Clear Channel (Kube) is The Devil!!!

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Feb 4, 2004
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#1
After scanning over the frequencies offered on the FM dial, radio listeners today quickly become bored, annoyed, and frustrated at what they hear. As they flip from station to station, listeners usually hear the same songs, often songs they do not especially like, repeated on multiple stations despite a change in frequency. Few of these songs are not that month's best-selling singles, unless they are listening to older music, which often only reflects the several dozen most popular tunes of previous generations. Amidst the repetitious music, listeners must also hear advertisements on many of the stations they turn to, waiting through several minutes of annoying sales plugs at each station before hearing more low-quality music.

Perhaps these irritations are the reasons that fewer people have been tuning in to radio in the last several years. Over the last decade, the amount of radio listening in the U.S. has declined by 13%. Between 1998 and 2001, the amount of listening among teenagers dropped by 10% (Kot, "What's Wrong" sc.2). Excessive commercials was the reason one-third of listeners between the ages 12-24 gave for listening to radio less, amidst other complaints about the lack of variety in the songs and programs they were hearing (Boehlert, "Radio's Big" 5). Many music fans and critics from within the music industry blame the decrease in radio's popularity on the large corporate conglomerates that now own and control much of the music entertainment industry. Driven by the desire for profits, Clear Channel, the largest of these conglomerates, deserves most of the blame for mass-producing low quality, inaccessible radio and concerts across the U.S.

After the Telecommunications Act of 1996 deregulated the radio industry, radio-owning corporations began rapidly consolidating. The National Association of Broadcasters lobbied Congress to pass this bill (Boehlert, "One Big Happy" 4), which would effectively eliminate all governmental restrictions on how many national radio stations one company could own and would loosen the limits on how many local radio stations companies could own. When the act was passed, the Federal Communications Commission allowed large radio companies to own up to eight local stations in any market, a large increase from the previous limit of two stations (Compaine 297).
 
Feb 4, 2004
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#2
This government deregulation revolutionized radio by allowing larger radio companies to begin a spree of radio station buyouts. The more powerful companies that emerged further consolidated over the next few years through mergers that created radio giants with "vast empires" of media control. The ten biggest companies at the end of 1996 had converged to form six bigger companies by the end of 1997 (Compaine 300). Some people in the radio industry saw this corporate conglomeration as a time when radio changed from public territory to a market controlled by a quickly decreasing number of powerful people (Kot, "What's Wrong" sc.1).

In the wake of the government deregulation, Clear Channel Communications soon emerged as the most aggressive, successful, and powerful radio conglomerate. Lowry Mays cofounded this San Antonio-based company in 1972 (Pulley 126). In October 1998 Clear Channel bought Jacor Communications, boosting the company to the third most profitable owner of radio stations (Flores 273). One year later, in October 1999, Clear Channel announced its decision to merge with its largest competitor, AMFM Inc., multiplying the number of stations under Clear Channel's control (Curwen 260). Four months later, in February 2000, Clear Channel, which had become the world's biggest radio owner, announced a merger with SFX Entertainment, the world's biggest concert-promoting company (Waddell, "SFX/Clear Channel" sc.1).

The deals with AMFM and SFX, costing a total of $27.8 billion (Forest, sc.1), gave Clear Channel unprecedented control over radio stations, billboard advertisements, and concert promotions. Clear Channel now owns over 770,000 outdoor advertisements (Forest sc.2), produces over 26,000 concerts and other live events annually (Holland and Waddell sc.2), controls 19 TV stations and some 900 Web sites (Patoski sc.2), and owns over 1,200 radio stations in all fifty states (Clear Channel), while its closest competitor owns a meager 240 radio stations (Patoski sc.1). Clear Channel presently controls 60% of rock radio stations in the U.S. (Boehlert, "Pay for Play" 2) and 10% of all U.S. radio stations, allowing the company to reach 110 million listeners with its radio broadcasts (Clear Channel) and to earn an annual revenue of over $8 billion (Kot, "What's Wrong" sc.3).
 
Feb 4, 2004
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#3
Clear Channel executives state that the company's large size provides a great opportunity for advertisers and brings more talent, technology, and variety to its audience. Yet, people within and outside of the radio industry have recently refuted Clear Channel's claims to be a beneficial force in radio. Listeners, as well as Clear Channel's smaller competitors, accuse the company of using its power to unjustly usurp more control over the radio and concert industries, thereby restricting the public's freedom to hear the music they want. Many critics blame Clear Channel for the decreasing interest in radio, saying the company broadcasts repetitious, mass-produced radio programming. These accusations largely stem from a more general belief that Clear Channel constantly tries to please investors and advertisers rather than listeners in order to gain more wealth and power, which reflects our culture's obsession with unlimited financial progress. Though Clear Channel claims that its vast resources improve the music industry, the company's unending thirst for increased profits unfairly restricts competition and creates low quality, inaccessible music entertainment through the delocalization of stations, perpetuation of the independent promotion system, and monopolistic control over the radio and concert industries.

