
    Wired.com, May 6, 2003

    School Blocks Out File-Trading
    Amid growing pressure from the Recording Association of America to stamp out illegal file-trading on university campuses, a New Jersey school takes matters into its own hands.
    By Katie Dean.
    Wired.com, May 3, 2003

  5. What We're Doing

    Jenny Toomey
    Jenny Toomey has spent the last month preparing for the June 2nd vote. She ran up against ex FCC Commissioner Dick Wiley on CNN and discussed Clear Channel's desire to buy stations in England on the BBC. She participated in a conference call/press conference with Michael Mills of REM and Stone Gossard of Pearl Jam as well as Robert McChesney and Common Cause. She also had a very inspiring weekend at the second Annual Tape Op conference in Portland, where against all odds she enjoyed a power point presentation documenting the history of music and technology. She is currently expecting an iPod.

    Kristin Thomson
    Kristin has been trying to keep up with the furious pace of life these days, with an FCC on the verge of massive rule changes and an infant that’s quickly moving from crawling to toddling. Kristin is heading out to Silicon Valley this week for a seminar about iTunes hosted by Apple. Exciting! More about this in the next newsletter.

    Brian Zisk
    Brian's been looking at situations where major media companies use their size and legal resources to unconscionably prevent artists from proceeding with their recording careers. More will be revealed on this shortly.

    Michael Bracy
    And who ever said FCC rulemakings can't be fun? Since the FCC launched their review of media ownership rules late last year, we've released a study, held a summit, testified before the Senate and the FCC, had a baby, survived snipers, "code orange" and a war, briefed dozens of reporters and policy makers and coordinated efforts with thousands of activists who share our concern both about the policy direction of the FCC and the process they chose to employ. We have been inspired by the leadership of FCC Commissioners Copps and Adelstein, not to mention the over half-million comments received at the FCC. Now, as baby Owen learns to sleep through the night, Michael hopes that his reoccurring dreams about 3-2 votes and FCC process will be replaced with visions of Redskin touchdowns dancing through his head. Otherwise, Michael is excited by the prospect of taking the media ownership fight to Capitol Hill, both in terms of contesting the plan adopted by the FCC on June 2 and working with Congress to allow LPFM licenses in urban markets.

  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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up front

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Press release | Indecency amicus brief (PDF)

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March 7, 2008 | Event details

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Upcoming Washington, DC show and benefit EP from OK Go & Bonerama
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Successful New Orleans Concerts Aid Big Easy Musicians
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FMC's Latest Fact Sheets
HD Radio
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Orphan Works
Traveling with Instruments
Touring Internationally
SoundExchange
Net Neutrality
Full Power Non-Commerical Radio Licenses
Media Ownership

Ann Chaitovitz Appointed
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Summit home page
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Top musicians, lawyers, technologists confirmed for FMC's 7th annual Policy Summit
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FMC Statement on AT&T Silencing Pearl Jam's lyrics during Lollapalooza webcast

August 9, 2007

Registration Opens for FMC's Annual Policy Summit
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FMC Statement on Federal Trade Commission Report on Net Neutrality
June 29, 2007

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June 27, 2007
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FMC Statement on FCC Payola Settlement
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January 16, 2007

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Press release
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October 23, 2006
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FMC Releases Research on Employment and Wage Effects of Radio Consolidaton
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FMC on Preserving the Dynamism of the Internet
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FMC Statement on Senate Commerce Committee Vote in Support of LPFM
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FMC Statement on FCC Media Ownership Proceeding
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5th Annual Future of Music Policy Summit Announced
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Media Advisory | Policy Summit home page

FMC Statement on MGM v Grokster and Brand X
June 27, 2005
Statement | Links to other organizations' statements

FMC Press Release: Music Mashes with Policy at DC Policy Day
April 8, 2005

FMC's Michael Bracy Testifies in front of House Judiciary Committee on "Digital Music Interoperability"
April 6, 2005

FMC files comments at US Copyright Office on "Orphan Works"
Comments also ask Copyright Office to consider status of out-of-print recordings
March 25, 2005

FMC Sends Letter to Senate Stating Concerns about S 193, Broadcast Decency Enforcement Act
March 10, 2005

FMC and artist groups file joint reply comments at FCC on localism in broadcasting, MB Docket 04-233
January 3, 2005
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