Introductory Statement on S. 221
Mr. President, I rise today to re-introduce legislation that will promote competition in the radio and concert industries. This legislation will begin to address many of the concerns that I have heard from my constituents regarding the…
Mr. President, I rise today to re-introduce legislation that will promote competition in the radio and concert industries.
This legislation will begin to address many of the concerns that I have heard from my constituents regarding the concentration of ownership in the radio and concert industry and its effect on consumers, artists, local businesses, and ticket prices.
Last year, I introduced this same legislation, and with the help of a wide range of organizations and other Senators, we put this issue on the front and center in Congress. I am pleased that a number of Committees are looking at this issue and considering holding hearings in the coming weeks.
With these hearings coming up, I want once again to bring this proposal to my colleagues attention. And as the Committee process works itself forward, I expect that we will discover additional issues to address that will strengthen the provisions in my legislation.
But this legislation is where Congress should begin its efforts to promote competition, diversity, and localism in radio.
I love radio. But, over the last year, I have learned that concentration of ownership in the radio and concert industry has made it difficult for individuals, artists, and organizations to find outlets to express their creativity and promote diversity.
Music and local news carried over the radio can help society to consider some of the most serious issues affecting our Nation: issues like war and peace, issues like social justice.
If the already diminishing number of gatekeepers of radio content chooses not to air controversial music because it may turn off advertisers, one of the most universal mediums to engage in dialogue will be lost. Regardless of our point of view, we must retain the ability of radio to show the diverse range of voices that form our culture.
I have heard many stories about the effects of this concentration. But perhaps the most compelling was at the annual Congressional Black Caucus event last year, when two people who have been involved in radio for decades told me about the real life importance of diversity in radio.
They spoke about the importance of the locally-owned media that helped raise public awareness of the campaign of the late Harold Washington to become the first black mayor of Chicago. They said that the main avenue for many in the central city to hear about the campaign was through locally-owned radio stations.
If an out-of-State corporation controlled the programming of these radio stations, would this political pioneer have received the same coverage?
I have also heard a great deal from religious organizations about how consolidation harms their ability to reach out in their communities. They have said that we must get to the root of the problem by curbing anti-competitive practices that make it difficult for locally-owned, independent radio stations to prosper.
I also learned about the story of Everett Parker, who during the civil rights movement of the 1960s was a pioneering defender of public interest in broadcasting.
In Dr. Parker's most famous crusade, he and the United Church of Christ went to Jackson, MS, to challenge the license renewals of stations that were blocking coverage of the civil rights movement, even though African-Americans constituted almost half of the audience.
By failing to cover the civil rights movement, the station failed all of the citizens of Jackson by limiting access to information on issues of public importance.
So, joining with the local NAACP, the group went to the Federal Communications Commission and challenged the licenses of the Jackson stations. The case went all the way to the Court of Appeals for the District of Columbia Circuit, which took away the station's license.
What makes this case so significant is that it established the right of any American to petition the Commission, instead of limiting such petitions to commercial interests.
The radio airwaves continued to be owned by the public. Radio is a public medium. It must serve the public good.
We must promote localism and diversity on our airwaves and crack down on anti-competitive practices that are a result of concentration in the radio and concert industry.
We must address negative consequences of the 1996 Telecommunications Act, which opened the floodgates for consolidation and led to anti- consumer and anti-competitive practices.
Just consider how the rise in ticket prices coincided with the passage of the Telecommunications Act. Following the passage of the Act, and the resulting consolidation of the radio and concert industry, ticket prices went through the roof!
Before the passage of the 1996 Act, ticket prices were increasing at a rate slightly higher than the Consumer Price Index. Following the Telecommunications Act of 1996, however, ticket prices have increased at a rate almost 50 percentage points higher than the Consumer Price Index. From 1996 to 2001, concert ticket prices rose by more than 61 percent, while the Consumer Price Index increased by just 13 percent.
During the debate of the 1996 Act, I joined a number of my colleagues in opposing the deregulation of radio ownership rules because of concerns about its effect on consumers, artists, independent radio stations, and local communities.
Passage of this Act was an unfortunate example of the influence of soft money in the political process. I have consistently said that this Act was bought and paid for by soft money, by unlimited contributions by corporations, unions and wealthy individuals to the political parties. Everyone was at the table, except for the consumers.
That's why I am pleased to re-introduce this legislation, the Competition in Radio and Concert Industries Act, which would reduce the levels of concentration and curb some of these anti-competitive practices.
My legislation prohibits those who own radio stations and concert promotion services or venues from leveraging their cross-ownership to hinder competition in the industry. For example, if an owner of a radio station and a promotion service hinders access to the airwaves of a rival promoter or artist, then the owner would be subject to penalties.
My legislation will also help to curb the concentration that leads to these anti-competitive practices.
It would strengthen the FCC merger review process by requiring the FCC to
scrutinize the mergers of any radio station ownership group that reaches more than 60% of the nation.
My legislation would also curb consolidation on the local level by preventing any upward revision of the limitation on multiple ownership of radio stations in local markets.
The bill would also prohibit the current shakedown system, where the big radio corporations are said to leverage their market power to require payments from artists in exchange for playing their songs. And it would also close a loophole that allows large radio ownership companies to exceed the cap by ``warehousing stations'' through a third party. In these cases, they control the station through a third party, but the stations are not counted against their local ownership cap.
Songs and ideas should not be broadcast on the radio based on how much money has changed hands. Airplay should be based on good songs and good ideas what the local audience wants to hear.
My legislation would slow the levels of concentration and address a number of concerns that I have heard from artists and others, although it does not address all the issues facing our communities.
Over the coming months, I hope that my colleagues will give this issue their attention, both on the floor and in committee.
I urge my colleagues to cosponsor this legislation so that we can work together to restore competition to the radio and concert industry by putting independent radio stations, local concert promoters, and artists on a level playing field.
People should have choices, listeners should have a diversity of options, and Americans should be able to hear new and different voices. Radio allows us to connect to our communities, to our culture, and to our democracy. It is one of the most vibrant mediums we have for the exchange of ideas, and for artistic expression. We must fight to preserve it, and together I believe we can do just that.
Radio is a public medium, and we must ensure that it serves the public good. That's a democratic vision of American radio well worth fighting for.