As a national conglomerate that operates multiple radio stations under the same format, Clear Channel's radio programming fails to serve the unique interests of local audiences. Randy Michaels, CEO of Clear Channel's radio division, claims that though his company is large, the individual radio stations are independently run, and each station selects its own playlist according to the interests of its area (Kot, "What's Wrong" sc.3). However, Clear Channel often uses pre-recorded tapes of the same disc jockey for multiple stations spread out across the nation, which saves the company money since fewer DJ's need to be paid. For example, Clear Channel DJ Randi West is broadcast simultaneously on Clear Channel stations in Ohio, Kentucky, Iowa, South Carolina, and New York (Boehlert, "Radio's Big" 5). A Clear Channel DJ in one city will receive faxes with local weather and news headlines from Clear Channel stations in other cities that the DJ is being aired in. By prerecording a set playlist of songs and a reading of this "local" information that is digitally broadcast in the designated cities, the DJ deceptively appears to be stationed locally in each of the stations he or she is broadcast in (Kiesewetter).
 
Feb 4, 2004
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#4
Using DJ's for wide geographic areas extinguishes the influence of listeners and destroys the location-specific character of radio. Clear Channel executives believe that this delocalized use of disc jockeys allows the company to offer the most talented DJ's on stations located in "smaller towns" that normally would not have access to such services (Clear Channel). Yet, this statement assumes that major cities like Rochester, Louisville, Toledo, and Cincinnati (cities where DJ West simultaneously broadcasts) fit into the category of the "smaller towns" that cannot find talented DJ's among their populaces (Boehlert, "Radio's Big" 5). Clear Channel's practice of consolidating DJ's is not a way to compensate for a lack of DJ talent in metropolitan areas, but is simply a method of delocalizing radio to try to gain maximum profit. Observing Clear Channel's moves towards delocalization, critics believe that the company destroys radio's "ability to be local, immediate, and mobile in a way that other media cannot" (Patoski sc.2). With distant, prerecorded disc jockeys, radio listeners are not able to request the songs or information they desire from Clear Channel stations, making these stations completely inaccessible to local, public interests. Some record companies worry that Clear Channel's delocalization will eliminate the unique characteristics of radio that are particular to specific cities like New York, San Francisco, and New Orleans (Taylor sc.2).

Clear Channel's eradication of localized radio contradicts Michaels' argument that Clear Channel is "intensely focused on serving the public," showing instead a concentration on maximizing profits (Taylor sc.4). The Clear Channel Radio web page clearly focuses on advertisers, rather than the public, by describing Clear Channel in the first sentence as a company that "provides advertisers with a coast-to-coast platform" (Clear Channel).


While describing Clear Channel's goals after the merger with AMFM, Mays stated, "Our customers want to sell products; we sell their products," demonstrating that advertisers have replaced listeners as the company's "customers" (Auletta 29). This emphasis on advertisers shows that Clear Channel conforms to the American priorities of profit and progress, which is why the company has decided that the interests of radio listeners are secondary
 
Feb 4, 2004
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#5
While Clear Channel's conglomeration hurts its ability to serve local interests, the company's homogenization of playlists for multiple stations also severely limits the variety of songs or programs that stations broadcast. Mays claims that Clear Channel strives for variety in the music each station plays, saying, "There is no question in my mind that the consolidation has increased the diversity of programming" (Patoski sc.5). Yet, listeners, musical artists, and record companies have all stated that the company has just the opposite effect. They blame Clear Channel for the current "cookie-cutter state of radio" (Patoski sc.2). Critics say that since the company is playing the same songs to a large audience through several stations, Clear Channel is unwilling to experiment with new songs and musical types (Kot, "What's Wrong" sc.1). While over 30,000 new songs are released each year, only a little over a dozen new songs are added each week on many rock and Top 40 stations owned by Clear Channel and other conglomerates.

Alexander Inzer, the director of an independent radio station, describes Clear Channel's policy for establishing playlists as " 'play the fewest songs that appeal to the most people' " (Kot, "What's Wrong" sc.2). Michaels essentially rephrases this policy in his own thoughts about the selection of songs to be played on the radio:

An amazing amount of money is being spent promoting bad records that are never going to be hits. If the labels could focus their promotion dollars on stuff that has a shot, it seems to me they can spend less money and we'd have less noise. (Saxe sc.1)

By only playing songs guaranteed to be big hits and rejecting everything else as "noise," Clear Channel reduces the variety of songs produced to a narrow, uniform playlist that is aired nationally. Musical artists such as the Indigo Girls have complained recently about Clear Channel and other conglomerates' homogenization of playlists, saying that convincing radio stations to play their songs was much easier when each station was independently owned and not controlled by a larger company that broadcasts the same playlist through many stations (Kot, "What's Wrong" sc.3). Meredith Brooks, another musical artist, adds that radio conglomeration and homogenization has "taken the creativity right out of the business" (Taylor sc.7).
 
