Jackson Jambalaya

I wrote this story a few years ago for Planet Weekly. Since it is now deceased, I don't think anyone will mind if I post it. There have been some minor changes. Clearchannel sold SFX Entertainment and just approved a takeover offer. The ratings are dated but you get the idea upon reading them. This story was written in 2000 and the practices used by Clearchannel are followed throughout the industry today.

Hugh Henderson, a local attorney who travels frequently, no longer listens to music on the radio. Mr. Henderson, who likes classic rock, instead listens to his extensive CD collection or talk radio.
"Z106 and similar stations are playing the same music no matter where I travel. I hear the same songs that Madison Avenue uses to sell me hamburgers, cars, and tacos," he says. In a stinging rebuke of the radio industry, he says, "Rock used to be dangerous, now even rebellion is packaged."
Mr. Henderson is not alone in his criticism of the radio industry, which has grown since Congress substantially de-regulated ownership of radio stations in the Telecommunications Act of 1996. Prior to its passage, ownership of radio stations was limited to one station each on the FM and AM bands in each market. The new law eased these restrictions so that up to six (and even more depending on market share and FCC approval) stations in the Jackson area could have one owner with a limit of four on each band. The result has been much consolidation of ownership among local radio stations. The companies listed below now own 14 of 23 local commercial radio stations.

Clear Channel Communications: WMSI, WSTZ, WDBT, WJDX, WZRX,WQJQ
Inner City Communications: WJMI, WKXI(AM&FM), WOAD, WYJS
New South Communications:WYOY, WUSJ, WJKK

In the Jackson area, these companies have a total market share of 67% based upon Arbitron ratings. However, market share is even more lopsided in their favor when one examines the more popular and music- oriented FM radio stations. Of 16 local FM radio stations, 10 are owned by these three companies for a whopping 83% combined market share.
A good example of such consolidation is the path followed by Clear Channel Communications, which did not return phone calls seeking comment for this article. Clear Channel is the Goliath of the radio industry, owning almost 1200 radio stations nationwide (approximately 10% of U.S. radio stations) while earning 20% of industry revenue.
Clear Channel states that its mission is to "broadcast the best programming to the broadest possible audience providing the best value to its advertisers." (Clear Channel Web-site). It owns Premiere Radio Networks; the largest producer of syndicated radio programming with a stable of talent that includes Rush Limbaugh, Dr. Laura Schlessinger, and Jim Rome. Clear Channel also owns SFX Entertainment, the largest concert promoter (The upcoming 'N Sync concert in Jackson is one such promotion.), and owns 120 live entertainment venues nationwide. So confident is Clear Channel of its success that on its web-site it brags "If we have anything to say about it, newspapers will soon be useful only for training puppies."
However, Clear Channels behavior as the industry leader has sparked much controversy. In Orlando and Tampa, Clear Channel moved talk radio programs it produces such as The Rush Limbaugh Show from non-Clear Channel affiliate stations to those it owned. Local industry insiders say that such actions will become the norm, leaving non-Clear Channel affiliate stations to scramble for a decreasing amount of popular programming not produced by Clear Channel. Others fear that stations not owned by Clear Channel will become de facto Clear Channel affiliates because Clear Channel will own a majority of the programming available to them while competing with them.
One critic of this trend is Benji Kurtz, Operations Manager for WYOY (which is owned by New South Communications in Meridian) in Jackson. He said "The biggest beneficiary of the major consolidation is the shareholder. The victim (of this trend) is the listener because the quality of the programming plummets. Attention to the local listener flies out the window."
One development of these mergers has been the standardization of playlists. With companies such as Clear Channel and Infinity owning hundreds of radio stations nationwide, some functions such as programming have become more centralized. Consequently, local control of programming is being replaced in favor of a Brand Manager that is responsible for several stations or regions that have the same format such as Country or Classic Rock resulting in playlists that vary little from market to market.
The days of the DJ selecting his own playlist have gone the way of fifty-cent movies and cars with tail fins. At many of these stations, every minute that is broadcast is accounted for and scripted with little room for deviation leaving the DJ with little time for listener requests and Public Service Announcements. In many stations, CD's have been replaced by computerized databases, sharply limiting the music available to the DJ. Some stations even go so far as to hire firms that monitor broadcasts so as to ensure that the DJ follows the playlist. Even the DJ has become a casualty in this era of de-regulation. Radio stations such as Miss103, Beat95, and Z106 (all Clear Channel stations) are increasingly using DJ's that broadcast from other states (not to be confused with syndicated DJ's). Syndicated radio shows such as "Open House Party" and "The John Boy and Billy Show" are replacing local programming as well. One station manager speculated that local DJ's will eventually disappear, leaving a single DJ for one format broadcasting to several markets. Such programming leads listeners such as Brenda Bullard, a local insurance agent, to complain that on a recent drive to Texas, "There was a 'Beat' station (referring to Beat95) no matter where I was, playing the same songs."
Some also fear that individual stations may suffer as well. "Companies may focus on overall market share instead of individual stations. Consequently, the quality of that individual station may suffer." said Stan Carter, Operations Manager of WJNT.
De-regulation of radio has been deemed a failure by Dr. Robert McChesney (Robert McChesney.com), a Media Professor at the University of Illinois and author of the critically acclaimed book, Rich Media, Poor Democracy: Communication Politics in Dubious Times. He said substantial changes were made in telecommunications law in 1996 with little coverage by the media, leaving the public ill-informed on de-regulation. He said de-regulation has been great for Clear Channel, Infinity, and other major media corporations. "It gives them greater leverage with advertisers and record companies while enjoying lower costs. The advertisers like it (consolidation) because one customer offers them a variety of markets and formats. However, there has been no benefit to the consumer."
Paul Gallo, General Manager of WFMN, agreed that the airwaves are public property and agreed that they have been poorly managed. "Consolidation is one of the worst things to happen to radio if your goal is to serve the local area," said Mr. Gallo. He said that radio station are no longer required to serve the public by broadcasting PSA's. Prior to the Telecommunications Act of 1996, a radio station was required to broadcast a minimum number of PSA's in order to retain its license.
Some change may be occurring in the near future. While some people think Internet radio will change the radio industry, Dr. McChesney said there is no evidence it will work. However, some experts predict the future to be dominated by satellite radio. Satellite radio provides over a hundred channels through a quarter-sized receiver for a small monthly fee. Each channel plays only one format such as Irish or Alternative. It is projected that satellite radio will see widespread use within a few years.
While de-regulation has substantially changed the landscape of radio, it is not clear what the future of radio will be. Some expect a backlash against consolidation will occur. Mr. Gallo said "We have to return to serving the needs of the local communities, which is not being done by music radio stations." Others predict that new technology will mitigate some of the changed caused by de-regulation. Regardless of what the future holds for radio, it is quite clear that the radio we grew up listening to is in the past along with our memories.