FMC Study: Radio Consolidation Harmful to Listeners
This week, the Future of Music Coalition released False Premises, False Promises: A Quantitative History of Ownership Consolidation in the Radio Industry, a solid smackdown of Big Radio’s case for concentration.
On both national and local levels, the report found that rapid consolidation by radio giants like Clear Channel has meant fewer radio programming choices — harming the listening public and those working in the music and media industries, including DJs, programmers and musicians.
Peter DiCola, FMC Research Director and the report’s author:
“When Congress passed the Telecommunications Act of 1996, the radio industry changed drastically. Historical data from the industry reveal unprecedented consolidation and show that the Telecom Act has backfired in terms of the FCC’s goals of competition, localism, and diversity in radio. Commercial radio now offers musicians fewer opportunities to get airtime and offers the public a narrow set of overlapping and homogenized programming formats.”
Key findings of the report include:
- The top four radio station owners have almost half of the listeners and the top 10 owners have almost two-thirds of listeners.
- The “localness” of radio ownership — ownership by individuals living in the community — has declined between 1975 and 2005 by almost one-third.
- Just 15 formats make up three-quarters of all commercial programming. Moreover, radio formats with different names can overlap up to 80 percent in terms of the songs played on them.
- Niche musical formats like Classical, Jazz, Americana, Bluegrass, New Rock, and Folk, where they exist, are provided almost exclusively by smaller station groups.
- Across 155 markets, radio listenership has declined over the past 14 years, a 22 percent drop since its peak in 1989. The consolidation allowed by the Telecom Act has failed to reverse this trend.
As John Nichols wrote in The Nation:
“The report confirms what is already known, at least anecdotally, by anyone who has tried to listen to radio since the Congress, with the Telecommunications Act of 1996, essentially eliminated controls on the number of stations that can be owned by a single company.
For more information about the report, visit FutureofMusic.org
