[BC] Clear Channel Wants More?

[David Gleason]

Here is the part about ownership, reported by a journal which understands
radio...

Mays calls for more radio dereg
While critics in Washington say radio ownership deregulation has gone too
far already, Clear Channel Communications CEO Mark Mays used a speech
yesterday at the Progress and Freedom Foundation to call for further
deregulation so broadcasters can more effectively compete with satellite
radio. Specifically, he called for Congress to allow a single company to own
more than the current limit of eight stations in the largest markets - - 10
in markets with at least 60 stations and 12 in markets with at least 75
stations. "Free radio is struggling. The cost of competing with new
technologies and increased listener choice is staggering and profits are
down. Specifically, free radio needs Congress to relax outdated restrictions
on our operations," Mays said. Then he added, "Free radio is not asking for
much more room." The CCU CEO also declared that there was no "train wreck"
coming as the FCC investigates allegations of payola brought to light by New
York Attorney General Eliot Spitzer. Mays said 4-6 employees who were
investigated were bad actors, but most radio programmers are abiding by the
law.

The press often has trouble with the difference between billing, cash flow
and profits. Clear Channel intentionally reduced the commercial load of all
its stations to make them more competitive. They have not ended this... what
Mays actually said, and which Dow Jones messed up totally, was that they had
ended the implementation and all stations were now on the plan but that no
further reduction was planned. DJ makes it seem like the plan failed, which
is the oppostite of what has happenened. 

In general, a horribly written article by a service that can do much better.


On the other hand, the industry in general is having a soft year, and Clear
is doing no better nor no worse than anyone else. 


-----Original Message-----
From: broadcast-bounces at radiolists.net
[mailto:broadcast-bounces at radiolists.net] On Behalf Of Paul Christensen
Sent: Tuesday, October 04, 2005 6:17 AM
To: Broadcast Radio Mailing List
Subject: Re: [BC] Clear Channel Wants More?

> On the news this morning I heard that billing for Clear
> Channel is down thirteen percent. The report also said that
> Clear Channel wants to be able to own ten stations in markets
> where there are sixty or more stations.

On Monday, Mark Mays presented a speech to the Progress and Freedom
Foundation in Washington. Quoting from the Dow Jones news service:

"Mays said that the company has been reducing the number of commercials over
the past year but signaled that such a reduction has come to an end. 'We
kind of got to the point that we thought was the equilibrium point,' he
said."

If it is true that revenues are down 13-percent for the preceding 12 months,
the "equilibrium point" may have been over-shot.  The ongoing dilemma for
CCU and other radio stocks is how do you increase revenue growth at an
escalating rate while retaining listeners in an ever-increasing competitive
world?

The article then states "He said free over-the-air radio 'is struggling' and
faces major competition from iPods and "podcast" programs, Internet radio,
wireless phone radio content and satellite radio. 'Free radio as we know it
is at risk," Mays said, and it "needs the government to step up and step
back.' "

I'm not sure exactly what "step up and step back" means, but the supreme
irony is that an industry that has had the equivalent of a license to print
money for the past 85 years with essentially zero licensing fees paid to the
federal government now needs help from the same government in order to
maintain investment valuations in their current properties.

Watch what you wish for: if the playing field becomes level, that means
paying the federal government for AM, FM, TV, and BAS spectrum at current 
valuations,
and perhaps <gulp> a percentage of the present value of past cash flows if 
we really want
things leveled.  Does the industry really want to go down that path by truly
leveling the playing field?

Paul

====================================
Paul Christensen, CPBE, CBNT
LAW OFFICE OF PAUL B. CHRISTENSEN, P.A.
3749 Southern Hills,  Jacksonville, Florida 32225
Office: (904) 379-7802   Facsimile: (904) 212-0050
pchristensen at ieee.org


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