In August, Clear Channel Communications, the largest radio corporation in the world, generated a wave of positive press when it sold 40 of its stations to minority owners, a move praised by former FCC Chairman William Kennard as “the most significant one-time increase in minority ownership in history.”
However, not all aspects of this deal were made public. Just two weeks after the announcement, Clear Channel quietly purchased back the rights to at least six of the stations’ ad revenues, essentially regaining control over the so-called minority-run operations. One of these stations, purchased by Chase Radio Partners, an African-American-owned business in San Antonio, is simply rebroadcasting one of Clear Channel’s own stations from San Jose.
Despite the company’s claims of promoting diversity, questions arise about how much control Clear Channel truly relinquished. While corporate officials argue that their actions comply with the law, the FCC, which approved the sales, has not followed up on the actual control dynamics. Notably, Clear Channel bought back advertising rights and began simulcasting one of its own stations on another station it had sold.
This move sheds light on the growing concerns over Clear Channel’s massive presence in the media industry. With ownership of 1,200 U.S. radio stations, Clear Channel dominates radio, concert promotion, and even billboards, earning billions annually. Critics like Eric Boehlert of Salon.com have started to call the company “radio’s big bully,” given its aggressive market tactics and growing dominance.
Clear Channel’s acquisition of Dallas-based AMFM’s 400 stations in a $24 billion deal included agreements to sell off stations to meet government regulations limiting the number of stations one company can own in a market. However, its recent moves, such as its treatment of Walnut Creek’s KFJO-FM, which now rebroadcasts San Jose’s KSJO-FM, reveal that Clear Channel continues to exercise significant influence in markets where it has sold stations, bypassing regulatory intent.
The situation at KFJO-FM is a prime example. Despite being sold to Anthony Chase’s minority-owned Chase Radio Partners, the station simply simulcasts KSJO-FM, a Clear Channel-owned shock-jock rock station. Local listeners hoping for diverse programming are instead subjected to Clear Channel’s influence. The company is allowed to share sales staff across stations, but the regulations are clear that programming should remain distinct. When more than 15% of a station’s content is controlled by Clear Channel, it technically counts as a Clear Channel station. This could place Clear Channel over the limit for the number of stations it owns in the San Francisco Bay Area, violating FCC rules.
Clear Channel’s response has been minimal, with local managers maintaining that they are following regulatory guidelines. However, such dealings raise concerns among media analysts who worry that Clear Channel is bending the rules to maintain and expand its market dominance.
Clear Channel’s exponential growth is a direct result of deregulation, which has allowed the company to acquire competitors and expand its reach. The company, originally founded in 1972, has also leveraged its radio, concert venues, and billboard operations to create a powerful synergy that increases ad revenue. Yet, for smaller competitors, this consolidated power is seen as a threat to fair market competition.
The company’s influence extends beyond radio and into concert promotion, with Clear Channel’s massive market presence leading some to fear that it has an unfair advantage in booking performers and controlling venues. In one example, KKSF-FM’s program director encouraged a jazz musician to perform at a Clear Channel venue, rather than a competitor’s venue, though they denied any coercion.
As Clear Channel’s growth continues, it will likely be a key subject of debate in the ongoing discussion about media deregulation. While FCC Chairman Michael Powell supports further loosening of regulations, other voices in the agency argue that tighter restrictions are necessary to protect the diversity of voices in radio and beyond.
For listeners, the consolidation has resulted in less local programming, with Clear Channel opting for syndicated content, such as its evening shows hosted remotely. This shift highlights the challenges that arise when media giants prioritize profit over community-oriented content. As Clear Channel expands its influence, the question remains: How far is it willing to bend the rules to continue its climb?