Clear Channel Gets Local. Sort Of. Maybe. Not Really.

Yesterday, Clear Channel sent out two press releases that seemed to contradict each other on some pretty fundamental levels. The first described a "commitment" to a "higher minimum level of service" in the communities in which its stations operate."

There's also a passing bit about "an expanded programming commitment to music from local artists." If you listen to commercial radio, you're probably familiar with stations' graveyard shift local music programs, many of which start at midnight on Sunday. Artists heard on these slots rarely, if ever, make it to regular programming. Does this mean that Clear Channel stations will start slotting local music at other times of day, say, drivetime? Will they also start to spin more indie content? It's tough to tell from this press release.

The second announcement from Clear Channel actually talks about making their programming less local. Yep, it's all about syndicated content — but local stations will be able to choose which syndicated content they want from pre-defined packages. "Local Clear Channel Radio program directors will have total choice and flexibility in choosing the Premium Choice programming elements. They can elect large portions, single pieces, or none of the offered programming. All of the Premium Choice elements were determined in full consultation with the company’s most experienced and trusted programming and operations managers." Lucky them!

Ex radio industry honcho Jerry Del Colisano does a typically good job in describing the cognitive dissonance of these dual releases over at his Inside Music Media blog.

The bait-and-switch that Clear Channel is trying to sell to the public is basically this: we cut back local programming and at the same time announce an empty shell that it touts as increasing local public service programming and outreach. . .

. . .As we said a few weeks back, Clear Channel has a plan in place to make sure there is a warm body on duty at every studio site -- looking ahead to possible FCC objections to turning their local broadcast licenses into a network that has basically nothing to do with the local city of license. Is this what a license has become -- a license to steal local radio stations from the public airwaves?

It's clear that the massive consolidation in station ownership that followed the 1996 Telecommunications Act has been a disaster, both as a business plan and as a means to serve local communities. But Clear Channel's answer to the problem has thus far looked like more consolidation and automation, with a bone or two thrown at localism.

FMC has issued two studies that look at the effects of consolidation on commercial radio: 2002's Radio Deregulation: Has It Served Citizens and Musicians? and 2006's False Premises, False Promises: A Quantitative History of Ownership Consolidation in the Radio Industry. We're also about to release a new report that examines playlist composition on commercial stations to determine whether broadcasters are programming more indie content following the "Rules and Engagement" and Voluntary Agreements that came out of the payola investigations of 2003-2007. (No, we can't tell you the results just yet, but just sit tight — it's on its way!)

One thing we can say: if commercial radio isn't living up to its localism obligations and presents significant barriers to indie artists, then we need non-commercial alternatives. And getting more Low Power FM stations in American towns and cities is an important step.

Next week, LPFM advocates from around the country are coming to Washington, DC to demonstrate their support for local radio. At noon on Thursday, April 23, there will be a Policy Briefing on LPFM on the Hill — room 5456 of the Rayburn House Office building, to be precise.

Thursday’s briefing will feature opening remarks from Representatives Michael Doyle and Lee Terry — co-sponsors of The Local Community Radio Act of 2009 (H.R. 1147), introduced in February 2009.

Immediately following is a panel discussion with LPFM producers and policy advocates who will explore the legislation’s potential impact on emergency preparedness, media ownership and arts and cultural broadcasting. Moderated by Parul P. Desai, Vice President of Media Access Project, the panel features singer-songwriter Nicole Atkins, Liz Humes of WRIR-LP in Richmond, VA, Erubiel Vallardes of KPCN-LP, in Woodburn, OR and Cheryl Leanza of United Church of Christ.

That same day, there will be coordinated visits to Congressional offices and the FCC by community radio supporters of all stripes. Sharing information and having some fun is part of what community is all about.

For more information on Low Power FM, check out our fact sheet. And support community radio!

New LPFM Legislation to be Introduced

It was only a matter of time before the new Congress saw the reintroduction of a pro-Low Power FM bill. If passed, this legislation would create opportunities for hundreds more community radio stations in cities, towns and suburbs across the United States. The House of Representative's new Local Community Radio Act represents a strong step forward towards this goal.

FMC has long advocated for LPFM (and non-commercial, community radio in general) as an alternative to the homogenized playlists often heard on hyper-consolidated corporate radio. LPFM in more areas would be a tremendous boon to local and independent artists who typically find themselves shut out from area commercial stations. We figure that if more people had the chance to hear the talent in their own backyards, it might even have a positive effect on local economies.

But LPFM isn't just good for musicians — new low-power licenses would make radio station ownership possible for schools, churches, labor unions, local governments, emergency providers and other nonprofit groups, who could use the public airwaves to directly communicate with their local community.

