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April 6th, 1998
FCC CRACKS DOWN AGAIN!
Take a look at the FCC's Daily Digest (which shows all actions the FCC has taken
each day in regard to radio, tv, etc) and you'll see a whole slew of hearings foisted
upon "pirate" broadcasters. Convenient show of force to follow up the NAB
convention? or legitimate risk to the airwaves? You decide.
LEANDER, TEXAS. Issued Order to Show Cause and Notice of Opportunity for Hearing
against Keith Perry, for continuing unlicensed FM operations despite warnings from
the Commission that theunlicensed radio transmissions were in violation of Section
301 of the Act. Keith Perry faces possible fine of $11,000. Order to Show Cause and
Notice of Opportunity for Hearing. Action by the Commission. Adopted: April 2, 1998.
(FCC No. 98-62). CIB
CLEVELAND, OHIO. Issued Order to Show Cause and Notice of Opportunity for Hearing
to Jerry Szoka of Cleveland, Ohio for continuing unlicensed FM operations despite
warnings from the Commission that the unlicensed radio transmissions were in violation
of Section 301 of the Act. Jerry Szoka faces possible fine of $11,000. Order to Show
Cause and Notice of Opportunity for Hearing. Action by the Commission. Adopted: April
2, 1998. (FCC No. 98-64). CIB
SAN MARCOS, TEXAS. Issued Order to Show Cause and Notice of Opportunity for Hearing
against Joseph Frank Ptak for continuing unlicensed FM operations despite warnings
from the Commissionthat the unlicensed radio transmissions were in violation of Section
301 of the Act. Joseph Frank Ptak may face possible fine of $11,000. Order to Show
Cause and Notice of Opportunity for Hearing. Action by the Commission. Adopted: April
2, 1998. (FCC No. 98-60). CIB
OROVILLE, WASHINGTON. Issued Order to Show Cause and Notice of Opportunity for
Hearing against Mark A. Rabenold of Oroville, Washington, for continuing unlicensed
FM operations despitewarnings from the Commission that the unlicensed radio tranmissions
were in violation of Section 301 of the Act. Mark A Rabenold may face possible fine
of $11,000. Order to Show Cause and Noticeof Opportunity for Hearing. Action by the
Commission. Adopted: April 2, 1998. (FCC No. 98-63). CIB
CHANCELLOR DROPS $54 MILLION DEAL
full story online at Washington Post and LA Times
See related story online at Yahoo! News
A proposed radio merger that the Justice Department had challenged was abandoned,
and the government is requiring the sell-off of 18 radio stations as a condition
of approving two other billion-dollar mergers in the rapidly consolidating industry.
Four months after the department's antitrust division brought its first court suit
to block a radio merger since the law was passed, Chancellor Media Corp. decided
it did not want to fight a court battle.
The government argued that the merger would have illegally reduced competition by
giving Chancellor, which owns two other Long Island stations, more than 65% of the
local radio advertising market.
The government said the original deal would have given Capstar and its related entities
74% of radio advertising revenue in Greenville, 65% in Long Island's Suffolk County,
57% in Jackson, 44% in Pittsburgh and 43% in Houston. The government argued those
levels of concentration could have brought about an increase in radio advertising
rates.
Hicks, Muse, Tate & Furst Inc., a Dallas-based investment firm, owns all the
stock of Capstar and a significant portion of the stock of Chancellor, so the market
positions of both companies were combined in assessing the Capstar-SFX deal, the
Justice Department said.
[Capstar agreed to sell 11 stations.]
JUSTICE APPROVES CBS / ARS DEAL
full story online at PRNewswire
See related story online at Yahoo! News
CBS Corporation announcedthat the Department of Justice has approved CBS's acquisition
of the radio broadcasting operations of American Radio Systems.
American Radio Systems (ARS) is the fifth largest radio broadcasting company in the
United States with 98 radio stations (including pending transactions) located in
19 predominately top 50 markets, including several major markets where CBS has existing
radio and television stations.
The completion of the acquisition requires FCC approval. As a condition of receiving
the Justice Department's approval, the companies will divest, through exchange or
sale, the following radio stations: WOCT-FM in Baltimore, WEGQ-FM, WAAF-FM, WEEI-AM
and WRKO-AM in Boston and KSD-FM and KLOU-FM in St. Louis.
FCC DROPS FREE AIR TIME
full story online at Yahoo! News
Federal Communications Commission chairman William Kennard Wednesday backed away
from plans to force radio and television broadcasters to give political candidates
free airtime.
