Who was behind Clearstation, giving them license ala Enron to take over everything and give it their own special spin. Congress did it again....Even though it is illegal for communications corporations to be active politically, Clearstation sponsored anti-war demos, lol, I mean forced their peeps into demonstrating. Then, the diligently avoided reporting peace marches. They are firing folks who want peace and they are taking over....Do you know why it is illegal for communications to be involved in politics because in Hitler's day he controlled the airwaves, like rightwing Clearstation is starting to control the airwaves...scary stuff:
eugeneweekly.com (actually if you're interested in this article, read it at the site, good stuff from people not (YET) intimidated by the Bush patrol.
De-Reg Demons
Clear Channel builds conservative airwave monopoly.
by Aria Seligmann
Microsoft, move over. Clear Channel now leads as the mass communication industry's favorite bad guy. From accusations of using its media power to strongarm musicians into live concert performances to promote its radio stations in return for playing their songs, to promoting pro-war rallies and to its owners' substantial ties to the Bush administration, conservative-minded Clear Channel has become the target of suspicion, mistrust and outright hostility for activists, musicians and media watchdogs.
Clear Channel owns the most radio stations in the world: more than 1,240 across the U.S. alone. Cumulus Broadcasting is next, with stations totaling 248.
When you're that big, you're gonna take the heat.
A Business Success Story
Clear Channel's meteoric rise to ownership of more than 1,240 radio stations within just a few years has garnered the company 10 percent of the country's total stations, 20 percent of the country's radio advertising revenue and 25 percent of total listeners. Add to these impressive numbers nearly 40 TV stations, more than 770,000 billboards and a giant clamp on the music industry:
Clear Channel Entertainment owns more than 35 live entertainment venues in the U.S. In 2001, Clear Channel produced the tours of U2, Madonna, Janet Jackson and has since added other big names to the list. The company claims to have generated nearly 70 percent of concert ticket revenue that year.
Clear Channel also owns SFX Sports Group, which sponsors many events and manages a courtful of sports figures, like Michael Jordan and Andre Agassi.
Locally, Clear Channel owns KMTR TV, as well as radio stations KDUK, KPNW, KOOL (formerly KOLDZ) and KFLY. Clear Channel Entertainment and SFX bring road shows to the Hult, such as Swing, Fosse and the upcoming Lord of the Dance.
Second largest Cumulus owns KUJZ, KZEL, KUGN, KNRQ, and KSCR and KEHK.
Clear Channel made its leap into airwave domination after Congress deregulated the radio industry in 1996. Until then, there'd been a limit on how many radio stations a single company could own: one AM and one FM per area, and no more than seven nationwide.
The Telecommunications Act of 1996 said a single company can own up to 35 percent of media outlets in any given area. With its current grasp on the local market, according to the most recently published Media Audit, in Eugene, over a seven-day period from April to May 2002, Clear Channel radio had, among adults 18 years and older, 35.4 percent of the market share, while its television share was 64.4 percent. Those numbers will show an increase considering Clear Channel's acquisition of other radio stations since that report's publication. Those numbers are great for attracting advertisers. Clear Channel megacorp's all about money, and media is a lucrative business.
Clear Channel owner Mark Mays and financial advisor and board member Thomas O. Hicks — a George W. Bush buddy — helped turn Clear Channel into an $8.4 billion company last year. For the most recent fiscal year, profits were $2.19 billion, with the radio portion bringing in $1.6 billion of those profits.
Profits come from cross advertising: selling a package deal of radio, television and billboards. Profits also increase when programs are piped in from a centralized location. That means staff reductions, which helps the bottom line. It also means more conservative talk shows, such as Rush Limbaugh, Dr. Laura Schlessinger and Glenn Beck, because that's where the ratings are. It also means a homogenization of music and culture.
Local angles often get lost and many local performers don't get air play. Clear Channel often purchases minority-owned stations, resulting in a drastic decline in the number of minority-owned stations since 1996's de-regulation.
Now, the FCC is considering removing the last barrier to ownership, meaning one company can own everything — radio, television, newspapers and cable stations — in any given area.
A Brief History
Clear Channel's most recent round of criticisms relates to the pro-war rallies it has sponsored. What makes that so shocking is that by law, radio must not take political sides.
After World War II, the world saw what could happen when a tyrant, in that case Hitler, controlled the media, using it to convince his nation to go to war. Because of media's power, laws were put into place that limited radio station ownership and demanded that divergent viewpoints be aired. The Supreme Court set out a constitutional requirement in 1945 (before TV, cable and Internet) that stated, "the widest possible dissemination of information from diverse and antagonistic sources is essential to the welfare of the people." Radio was meant to provide a public service: the dissemination of information, realized through divergent views, that would inform the people and let listeners make up their own minds as to what to believe.
Over the next few decades, everything changed:
¥1969: The Supreme Court upheld the Fairness Doctrine, saying radio airwaves were a "public trust" that must reflect opposing views.