Tomorrow (February 25), members of Congress, public interest advocates and community organizations will hold a national conference call to discuss the reintroduction of the bipartisan Local Community Radio Act. The sponsors of this legislation, Reps. Mike Doyle (D-Pa.) and Lee Terry (R-Neb.) will join the call to explain the details of this bill. Here's the details:

WHAT: National Conference Call on Community Radio Legislation
WHEN: Wednesday, February 25 12 p.m. ET
WHO:
Rep. Mike Doyle
Rep. Lee Terry
Cory Fischer-Hoffman, Prometheus Radio Project
Shawn Campbell, Chicago Independent Radio Project
Michael Bracy, Future of Music Coalition
Ben Scott, Free Press
*** Call this number: (888) 792-8352 Call-in Code- 87422899 ***

The last time LPFM legislation was introduced, it won nearly 100 co-sponsors in the House. The Senate version of the bill, sponsored by Sens. Maria Cantwell (D-Wash.) and John McCain (R-Ariz.) and co-sponsored by then-Senator Barack Obama, unanimously passed out of the Commerce Committee. The Senate is expected to reintroduce a new version of the bill in the near future. We'll keep you updated!

The Net Effect.

Today (Dec. 22, 2008), the Media & Democracy Coalition — of which FMC is a member — released a "Statement of Public Interest Groups on Proposed Broadband Principles in Upcoming Economic Stimulus Package." That's a mouthful, we know. Despite its tongue-twisting title, the document offers well-thought out reasons why policymakers should focus on a coherent national broadband policy that includes accountability, local approaches, metrics for access and adoption, and a committment to open network structures.

FMC believes that better broadband penetration will expand the legitimate digital music marketplace, and ultimately connect more artists with more listeners. We also think that any internet strategy must honor the principles of net neutrality, which provides all musicians — established or developing — with a means to reach potential audiences. And as you may have noticed, we're pretty into localism — be it in community-based broadcasting or online initiatives that contribute to sustainable cultural communities.

The following is from the intro of the statement:

President-Elect Barack Obama and Congressional leaders are calling for government support to fund universal broadband Internet access as part of a potential economic stimulus package. We applaud these discussions and strongly believe that providing every community in America with high-speed Internet access – particularly those who have long remained on the margins of public participation and debate – is essential to the economic and democratic future of the U.S.

The undersigned organizations, which represent a broad coalition of local and national public interest groups, strongly support investments in broadband build-out, as well as the training, tools and other resources needed to connect those that are currently on the wrong side of the digital divide.

The economy is inextricably tied to infrastructure, of which the internet is an increasingly large part. We hope that the incoming leadership recognizes this, and takes steps to enhance democracy, culture and American competitiveness through smart and forward-looking broadband policies. The future of music (and so much more) depends on it.

Read the full statement here.

Local is the New Global

Today's blog post was co-authored by FMC intern Daniel Eno, based on a bit of pondering by FMC Events Organizer Chhaya Kapadia.

Do you ever get nostalgic about cruising the racks at your local record store? Do you ever feel that, while it may be infinitely more convenient and even a couple dollars cheaper to buy an album off of iTunes, it’s nice to know your purchase helped keep your neighborhood shop up and running? What if you could combine the convenience of online purchasing with that warm feeling you get from supporting your local music-slingers?

One of our favorite broadcasters, Seattle’s KEXP, wants to help you do just that. The station has integrated a new feature into their online streaming radio that provides a means to buy local without having to leave the comfort of your computer keyboard.

Like other internet stations, KEXP's live stream features links to places to buy almost any tune that catches your ear. But in addition to the standard Amazon and iTunes links, KEXP also points to local record shops that will deliver the album right to your doorstep. Webcasters like KEXP have helped make broadcasting global, so it’s cool that they’re giving local listeners a way to buy music in their own backyard.

It's not clear how much new business this feature has generated for local shops, and maybe it amounts to nothing more than a kind gesture on the part of KEXP. Still, it's not hard to imagine that this sort of service might be implemented on the sites of other stations around the country. Stores like New York City's Other Music offer high-quality digitized versions of their awesome underground music collection, but as far as we know, there’s no online radio component — at least not yet. It would be interesting if the mass consumer movement toward online shopping turns out to be what saves local record shops. It’s a nice thought, anyway.

FMC believes that the future of music is inextricably tied to sustainable cultural communities. This is why we support localism on the public airwaves by fighting the forces of consolidation and encouraging community radio initiatives like Low Power FM. The internet has its part to play, too – better broadband penetration and open structures that let artists (and smaller retailers) compete on a level playing field with the big companies is essential to a legitimate digital music marketplace, local and otherwise. It’s like one hand washing the other, or whatever other metaphor you want to use.

