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Feb 1, 1999
LPFM NEWS COVERAGE:
GOV'T PROPOSES NEW LOWPOWER STATIONS
full story online at DesseretNews
For disc jockey wannabes, it's a ticket to the airwaves.
Thousands of low-tech, low-cost radio stations sprouting up across the country airing
church services, city council meetings and high school basketball games.
In a 4-1 vote, the Federal Communications Commission took the first step toward creating
a very local radio service that would help community and regional interest groups
get on the air.
The FCC will offer proposals to create thousands of new low-power FM radio stations.
These "micro" radio broadcasters would operate with low power levels from
1 watt to 1,000 watts and would be licensed by the FCC.
"It is an opportunity to create new alternative voices on the airwaves,"
said FCC Chairman Bill Kennard.
FCC TO OPEN AIRWAVES
full story online at ABC News
The FCC's action also responds to consolidation in the radio industry,
which has made it increasingly difficult for minorities and community groups to make
their voices heard.
A 1996 law [Telecom Act of '96] triggered rapid consolidation in the industry by
relaxing limits on the number of radio stations held by any one owner.
In the last year, the FCC has received 13,000 inquiries from city governments, schools,
churches and others wanting to start a low-power station.
FCC OPENS LOWPOWER
full story online at SpokaneNet
The federal government proposed new rules Thursday to permit hundreds, if not
thousands, of small broadcasters to run inexpensive, low-power FM radio stations.
Both industry experts and Washington officials said that the proposal would provide
new platforms for unheralded voices -- everything from educational institutions and
churches to municipalities, independent musicians and dissident political groups
that in recent months have joined forces to petition the government for access to
the airwaves.
MICRORADIO ANTIDOTE TO MERGERS
full story online at Christian Science Monitor
"Is this a good thing for our communities? Unequivocally, yes," says
Robert McChesney, a communications professor at the University of Illinois, Urbana-Champaign,
and author of several books critical of the concentration of media ownership.
Of course, not everyone agrees. The powerful National Association of Broadcasters
(radio and television) vows a stiff fight, and some analysts give the NAB the upper
hand in Congress should it seek legislative help in thwarting FCC chairman William
Kennard. "We oppose [microradio]," says NAB spokesman John Earnhardt.
Just as bluntly, Kennard told an NAB conference late last year: "We cannot
deny opportunities to those who want to use the airwaves to speak to their communities
simply because it might be inconvenient to those of you who already have these opportunities."
LICENSE PIRATE BROADCASTERS?
full story online at SanJose Mercury News
For years they have been called pirates and treated like criminals for operating
the low-powered radio stations they called a community service.
Now, the Federal Communications Commission has taken a step that could legitimize
self-proclaimed "microbroadcasters" in the Bay Area and around the country.
Thursday, in a 4-1 vote, the FCC offered proposals to create thousands of new, licensed
low-tech FM radio stations from one watt to 1,000 watts. The action would reverse
a roughly 20-year ban against such licenses.
BURST OF MICRO FM STATIONS
full story online at Philadelphia Inquirer
For a blind Nashville entrepreneur, it is an opportunity to educate and serve.
For a fledgling university radio station in Madison, Wis., it is a noble compromise
to a longtime feud. And for a Spanish-language church in South Florida, it is a cost-effective
way to spread the gospel.
The Federal Communications Commission moved yesterday to create a national network
of thousands of low-power and "micro" FM radio stations with limited broadcast
range.
If approved, the move would reverse a 21-year-old policy and create opportunities
for would-be urban and rural broadcasters who cannot afford the equipment and operating
costs of a full-power station.
HEFTEL BUYS AZ STATION
full story online at Arizona Central
full story online at Excite News
The nation's largest Spanish-language radio broadcasting company has agreed to
pay $18.3 million for KHOT-FM as an entry to the Phoenix market. Dallas-based Heftel
Broadcasting Corp. said it would convert KHOT to a Spanish format in March. Heftel
currently owns 39 Spanish-language radio stations in 11 of the nation's top 15 Hispanic
markets and Las Vegas.
HICKS MUSE SELLING OUT?
full story online at Albany Business Journal
The Capital Region's largest radio broadcaster could be in line for another change
in ownership.
Atlantic Star Communications--which operates local stations WGNA, 1460 AM/107.7 FM;
WPYX, 106.5 FM; WTRY, 980 AM/98.3 FM; and WXLE, 104.5 FM--is part of Capstar Broadcasting
Corp. of Austin, Texas. Capstar is in the process of being purchased by Dallas-based
Chancellor Media Corp., in a $4 billion deal scheduled to close in April.
