FEINGOLD TO RE-INTRODUCE RADIO OWNERSHIP BILL

“We need to remind the FCC that radio is a public medium and we must ensure it serves the public good,” Sen. Feingold (D-Wis.) said Tues. Addressing Future of Music Conference Tues., he vowed soon to re-introduce legislation to place restrictions on broadcast consolidation and prevent FCC from adopting rules that would permit too much consolidation.

Speech was well received by audience of musicians convinced that radio consolidation had reduced outlets for new music, but NAB Mon. strongly rejected Future of Music study making that suggestion, accusing it of “several severe methodological errors.” Criticism of broadcast ownership consolidation Tues. followed speech Mon. by FCC Comr. Adelstein in which he said Commission could “massively and irreversibly” harm media landscape with new rules (CD Jan 7 p1).

Feingold singled out Clear Channel in his speech, saying he had heard multiple stories of anticompetitive practices in both radio station operations and concert promotion. Same argument was made by House Judiciary Courts, Internet & Intellectual Property ranking Democrat Berman (Cal.), who urged artists to “bring a smoking gun” to Antitrust Div. of Dept. of Justice. “Artists have to come forward,” he said: “I think the evidence is there to force the Department of Justice to open an investigation.” Berman said that was true even though Bush Administration would be reluctant to go after Clear Channel, which he said had close ties to White House.

FCC was subject of particular ire to Feingold, who after speech complained that he had sent letter to Commission in fall of 2001 with questions about radio consolidation and didn’t receive response. After that, he introduced bill last summer and only then did FCC write to him. That bill drew only 2 co-sponsors, but Feingold said “a dozen more are interested,” and grass-roots lobbying by artists would help with that. He said when he first discussed introducing bill last year he received more positive feedback from concerned artists, concert promoters and radio listeners than he did for his campaign finance legislation.

Key ally may be Senate Commerce Committee Chmn. McCain (R-Ariz.), Feingold’s partner in campaign finance legislation. McCain hardly is known as friend to broadcasters, and Feingold told reporters he had been discussing radio ownership bill with McCain and latter “will be announcing his interest in the near future.” Feingold said McCain might hold hearing, and praised him for “his sense of the issue… he gets it beyond belief.”

“A concentration of ownership has made it difficult for artists to find outlets,” Feingold said, echoing Nov. 18 study by Future of Music Coalition titled Radio Deregulation: Has It Served Citizens and Musicians. NAB Senior Vp Kathleen Ramsey wrote Future of Music Exec. Dir. Jenny Toomey Mon. to dispute study. Among points by Ramsey: (1) Study worked with inaccurate figure for radio industry revenue. (2) Many survey questions were leading or biased. (3) Survey sample wasn’t representative of U.S. population. While NAB and Coalition have “entirely different views” on state of radio, Ramsey wrote, “neither side should muddy the debate with inaccurate and misleading research.”

Coalition Dir.-Govt. Relations Michael Bracy said that when he received letter Mon. he was concerned and immediately gathered study’s authors to examine results so Coalition could issue any necessary corrections. After much scribbling of equations on chalkboards and computer calculations, however, Bracy said he was told by researchers that “they've got nothing on us.” Bracy noted that NAB had again been invited to participate in conference but had declined to send anyone.

“Radio consolidation has meant less competition, less localism and more homogenization on the dial,” Bracy said. But NAB called that assertion “myth” in materials it distributed to reporters Tues. Fact sheet quoted FCC report showing same song diversity since 1996 and Bear Stearns study showing 7% increase in format diversity. Also, top 10 radio owners account for 49% of industry revenue, NAB said, compared with 84% of revenue for top 5 record labels.