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Congress wants to restore radio ownership cap, restore Fairness Doctrine.

Re: Congress wants ///CAPITALISM Not Socialism!!!

If Congress had used some common sense to begin with, radio wouldn't be in such bad shape today.

> That is a joke. Using government regulation to bring any
> kind of efficiency to any market. It will never happen.

> > I disagree. I believe radio stations benefit from having
> > their own news department, and not relying on local newspapers
>
> > or TV stations to gather news.
> >
>
 
Re: Congress wants ///CAPITALISM Not Socialism!!!

You have an unreal expectation. The right expectation is for government to mess up beyond anyone's expectation. They do that over and over again.

> If Congress had used some common sense to begin with, radio
> wouldn't be in such bad shape today.
> <P ID="signature">______________
[email protected]</P>
 
Re: Really? How?...Simple!

> Then after an amount of money which I am sure is over a
> million dollars is spent and many years go by, then a sale
> is permitted. This is beyond the ability of all but a few
> individuals. Large corporations must be formed to go
> through the process. They must be experts in the process of
> purchasing a radio station.

While you're right that the process is more convoluted than necessary, you're wrong in assuming that the regulatory process is the reason why it is expensive to purchase a radio station.

In fact, the regulatory procedure for purchasing a station is not significantly different today than it was fifteen years ago. Fifteen years ago, I could have purchased a class A FM station in the Sherman/Denison area for under $200,000. Today, I wouldn't be able to get into that same market for anything approaching $1 million.

Consolidation resulting from ownership deregulation has been the primary driver of pushing the costs up, not the regulatory process. Period. No matter how much you wish to blame regulation for this problem, you will still be wrong.
 
Re: Answers From A Capitalist

> A couple of questions


..where do you put everybody on the
> dial who wants to spin their favorite tunes,

The scarce resource of the airwaves will be rationed by money. Those who voluntarilly pay the price will get the ownership of the frequency and the use of it as their own property. Those who do not want to "put up" the money, will in effect "shut up."


do their own
> political commentary, or whatever?


If they pay, then they can play whatever they want or nothing at all. It will be their property.

Also, does it actually
> benefit a community if there are still financially sound
> broadcasters that can be depended upon to be there, as
> oposed to deciding to go fishing today and not broadcast
> that day.

Anyone who pays money for a working frequency would be foolish to leave it "dark" and dormant. Though it is their perogative. I own buildings, and I do not leave any of them vacant if I can help it. I have every building and apartment rented at every time.

You must remember that if you own a frequency you do not have to be the one that uses it. It is yours, and you can rent it to someone else, and be an owner but not a user of a radio frequency. Some people want to use but not own, and they can have a radio station, but not have to buy a frequency.


Also, how do you divide the already-limited amount
> of advertising revenue available (around 8%) 50 or 100
> different ways (the fact that it was divided 8 or 10 ways
> was already some of what led to '96 in the first place.)


All the allocation of resources and allocation of revenue is decided by the free market. The money/revenue will flow to the most efficient sources. It would not be that much different from today. It may be less expensive to advertise though. Maybe advertisers can use a break like that and pass the savings to the consumer. What a concept. Good entertaining radio will still make money under an unregulated and free system.

Thank you for you questions. I am a Libertarian and a Capitalist and I love talking about Capitalist ideas. Too bad our Socialist school system does not teach much about true Capitalism.

Freely yours,

Steven Green
>
<P ID="signature">______________
[email protected]</P>
 
Re: My only reply to the Ayn Rand fans...

All right.

> > Have I not kept this on the subject of radio the whole
> time?
> > I think this is an interesting discussion and it is on
> > topic. I think discussions like this belong on this
> board.
> > I don't understand why there is a rebuke from you here.
>
> You misinterpreted my post as a rebuke. You further
> misinterpreted it as being directed at you.
>
> My intent was to place a gentle warning here before the
> thread had a chance to devolve. And I thank you for your
> attention to keeping it on-topic.
>
<P ID="signature">______________
[email protected]</P>
 
Re: Really? How?...Simple!

The best answer that I can think of, is that without severe ownership limits, radio station may be closer to their true value now. When a station was 200K it was drastically discounted because of ownership restrictions. So it may be a good thing that stations cost a million dollars now as that may be closer to their true value.

I do think that if every available frequency was used, that does not interfere, then the price could go down.