Now Chancellor, which also happens to be the area's largest billboard operator through
its November purchase of Whiteco Outdoor Advertising, has put itself on the block.
In a prepared statement issued Jan. 20, Chancellor said it had hired the New York
City investment firm BT Alex Brown to assist in "developing, reviewing and structuring
a range of strategic alternatives intended to maximize shareholder value." The
company said such alternatives "may include, but are not limited to, the sale,
merger or consolidation of one or more of the operating divisions of the company
or the entire company."
Chancellor and Capstar both are controlled by the Dallas-based investment firm Hicks,
Muse, Tate & Furst Inc.
If Chancellor--and, therefore, the local Atlantic Star stations--are sold, it will
be just the latest in a series of ownership changes for the Latham group. The stations,
with the exception of the recently purchased WXLE, were brought together in 1994
by Liberty Broadcasting Group Inc. of Conshohocken, Pa. In mid-1996, Liberty was
purchased by SFX Broadcasting Inc. of New York City. Last June, Capstar took over.
MORE ON PAY-FOR-PLAY
full story online at Milwaukee Business Journal
The guys who push records on radio station programmers are taking the direct approach
to gaining access: They're paying.
It's all aboveboard and legal, as long as the stations and the record promoters disclose
their relationships. Radio executives said they are not swayed by the cash payments
from the record promoters...
Record companies pay ... promoters to report back on which new songs stations have
added to their playlists. What's changed in the past decade is that some promoters
have struck exclusive deals with some radio stations to funnel record company cash
to stations' promotional events like concerts and contests.
The practice has received renewed attention in the radio industry in recent weeks
after revelations that an entire radio group -- Cumulus Media Inc., Milwaukee --
will accept an estimated $1 million from independent promoter Jeff McClusky
of Chicago. In return, McClusky will receive exclusive access to the programming
executives who oversee Cumulus' 212 stations. The arrangement precludes other record
promoters from talking with Cumulus executives.
Jan 23, 1999
ARD PUTS OUT ACTION UPDATE
The FCC's upcoming January 28th meeting could have a huge impact on radio as one
of the topics to be covered may well be opening up the spectrum to low-power broadcasting.
ARD sees low-power as a great start to returning the airwaves to the rightful owners
-- the American public. If you support this idea (or even if you don't), you need
to take the 5 or 10 minutes to write a letter voicing your opinion. Write a letter
stating your opinion and send it off to your elected officials (city, state, nation)
and to the FCC.
The other issue that should be dealt with is the possible future dismantling of the
FCC. Perhaps the FCC does need an "overhaul" but dismantling the FCC would
only allow chaos to reign and the corporate conglomerates to have unfettered control
of the airwaves. A bad situation would get worse.
TELL ME MORE!
UPDATE:
Think this might be pie-in-the-sky wishing? It is not. Get writing those letters!
The FCC has officially announced it's agenda
for the January 28th meeting and item number 8 reads:
MASS MEDIA
TITLE: Creation of a Low Power Radio Service (RM's-9208 and 9242).
SUMMARY: The Commission will consider a proposal to establish a low power radio broadcast
service.
Jan 23, 1999
CHANCELLOR SALE POSSIBLE?
full story online at LA Times
full story online at CBS MarketWatch
After a three-year buying binge that created the nation's largest radio station
group, Chancellor Media Corp. said Wednesday that it is considering a sale of all
or part of the company. The Dallas-based company is 25% owned by investment firm
Hicks, Muse, Tate & Furst and through a series of acquisitions, Chancellor has
grown from 11 stations in 1995 to 465 today, including Capstar's group.
Analysts estimated that a sale could bring $16 billion or more, not counting the
$9 billion in debt Chancellor will have after completing its recent $4-billion purchase
of Capstar Broadcasting. The deal could fetch about $65 per share, plus debt, for
a total of up $22 billion.
Clear Channel Communications Inc., the nation's third-largest radio owner after CBS,
is the most obvious candidate to buy the entire company, though it would be forced
to divest radio stations in 15 of the top 50 markets to win antitrust approval of
the transaction. Other possible buyers might be: Murdoch's News Corp, Tribune Co.,
Disney/ABC Radio, Citadel or Cumulus.
...[Chancellor] has routinely overpaid for radio properties, many analysts believe,
spending at levels that current industry growth rates cannot sustain...