Feb 4, 2004
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#6
Variety in radio programs, in addition to variety in songs, is also suffering under Clear Channel's corporate ownership. In San Francisco, a radio program named "Street Soldiers" used to regularly offer counsel to young callers who had been victimized by violence. The show, which aired on the station KMEL, won acclaim in local and national media for its contribution to its community. However, when KMEL's parent company merged with AMFM (which soon merged with Clear Channel), "Street Soldiers" was taken off the air since the company saw the show as less profitable than a playlist of popular music (Auletta 29). The same phenomenon has been occurring nationwide as Clear Channel acquires radio stations and replaces their unique programs with nationally syndicated shows like Dr. Laura and Rush Limbaugh that the company views as more popular and profitable (Patoski sc.3).

While Clear Channel's delocalization of radio restricts the variety of playlists, the company's perpetuation of the independent promotion system further limits the ability of small-label artists to be played on the radio. The complicated process of using independent promoters to govern radio stations' playlists essentially obligates record companies to pay significant amounts of money to have their songs aired. Independent promoters of records, called "indies," work as agents between record companies and radio stations. Indies align themselves with radio stations by promising the station a certain amount of "promotional support" each year, which usually means that the indy will pay the station at least $100,000 annually (Boehlert, "Pay for Play" 4). Once indies have established exclusive rights over a station, they then negotiate with the station managers to decide the price that they will charge record companies to add a song to the station's playlist. The indies are often able to dictate how much will be charged for each song to be added since the record station does not want to upset the indies and lose the promotional money they receive each year (Boehlert, "Pay for Play" 4).

After this price is agreed, the indies bill the record companies for each of their songs that is added to the station's playlist. Indies charge $1,000 on average for each song that a record label wants to add, though costs can be as high as $8,000 (Boehlert, "Pay for Play" 1). In addition to paying for an "add" to a station's playlist, record companies must pay the indies larger amounts to have their songs played more frequently. Indies gain this money as straight profit, though they use some of the money to pay the record station the promised amount (Boehlert, "Pay for Play" 4). The lucrative business "earns" even the poorest indies over $1.5 million annually (Boehlert, "Fighting Pay" 3). This independent promotion system replaces the old payola system, where rich record companies directly paid radio stations to have their songs played. Yet, the indies actually enable a new form of payola by acting as "money launderers" that transfer money from radio companies to radio stations "in a different form" that makes the "pay-for-play" system legal (Boehlert, "Pay for Play"
 
Feb 4, 2004
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#7
As a result, record companies must pay indies exorbitant fees if they want their music to be played on the radio. Labels may need to pay indies at various stations $100,000-$250,000 per week in order to ensure that one song is continually played on the radio (Boehlert, "Pay for Play" 4). Yet, if they want their music to be heard and bought, radio companies have few alternatives to the vast majority of radio stations that use indies, since radio airtime is needed to promote records so that record sales will be successful (Boehlert, "Pay for Play" 1). Knowing that record labels depend heavily on radio airtime to be successful, indies can and do overcharge the labels to have their songs played (Boehlert, "Pay for Play" 2).

Meanwhile, Clear Channel continues to profit off the independent promotion system that is used in nearly all of the company's radio stations. Clear Channel's Randy Michaels says that if smaller record companies think that the independent promotion system is unfair, they should stop using the system to get their songs on the radio (Kot, "What's Wrong" sc.4). However, this statement ignores the fact that with limited financial resources and few alternative methods of gaining popularity, most record companies are "powerless" to change the system (Boehlert, "Pay for Play" 2). Michaels' statement is also blind to the fact that his own company earns millions of dollars each year from the independent promotion system since most Clear Channel radio stations take payments from indies (Kot, "What's Wrong" sc.4). Thus, Clear Channel holds much of the blame for the perpetuation of the independent promotion system and the hardships it places on record companies to make their music heard.

The indies' excessive charges to record companies especially reduce the quality of radio since small labels cannot afford to air their talented artists' songs on stations owned by Clear Channel or other companies that use indies. Only larger, richer record companies can afford to pay the indies enough to ensure that their songs are heard, meaning that these wealthier labels are dominating the music played on the radio (Boehlert, "Fighting Pay" 5). Copeland, an executive at independent label Ark 21, bitterly adds that "to make something happen at radio, you've got to have a lot of money behind it, and a lot of great music is getting lost" (Kot, "What's Wrong" sc.4). Due to the elimination of small labels from the public airwaves, the U.S. House of Representatives is currently investigating the legality of the independent promotion system (Boehlert, "Fighting Pay" 2).
 
