Clear Channel renews bid to ease ownership limits

[otohara]

:nopity: :nopity: :nopity: :nopity:

WASHINGTON, Oct 3 (Reuters) - Clear Channel Communications Inc. , the biggest U.S. radio station operator, on Monday renewed its call for Congress to ease restrictions on the number of outlets it can own in a market so it can better compete and boost profits.

Clear Channel Chief Executive Mark Mays, citing competition from satellite-delivered subscription radio, proposed that broadcast radio operators be able to own 10 stations instead of eight in markets where there are at least 60 stations and up to 12 stations in markets where at least 75 radio outlets operate.

"Free radio is struggling. The cost of competing with new technologies and increased listener choice is staggering and profits are down," Mays said at a speech to the Progress and Freedom Foundation.

"Specifically free radio needs Congress to relax outdated restrictions on our operations," he said. "Free radio is not asking for much more room."


Clear Channel, which owns about 1,200 radio stations, saw earnings decline 13 percent in the second quarter because of weak advertising revenues. The company plans to spin off its live entertainment promotion business and sell a stake to the public in its billboard advertising business.

more here:

http://cnn.netscape.cnn.com/news/story.jsp?id=2005100321110002771388&dt=20051003211100&w=RTR&coview=

[LTR]

1. That article made me break out in a rash

See, I'm allergic to bullshit.

How about this, Mr. Mays. How about making your radio product better?

Gee, what a concept.

How about brainstorming to take advantage of the weaknesses of radio's so-called 'competitors'. Such as local flavor, personality, unpredictability, and so on. Unfortunately, many CC stations are bland, have unoriginal programming, are increasingly automated, and seem to be the same from town to town. Clear Channel is a reason people are running away from radio and to other sources for audio entertainment and information.

Terrestrial radio has been around for around 85 years or so. Many station owners have made a killing in this business. And competition has been good for radio all this time. There's also still room for CC to make money even with the Infinitys, Entercoms, Bonnevilles, Citadels, Cumuluses and Disneys of the world.

Incidentally, I was just going to post this same article (though I read it in Radio and Records. Thanks for posting this. Very good article, but Mays' logic is ridiculous.

[CatholicEdHead]

2. Well if their FORMATS did not suck so bad

yet the number one rule of business execs is they are never wrong. Let's change the "evil govnmnt's" rules to bring the bottom line back up. It does not matter that people are turning off their pre-canned crap they put on and repeat ad nasuem.