Re: [dvd-discuss] ClearChannel Plays It Safe

[Jeme A Brelin <jeme(at)brelin.net>]

On Tue, 18 Sep 2001, Jeremy A Erwin wrote:
> Essentially, there are two solutions to the problem--
> 1) pass a law demanding equal time
> 2) allow competition in the radio market.
> 
> The first solution is a bit heavy handed, but nonetheless, it is
> expeditious, appears fair, and would probably eliminate that one
> specific form of political favoritism-- and thus the most likely.
> 
> 2) The second solution, deregulation, is fraught with peril, and may
> not bring about the desired result. After all, consolidation does
> occur, and the influence of money on the radio industry is rather
> corrosive.

Um, deregulation is NOT the way to bring competition to the radio market.

Markets tend toward oligopoly and oligopoly loathes competition.  If you
want to ensure competition, you have to enact strict market regulations.

> There are limited slots in the radio spectrum, and in many markets,
> Clear channel has bought most of them. I think we agree that solution
> No. 2 depends most heavily on the free market and competition-- but
> without such competition, a corporation such as Clear Channel can
> exercise just as much power as the state owned/operated radio
> monopoly...

It is, in fact, indistinguishable from the state owned monopoly except
that the private company doesn't carry the American stigma of state-owned
industry.

They have the power of the state without the responsibility of a public
organization.

J.
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     Jeme A Brelin
    jeme@brelin.net
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