By amassing multiple stations in the nation's top 50 markets, Chancellor and CBS
have been able to cut costs, bundle bigger packages for advertisers and sell more
efficiently. With each of the companies controlling more than a third of the radio
advertising spending in certain markets, they have been able to raise rates steadily.
TOLEDO LEFT WITH ONE INDIE STATION
full story online at Toledo Blade
And then there was one?
Independent radio station in Toledo, that is...
...(Cumulus and Jacor dominate the dial)...
...What does all this mean for you, Joe Radio Listener?
Less and less local feel. More syndicated shows. Even more predictable music programming
(if that's possible), and even fewer outlets now for local music. Less heart. Fewer
quirks. Less variety. Radio geared only to people between the ages of 18 and 49.
McCAIN TO SPEAK AT NAB
Senate Commerce Committee Chairman John McCain (R-AZ), one of the nation's leading
telecommunications policymakers and a 2000 Presidential hopeful, will keynote the
NAB Radio Luncheon on Tuesday, April 20 at NAB'99 in Las Vegas. http://www.nab.org/conventions/
Jan 16, 1999
ADVERTISERS AVOID MINORITY RADIO
full story online at Washington Post
full story online at FCC.gov
Advertisers regularly discriminate against minority-owned radio stations and stations
that have large African American or Hispanic audiences, a new government study has
concluded.
Based on interviews and an analysis of radio industry data for 3,745 stations, the
FCC study found that stations owned by "majority" firms collected about
29 percent more revenue per listener than minority-owned stations targeting largely
minority audiences. In a survey of 64 minority-owned stations, 91 percent
said they had encountered advertiser "dictates" not to buy ads on their
stations.
COMMERCE TO TACKLE TELECOM ACT?
The Senate Commerce Commitee will hold hearings this year on the satellite TV
industry, the FCC's implementation of the 1996 Telecommunications Act and media deregulation.
Dates for proposed hearings will supposedly be announced in January. Senate Commerce
Commitee Chairman John McCain (R-Ariz) has been unhappy with the FCC's handling of
the Telecom Act, recently writing two letters to FCC Chairman William Kennard saying
that the FCC does not have the authority to tighten broadcast ownership rules. McCain
and Commerce Commitee ranking member Ernest Hollings (D-S.C.) will be looking at
those rules next year.
Here's a list of the people on the Communications Committee. Write a letter!
http://www.senate.gov/~commerce/subcmte.htm#Comm
FCC RELEASES 1999 AGENDA
full story online at FCC.gov
The FCC has released it's 1999 Agenda and it includes the following wonderful
topics:
- Preserve free, over-the-air broadcast services and ensure satellite coverage
in underserved areas.
- Open low-power radio frequencies for local use.
- Promote the participation of people of all backgrounds in broadcasting and other
communications media.
JACOR TO BUILD NETWORKS
full story online at Cincinnati Business Journal
In mid-January, Jacor Communications Inc. is launching a country music network
in central Ohio.
The Buckeye Country Network will originate out of Jacor's country station in Columbus,
WCOL-FM, and will include six or seven of the broadcaster's smaller stations in that
region.
"We can improve the quality of the programming in the smaller markets by importing
the talent from other stations," said Tom Owens, Covington-based Jacor's senior
vice president of programming
Creating regional networks also lowers operating costs of the smaller stations and
provides Jacor a package deal to offer advertisers. It's part of the broadcaster's
plan to bring the many low-performing "stick" stations it has acquired
over the last three years into profitability.
In addition to the Buckeye Country Network, Owens said Jacor is also launching a
nine-station "oldies" regional network out of Las Vegas.
Expect more such announcements down the road, he said.
The regional programming initiatives are utilizing the high-tech communication network
Jacor is completing ... called Prophet. By the end of this year, the system will
interconnect all of Jacor's 240 radio stations around the country.
"It will allow us -- from one place -- to supervise the programming at every
one of our stations minute-by-minute," Owens said. "We will be able to
hear the actual product. And maybe it will cut down on my travel time."
[ editor's note: Austin, TX-based Chancellor/Capstar is already
doing this in some areas. how's that for "serving the public interest"?
]
MICRO RADIO MICRO GUIDE
RadioWorld Online has published an article by Don Schellhardt, one of the Amherst
founders, and it's a fairly consice "Micro-Radio Micro-Guide" that examines
the history and politics behind low-power radio. Check it out at their
site or here in the ARD Library Archives.
LETTER TO EDITOR: FREE RADIO
full story online at Anchorage Press
Have you written YOUR letter to the editor yet?