¥1986: the District of Columbia Federal Court of Appeals in a 2-1 decision upheld a new FCC rule refusing to apply the Fairness Doctrine to television text. The prevailing judges were Reagan-appointed Scalia and Bork.
¥1987: Reagan-appointed FCC commissioners repealed the Fairness Doctrine. Later that year, Congress put the Doctrine back into law, but Reagan vetoed it, writing, "The Fairness Doctrine is inconsistent with the tradition of independent journalism."
¥1996: The FCC lifted the ban on radio ownership, which had been limited to one AM and one FM in one market and seven total nationwide. The move allowed Clear Channel, Cumulus and other corporations to begin amassing every station they could afford to buy.
¥2003: A proposed new FCC law, under the direction of Bush-appointee Michael Powell, would lift the regulation on television ownership and the 35 percent rule and allow one company to own all media — radio, television, billboards, newspapers — in any area.
Poor Business Practices
Not only has Clear Channel been accused of promoting pro-war rallies, but also of not playing music by artists who have spoken out against the war in Iraq. But president and chief executive of Clear Channel radio division John Hogan told The New York Times that that idea was "laughable." Hogan added Clear Channel was looking for a big audience, not "the most politically unified."
Clear Channel became a household name after 9/11, when it circulated a list of songs that shouldn't be played, such as "Dust in the Wind," "Imagine" and "Peace Train." A month later, Clear Channel fired the popular community affairs director, David "Davey D." Cook, of its recently acquired KMEL, after he aired the views of Rep. Barbara Lee, the only congressperson to vote against military action in Afghanistan.
Then on March 19, 2003 at the New Jersey Performing Arts center, Ani DiFranco, one of several artists slated to perform, was told to keep quiet about the war and to make sure the others performing did so as well. But Clear Channel now claims that directive came from the owners of the venue, not them. There's no holding back DiFranco, however; she spoke out; the other artists did, too, and the show went on. Those artists weren't concerned about Clear Channel's penchant for retribution.
Ani DiFranco:
So cool she doesn't need radio to stay famous.
Traci Mann, publicist for DiFranco, told the NYT that DiFranco doesn't need commercial radio anyway. "Her audience is going to be there whether she's on the radio or not," she said.
Some Clear Channel stations banned the Dixie Chicks after lead singer Natalie Maines came out against the war. Again, Hogan claimed it was not a Clear Channel directive. Although Clear Channel did co-sponsor and promote 13 out of 18 recent pro-war rallies held across the land, the company, now under fire, claims those rallies were done by individual stations after conservative talk show host Glenn Beck called for them. Yet the rallies were promoted on Clear Channel's website.
And Cumulus, which owns many country music stations, banned the Dixie Chicks from 40 of its stations. Cumulus CEO Lewis W. Dickey, Jr. says it has no pro-war agenda, it just did that in deference to its more conservative listeners. In Louisiana, one Cumulus station sponsored a pro-war rally where bulldozers ran over Dixie Chicks' CDs.
Finally, rumors abound that Clear Channel circulated a memo to its station managers saying the war in Iraq would raise the fears of the American people and that that emotion could be used to their advantage.
Robert Dove, General Manager of all Eugene and Albany Clear Channel radio stations since January 2002, however, says he never saw such a memo.
Dove adds that unlike other Clear Channel stations, at KDUK the station is "100 percent programmed by us. Nothing comes from Clear Channel."
But the story is different on the AM dial. Dove says KPNW carries syndicated talk shows, all of them politically conservative, although he points out they come from "a variety of sources." Lars Larson comes from Portland, and "Rush Limbaugh and Dr. Laura Schlessinger come from Premiere in L.A." But Clear Channel owns Premiere. Dove quickly adds, "But we're not required to carry it. Nobody forces you to take programming that doesn't fit your radio station. You're looking for programs that will get you the best ratings. Lars Larson and Rush have proven ratings."
The ratings game affects all radio stations that sell ads, leaving public radio the only entity free of that concern. KLCC General Manager Steve Barton says Clear Channel-owned commercial station managers, while having some freedom in what they do, are "significantly constrained. They don't set all their own priorities." Also, as a corporation with shareholders to report to, Clear Channel's "sole reason for existing is making money for its owners."
KLCC, on the other hand, "has no real profit motive. The more money we bring in, the more service we provide. Nobody gets richer because of that," says Barton.
Of course, he adds, the pressures are similar in that public radio stations have to raise enough money to stay on the air. But if listeners appreciate the broad perspective public radio provides, they'll tune in.
"KLCC is not beholden to any major national corporation and so when we do news stories about them we're not worried about biting the hand that feeds us, but Clear Channel owns lots of national companies, like Disney does, so their stations are not going to provide negative coverage for one of their own," he says, adding, "Democracy is built on a good flow of information and open and honest discussion. I become concerned when you find media giants taking a position. In fact I think we should not take any positions because that's not what we're here for. In fact, it ruins our credibility."
