Clear Channel Proposes A Way To Get Bigger
July 16, 2010 at 4:20 AM (PT)
CLEAR CHANNEL suprised many in comments filed in the FCC’s ownership proceedings, proposing a single owner be allowed to hold up to a dozen licenses in a single large market, far more than the Telecom Act of 1996 allows.
"The terrestrial radio broadcast industry is in dire need of an economic jumpstart," wrote CLEAR CHANNEL. "Easing the local radio ownership limits, at least in the largest markets, will recapture investors’ interest in radio broadcast companies. It will also stimulate the long-dormant market for radio station transactions."
Easing the local radio ownership limits, at least in the largest markets, will recapture investorsâ€™ interest in radio broadcast companies.
"Broadcast radio remains one of the least consolidated of the country’s major industries," CLEAR CHANNEL wrote, claiming the landscape of the business has changed. "Today, satellite radio and Internet-radio based services are robust competitors to terrestrial radio stations." "None of these powerful competitors are limited in the number of outlets or program streams they can provide," the filing points out.
The company also proposes what it calls "ownership tiers." These tiers would allow an increase in the number of stations owned from 8 to 10, if the market had between 55 and 64 stations. If the market had 65 or more stations, the number one company could own would jump from 8 to 12.
[Apparently less isn't always more. What do you think about CLEAR CHANNEL's proposal? Share your opinion with the ALL ACCESS community below.]