Feb 4, 2004
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#8
In the future, Clear Channel may make changes in the independent promotion system that will be even more destructive to small recording companies. Clear Channel is currently considering exclusively using indies from TriState Promoting and Marketing (a firm for indies) for all Clear Channel radio stations. This alliance could drastically increase even more the cost of airtime for record companies. Clear Channel's TriState indies could charge outrageous prices, knowing that record companies would have to pay, since refusing would mean that the songs would not be played on any of Clear Channel's 1,200 stations (Boehlert, "Pay for Play" 2). At several Clear Channel stations, Michaels has also openly considered a more direct "pay-for-play" system that would eliminate advertisements. Money usually gained from ads would be replaced by requiring record companies to directly pay the radio stations about $2400 for every three-minute song played on the station. While this change would reap greater profits for Clear Channel, the greater financial burden for record companies would force smaller record labels to pull all of their songs off the radio since playing them would be unaffordable (Saxe sc.4). Clear Channel's perpetuation and expansion of the pay-per-play system has embittered many people in the music industry like Bernie Cyrus, director of the Louisiana Music Commission, who believes that Clear Channel's actions indicate that "the radio market is now clearly driven by greed and corruption rather than creativity and talent" (Boehlert, "Fighting Pay" 2).

Clear Channel has also greedily perverted the quality of the music industry by exercising monopolistic control over concert promotions and radio stations, which restricts the ability of smaller concert promoters, musical artists, and listeners to produce and enjoy the music they desire. After merging with SFX Entertainment in February 2000, Clear Channel instantly became the world's largest concert promoting company. In 2001, Clear Channel produced seven of the ten most successful concert tours in the U.S. That same year, Clear Channel was involved in the production of 4,753 of the 8,160 concerts performed, earning the company 66.4% of all the concert profits generated in 2001 (Holland and Waddell sc.4). Critics have complained that Clear Channel's overwhelming domination of both the radio industry and the concert promotion industry has led to unfair monopolistic practices.

Concert promoters not under the Clear Channel name complain that they are losing business because Clear Channel radio stations refuse to play artists' concert advertisements if the concerts are not promoted by Clear Channel. Musical artists depend on radio advertisements to announce their concerts so that their shows draw large audiences and gain a profit (Boehlert, "Radio's Big" 2). Yet, independent concert promoters say that the advertisements for artists they are promoting do not get played on Clear Channel radio stations nearly as often as advertisements for Clear Channel-sponsored concerts do (Holland and Waddell sc.4). Sometimes Clear Channel stations also charge high prices for independent promoters to advertise, while offering free airtime for advertisements for concerts promoted by Clear Channel. Former SFX CEO Mike Ferrel is openly excited that the SFX/Clear Channel merger allows Clear Channel stations to freely promote Clear Channel concerts as often as desired (Waddell, "SFX/Clear Channel" sc.5). Due to the advantage Clear Channel gives to its own concerts in radio advertisements, independent concert promoters are rapidly losing business to artists who are switching to Clear Channel for concert promotions so that their concert advertisements will be played on Clear Channel's many stations (Forest sc.2).

Clear Channel is also using its power to gain more artists for its concert promotion business by threatening not to play artists' songs if their concerts are not promoted by Clear Channel. Independent concert promoters across the nation say that the musical artists they promote are changing to Clear Channel for concert promotion for fear that their songs will not be played on Clear Channel stations if their concerts are not booked with the large conglomerate (Forest sc.5). On August 6, 2001, Nobody in Particular Presents (NPP), a small concert promoter in Denver, sued Clear Channel for alleged monopolistic practices (Forest sc.2). Though NPP used to book 600-800 concerts annually, their business has quickly declined since Clear Channel entered Denver, bought 628 billboards, an enormous concert hall, and all of the area's rock radio stations (Forest sc.5). NPP representatives blame their loss on Clear Channel's intimidation of artists, which purportedly involves threatening to stop airing songs by artists whose concerts in Denver are promoted through NPP (Patoski sc.3).
 
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#9
Clear Channel representatives consistently deny that these allegations have any legitimacy. Steve Smith, a Clear Channel executive, explains that the company gains more money from their radio business than from the concert promotion business, which means that jeopardizing the radio market to gain more concert promotions does not make sense financially (Forest sc.3). Michaels also denies that Clear Channel is an unfair monopoly, saying that the company's power has been gained fairly and legally and that independent promoters who are complaining are simply afraid and jealous of Clear Channel's growth (Saxe sc.7).

Yet, recent occurrences in Denver provide a stark contrast to these defenses. One major rock band, which requests anonymity, was offered a more profitable concert promotion deal from NPP than from Clear Channel. However, Clear Channel representatives told the band's record label that Clear Channel radio stations would not play the group's new hit song if the band did not book its Denver concerts with Clear Channel. Clear Channel radio stations also threatened Everlast, another rock group, that Clear Channel stations would not play advertisements for Everlast concerts if the group booked the concerts with another promoter (Boehlert, "Suit: Clear" 2). NPP's confrontation with Clear Channel represents just one of many similar complaints from independent promoters nationwide that the companies' monopolistic practices are unjustly putting them out of business (Waddell, "Touring Industry" sc.7). NPP's suit against Clear Channel has raised serious concerns about Clear Channel's monopolistic practices among Department of Justice representatives (Holland and Waddell sc.5) and Congress members like Representative Howard Berman from California, who has asked for an investigation of Clear Channel from the Federal Communications Commission (Holland and Waddell sc.1).