> While you're right that the process is more convoluted than
> necessary, you're wrong in assuming that the regulatory
> process is the reason why it is expensive to purchase a
> radio station.
>
> In fact, the regulatory procedure for purchasing a station
> is not significantly different today than it was fifteen
> years ago. Fifteen years ago, I could have purchased a
> class A FM station in the Sherman/Denison area for under
> $200,000. Today, I wouldn't be able to get into that same
> market for anything approaching $1 million.
>
> Consolidation resulting from ownership deregulation has been
> the primary driver of pushing the costs up, not the
> regulatory process. Period. No matter how much you wish to
> blame regulation for this problem, you will still be wrong.
>
<P ID="signature">______________
[email protected]</P>
 
Re: Don't Hold Your Breath When It Comes To Bringing Back Deregulation

> (yes,
> even if you could give these stations to different
> corporations, automation/voice tracking/syndication will
> still exist).

So will format changes.
 
Re: Really? How?...Simple!

> The best answer that I can think of, is that without severe
> ownership limits, radio station may be closer to their true
> value now. When a station was 200K it was drastically
> discounted because of ownership restrictions. So it may be
> a good thing that stations cost a million dollars now as
> that may be closer to their true value.

There is no "true value" for those radio frequencies, since some sort of regulation will pretty much always exist.

Think about it...technical standards such as channel widths, power levels, methods of modulation, etc, all have to be set by someone or something, whether the government or a "voluntary" industry organization. Either way, that is regulation.

Similarly, someone will be setting interference standards -- things like desired to undesired ratios for cochannel and adjacent channel stations.

Whether ownership limits are set or not, someone will have to establish the rules that are used to settle disputes regarding who will get which channels, whether one operator is causing unacceptable interference to another, etc.

Now I'm sure that your response to this will be that these disputes will be treated as property rights issues in the courts. But even then, someone is still setting the rules by which property rights battles are decided in the courts -- and those rules don't just spontaneously come into existence based on some delusional libertarian "natural law", but are instead created by someone.

How those rules are written will have a substantial impact on who the "winners" and "losers" are -- and how much their stations are worth.

Alternatively, a decision could be made to keep the government completely out of these disputes. In essence, whoever has the biggest transmitter (up to a point) would win. And the argument here would be that the marketplace would set interference standards, because when the radio bands got so clogged with interference from multiple stations, eventually some operators would throw in the towel. Of course the result might be that a 50,000 watt FM station could see it's coverage limited by interference to about ten miles or so...but, hey, that's the free market. And truthfully, it is a more honest version of a free market than using the courts as traffic cops to protect the spectral "property" of the big corporations.

The point here is that there will be decisions made by governmental or quasi-governmental organizations, and those decisions (even the decision not to get involved) will dramatically effect station values. The choice isn't between more or less involvement by the government, but rather what the nature of the involvement will be -- and who will win and lose as a result. In this regard, good policy is probably developed by some level of experimentation, with the policies modified as needed to come closer to the desired outcome.

Policies that are based on rigid ideology tend to work very poorly in the real world. This is true whether we're talking liberatarianism, communism, or any other "ism". Most of them look great in theory -- but the truth is that they don't work so well in actual execution, because people really are fallible. And this is most definitely true when it comes to setting spectrum management policy.
 
And America needs some Common Sense, not unfettered capitalism in our industry

> You guys got it all wrong. What radio needs is LESS
> regulation in a big way. Less regulation means private
> ownership of as many frequencies as you want to own and are
> able to buy.

Dead wrong. It's bad enough as it is, but less regulation would allow those companies with the capital to do it to own what's left of the radio pie. You really want THAT?

>
> It means that every available frequency on AM and FM that
> will not interfere with someone else's should be privately
> owned. That includes FM below 92.1 too.

I'll agree with you on that point. This nonsense of everything below 92.1 belonging to Public Radio is just plain stupid. Half the NPR affiliates and college stations could go away today and wouldn't be missed.... ONE public station per market is all that's needed, if that - especially considering how many stations on that end of the spectrum are duplicating the same programming.

>
> Why don't you people see that regulation of anything, be it
> peanuts or radio frequencies will lead to inefficiency and
> eventually unmarketability? That is what is happening to
> radio now.

Don't give me that ultra right-wing crap. A free for all market attitude is every bit as bad as over-regulation. There MUST be rules or nobody plays fair. Everything in moderation, my friend.

> The worst thing for radio is to add to its burden of
> government regulation. I wish you guys would finally learn
> that.

It was deregulated too far. Here's a little history lesson. Go back to the start of radio's problem, not in 1996, but back in the early 80s when the FCC, doing Congress' bidding, in the interest of opening up radio to more minority ownership, opened up thousands of new FM allocations per market. There's a capitalistic idea for you. Around the same time, came the first round of deregulation where companies could then own more than just one AM/FM/TV in a market. What happened was that in 5 years, half of these new stations were so far in the red they couldn't operate. It was a massive downward spiral, and ALL BECAUSE THERE WASN'T ENOUGH AD REVENUE TO GO AROUND!!! So, after years of lobbying by the NAB on behalf of an industry that was in financial ruin thanks to this nit-witted idea of creating an equal opportunity-friendly radio ownership environment sanctioned by the government, the regulators decided to drop the caps and let those companies that were sound take over those stations that weren't. And look what that wrought. Lost jobs, a far inferior quality of broadcasting and a free for all mentality on the part of the large corporations, who care nothing about loyalty to those who made their stations great or the audience that they supposedly serve. And now, you'd like to see MORE deregulation? What are you, nuts?