KEXP’s local purchase feature also fits nicely with Seattle’s “City of Music Initiative,” a mayoral effort to promote the city as “home to musicians, live music and music business.” We hope more burgs follow Seattle’s lead in the name of regional diversity and sustainable cultural commerce.

FMC on Payola and Localism

There's been some buzz around FCC Chairman Kevin Martin's public backing of the XM-Sirius satellite radio merger, but we at FMC think that terrestrial radio is still worth making noise about.

FMC has long been involved in the push for better radio. We've conducted studies that show that commercial radio routinely excludes local and independent artists, largely due to the excessive station ownership consolidation that occurred in the wake of the 1996 Telecommunications Act. (See our 2002 and 2006 Radio Studies for more info).

We recently filed reply comments in the FCC's localism proceedings, in which we made the case for greater diversity on the public airwaves. But we're not just complaining about the crappy state of things — we're offering possible solutions. In our reply comments, we describe concrete ways for stations to make localism a priority, and urge the FCC to collect playlist data so it can track and analyze playlists in order to ensure that stations fulfill their public interest obligations.

Another reason that local and independent artists have difficulty getting radio play is payola. Under this system, labels pay independent promoters to promote certain records to radio stations. The promoters in turn pay radio stations annual fees and give them perks if they add the songs to their playlists.

In April 2007, the FCC brokered voluntary agreements between radio groups and major labels, which were supposed to open the door for a wider range of music to be heard on the airwaves. From what we can tell, it hasn't exactly worked.
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Today, we released Change that Tune: A Payola Education Guide for Musicians and Citizens, which outlines the history of payola, the development of the “indie promoter” system and the investigations by the New York State Attorney General’s office and the FCC. Also included are the contents of the “Rules of Engagement” and the indie-set-aside, which were signed by the four largest radio station group owners in April 2007. Finally, the guide offers practical tips about how artists can interact with radio in the 21st century.

We believe that if terrestrial radio were to open itself to more diverse and local content, they might just re-attract those listeners who have given up on the medium in favor of other entertainment. Given the precipitous decline in listeners, it's definitely worth a try.

Click here for a PDF of our reply comments; click here to read or download the Payola Education Guide.

FCC Gets Heat From Senate

Today's Senate Commerce Commitee hearings on media ownership, localism and diversity found several Senators stepping up the anti-consolidation rhetoric. Can a showdown with FCC Chairman Kevin Martin be far off?

The hearing's biggest announcement was that of legislation to impede the Martin's mad dash to alter current media ownership rules. This bi-partisan effort, which has been given the catchy title "Media Ownership Act of 2007,” is co-sponsored by Senators Snowe, Obama, Kerry, Feinstein, Nelson and Cantwell. The proposed bill compels the FCC to hold separate proceedings on localism, as well implement a task force to look into issues of minority and female ownership before attempting to alter existing structures. In addition, the legislation introduces a 90-day public comment period on any proposed rule changes.

We at FMC think this is excellent news. However, given the FCC's poor track record of actually completing assigned research, there may be need of further Congressional (and perhaps Court) intervention. According to research by Free Press, the FCC has never produced accurate documentation of existing minority broadcast licenses. Can we actually expect them to take the proposed ownership task force seriously?

Back to the hearing. Several Senators spoke in no uncertain terms about the consequences of further consolidation, with Dorgan referring to the "galloping concentration" of media outlets as being "quite unhealthy." The general consensus was that they’d been here before with the FCC -- specifically in 2003, when then-Chairman Michael Powell made a similar rule-change attempt. Senator Kerry made reference to the deja-vu nature of the current proceedings, calling them "a little like Groundhog Day." Legislators seemed in agreement that Martin is rushing things. Said Dorgan, "The Chair is not in a position to credibly suggest that we need a vote by December."

Of the panel of witnesses, Seattle Times publisher Frank A. Blethen made the most compelling argument in favor of localism and diversity. He claimed that localism has all but been abandoned by Congress and the FCC, saying that the big media conglomerates no longer "invest in journalism," to the detriment of civic comprehension. He also countered conventional wisdom about the newspaper industry, stating that traditional press is still profitable. Yet Blethen also told Congress that "the only way to save local papers is to stop the FCC from relaxing ownership rules." In addition to maintaining the current cross-ownership caps, he urged lawmakers to create incentives for greater minority ownership.

All in all, it was a smashing day for supporters of localism and diversity in media. Let's hope the FCC gets the message.

Watch the an archived webcast of the hearing here.

Consolidation Indignation

Late last Friday afternoon, FCC Chairman Kevin Martin announced the sixth and final hearing on media ownership, to take place in Seattle on November 9. As was the case with the October 31 hearing on localism in D.C., Martin has given the public precious little time to prepare. This once again calls into question his commitment towards considering public opinion. Of course, citizen sentiment regarding consolidation is almost entirely negative. But that's no excuse for ignoring concerns.