"...And don't let the existing broadcasters fool you into believing that
micro radio will do nothing but harm. Would you want to give up your piece of the
pie, which you've written the recipe for? That's the reality that exists today, with
former FCC commissioners, congressional representatives, NAB & NPR'ers, and all
of their staffers interchanging jobs every few years, writing telecommunications
policies that dictate how a resource of the "public" is really managed
to benefit only a few."
CITADEL TO DIVEST 25 STATIONS
full story online at Excite News
full story online at CBS MarketWatch
Citadel Communications Corporation, and its chief operating subsidiary, Citadel
Broadcasting Company, announced it has reached a definitive agreement with Marathon
Media to sell 25 radio stations in Billings, Montana, Tri-Cities, Washington, Eugene
and Medford, Oregon and State College and Johnstown, Pennsylvania to the Chicago-based
station group for approximately $26 million in cash. Citadel intends to use proceeds
from the sale to repay bank indebtedness.
Upon consummation of the agreement, Citadel would sell KCTR-FM, KBUL-AM, KKBR-FM,
KBBB-FM and KMHK-FM in Billings; WRSC-AM, WBLF-AM, WQWK-FM and WIKN-FM in State College;
KAKT-FM, KBOY-FM, KCMX-AM/FM and KTMT-AM/FM in Medford; KEYW-FM, KFLD-AM, KORD-FM,
KXRX-FM and KTHK-FM in Tri-Cities; WQKK-FM and WGLU-FM in Johnstown; and, KUGN-AM,
KKTT-FM and KEHK-FM in Eugene.
Citadel Chairman and Chief Executive Officer Larry Wilson commented that the deal
"underscores Citadel's intent to focus its energy on mid-sized markets, which
offer the greatest return to our shareholders."
MARATHON MEDIA BUYS 3
full story online at Deseret News
Marathon Media, which owns more than 60 stations in small markets
throughout the Midwest and West, announced a deal Tuesday to buy KONY-AM and KONY-FM
in St. George and KREC-FM in Cedar City.
RADIO ONE BUYS DETROIT STATION
full story online at Washington Business Journal
Radio One of Lanham, Md., completed its acquisition of Detroit radio station WWBR-FM
for around $27 million. Radio One bills itself as the nation's largest radio broadcaster
that primarily targets African-Americans.
CBC SELLS LAST STATIONS
full story online at Excite News
Children's Broadcasting Corporation announced it has completed the sale of its
last 3 radio stations. Radio Unica Corp. paid CBC approximately $29.25 million in
cash for WJDM/WBAH-AM, Elizabeth, New Jersey, KAHZ-AM, Fort Worth, Texas and KIDR-AM,
Phoenix, Arizona.
CBC DECISION OVERTURNED!
full story online at Channel4000.com
A federal judge has overturned a $20 million dollar award against Walt Disney
Company and ABC Radio Networks.
A jury awarded the money last fall to Minneapolis-based Children's Broadcasting Corporation
[and their former 'Radio Aaahs' network].
The company contended Disney and ABC broke a 1995 marketing agreement and stole a
trade secret to set up a competing children's network ['Radio Disney'].
But U.S. District Judge Donald Alsop dismissed the award this week -- saying the
facts did not support the verdict -- and also approved a new trial for Disney and
ABC in case a higher court overturns his decision.
[ editor's note: rather surprising. shouldn't the last line read "...a
new trial for CBC..."? ]
Jan 07, 1999
HAPPY NEW YEAR!
All of us here at ARD enjoyed some much-needed time off but we're rested and ready
and we would like to express our wishes for a Happy New Year -- one in which radio
is returned to the communities and programming is done because the content is compelling,
not because somebody paid for it to be aired. You can help make it happen by sitting
down for 10 minutes and writing a simple yet direct letter to the FCC. If all of
us add this one little thing to our list of resolutions... well, you can imagine
the impact.
HOUSE TO GET DEREG SPEAKER
full story online at Broadcasting and Cable
The election of Rep. J. Dennis Hastert (R-IL.) to Speaker of the House will apparently
give a boost to congressional efforts to weaken the regulatory powers of the Federal
Communications Commission. (see also: Rep. McCain from Arizona). Hastert has been
an outspoken critic of the FCC, which he called a "renegade agency." As
a recipient of large contributions from the local Bell companies, Hastert was critical
of the FCC for blocking the entry of local phone companies into the long distance
market. Hastert will likely endorse a major restructuring of the FCC, which will
shrink the agency and give Congress more deregulatory authority.
