On Friday, November 15, the National Association of Broadcasters (NAB)
released a response to our study, which had not yet been released. The
NABs so-called fact sheet contains a skewed version of the state
of the radio industry. Here we present our rebuttal to the NABs
claims.
Findings by other researchers
The NAB fact sheet directs journalists to a series of reports with a
perspective differing from ours. We encourage reporters to read these
studies while noticing the questions that are absent from the analysis
contained in them. These studies never engage the public policy issues
that have emerged from radio deregulation.
Furthermore, we would encourage reporters to read the studies of the
radio industry by organizations and writers that the NAB failed to cite.
In particular, we would recommend the FCCs recently-released study
Radio Industry Review 2002: Trends in Ownership, Format, and Finance.
Youll find that our statistical findings about the extreme consolidation
now present in the radio industry are consistent with the FCCs.
Unlike the FCC reports, however, our report does not stop short of making
policy conclusions. In our report we connect the dots between all the
facts we discovered about radio after deregulation.
To make their case, the NAB cites reports by an industry consulting firm,
an industry survey firm, and an investment bank. In the wake of Enron
and Worldcom, we know we need not caution journalists to read critically
when reading the reports of investment bankers.
Listenership HAS decreased: even according to an industry-owned business
The NAB claims that consumers are not dissatisfied with radio and that
listenership is still high. Its difficult for us to determine exactly
which industry-conducted studies the NAB is citing to support this claim
in their fact sheet, even after a thorough search of both Arbitron and
Edisons list of collaborative reports.
But we have determined that a study by Arbitron/Edison contains some
of the findings to which the NAB refers. However, as in other surveys
conducted by Arbitron/Edison, this study did not use a random sample.
Instead, it used a random sample of Arbitron diary keepers. But selections
from a truly random sample must be uncorrelated with anything else to
meet that definition. In the case of this study, survey respondents were
selected based on whether they fill out Arbitron ratings surveys. This
means that some demographic groups may have been underrepresented in the
survey samples.
We would also note that its not surprising that an industry-conducted
survey found results favorable to the industry. After all, Dr. Ed Cohen,
Arbitrons Director of Domestic Radio Research, was most recently
employed as Vice President of Research for Clear Channel Communications.
What is surprising is that an industry-conducted survey a different
one, cited in the FMC report found results very unfavorable to
the industry. In September 2002, Duncans American Radio reported
listenership has hit a 27-year low. (Incidentally, Duncans is owned
by Clear Channel, by far the largest owner of radio stations in the U.S.
This makes it hard to claim its findings are biased against the industry.)
According to the Duncans study, radio listenership has fallen steadily,
dropping nearly 17 percent over the last 13 years.
Format variety is stagnant
The NAB cites our studys finding that format variety increased
from 1996 to 2000. We do indeed report this result as a preface for our
next conclusion; that format variety is not a substitute for true measures
of format diversity. Our study puts this first finding into a broader
context. We point out that format variety has been stagnant over the last
two years. The other studies of format variety cited by the NAB overlook
or obscure the issue. The NAB never acknowledges or responds to this important
finding.
Format variety vs. programming diversity
Format variety is a surface measure. It measures the variety of labels
on programming not the diversity of the actual programming content.
All the studies cited by the NAB equate variety of formats with diversity
of programming. This approach overlooks the major issue of format homogeneity
the overlap between formats. These NAB-cited reports do not recognize
that slicing and dicing the same songs over and over again does not increase
diversity.
In our study, we focus on the incredibly high level of format homogeneity.
Some formats like Urban and CHR/Rhythmic overlap by as much
as 76 percent according to chart data from Radio and Records. We also
note that format homogeneity has either remained high or stayed the same,
depending on the formats in question. This finding is consistent with
another FCC report, cited by the NAB itself, Radio Market Structure
and Music Diversity.
The fact that format homogeneity is high and holding at a high level
is significant. It exposes the superficiality of using format variety
as a measure of programming diversity. What matters for listeners and
musicians is the diversity of songs played on the air.
Radio is an oligopoly
The NABs claim that radio is less consolidated than other industries
is a diversionary tactic. The term oligopoly refers to the
degree of concentration in a single industry. And according to that definition
radio is an oligopoly. Comparing radio to other, extremely concentrated
media industries is not an effective way to deflect scrutiny.
The NAB claims that the top 10 owners control only 49 percent of industry
revenue. We find that the top 10 firms control 67 percent of industry
revenue, based on data from BIA Financial Networks. Calculating market
share involves the simple mathematical operations of addition and division.
Anyone with the BIA database could reproduce our results. The burden lies
on the NAB to explain where their number comes from.
