The US Senate Committee on Commerce, Science, and Transportation has published transcripts from their January 30th Ownership in Radio Industry Hearing. The panel represents diverse views (page has links to testimony by participants) and is worth a look. Among the positions, Lowry Mays, Chairman and CEO of Clear Channel, says:
…some say that deregulation has gone too far. They say the industry is too consolidated. And they contend that Clear Channel, as the nation’s largest operator, has too much market power. Let’s stop for a moment and put the numbers in perspective. Let’s generate some light to accompany the heat.
Radio is by far the least consolidated segment of the media and entertainment industry. The ten largest radio operators account for only 48 percent of the industry’s advertising revenues. Compare that to the recording industry, where the top five record companies control 84 percent of all album sales.
It’s also interesting to note that in cable television, the ten largest companies account for 89 percent of the revenues. For movie studios it’s a whopping 99 percent.
And, though the number sounds large, Clear Channel’s 1,200 radio stations represent only 9 percent of all the stations in the country. That means that over 90 percent of the nation’s radio stations are owned by companies other than Clear Channel.
Some telling facts about broadcast and content control overall. (Clear Channel also controls a significant number of highway billboards as well.) But what are the effects of this radio consolidation? Don Henley, representing the Recording Artists Coalition (testimony includes list of coalition members), bemoans the cost of exposure for new or non-standard artists:
But slowly the radio world, and along with it the music industry, changed. As local and independent radio stations were purchased by larger corporations, radio playlists started to contract and become much more uniform. In an effort to gain more control over the music industry, radio conglomerates started to narrow playlists and centralize the radio programming function that had traditionally been done independently by each individual station. Radio consolidation made it increasingly more difficult for an artist to get radio airplay. Radio network programmers became more powerful and demanding. And not only did they erode the vitality of American music, they placed themselves in a singularly powerful position to extract additional concessions from the labels and the artists.
Content, Policy cable, Clear Channel, consolildation, deregulation, market, playlists, radio, senate