Detailed fact sheets on the report, the issue and state-by-state
data available here.
WASHINGTON — 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 FMCs 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,
with four companies or fewer controlling over 50 percent of national
listeners in 28 of 32 formats according to three separate measures:
self-reported formats, BIA format categories and Radio and Records-based
categories. 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 AFTRAs 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 radios 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 mornings press conference, at 2:00 PM 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 .