Furthermore, the NAB sites the 4,000 separate companies that own radio
stations without mentioning the fact that only 10 control 67 percent of
revenue. The number of owners does not counteract the dangerous implications
of this level of market concentration, nor does it address the local origins
of the medium. Section 307(b) of the Communications Act specifies that
radio stations are licensed to particular communities and are charged
with servicing those communities. In other words, principles of localism
are deeply embedded in the Communications Act. Therefore, any notion that
you can improve local service by regionalizing and nationalizing is in
many ways fundamentally at odds with one of the basic goals of the communications
licensing process.
Radio consolidation is MORE worrisome because other media are more
consolidated
The NAB lamely attempts to assuage any worries about radio consolidation
because other media are even more consolidated. What the broader media
context really tells us is that horizontal consolidation across
media has become a pressing problem. Three examples of the Top 10 radio
companies Clear Channel, Viacom, and Disney/ABC Radio have
major holdings in other media and other industries as well. These holdings
include network television, cable television, motion picture studios,
music recordings, billboard advertising, etc. Horizontal consolidation
reduces diversity even further.
Furthermore, many of these other industries do not rely on public spectrum
to operate. Haphazardly comparing radio to these other, very different
industries blurs the important issue of radios democratic ownership.
The spectrum belongs to the public, making the consolidated control of
spectrum a uniquely public concern.
Not all minorities are well-served by radio
The NAB mentions that more Spanish-language stations exist than existed
in 1996. True as that may be, this does not prove that highly consolidated
industries serve all customers well. Radio might serve some minority ethnic
groups in some ways. But many groups that are in the minority are
not being served: those who prefer classical music, those who prefer jazz,
those who prefer world music, those who prefer a multiplicity of news
sources, and so on.
Our analysis asks the right questions
We asked two objective questions: (1) how has radio consolidation affected
consumers? (2) How has radio consolidation affected musicians? If the
radio broadcasters don't wish these questions to be asked and don't wish
these questions to be answered by anyone besides them, one can understand
that given the overwhelming evidence against their claims. We urge
reporters and citizens to inform themselves fully, and not be distracted
by industry propaganda.
We used the industrys own numbers to conduct our research. We played
ball on their home field. That the industrys own data sources implicate
radio as an increasingly consolidated and less diverse medium lends even
more credence to our claims.
The NAB has claimed that we did shoddy analysis and have
an activist agenda that biased our research. Our study contains
extensive in-text and footnotes explanations of its methodology. The report
is written so that anyone can re-create and check its results. We stand
behind our work.
FMC Releases
New York State Edition
of "Same Old
Song: An Analysis
of Radio Playlists
in a Post-FCC Consent
Decree World"
Data-driven report examines
radio playlists in New York
State from 2005-2008 and finds
almost no measurable change
in playlist composition.
June 30, 2009 Press
Release | Report
"I Support Community Radio" Artist
Video Campaign
Musicians talk about what good local radio means to them.
July 10, 2009 Project Page | Press
Release
"Musicians Bringing Musicians Home V"
All-star Tipitina's concert on May 22, 2009 benefits Big Easy musicians and Sweet Home New Orleans.
May 7, 2009 Press Release
FMC Releases "Same
Old Song: An Analysis
of Radio Playlists
in a Post-FCC Consent
Decree World"
Data-driven report examines
radio playlists from 2005-2008
and finds almost no measurable
change in playlist composition.
April 29, 2009 Press
Release | Report
Low Power FM Briefing Brought Diverse Voices Together for Community Radio Advocates
for LPFM gathered
at our nation’s
capital to promote
the importance of
local community radio
in more American towns
and cities. April 24, 2009 Press release
FMC
Honors Departing Executive Director Ann Chaitovitz
Chaitovitz’s tenure brought unambiguous artist focus to FMC’s
work in education,
research and advocacy
for musicians.
April 7, 2009 Press
release
D.C. Policy Day 2009 Event featured lively discussion between artists, advocates, music industry insiders, policymakers and technologists.
February 12, 2009 Press release | Event site
"Musicians Bringing Musicians Home IV" New Orleans Benefit Concert
Show is the culmination of FMC and Air Traffic Control's annual three-day Artist Activism Camp.
November 19, 2008 Press Release
FMC Analysis: Election Impact on Artists and the Music Community
There are many indicators that a new Adminstration will create conditions for more art and culture-friendly policy; FMC identifies key areas for improvement.
November 5, 2008 Analysis | PDF
FMC Statement on the FCC's White Spaces Vote
Musicians will benefit from White Spaces — those unoccupied frequencies in the existing TV spectrum — given careful implementation of new "smart" devices.
November 4, 2008 Statement
FMC and realizePhiladelphia present web.illish.us
Multi-faceted web and live shows raise awareness about net neutrality and democratic access to the media.
