Under FCC Chairman Ajit Pai, “modernization” of the Commission’s media ownership rules is one of the hallmarks of his tenure as head of the agency.
Among the changes the Commission is considering is a plan largely crafted by the NAB and endorsed by Republican Commissioner Mike O’Rielly that would eliminate ownership restrictions across all markets for AM radio stations while erasing FM ownership restrictions in markets ranked No. 75 and below by Nielsen Audio.
It is known that iHeartRadio is against such changes, while other broadcasters have spoken in favor of them. Now, iHeart has an unlikely ally: musicFIRST.
RBR+TVBR OBSERVATION: There are some very valuable points made by musicFIRST that all radio broadcasting companies should consider before further consolidation transpires. Owning all of the radio stations on the AM band in New York? Owning all of the AM and FM stations in a market such as Bakersfield or Boise, Idaho? That won’t help radio better compete for dollars against local digital media. Full text below for Members Only.
An “Action Alert” sent via email on Thursday by the musicFIRST Coalition marks the first time the artist advocacy group has taken on the FCC and the NAB in its efforts to weaken ownership restrictions for radio ownership.
Urging recipients of the email to take action, the coalition cries, “Big broadcasters are at it again. If they get their way, truly local radio could disappear forever.”
How so? It continues, “Consolidation within the radio industry has already created a market where 10 radio corporations each own hundreds of AM/FM stations across the country. Now, big broadcasters are lobbying the Trump administration to further relax limits on radio ownership. If they’re successful, big broadcasters will get bigger and every radio station in small markets across the country could be owned by a single company.”
With that, musicFIRST wants Americans to “stand up against big radio and protect the diversity, localism and competition that only truly local radio provide the communities and listeners it serves.”
How can that be done? The group provided a link to a “Protect Local Radio” petition on its website that allows individuals to send their comments to the FCC.
“We have provided an opening sentence and some suggested talking points to help you build out your message,” musicFIRST notes. “We want the FCC to understand the impact this decision will have on local communities. Please feel free to personalize your comments by mentioning specific local radio stations or programming you’re hoping to protect.”
Among the key talking points found on this page:
- The 10 companies that own “hundreds” of stations across the U.S. are responsible for about half of the revenue generated by the nearly $17 billion radio industry.
- While declining in number, locally-owned radio stations still exist.
- Under legislative proposals musicFIRST has supported, big broadcasters would pay music creators similar to streaming services and satellite radio while local AM/FM stations with annual revenues below $1 million dollars would pay “just” $500 a year, “covering all the music they play for little more than a dollar a day.” Public, college and other noncommercial stations would pay $100 a year. Broadcast of religious services, talk radio and incidental uses of music would not pay any royalties.
The group concludes, “Big radio’s proposal, if enacted by the Commission, would mean that EVERY radio station in markets like Chattanooga; Springfield, Mo.; Madison, Wisc.; and El Paso could be owned by a single company. That would mean fewer choices, less diversity of content and voices on the air, and far less localism for AM/FM listeners.”
RBR+TVBR OBSERVATION: There are some very valuable points made by musicFIRST that all radio broadcasting companies should consider before further consolidation transpires. Owning all of the radio stations on the AM band in New York? Owning all of the AM and FM stations in a market such as Bakersfield or Boise, Idaho? That won’t help radio better compete for dollars against local digital media.
For the most part, we have disagreed with musicFIRST’s ideas regarding new royalty fees for radio. However, we agree in full with its concerns regarding ownership regulation revisions that would indeed allow one company complete control of radio stations in a market such as Wisconsin’s state capital. It is unacceptable. One company should not have complete control of a media in any market. In TV, it would not be permitted. So, why radio? Because the GAFANs of Silicon Valley have taken too many ad dollars and are also content sources?
That’s a radio industry problem that goes back to long stop sets and clutter. That Jacobs Media Techsurvey 2019 piece in the iHeart Inside PR Blog today with the headline Survey: Six In Ten Listeners Say They’re OK With Radio Spotloads is one of the most absurd items we’ve seen to date. “A majority of radio listeners (57%) say the number of commercials airing on their favorite radio station is ‘tolerable.’” Eating Brussels sprouts as a main dish at dinner is “tolerable.” Flying Spirit Airlines is “tolerable.” You want radio to be “tolerable,” or do you want it to actually kick inefficient digital media solutions in the ass?
Better content. Less clutter. Better marketing to consumers and to Wall Street. Less AARP leadership and more Gen Y growth.
That’s radio’s solution, not gobbling more stations and lessening the many voices in a community that made radio an effective and meaningful media in the first place.
