STATEMENT OF SENATOR JOHN McCAIN
CHAIRMAN, SENATE COMMITTEE ON
COMMERCE, SCIENCE, AND TRANSPORTATION
FULL COMMITTEE HEARING ON
MEDIA OWNERSHIP: RADIO
JANUARY 30, 2003
Today, the Committee begins a series of hearings examining media
ownership.
Later this year, the Federal Communications Commission will
act on a proceeding that addresses a number of different media
ownership issues. These decisions will have a significant impact
on the American media landscape.
I have always been a firm believer in free market principles.
I continue to believe that anachronistic government regulations
that do not reflect today's multimedia marketplace should be
thoroughly reviewed by the FCC and repealed or modified wherever
appropriate. Given the tremendous impact media can have in the
everyday lives and thinking of Americans, however, we must approach
these issues thoughtfully and it is important that the Committee
hold hearings to better understand them.
Today we will examine media ownership in the radio industry.
After enactment of the Telecommunications Act of 1996, the radio
industry saw unprecedented consolidation. Several station owners
began to purchase stations across the United States and the largest
owner, Clear Channel Communications, has grown from 60 stations
in 1996 to over 1,200 stations today. Many critics have voiced
their concerns about radio consolidation and have alleged that
some companies have been engaging in anticompetitive behavior.
For instance, some have claimed that Clear Channel's vertical
integration with its entertainment division has hurt independent
concert promoters and artists. Some artists suggest that their
refusal to use Clear Channel's promotion services has led to
their music not being played on Clear Channel stations. I am
concerned about these allegations and I look forward to hearing
from the witnesses on these specific issues.
Finally, I believe that, wherever possible, we should look
to market-based approaches to ensure there is diversity in media
ownership. Later today, I will re-introduce the "The Telecommunications
Ownership Diversification Act." The bill provides a tax
deferral and other market-based incentives designed to ensure
that our tax laws do not disadvantage small businesses that may
be owned by women and minorities who can help to further viewpoint
diversity in media. I hope that other members of the Committee
will join me on this important legislation.
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