Kennard's push, strongly backed by President Clinton, had drawn criticism from many
influential members of Congress as well as the broadcasting industry.
QUADRUPLE COPYRIGHT ROYALTIES?
full story online at Current
If music copyright holders get their way in a binding arbitration recently convened
by the Library of Congress, public broadcasters will have to pay royalties four times
higher than the $18.875 million they paid in 1992-97.
In direct testimony presented to the Library's Copyright Arbitration Royalty Panel
(CARP), the composers' reps--American Society of Composers, Authors and Publishers
and Broadcast Music Inc.--argue that the field has become so commercialized that
it's unreasonable for their affiliates to accept discount payments from public broadcasters.
ASCAP is seeking $43.9 million over the next five-year license period and BMI, $34.4
million. The combined total is $58.5 million more than public broadcasters say they
are willing to pay.
EVEN ECONOMIST IS WORRIED
We just received this short excerpt from an article The Economist ran back on January
24th of this year. It would seem that radio consolidation even has them worried about
the future of radio. Thanks for the email, JT.
"As a result [of deregulation] the radio industry has changed dramatically.
According to Paul Kagan Associates, a media consultancy, out of 10,000 radio stations
some 4,000 have changed hands since the act was passed, in deals worth around $32
billion. 'This has far outpaced what was expected,' says Larry Irving, an assistant
secratary of commerce."
"This worries both the administration and the FCC, because some advertisers
claim (nobody has yet compiled the numbers to prove it) that the concentration of
ownership is driving up advertising rates. In addition there is a fear that concentration
may reduce choice and create a series of "McRadio" chains across the country.
An indication of disappearing diversity that worries Mr. Irving who, like Mr. Kennard,
is black, is that the already small number of stations owned by blacks and Hispanics
has fallen by 10% since the act."
[Minority ownership is down to 2.8%.]
March 30, 1998
PROGRESSIVE POPULIST RADIO ARTICLE
The April 1998 issue of the Progressive Populist contains one of the best stories
we've seen on the issues surrounding low-power radio. It's a well-researched piece
of writing that everybody should read. You can read it right
here or link directly to the Progressive
Populist site.
One thing I know: I find very few people who think this is great, 'we love what's
going on.' They say this is a total ripoff -- it's outrageous. Even political conservatives
think it's a total ripoff. The problem is communicating that and making it an issue,
because it's an issue that's resolutely avoided in the commercial media, which is
where people normally get their news.
L.A. TIMES ARTICLE ON RADIO
The Sunday issue of the LA Times contained a great article entitled "Decline of the
Local Hero: You have to go national to make it big in talk
radio. But is anyone going to talk about local issues in this age of syndication?"
"The failure to produce more local programs in one of the most diverse, vibrant
megalopolises is outrageous," says Warren Olney (of KCRW-FM). "It's an
abdication of responsibility to the audience, and it is so serious that it leads
me, a lifelong exponent of the 1st Amendment, to open my mind to the idea of some
sort of requirements on the part of the licensing agencies, the FCC [Federal Communications
Commission].
"To the extent that the airwaves are public," the public radio host says,
"there ought to be some attention given to public service. [The situation] is
damaging to democracy and destroys the whole idea of community."
COX BUYS 4 CAPSTAR STATIONS IN N.Y.
full story at PRNewswire
Cox Radio announced today that it has signed a letter of intent with SFX/Capstar
to acquire the assets of WBLI-FM, WBAB-FM, WHFM-FM and WGBB-AM, serving the Nassau-Suffolk,
N.Y., market, for $48 million. Pending legal and regulatory approvals, the Company
expects to close this transaction in the first half of 1998...
...Cox Radio is one of the 10 largest radio broadcasting companies in the United
States, based on both net revenues and number of stations. Upon close of all pending
transactions, Cox Radio will own, operate or provide sales and marketing services
for 58 stations (39 FM and 19 AM).
FCC GRANTS BIG CITY UPGRADE IN LA
full story online at Excite News
Notice the last line in this posting.
Big City Radio announced that it has been granted authority from the FCC to begin
Phase Two of its signal power upgrade for its Los Angeles Y-107 radio property. Upon
Big City Radio's completion of this final phase of the station's booster signal increase,
the Company anticipates that its Los Angeles Y-107 station will broadcast to over
90% of Los Angeles' Arbitron population.
Michael Kakoyiannis, President and Chief Executive Officer of Big City Radio said
"The FCC approval to boost the power our Los Angeles station makes the completion
of our Los Angeles signal upgrade almost complete ... We anticipate that our increased
Arbitron coverage in Los Angeles will make our station more attractive to advertisers."
