Democrats Try to Make Radio Suck Less
FRIDAY FEBRUARY 2 2007 9:00 PM
Submitted by legionnaire. Edited By legionnaire.
TAGS: Radio, FCC, Democrats, regulation
Commercial radio blows. It's no secret, it wasn't ever that great, but it has faced such a steep decline in recent years that the notion of how bad it is has almost become a cliché. Outside of satellite, college and internet radio stations everything available on the radio has begun to sound homogenized, and for good reason. Two companies, Clear Channel and CBS Radio together control over 25% of all radio stations in the country, a phenomenon made possible by the Telecommunications Act of 1996, which removed ownership restrictions on radio stations within a given market, claiming it would increase competition. The opposite happened, and almost all commercial radio stations in the US are now owned by five companies. So it's no surprise that it's hard to go anywhere without hearing the same six-song playlist of focus group tested crap on the radio.
Congressional Democrats have finally woken up to this fact and have made it part of their agenda for this year's legislative session, pushing the FCC to tighten ownership restrictions and increase the diversity of the radio marketplace.
Recent FCC policies on media ownership, said Sen. Byron L. Dorgan (D-N.D.), have been "a spectacular failure."
He railed against rules that allow one entity to own eight radio stations in a large city and against proposals to allow one owner to have three TV stations in a city. "More concentration means less competition," Dorgan said. "The public-interest standards have been nearly completely emasculated."
But FCC Chairman Kevin J. Martin, who has close ties to the Bush White House, defended the agency's policies.
"The commission has tried to make decisions based on a fundamental belief that a robust, competitive marketplace, not regulation, is ultimately the greatest protector of the public interest," Martin said.
Here's the problem with Martin's idea—in theory, anyway, a free market should increase diversity and lead to an effective marketplace, giving consumers what they want. But when dealing with something like portions of the electromagnetic spectrum, which by government mandate are a fixed resource. Only limited frequencies for FM and amplitudes for AM are allowed for commercial radio broadcasting, as dictated by the Radio Act of 1927, which divvied up the available bandwidth setting upper and lower boundaries on what could be transmitted, and granted the FRC (which later became the FCC) the exclusive right to license portions of that bandwidth to companies that wanted to broadcast on them. So since there are a limited number of frequencies available, and broadcasting on any of them requires a government license, by definition they represent a limited resource, the opposite occurs. Unlike the idealized free market that Adam Smith envisioned, a company with innovative radio programming ideas could not just step into the marketplace and become a dominant plaer solely through a superior product because that company would need licenses to do so. Removing limits on how many stations a company could own in a particular market also meant that a large company (like Clear Channel) could step in and buy up all of the radio stations in town, giving listeners the stark choice of either listening to what the company wanted or turning off their radio.
The nature of the commodity (portions of the EM spectrum) essentially dictates that, ironically a lack of government regulation can and does lead to monopolistic business practices that hurt consumers. Clearly the changes in the marketplace over the past ten years should be sufficient to stand alone in illustrating that point for anyone wondering. And in fact, two internal FCC reports, both suppressed independently reached this conclusion—one wonders who ordered the authors to keep their mouths shut?

















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