Senators: Big radio may not be problem
By Bill McConnell -- Broadcasting & Cable, 1/31/2003 3:00:00 AM
Responding to growing criticism of radio giant Clear Channel Communications Inc. in particular and media consolidation in general, some members of the Senate Commerce Committee suggested Thursday that the problem might not be that groups are getting too large, but rather in the melding of control of airplay and artists.
This appeared to put the target squarely on Clear Channel, which is not only the nation's largest station owner, but its largest concert promoter.
"Maybe these two issues should be treated separately," suggested Sen. Trent Lott (R-Miss.).
Lott, a longtime friend of broadcasters, has taken an active role in the Commerce Committee since exiting as majority leader. "It sounds like the problem is not the level of [radio-station] competition," he said, "but the other issue of how concerts are handled."
Sen. Kay Bailey Hutchison (R-Texas) suggested that Congress investigate allegations of pay-for-play, which requires music labels to compensate stations for airing their artists. "Should we be looking at the issue of payola separately from ownership?" she asked.
Clear Channel chairman Lowry Mays, who testified at the hearing, denied that his company accepted payola or refused airplay to artists not under contract to its concert-promotion arm.
While investigation of specific abuses could put Clear Channel on the defensive, such a move would be less likely to derail any media-ownership deregulation in the works at the Federal Communications Commission.
Senate Commerce Committee chairman John McCain (R-Ariz.) seemed to suggest as much. Although he asked a series of tough questions, he implied that no halt to media deregulation is in the offing.
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