excerpted
from Listener Choice Radio Study 2000
by Ken Mills and
It is difficult
to overstate how different radio broadcasting was twenty years ago. A
quick look back to 1980 shows how many changes there have been for both
commercial radio and public radio.
Item
1980
2000
Station
Ownership Limit in Multiple Markets
7
AM, 7 FM
Almost
unlimited
Stations
Owned or Controlled in a Single Market
1
AM, 1 FM
4
AM, 4 FM
FCC
License Term
3
years
7
years
Community
Ascertainment
19
specified categories, surveyed frequently
Posting
of community issues and program in the Public File
Program
Requirements
News,
public affairs and public service required
No
requirements
FM
Listening Penetration
54%
80%
Major
Commercial Radio News Networks
ABC,
CBC, NBC and Mutual. From 1975 to 1977, NBC distributed a 24/7 news
network called "News and Information Source" (NIS)
ABC,
CBS and AP All News Radio
Public radio
was also different in 1980. Then, NPR received major direct CPB funding.
NPR News was still considered an alternative to ABC, CBC, NBC and Mutual.
NPR News was trying, with mixed success, to get member stations to sign
on early enough to carry the recently created program Morning Edition.
Research and audience building in public radio were important to a small
group of individuals.
But, over the past twenty years, public radio has become one of radios
big success stories. In 1980, public radios weekly cume was 5,329,100.
In 1998, public radios weekly cume topped 22,000,000. Public radio
news is no longer seen as an alternative. It is an agenda setter for the
nation and many communities.
The Extent
of Consolidation
The size of the consolidated commercial radio companies is unprecedented:
In 1998, Clear Channel/AMFM had revenues over three billion dollars.
Second-place CBS/Infinity had revenues of almost two billion dollars.
By comparison, public radios total industry revenue for 1998 was
about half a billion dollars. In other words, the biggest single consolidated
commercial radio companies have several times the annual revenues as all
of public radio.
The audience reach of the major consolidated radio companies is staggering.
According to the Fall, 1999, Arbitron survey, 28.2% of national average
quarter hour listening was to stations owned by Clear Channel/AMFM. CBS/Infinity
had 11.7% of the national average quarter hour listening.
Radio company stocks have been big news on Wall Street. In 1999, radio
stocks with a return of 151.5%, compared to just 19% for market as a whole.
One radio company, Cumlus Broadcasting, gained 223% during 1999, the biggest
percentage gain of any media company.
The commercial radio industry has seen ad revenue rise for over ninety
consecutive months. In 1999, overall radio sales reach at record $15.4
billion and radios share of the advertising market increased to
eight percent, also a record.
Changes
in the Regulatory Environment
There are three primary changes in regulatory environment that have caused
these major changes in commercial radio:
(1.) Deregulation
in the 1980s that ended news and public affairs requirements, lengthening
of license holding terms to seven years and the end of community ascertainment.
Almost all commercial broadcasters feel that these changes have helped
their industry. Deregulation has vastly decreased paperwork, allowed
stations to drop costly news and public affairs programming and
created all-but-certain license renewal.
(2.) The repeal of The Fairness Doctrine and equal time provisions,
except for announced political candidates.
The Fairness Doctrine was abolished in 1987 by Ronald Reagan's deregulation-oriented
Federal Communications Commission. The end of the Doctrine meant that
broadcasters no longer needed to be concerned about presenting a "balance"
of viewpoints. It also brought on the current generation of talk radio.
Without having to worry about giving equal time for opposing views,
entertainers with partisan points of view and specific social opinions
emerged such as Rush Limbaugh, G. Gordon Liddy, Dr. Laura and many others
imitators.
(3.) The Telecommunications Act of 1996 which opened the door to todays
consolidated ownership.
Consolidated ownership has allowed commercial radio to be more competitive
with other media for advertising purchases. Stations operated as "clusters"
of several stations can usually be operated more inexpensively that
single stations. Decision making is streamlined.
But, often this means that station clusters are not locally owned. The
local "family owned" radio station is largely a thing of the
past.