Musical artists are also protesting Clear Channel's abusive power, which damages their ability to make their music heard in the general public. Two popular rock groups say that they had arguments with Clear Channel representatives about whether or not the company would promote their concerts. As a result, both groups' songs were pulled from playlists on Clear Channel stations across several states (Boehlert, "Radio's Big" 3). Musical groups have also expressed concerns that the merger between SFX and Clear Channel gives them few alternatives to Clear Channel for concert promotion since the company overwhelmingly dominates the business. With this much control, performers fear that Clear Channel can overcharge them for concerts and tours, since the company knows that the artists have few other options (Kot, "Megamerger" sc.2).
 
Feb 4, 2004
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#10
Clear Channel's excessive control over the concert industry also may be to blame for increased ticket prices that make more concerts inaccessible to fans. Ticket sales for concerts have recently been dropping drastically, probably due to a significant rise in prices. The total number of concert tickets sold from January to June 2001 decreased by 16% from the amount sold in the same period the previous year (Boehlert, "What's Wrong" 2). Some critics blame this decline on an increase in ticket prices that has occurred as concert promotion companies have consolidated and grown more powerful. As SFX grew larger in 1999, the average ticket price for the most successful concerts reached $43.63, the highest amount in history (Kot, "Megamerger sc.1). In order to get more groups to book concerts with SFX, the company increased ticket prices to give their performers greater profits at the expense of the fans (Kot, "Megamerger" sc.2). Clear Channel is currently employing similar practices to maximize profits by adding various service charges onto ticket costs, which greatly increases the overall costs. At one concert in Clear Channel's Verizon Amphitheater in Irvine, California, service charges ($15.45 per ticket) outweighed the actual cost of each ticket ($14.25) (Boehlert, "What's Wrong" 3). Such absurd ticket prices have made concert attendance much less affordable, preventing many music fans in the U.S. from continuing to enjoy the live shows of their favorite musical artists.

Thus, Clear Channel's corporate greed has polluted the music industry with high ticket prices, low quality radio programming, and anti-competitive practices that restrict Americans' ability to produce and enjoy the music they want to hear. Clear Channel's devastating control of radio is indicative of the blind quest for profit that many U.S. companies demonstrate in various industries, unjustly depriving the American public of the ability to pick and enjoy the best elements of their culture. Michaels highlights some of these other massive, profit-driven businesses by addressing the replacement of locally-owned businesses like "mom and pop stores" and unique restaurants with chains like Wal-Mart and Cracker Barrel. He compares the loss of these small businesses to the way that Clear Channel is replacing smaller radio stations. Michaels explains that we may nostalgically miss the small businesses, but we appreciate the large ones for the vast resources and high quality that they offer (Kot, "What's Wrong" sc.5). Michaels apparently has not turned on the radio recently to hear the "quality" of today's programming that has prompted thousands of listeners to complain, protest, and finally turn off their radios. Listeners, concert fans, musical artists, and many people within the music industry seem to desire a return to small, local ownership for more than nostalgic reasons.

As these individuals and groups grow more dissatisfied, Clear Channel also grows in size, wealth, and power. Ron Jacobs, an independent DJ in Hawaii, suggests that if we want to reverse the conglomeration trend of radio, people need to unite in an organized protest effort against Clear Channel. People must begin protesting the company's greed-driven domination by writing letters to newspapers and politicians, giving public speeches, and perhaps even staging a nonviolent protest outside of a Clear Channel stockholder's meeting, as Jacobs proposes (Saxe sc.6). Without such public outcry, little hope is in sight for those who would like to see the breakup of Clear Channel and the return of the high quality music that our culture produces.
 
Feb 4, 2004
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#11
THE ROLLING STONES ARTICLE


Scan the radio dial in Detroit, and you'll likely land on a station that's owned by Clear Channel Communications. Seven of the city's most popular stations belong to the company, including WJLB 97.9 (an R&B station that once pushed Parliament-Funkadelic to national prominence), a Top Forty station, a classic-rock station and two adult-contemporary options. Clear Channel also owns two AM talk stations in Detroit, which broadcast Pistons games and conservative talk-show host Glenn Beck, who MC'd the "Rallies for America" that drummed up support for attacking Iraq.

Clear Channel also has a near lock on Detroit's concert business. The company owns two massive amphitheaters, a pair of 1,000- to 1,400-person clubs and a 2,800-seat theater, and it books the Palace of Auburn Hills, a 15,000-seat arena. During the week of July 26th, the company controlled Motor City concerts by the Dead, Hilary Duff, Midtown, Hanson, Huey Lewis and the News, Prince and D12.

It's not just Detroit, either. Clear Channel controls roughly 1,200 radio stations and about seventy percent of all live events that are promoted in the United States. The company also is reportedly considering the launch or purchase of a record label.