CAPSTAR FILES FOR IPO
full story online at PRNewswire
Capstar Broadcasting Corporation announced that it has filed with the Securities
and Exchange Commission a registration statement for a proposed initial public offering
of shares of its Class A Common Stock.
March 26, 1998
NEW PETITION ON LPFM
There is another petition for rulemaking in front of the FCC from the Community
Radio Coalition. You will also be able to file public comments on this PRM (as
soon as it has an FCC docket number) as well as the RM-9208
(Leggett) and RM-9242 (Skinner) PRMs.
RADIO MUTINY UPDATE
Those very active folks at Radio Mutiny have been very busy promoting free radio
out on the East Coast. We just received this update
and have posted it for all of you to read. Note the upcoming East Coast Free Radio
Gathering in Philadelphia in early April!!
FREE RADIO CONFERENCE
Free Radio enthusiasts and activists everywhere should be aware of the following
conference (put on in part by Free Radio Berkeley):
Fear & Transmitting
Las Vegas Micropower Free Radio Gathering
April 6 - April 8, 1998
Unitarian Fellowship
3616 E. Lake Mead, Las Vegas
Join us in Las Vegas for yet another West Coast Micropower Broadcasting Conference.
Las Vegas was chosen because it is also the site picked by the National Association
of Broadcasters (NAB), those nasty evil corporate broadcast media barons, to hold
their convention as well during the same week of April. During the last year the
NAB has given the Federal Communications Commission (FCC) its marching orders to
shut down all micropower broadcasters. It is our intent to confront both the NAB
and FCC in Las Vegas by placing a micropower station on the air for the duration
of our stay, turning it over to the community when we leave. Technical workshops
are planned to further our own expertise and education.
GNN CONFERENCE
The Grassroots News Network is hosting the first annual "Grassroots News and Media Conference & Culture Jam" in Austin, Texas on June 19, 20, and 21st 1998.
The idea of the Grassroots News and Media Conference & Cultre Jam is for the
people involved in community oriented media to meet face to face, share information,
train people in community broadcasting, and create a collective, public response
to the FCC's raids on micro-broadcast stations and the current situation at Pacifica,
and other struggles, and form a structure to help each other out.
Visit GNN's
website for full information.
March 18th, 1998
LPFM COMMENT PERIOD EXTENDED
The FCC has extended the public comment period on the Petitions for Rulemaking recently
filed. The public (that's you, me and everybody else) now has up to April 27th to
file comments regarding these proposals. You can file on both RM-9208
(Leggett) and RM-9242 (Skinner) and you can agree/disagree
with all or part of these Petitions. If you don't like either of them, submit your
own! Give your input!
OFF TO SXSW / MEDIA COVERAGE
We have a few representatives of ARD heading down to SXSW
this week. SXSW is probably the largest music conference/showcase in the US and one
of ARD's members will even be speaking on a panel with Alan Furst (of Hicks, Muse,
Tate and Furst's Gulfstar properties). The panel takes place on Friday and is called
"Media Consolidation in the 90's: All I Want Is Everything." The other
panel speakers are Neil Strauss of the NY Times, Eric Smith of Texas Monthly and
Michael Hirschorn editor-in-chief of SPIN. Should be a very interesting panel.
In related news, look for an upcoming issue of BILLBOARD to feature a story on ARD
and at least two other major music publications will have stories out in the very
near future! The current issue of ALTERNATIVE PRESS features a news blurb about the
upcoming ARD CD project on page 14.
February 26th, 1998
LOW POWER RADIO UP FOR COMMENTS!
As of this writing, two "Petitions for Rulemaking" have been filed
with the FCC. These documents ask the FCC to create ruling (law) on a system of low
power radio stations throughout the nation.
These two documents are online and you can read them here: Skinner
PRM or Leggett PRM. See also the Dunifer
outline.
The FCC is currently taking public comments on these proposals. Comments may be entered
on the Leggett Proposal until March 5.
We at Americans for Radio Diversity encourage each of you to file a public comment
while you can. You don't have to agree with the whole proposal and you can certainly
suggest your own changes. BUT... it is important to let the FCC know that you --
the public -- want this to happen.
R&R TOP STORY: PIRATES
full story online at R&R Online
Radio and Records' top story this week deals with the surge of 'pirate radio'
activity around the nation. The story talks about microbroadcasters in California,
Minnesota and, mostly, Florida. While the story is fairly well written, it doesn't
seem to delve into the reasoning behind the micropower radio movement too deeply...