October 29, 2008 Press release | Event page | Main site
A2IM and FMC Report on Independent Music and Commerical Airplay
In-depth survey finds little has changed 18 months after FCC Consent Decree and "voluntary agreements."
October 22, 2008 Press release | Report
FMC Statement on CRB Rulings Rate-setting for mechanical royalties for physical and digital music should songwriters; encourage new business models.
October 3, 2008 Press release
FMC Reveals Programming for Fall Events Fall 2008 "What's the Future for Musicians?" seminars in New York and Chicago; Sampling and Fair Use Panel in NYC.
September 9, 2008 Press release | Event Page
FMC Announces Upcoming Events Fall 2008 "What's the Future for Musicians?" seminars in New York and Chicago; Washington, D.C. Policy Day and Policy Summit set for 2009.
August 5, 2008 Press release | Event Page
FMC Commends FCC's Comcast Decision On August 1, the FCC ruled that Comcast violated net neutrality principles; the decision is a positive step in preserving the open internet. August 1, 2008
Public Enemy Frontman, Production Team and Insiders Discuss Landmark Album On July 17, FMC and Pitchfork Music Festival will host a free discussion about Public Enemy's It Takes a Nation of Millions to Hold Us Back at Chicago's Cultural Center, featuring Chuck D, members of PE's production team and music media experts.
July 8, 2008 Press release | Event Page
FMC Files Brief to Protect Creative Expression
FMC and the Center for Creative Voices in Media filed a brief at the Second Circuit Court of Appeals, arguing that the FCC's indecency policy has a chilling effect on creativity and expression and deprives the public of access to protected speech.
July 2, 2008 Press release | Indecency amicus brief (PDF)
Wilco, Bright Eyes, Aimee Mann & more "Rock the Net" on Compilation CD
Thirsty Ear Recordings to release album on July 29 to benefit FMC's "Rock the Net" campaign for net neutrality.
June 2, 2008 Press release | Rock the Net
Musicians Get the Hint About Health Insurance
Two Raleigh concerts in memory of musician Drew Glackin; proceeds go to Glackin's family and Future of Music Coalition's Health Insurance Navigation Tool
April 10, 2008 Press release FMC's HINT program
New York State Music Education Events Examine Crucial Issues Facing Artists Forums in Rochester (April 28), Syracuse (April 29) and Albany (April 30) to focus on music, media, technology and policy issues for songwriters, composers and performers from all genres.
March 25, 2008 Event details | RSVP
Pop Rockers OK Go "Tour" Congress in Support of Net Neutrality
Damian Kulash and Andy Ross discuss the importance of open Internet structures to musicians; Kulash testifies before House Judiciary Committee.
March 13, 2008 Press release
Spoken testimony
Written testimony
Rock the Net
New York State Music Education Events Examine Crucial Issues Facing Artists Kick-off forum in Buffalo on April 2 to focus on music, media, technology and policy issues for songwriters, composers and performers from all genres. March 7, 2008 | Event details
Philly Bands Rocking for Net Neutrality February 23 Sugar Town show at Tritone in Philadelphia will showcase lady rockers and DJs, as well as musicians' support for net neutrality. February 15, 2008
OK Go and Bonerama Rocked DC for New Orleans Musicians Bands also champion FMC's "Rock the Net" campaign for net neutrality February 2 benefit show at DC's 9:30 Club raised over $8,000 for New Orleans musicians. Bands played cuts off their new benefit EP, You're Not Alone, available on iTunes on February 5. February 4, 2008
Upcoming Washington, DC show and benefit EP from OK Go & Bonerama
On February 2, OK Go and Bonerama will play a benefit at D.C.'s 9:30 Club in support of You're Not Alone - an EP to support Sweet Home New Orleans and Al "Carnival Time" Johnson. January 21, 2008
Successful New Orleans Concerts Aid Big Easy Musicians
Last week, two benefit concerts raised over $6,000 for Sweet Home New Orleans - a coalition of non-profit organizations that helps find affordable housing and provides rental assistance for the city's musicians - and Big Easy music legend Al "Carnival Time" Johnson.
January 15, 2008 Press release | Event details
Ann Chaitovitz Appointed
FMC's New Executive Director A proven leader in musician and public policy issues, Chaitovitz replaces founding Executive Director Jenny Toomey January 3, 2008
Concerts for New Orleans Musicians Bring Artists Together Two New Orleans shows and upcoming benefit CD from OK Go and Bonerama January 2, 2008
FMC's Jenny Toomey Appointed Program Officer for Ford Foundation
Kristin Thomson to Serve as FMC's Interim Executive Director; Michael Bracy to Chair FMC Board of Directors November 26, 2007