I'm not the one to give you the right answer, but I'd suspect it lies somewhere between tightening the ownership belt a *LITTLE* and allowing some of these stations which are not serving their communities and not able to operate properly to simply go dark, leaving the revenue to a more qualified broadcaster (who should have to PROVE that he or she is actually doing something more for their COL than just playing "Hollaback Girl" 25 times a day).

I'm not suggesting anything so absurd as to require live DJs 24/7, nor do I think the FCC should force stations to do things like keep staffs when they change format - that's just the marketplace at work. But somwhere along the line, broadcasters should be held to account when it comes to giving back to their communities, which in turn might generate a bit more interest by the audience they supposedly serve... and that, if it works, might make a more profitable RADIO station which in turn might actually be able to do more for the talent it employs.

Use your head, guys... no more deregulation - ANYWHERE in this country. Big business is screwing the little guy everywhere.<P ID="signature">______________
</P>
 
Capital Ideas

For a look at unfettered capitalism, open your history books. Take a gander at the history of Standard Oil or The Vanderbilts or Andrew Carnegie during the "Laissez Faire" Era of the late 1800's and early 1900's. It was that experiment with "unfettered capitalism" that led to the creation of regulatory agencies and the Sherman Anti-Trust act.

Have we gone too far with regulation? Perhaps in some areas, like the difficulty and cost of preparing an application for a broadcast frequency. But, completely unregulated broadcasting would likely mean even further consolidation of ownership, and likely violation of International treaties regarding interference in the magenetic spectrum.

Reallocation of the magnetic spectrum is already taking place, and I suspect that there will be changes in the allocations for AM and FM stations sooner or later. Analog will go away, and digital will reign because it is more efficient and easier to control. Maybe some small section of the old bands will be retained for those with old receivers, for hobbyists, and to placate current owners of broadcast facilities. Otherwise, change is in the air, and the broadcasting business in 2020 is likely to be vastly different from the way life is today.
 
Re: And America needs some Common Sense, not unfettered capitalism in our industry

> It was deregulated too far. Here's a little history lesson.
> Go back to the start of radio's problem, not in 1996, but
> back in the early 80s when the FCC, doing Congress' bidding,
> in the interest of opening up radio to more minority
> ownership, opened up thousands of new FM allocations per
> market. There's a capitalistic idea for you. Around the
> same time, came the first round of deregulation where
> companies could then own more than just one AM/FM/TV in a
> market. What happened was that in 5 years, half of these
> new stations were so far in the red they couldn't operate.
> It was a massive downward spiral, and ALL BECAUSE THERE
> WASN'T ENOUGH AD REVENUE TO GO AROUND!!! So, after years of
> lobbying by the NAB on behalf of an industry that was in
> financial ruin thanks to this nit-witted idea of creating an
> equal opportunity-friendly radio ownership environment
> sanctioned by the government, the regulators decided to drop
> the caps and let those companies that were sound take over
> those stations that weren't. And look what that wrought.
> Lost jobs, a far inferior quality of broadcasting and a free
> for all mentality on the part of the large corporations, who
> care nothing about loyalty to those who made their stations
> great or the audience that they supposedly serve. And now,
> you'd like to see MORE deregulation? What are you, nuts?

Agreed. All of this "deregulation" is what got commercial terrestrial radio in trouble in the first place.

> I'm not the one to give you the right answer, but I'd
> suspect it lies somewhere between tightening the ownership
> belt a *LITTLE* and allowing some of these stations which
> are not serving their communities and not able to operate
> properly to simply go dark, leaving the revenue to a more
> qualified broadcaster (who should have to PROVE that he or
> she is actually doing something more for their COL than just
> playing "Hollaback Girl" 25 times a day).

Amen to that!

> I'm not suggesting anything so absurd as to require live DJs
> 24/7, nor do I think the FCC should force stations to do
> things like keep staffs when they change format - that's
> just the marketplace at work. But somewhere along the line,
> broadcasters should be held to account when it comes to
> giving back to their communities, which in turn might
> generate a bit more interest by the audience they supposedly
> serve... and that, if it works, might make a more profitable
> RADIO station which in turn might actually be able to do
> more for the talent it employs.

Excellent point.

> Use your head, guys... no more deregulation - ANYWHERE in
> this country. Big business is screwing the little guy
> everywhere.

I definitely have to agree with you with there. Where is the common sense in today's broadcasting landscape? Pretty much non-existent.
 
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