FEINGOLD BILL WILL EMPOWER FCC WITH RADIO OWNERSHIP ENFORCEMENT
Legislation introduced Thurs. by Sen. Feingold (D-Wis.) would expand FCC authority to review proposed radio mergers and curb alleged anticompetitive practices of radio and concert promoters. Feingold said his proposed Competition in Radio and Concert Industries Act was effort to halt damage he said was done by Telecom Act of 1996, which he said was heavily influenced by “soft money.” (CD June 14 p7) Telecom Act eliminated national radio ownership cap and softened local ownership caps, which has “opened the floodgates of media concentration,” he said. As result 4 companies -- Chancellor, Clear Channel, Infinity and Capstar -- control most popular music formats, including 63% of top 40 format and 56% of country format, he said. Feingold said he realized there was not enough time for bill to pass Senate this term, but he hoped to get it through committee, or at least get hearing, before 107th Congress adjourns.
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Bill would empower FCC in several areas, although several consumer and artist advocates at news conference questioned Commission’s effectiveness or resolve in handling ownership issues. Measure would give FCC some authority in reviewing radio station mergers, Feingold said. Other provisions would: (1) Direct FCC to revoke license of any radio station that used its cross-ownership to promote services or venues to discriminate against musicians, concert promoters or other radio stations. (2) Require that FCC “scrutinize” effect of national and local concentration on independent radio stations, concert promoters and consumers. (3) Prevent FCC from raising limitations on multiple ownership of radio stations in local markets. (4) Require FCC to ensure that measurement of local radio markets was independent of manipulation. (5) Close “loophole” on pay- for-play, or “payola,” to ensure radio station broadcasts weren’t improperly influenced by payment, directly or indirectly, to licensee of any station unless appropriate sponsorship identification announcement was made. (6) Prevent FCC from suspending rules unless it determined “compelling justification.” (7) Close “loophole” in local marketing agreement regulations to ensure any station that received significant amount of its play lists or advertising from another station be considered under local ownership cap. (8) Require FCC to issue annual report on compliance with rules and industry practices, based on consultation with independent sources and public comments.
Feingold said he wrote to Justice Dept. inquiring whether current antitrust laws could be used to curb radio consolidation, but said he received no reply. He said stations and concert promoters had conflict of interest that led them to promote their own concerts and tours on stations over those of competition. Feingold said he shared concerns of artists, labor groups, small business and radio companies about “a corporation’s interest in limiting the promotional support of bands and artists that are performing for other companies, performing at other venues or sponsored by other stations.”
Broadcast, consumer protection and music artist advocates praised bill at news conference, but some questioned FCC resolve to slow media consolidation. Gene Kimmelman, dir., Consumers Union Washington office, said efforts to rein in excesses in radio industry would be challenged by policies of Bush Administration and FCC. Kimmelman said FCC Chmn. Powell wasn’t interested in curbing ownership rules and there were few other “checks and balances” to rein in ownership. Consolidation hurts news production more than programming, said both Kimmelman and James Winston, exec. dir., National Assn. of Black Owned Bcstrs. (NABOB). Kimmelman said news production was very important because of watchdog role it served society. Winston said news was very important for black community, which needed local control of coverage. “The issue’s not about entertainment, it’s about who’s covering the news,” Winston said. “The African-American community must have its own voice.”
Jenny Toomey, exec. dir. of Future of Music Coalition (FMC), said current corporate radio structure kept independent artists, even successful ones, off popular radio. “This bill will help citizens and musicians reclaim the public airwaves,” she said. FMC, along with Media Access Project (MAP) and Rockefeller Foundation, are studying consolidation and diversity of radio and expect to release comprehensive report by end of summer. RIAA also supported legislation, saying it would take first steps toward ensuring diversity of programming and preventing abuse of independent promotion through “unprecedented increased radio ownership consolidation.” “This radio promotion system needs reforming and this bill provides the road map to getting there,” said RIAA Chmn. Hillary Rosen.
NAB Pres. Edward Fritts said Telecom Act strengthened ability of radio to server listeners. “We strongly dispute claims that radio has grown more homogenous in recent years,” he said. Studies show that radio format diversity is greater now than 6 years ago, he said, and Spanish stations have grown since Telecom Act. Also, local radio stations generated $7 billion in public service last year, Fritts said. “That alone should be reason enough for Congress to let flourish a communications medium that is free, local and reliable,” he said.