BROADCASTERS INVEST IN DIGITAL
full story online at Excite News
USA Digital Radio Inc., a privately-held technology company headquartered in Columbia,
announced that twelve of the nation's largest radio broadcasters, including nine
of the top ten, along with Chase Capital Partners, a major investor in media and
telecommunications, have taken equity positions in the company.
Owners now include CBS Corp., Chancellor Media Corp., Chase Capital Partners, Citadel
Communications Corp., Clear Channel Communications, Cox Radio Inc., Cumulus Media
Inc., Emmis Communications, Entercom Communications Corp., Gannett Co. Inc., Heftel
Broadcasting Corp., Jacor Communications, Radio One Inc.,
and Sinclair Broadcast Group Inc.
USA Digital Radio owners have a total of approximately 1628 radio stations with combined
revenues of $5.4B annually - almost half of all revenues in the radio industry,
according to BIA Research. BT Alex. Brown Inc. served as the placement agent for
the offering.
"Digital Radio using In-band On-Channel technology heralds a new age in broadcasting,"
said Robert Struble, President and Chief Executive Officer of USA Digital Radio.
"This support by the nation's largest radio broadcasters reiterates the strong
industry commitment to a digital future, and expresses confidence in USA Digital
Radio's In-Band On-Channel Digital Audio Broadcast (IBOC DAB) technology. Through
these investors, USA Digital Radio has assembled an ownership group with coverage
in 192 of the 267 Arbitron rated markets (including 49 of the top 50 markets) with
access to 207 million listeners."
USA Digital Radio is developing and marketing Digital Audio Broadcasting (DAB) which
can transmit virtual-CD-quality audio signals to radio receivers.
The company's In-Band On-Channel (IBOC) Digital Audio Broadcasting technology is
designed to permit stations to use their current radio spectrum to transmit existing
AM and FM analog simultaneously with new high-quality digital signals which eliminate
multipath, noise, and reduce interference.
TUCSON RADIO CREW PLANS RETURN
full story online at Arizona Daily Star
Unlicensed by the FCC, Radio Limbo operated in the name of creativity, freedom
of speech and musical variety. Its partisans saw it as an alternative to the growing
homogenization of commercial radio.
Now, after the federal government shut it down, it is planning to come back in February
or March.
Radio Limbo is part of a nationwide movement involving hundreds of illegal low-power
radio stations that hit the air recently, only to be shut down. The microradio stations
have provoked a debate that goes to the heart of how the airwaves are defined in
the United States and who has access to them.
Limbo debuted at 103.3 FM on June 21, 1997. To start it up, Armstrong and his colleagues
packed a transmitter, an antenna and other equipment up the Catalina Mountains. There,
they kept it out of public view in the Pusch Ridge Wilderness. Total start-up cost:
about $2,000, compared with hundreds of thousands of dollars to open a mainstream
commercial station.
SFLR APPLIES FOR LICENSE
On December 5, 1998, San Francisco Liberation Radio sent by certified mail our
application to the Federal Communications Commission for a license to broadcast at
the 93.7 FM frequency in San Francisco.
We invite the public to send its comments. Our decision to apply for a license stems
from the unfavorable court ruling issued last June in the Dunifer case.
On June 16, 1998, Federal Judge Claudia Wilken granted the FCC an injunction against
Free Radio Berkeley founder Stephen Dunifer on the grounds that he had not applied
for a license. With the submission of our application on Dec. 5, the federal court
and the FCC no longer have a legal excuse to deny micro radio.
We call upon the FCC to promptly grant our application for a license, and legalize
micro radio!!! As members of the public you (in theory at any rate) are the owners
of the public airwaves. As such you therefore have a right to contact the FCC and
either support or oppose our application. The FCC's address is:
Federal Communications Commission
1919 M Street N.W.
Washington DC 20554
FCC phone: 202-418-0200
We also encourage you to send your comments--again, either positive or negative--to
us as well. Our address is:
SFLR
750 La Playa Box 852
San Francisco, CA 94121
email: sflr@slip.net
CUMULUS BUYS ND STATIONS
full story online at CBS MarketWatch
full story online at Milwaukee Business Journal
Radio station group Cumulus Media said Tuesday that it's agreed to buy three Bismarck,
N.D. stations from privately-held Anderson Broadcasting for $4.5 million.
The acquisitions will expand Cumulus's Bismarck cluster to seven stations, including
four AM and three on the FM band.
Cumulus now owns 61 stations in 13 Midwest cities and, pending federal approval,
212 stations in 39 U.S. cities.
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