In less than a decade, Clear Channel has become a music company on steroids — and a company that's increasingly under fire. Critics contend that Clear Channel uses its size to crush the competition while force-feeding audiences the same playlists no matter where they live. Bands, managers and music-industry executives argue that Clear Channel has ruined the concert business. Several tours, including Lollapalooza, have been canceled this summer due to lack of interest, and though Clear Channel slashed ticket prices last month in response to slow sales, many blame the company for driving audiences away with years of rising prices and fees. But some contend the blame must be shared by artists, who have the final word on prices.

Critics say the company also has a political agenda, given Clear Channel executives' close ties to George W. Bush and the company's willingness to drop Howard Stern at a time when many media companies are fighting for free speech. "If you don't realize that they've sent a chill throughout the creative community, you're living on another planet," says Howie Klein, the former head of Reprise Records. "Clear Channel pretty much can dictate what they want."

Clear Channel communications resides in a green-glassed sprawling office complex in San Antonio. Company founder Lowry Mays is an ex-Air Force officer and a Texas Republican whom George W. Bush appointed to a state technology council when he was governor. Mays is often described as disciplined and insular.

Mays launched his career in radio by accident, when a friend repaid a debt in 1972 by giving him San Antonio's KEEZ-FM. Mays treated the station like any other business — he concerned himself with growth, not content. It worked. With increasing success at KEEZ, Mays bought another station, WOAI-AM, a profitable all-talk station in San Antonio with a powerful "clear channel" signal. And each time the Federal Communications Commission loosened ownership rules — in 1992 and 1996 — Mays went shopping. The most significant growth came after President Bill Clinton signed the Telecommunications Act of 1996. The legislation virtually eliminated the national limit on station ownership. And no company was better prepared for a shopping spree than Clear Channel.

The usually cautious Mays was joined by his two hotshot sons: Mark, who began work at the company in 1989 after graduating from Columbia Business School, and Randall — a Harvard MBA — who became a Clear Channel executive in 1992. More important, Lowry Mays had close connections to Wall Street and no trouble raising money for purchases; Clear Channel's stock became the fifth-best performer of the 1990s. With each uptick in price, "they became more aggressive," says a competitor from the time and a close friend of the Mayses.
 
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#12
Forty-nine stations joined Clear Channel in 1996, seventy more in 1997. It bought Jacor — owner of the Rush Limbaugh Show — in 1999. Then in 2000, the company paid $24 billion for AMFM's radio holdings; $4.4 billion for SFX, the nation's largest live-entertainment company; and $776 million for Ackerley Group, a major billboard company.

The end result? A behemoth that, at the end of 2003, controlled 1,182 radio stations, 788,000 billboards and 103 venues in the U.S., not to mention an event-promotion business that sold more tickets in the first half of 2003 than its closest forty-nine competitors combined. There is no bigger company in the music business, and none with such close ties to conservative politics. Along with Mays, Tom Hicks, the former head of AMFM and a Clear Channel board member, was an investor in the 1989 Texas Rangers deal that made George W. Bush a very rich man.

No other company in recent history has had so much power over what the world hears — and so few top executives with a background in music. Several of the Mayses' friends and business associates say that popular culture has never come up in conversation; radio-division CEO John Hogan is a career ad salesman who says that he prefers talk to rock, rap or country stations. Brian Becker, the live-entertainment CEO, cut his teeth on motor sports and theater. One former Clear Channel executive told Rolling Stone that at annual corporate meetings, sales awards are given out for more than an hour — and programming prizes take up only ten minutes. "You're controlling all this media, and what you're saying is, 'We don't care about what's on the air,'" he says. "All they care about is moving product."

As Dixie Chicks manager Simon Renshaw puts it, "They don't care about music. They care about ad rates."

Lowry Mays, who refused to be interviewed for this article, told Fortune in 2003, "We're not in the business of providing news and information. We're not in the business of providing well-researched music. We're simply in the business of selling our customers products."

Traditionally, top-forty stations pick songs through a mix of DJ choice and research. Clear Channel is a master of the latter. "We're probably spending north of $70 million a year to talk with our listeners," says Hogan, "to find out what they like, what they want, what they don't want."

Clear Channel places roughly 26 million calls a year to listeners who are chosen at random and asked to offer opinions on several songs at a time. Local stations generate their own weekly reports on the popularity of songs being played. When Tom Poleman, program director for New York's powerful Z100, came to the station in 1996, it wasn't possible to see why 1,200 stations were spinning certain songs; now, he says, he regularly scrutinizes call-out research from other Clear Channel Top Forty stations before choosing which songs to add. "It all tends to consolidate the opinions of what's working and what's not," says one major-label CEO. Marty Diamond, head of Little Big Man, a booking agency that represents Coldplay and Avril Lavigne, says that he can always tell when there's been a Clear Channel conference call because "my phone starts ringing and everyone asks about the same band."