Is it all just a charade? Check out what FCC Commissioners Copps and Adelstein have to say:

A hearing with only five days notice is no nirvana for Seattle and the Pacific Northwest. This smells like mean spirit. Clearly, the rush is on to push media consolidation to a quick and ill-considered vote. It shows there is a preordained outcome. Pressure from the public and their elected representatives is ignored. With such short notice, many people will be shut out. We received notice of the hearing just moments before it was announced. This is outrageous and not how important media policy should be made.

And they're not the only government figures peeved by Martin’s rush to change existing rules. Following Senators Lott and Dorgan's joint press conference, Senate Commerce Committee Chairman Inouye decided to hold a hearing on November 8 -- the day before the Seattle affair. The topic du jour? Localism, which Martin no doubt thought he'd put behind him with the Halloween hearings. Guess the topic just won’t stay, ahem, buried.

Word on the Hill has it that Martin is planing a vote for sometime in December. It remains to be seen whether Congressional pressure will have any effect on his push for rule changes. One thing is certain, at least according to the general public: further consolidation will have an incredibly negative effect on the FCC's stated goals of competition, localism and diversity.

Need more proof? Check out FMC's 2006 Radio Study and its corresponding Executive Summary. Watch an interesting video report on consolidation from PBS' Bill Moyers.

Visit the Senate Commerce Committee website for the the live webcast of Thursday's hearing on localism.

Details on Friday's public hearing on media ownership in Seattle:

Date: Friday, Nov. 9, 2007
Time: 4:00 p.m. to 11:00 p.m.
Location: Town Hall Seattle, Great Hall
1119 Eighth Avenue (at Seneca Street) Seattle, WA 98101

Swing by StopBigMedia.com for more info.

Trick or Treat at the FCC

Today's FCC hearings on localism in media featured stellar testimony from a panel of witnesses nearly united in their belief that diversity in media ownership and community-centric broadcasting are of enormous public value. The hearings took place on Halloween, and, judging from the response of concerned citizens to the possibility of further consolidation, FCC Chairman Kevin Martin should be spooked.

Despite short notice and a very small venue, more than 150 citizens showed up at the FCC's doorstep. (Some as early as 5 and 6 in the morning!) Those who made it inside, including a panel of powerful witnesses, made it clear that media consolidation is not in the best interest of any community — be it rural or urban.

"A business model that shuts out local news and entertainment options in favor of homogenized content is detrimental to the public interest," said Bob Edwards, National First Vice President of the American Federation of Television and Radio Artists, and former host of NPR's "Morning Edition." Directly addressing the FCC Commissioners, he stated, "the health and robustness of American media depends on your actions."

The Rev. Jesse Jackson of the Rainbow Push Coalition also had strong words for the Commission. "For far too long, media policy has been made behind closed doors," he said. It's time to democratize the public airwaves. The FCC should serve the public, not profits."

Several panelists, including Kim Gandy, president of the National Organization for Women, spoke candidly about the importance of localism. "The programming needs of local communities are best served by local owners," she said. "It's hard to argue with the obvious." She also pointed out the appalling lack of diversity in the current media sphere, claiming, "the more consolidated the market, the less likely it is that there will be female or minority ownership."

FMC has extensively examined the effects of consolidation on the public airwaves, and has conducted original research which changed the debate about radio. Economic data from our 2003 and 2006 studies showed a massive and negative restructuring of radio and proved that the FCC's own studies following the 1996 Telecommunications Act did not accurately measure diversity or localism. Our 2006 Radio Study can be found here. You can also check out an Executive Summary of this report.

In 2006, FMC Executive Director Jenny Toomey was a witness at the FCC's hearing on media ownership in Nashville. She spoke about the radical transformation of the airwaves following the 1996 Telecommunications Act, and the resulting lack of diversity and localism on the dial. Of course, Jenny looked beyond terrestrial broadcasting and to the future, tying the negative affects of radio consolidation to the importance of net neutrality:

"If there is a silver lining to this cloud of failed radio policy, it will be the lessons that we apply to the debate over net neutrality and to structural decisions about the internet marketplace. Radio’s story has played a major role in spawning the movement against media consolidation. And concerns about access to the data used in the FCC's decision-making process have shown that the public needs more substantial and transparent information to monitor media industries. Never again should these decisions be made in the dark."

And they won't be, if today's cadre of concerned citizens, broadcasters, advocates and activists have anything to do with it.

Read the rest of Jenny's testimony here.

Learn more about today's FCC hearing at StopBigMedia.com.

Oh, and Happy Halloween!