KISS 97.1-FM has all the trappings of a typical CHR. The Southern Georgia station
features Chumbawamba, Sugar Ray, and Robyn. It sells station T-shirts, with orders
taken on its professionally designed website. Casey's Top 40 airs on Saturday evenings
and Sunday mornings. The station's positioning statement is "Valdosta's #1 Hit
Music Station."
Unfortunately, KISS-FM is all smoke and mirrors. According to the FCC, it's a fraud.
The station has no license -- it's a pirate radio broadcaster.
KISS-FM represents just one of a growing number of unlicensed radio stations that
have appeared all over the country in the last five years. While Stephen Dunifer's
"Free Radio Berkeley" is perhaps the best-known of the radio renegades,
several others have sprouted up from rural New Jersey to Los Angeles. In South Florida,
it's a free-radio free-for-all. As of February 20, 17 unlicensed FM stations can
be heard all across the radio dial.
TROUBLE INSIDE THE FCC?
via email, from last week's R&R
The Office of the Inspector General's latest semiannual report says one former
FCC employee has been sentenced in Howard County, MD for using an FCC computer to
download child pornography.
And, employees of the Mass Media Bureau were cited for running a gambling pool. In
the latter case, MMB workers and their supervisors participated in a Super Bowl '97
pool; disciplinary action against them could range from a verbal reprimand to dismissal.
FCC GETS CONVICTION ON PIRATE
full story from Tampa
Tribune
A jury returns a guilty verdict in the federal case of a Lutz man who operated
a pirate radio station from his home.
Jurors took slightly more than an hour Wednesday to find a Lutz man guilty of 14
criminal counts of operating an unlicensed radio station.
Arthur Kobres, 54, faces prison and fines for operating "Lutz Community Radio,"
which broadcast anti-government programming, out of his home from 1995 through 1997.
He remains free on $25,000 security bond; sentencing is scheduled for May 13
CAPSTAR, CHANCELLOR TO DIVIDE SFX ASSETS
full story online at Excite!
Capstar Broadcasting Corporation and Chancellor Media Corporation today announced
an agreement under which Capstar and Chancellor will divide the assets of SFX Broadcasting,
Inc., which an affiliate of Capstar agreed to acquire in August 1997.
Following completion of Capstar's acquisition of SFX, expected in the second quarter
of this year, Capstar will swap to Chancellor eleven SFX stations in Dallas, Houston,
Pittsburgh and San Diego with an aggregate market value of $637.5 million. These
stations will be swapped to Chancellor in return for several small- and medium-market
stations that will be identified by Capstar and paid for by Chancellor. Pending the
consummation of such swaps and following the receipt of Hart-Scott-Rodino approval,
Chancellor will operate the eleven SFX stations pursuant to time brokerage agreements.
The transaction is structured to minimize the tax impact on both Capstar and Chancellor.
This transaction is subject to approval by the Boards of Directors of Capstar and
Chancellor and by the Federal Communications Commission
CBC GETS NEW BUYERS
via email, from R&R
"This is the most aggressive market for AMs I have ever seen," CBC Chairman/CEO
Christopher Dahl tells R&R. The company announced yesterday it has signed letters
of intent with several companies to spin off seven of its 14 stations; CBC's original
deal to sell its entire stable to Global Broadcasting fell through January 27. Dahl
says two of the three potential buyers should be announced "within the next
couple of weeks," with the third to be unveiled "within the first couple
of weeks of March." Although none of the deals are definite, Dahl tells R&R
he expects the remaining seven stations to be "gone within the next 30 days."
Meanwhile, CBC's board of directors adopted a shareholder- rights plan to protect
common stock holders in the event of a hostile takeover. Shareholders of record February
27 would be able to buy additional stock at a discounted price should someone acquire
20% or more of CBC's common stock.
Until the stations are sold, CBC is filling air-time with club and dance music
courtesy of Alan Freed and BEAT RADIO. Beat
Radio is currently in court fighting against the FCC-forced shutdown of their 20-watt
station.
DISNEY SELLING SBS?
full story online
at MediaCentral
The Walt Disney Co. is looking
to sell its 2.7 million shares (19.7% interest) in Scandinavian Broadcasting System
SA (SBS) which the company picked up as a result of its Capital Cities/ABC acquisition
in February 1996.
Throughout the late '80s and early '90s, ABC had pursued an international strategy
of making such investments, then using the resulting influence to solicit syndication
sales, co-productions and licensing deals for its cable properties.
However, Disney has said that such minority interests are inconsistent with its primary
focus in international broadcasting, which is to develop and manage Disney- and ESPN-branded
programming services in major markets.
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