Playlists bear this out. Clear Channel's Top Forty stations share more of the same songs today than they did ten years ago, and they play the biggest hits far more often. Z100's top five songs in February 1994 received fifty to sixty spins per week; ten years later, its "powers" run seventy-five to ninety times a week.

Some artists and managers also complain that Clear Channel stations use their control of the airwaves to pressure acts into playing radio-promo concerts. A manager of a Top Forty group says that his client's songs were pulled from a large-market station after the band refused to play a free promotional concert in 2000. Even without a direct threat, the possibility of angering Clear Channel keeps artists in check. Steve Miller, who has been touring for decades on the strength of radio hits such as "Jet Airliner," says that in 2000, he wanted to play amphitheaters with Bonnie Raitt. Clear Channel balked at Raitt's price tag. "Previously, we would have gone to another promoter and booked this great package, but since they now owned all the promotion companies, we couldn't do that," Miller says. So, fearing how his decision would affect radio play, Miller scrambled to find a cheaper opener: Gov't Mule. "Had we done the show we wanted, there is no doubt we would have sold 3,000 to 5,000 more tickets per venue," Miller says. "They completely stopped my ability to compete in the marketplace. I went from personally dealing with 140 stations and seventeen different concert promoters in over sixty cities to having only one company to negotiate with for more than ninety percent of my concerts."

Until the 1990s, the concert business was focused primarily on ticket sales. Promoters would sometimes sell the space on the back of tickets to a local liquor store or a car dealership, but because most venues were locally owned, the profit potential was limited.

This started to change when Bob Sillerman, a New York dealmaker who spent the Eighties and early Nineties in the radio business, created a national concert network called SFX Entertainment. Tying together sixteen amphitheaters and 120 venues by the end of 1999, SFX had the ability to offer national brands a new way to advertise. Only a few companies — Anheuser-Busch, for one — signed on initially, but after Clear Channel bought SFX in 2000, the ad saturation expanded. Analysts say that this was partly because national advertisers saw the value of marketing to a captive, mostly young audience; it's also because "Clear Channel established a much more organized approach," says Gary Bongiovanni, editor in chief of Pollstar, a concert-industry trade magazine. Today, Bongiovanni says, Clear Channel can sell a full-blown media campaign, complete with billboards, radio and TV ads, and announcements of sponsorship at concerts.

So in 2001, Powerade became the "official fuel" of Clear Channel's motorcycle races, giving its brand access to radio and print ads for the events, plus large live crowds. This spring, Clear Channel promoted the Verizon First Ladies Tour 2004 with Beyonce, Missy Elliott and Alicia Keys, who got second billing to Verizon. And when summer music fans go to, say, the Nissan Pavilion at Stone Ridge, near Washington, D.C., they'll be bombarded with ad-drenched video screens and billboards that ring the lawn. Even staffers' T-shirts and secondary stages are used to display ads for food and booze, such as Jose Cuervo margaritas.

The experience of going to a concert has gotten more expensive, too. In 1999, the average concert ticket cost $36.56; four years later, the price skyrocketed to $50.35, an increase of thirty-eight percent. And that's only part of the total. Clear Channel's extra fees have outpaced even ticket prices. When Pearl Jam's Jeff Ament and Stone Gossard testified in Congress against Ticketmaster in 1994, the battle centered on a $3.50 service charge. Today, Clear Channel regularly charges more than twice that. For the May 27th Cypress Hill show at Detroit's 1,400-seat Clutch Cargo club, tickets cost $30, but there's also a $7.20 "convenience charge" and a 75-cent facility fee.

The pinch at amphitheaters hurts even more. A top seat for Linkin Park's Projekt Revolution Tour stop on July 28th at the Mansfield, Massachusetts, Tweeter Center for the Performing Arts cost $53 — plus an $8.90 convenience charge and a $4.10 processing fee. In addition, you had the option to pay $30 for a premium parking pass.
 
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Artists don't get off much easier. Many band managers complain that the company pads its audience with giveaways, season tickets and luxury boxes that guarantee a large crowd of eyeballs and concession buyers. Because most of these extra tickets are giveaways, the artists lose out on their cut of sales. "Corporations have been sold all the good seats," says Steve Miller, recalling a 1999 Nashville concert with an attendance of 18,166 and only 2,311 in ticket sales. "[They] are removed from the ticket manifests and not shared with me."

Clear Channel's Becker says that increasing fees are a reflection of growing artist demands and an attempt to account for the company's investment in amphitheaters. He refused to discuss Miller's specific case but says the company often has no choice but to increase attendance with giveaways. "Seventy-five percent of artists do not sell enough tickets to cover the guarantee that we have paid them," he says.

Artists deserve part of the blame: Sting, the Eagles and the Rolling Stones have all spearheaded moves to charge fans more than $100 per ticket. And for the most established artists, Clear Channel's growth has led to longer concert runs and a larger share of the profits.