Ties To Bush
What Clear Channel knows is that media is powerful, and having a conservative political agenda piped onto the airwaves with increasing saturation is going to have an effect on people's attitudes. And that's what the Bush Administration is banking on. While it's true the 1996 de-reg came during the Clinton administration, and earlier "reforms" came during Carter's time, the ties between Clear Channel and George Bush, Jr. cannot be overlooked.
The Texas buddies are the merger masters: Politics and business make great bedfellows. Clear Channel execs Hicks and Mays have contributed tens of thousands of dollars to Bush's gubernatorial and presidential campaigns, as well as more than $100,000 to Republicans from 2001-2002.
And there's the now-famous shady Texas Rangers deal between Bush and Hicks. Bush owned a 1 percent share of the Rangers, and worked it out with his partners that when they got their money back from their investment in the team his portion would jump to 11 percent. Bush then used his influence, according to the Austin Chronicle, to have the stadium condemned, used tax dollars to rebuild it, and, after the value of the Rangers skyrocketed, sold his shares, walking away with $15 million. Who'd he sell to? Hicks.
Now Clear Channel is cozying up to the Bush administration even more, because members of Congress, in light of Clear Channel's growing monopoly, are looking at once again regulating the industry. Sen. Russ Feingold has introduced legislation that will impose limits on ownership. Meanwhile, Bush appointed FCC chair Michael Powell is doing just the opposite: pushing to remove the remaining six controls over media ownership, including:
¥ a rule prohibiting one company from owning both a daily newspaper and a television station in the same local market;
¥ a 35 percent cap on the number of households any one broadcast company can reach nationwide;
¥ a regulation barring the four major TV networks from merging with one another.
Michelle Shocked:
Indie radio launched her career.
Envisioning The Future
"I think clearly these large corporations and this concentrated ownership are how the broadcast industry is going to be configured from here out," says UO Associate Dean of the School of Journalism and Communications Al Stavitsky, who's working on the book, Stale Air: What's Wrong with American Radio?
"Clear Channel has become the poster child for what's wrong with American radio and much of the ire has been pointed at them because they are the largest," he says. "They took advantage of deregulatory change and played it very skillfully from a business standpoint."
But Stavitsky points out that radio is going back to its roots. "It was very network-centralized in its early days but then when television came along and became the dominant medium in the late '40s and '50s, taking the popular sitcoms and dramas, radio was left wondering, 'What's our niche?'"
The stations became localized. They hired DJs, became highly targeted: Top 40, stations kids liked; stations their parents liked; country; rock.
"Radio's really undergone profound changes over the past two decades," says Stavitsky. "Listener behavior changed." Over the past 25 years, the bulk of radio listenership shifted from AM to FM. Traditionally, news and talk was on AM, and music was on FM, which had stereo. The music attracted younger audiences, which appealed to advertisers.
Now, with the caveat that some stations are sticking to local programming, in many ways, says Stavitsky, the move toward centralization means "Radio is going back."
But even Clear Channel and Cumulus are going to have competition, as new technology means many more choices for listeners. If one corporation is trying to push a political agenda, it may be overshadowed by an entity that has enough channels to provide any agenda. That means a wider universe of listeners will tune in and hear whatever ad is being played.
For example, Sirius Satellite Radio offers 100 channels, including country music and "activist music." It even offers divergent political programs, "Sirius Right" and "Sirius Left," to please every listener. Its competitor, XM Satellite Radio Holdings, also offers a wide variety of choices.
That might be great for the audience share numbers and ratings advertisers buy into, but will it keep listeners happy?
With so many choices, Stavitsky believes, ironically, "the only thing that will ensure the survival of local stations in this environment is to provide local service and have local content. You're not going to get Eugene weather or music from XM or Sirius."
As for Clear Channel, word's out on that company's dealings. And if Rush Limbaugh's still bringing in the ratings bacon, maybe the problem lies not with the corporation.
KRVM Still Kicking
Will Clear Channel buy KRVM? That was the question heard immediately after the station announced it was on the 4J budget chopping block. But KRVM is licensed as non-profit, and the license would have to be changed before it could become a commercial holding. That move would be "very far down the road," says KRVM General Manager/Chief Engineer Carl Sundberg. The latest KRVM update: The station raised nearly $50,000 from the local community as soon as it was announced it was headed for trouble.
"That showed support and so did all the people who showed up at the 4-J [school board] meeting," says Sundberg. "Now, 4-J's rethinking."
While 4-J will not have the funds to continue to support KRVM, Sundberg believes with staff cuts down to 2.5 FTE, he might be able to raise the funds to keep the station going. Having less than five employees means KRVM will lose Corporation for Public Broadcasting funding in addition to its 4-J funds, but he believes with grants, underwriting and public support, the station will stay on the air.
"No one who pays taxes in any way, shape, fashion or form will have any reason to complain about us being here," says Sundberg. "We'll still be able to provide educational and instructional opportunities for kids, and continue to offer the kind of programming the communty's grown to love," he says. He adds that KRVM's survival "is still not a done deal" and the station, along with all public broadcasting stations, will accept donations "24/7." |
