Washington, D.C. - In a letter sent today to Attorney General John Ashcroft and Federal Communications Commission Chairman Michael K. Powell, U.S. Rep. Howard L. Berman called for an investigation of the negative effects of consolidation in the radio and concert promotion businesses.

 

“I am particularly concerned about widely reported allegations that Clear Channel Communications, Inc. has “punished” recording artists who have not used its concert promotion service by denying them radio air play,” said Berman.  “This is but one example of the negative effects that occur when the same entity controls radio stations, television stations, concert promotion services and other distribution channels for copyright content.  This consolidation hurts not only artists, but consumers who end up with unconscionable concert ticket prices and less diversity of programming.”

 

“The consolidation of the radio industry also lends growing support to persistent allegations of incidents in which record companies must pay radio stations to play the music of their artists,” said Berman.

 

“Also of great concern are reports of “parking” or “warehousing” of radio and television stations by Clear Channel,” continued Berman.   “Press accounts and pending FCC complaints state that Clear Channel is trying to exceed legal limits for ownership of radio and tv stations by using third parties, shell corporations, or related entities to make the purchases.”

 

“If true, this practice is both against the public interest and hurts competitors, who cannot offer equally advantageous rates to advertisers,” said Berman.

 

“Today, I am calling upon the Department of Justice and the Federal Communications Commission to fully and aggressively investigate these allegations and vigorously prosecute any wrongdoing,” concluded Berman.

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