But bands did not demand amphitheater expansion, nor do they set parking fees or beer prices. The fact is, Clear Channel's go-go Nineties growth is now pressuring the company to find new revenue streams. Financial reports from recent years show that concerts bring in about thirty percent of the company's revenues but only about six percent of Clear Channel's profits. At this rate, excluding the value of its property, it will take more than thirty-three years for the company to earn back the $4.4 billion it paid for SFX. Extra revenue streams, such as parking and advertising, are an attempt to reset the balance in Clear Channel's favor because, says Bongiovanni, "they're never going to recoup their investment with ticket sales alone."

The music industry may not be helping, either. Artists, even those who work with Clear Channel, often harbor resentments against the company. Tom Morello and Steve Earle toured last fall to protest media consolidation and Clear Channel's impact on radio and concerts. Dave Matthews, who has said that he plays non-Clear Channel venues whenever possible, performed a show at D.C.'s Nissan Pavilion this summer and one at its competitor, Merriweather Post Pavilion.

Clear Channel admits to being surprised by such vitriol. "I didn't realize how arrogant and coldhearted and difficult we were perceived to be," Becker says. But don't expect the company to stand for it. Clear Channel's finances dictate a need for earnings, no matter where they come from. And unlike Bill Graham, David Geffen, Clive Davis and other music-industry moguls, the Mays family lacks a natural or historical devotion to music.

Becker, for one, is most excited when talking about Clear Channel's Phantom of the Opera tour or a recent Las Vegas 100th anniversary event that brought in several new advertisers. When we met, he was also hot on two new ideas: One was a "revival" tour of old groups that have broken up. The other? A glitzy event in which bands play in the background while models strut up and down a catwalk to display underwear.

This article is from Rolling Stone. If you found it informative and valuable, we strongly encourage you to visit their website and register an account to view all their articles on the web. Support quality journalism.
 
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WHAT THEY DID TO JADA



Jadakiss, a rapper of some note, has a tune which apparently is being censored, because, he asks why, in his assertion, why did Bush knock down the towers (his words not mine).

"Why did bush knock down the towers" [from the song "WHY"]


The issue of his lyrics and the fact other rappers are asking the same kinds of questions is discussed at:
http://www.counterbias.com/news007.html
"Jadakiss, with his jarring, matter-of-fact pronouncement that Bush played a part in "knock[ing] down the towers", is not the first rap artist to question the Bush administration's—and mainstream media's—story.

Rappers like Paris, The Coup, and Dead Prez, also offer provocative, conspiratorial views in their song lyrics.

Jadakiss's popularity in the mainstream hip-hop community makes his comment even more poignant."

Apparently, our friend Clear Channel has gotten involved in this by censoring out the word "bush" with a beep.
http://www.abstractdynamics.org/archives/2004/06/26/why.html
At this site, they discuss the censorship issue....such as this quote...
"Course Clear Channel holds half the hip hop stations cross the nation. And if you tune in there is a line "Why did *bleep* knock down the towers?"

And behind that bleep? "Why did Bush knock down the towers?"

Why is "Bush" a word you can't say on the radio?"

Here are the UNCENSORED lyrics to "Why" by Jadakiss
http://www.azlyrics.com/lyrics/jadakiss/why.html

The question becomes, after you read the lyrics, WHY (appropriate word here) did the folks at Clear Channel, decide the only thing that needed censorship in that tune, was the reference to the word "bush". Given the actual lyrics, the obliteration of the word "bush" with a beep, seems to show a definite political bias.

If they claim they are afraid of a suit for defamation...number one, the lyrics don't say WHAT bush, nor what towers.

Odd.
 
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I just briefly skimmed over a couple parts and have no interest reading any further. While it does do a good job of painting a bad picture, it only paints half of the whole picture. Are these companies making money? Hell yes! But that doesn't make their point-of-view any less valid.

People easily forget that the radio broadcasting industry is not a public service provided by the government and paid for by your tax dollars, nor is it a non-profit organization. The industry is doing exactly what it's designed to do and that's to exist as a profit-generating business.

I hear people all the time trying to tell companies what they should and shouldn't be doing. My suggestion to them is that when it becomes their dollars financing these companies, then they have a say.
 
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I saw an interview with Jadakiss where he said that he censored the line about Bush voluntarily and did it to get a reaction from people because he said he knows "damn well that bush had nothing to do with september 11th"
 
Dec 1, 2003
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Lol My eyes are bleeding and deflated in their soccetz...Got Damn!!

Well everyone knows advertisements pay for the radio we hear and the fcc is all over everything they do. So expect more things in radios future to ruffle your feathers cuzz it damn sure aint a perfect process. But it still serves the purpose it is intending in their choice of programming to their target audience.
 
Nov 24, 2003
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got damn yall act like you never read something longer than 2 sentences before lol.

both D Sane and Sick are exactly right. Clear channel is a monoply, they control a huge portion of the media, down to most of the billboards in your city....but they are operating as a VERY successful business, good for THEM, bad for US.