Congressman
Conyers, to Press for Tougher Enforcement of Laws on
Payola Broadcasting: Ranking Democrat on the House
Judiciary Committee plans to call hearings this
year.
DETROIT -- It's been more than a
decade since Congress last probed payola on the public
airwaves. Rep. John Conyers Jr. (D-Mich.) plans to
revisit the issue by launching federal hearings this year
to address increasing complaints from artists, consumer
activists and record labels about questionable payments
to radio stations to promote certain songs.
Conyers, 72, the ranking
Democrat on the House Judiciary Committee, has had
serious concerns about the radio business since Congress
passed the 1996 Telecommunications Act, which eliminated
most restrictions on broadcast mergers.
Conyers, an amateur musician
himself, will air his views about payola and other
industry issues at the Future of Music Policy Summit this
week at Georgetown University in Washington. He sat down
for an interview recently at his office in Detroit.
Question: It's been 40 years since the federal payola
statute was enacted. Considering the government's
apparently lax attitude toward prosecuting payola
violations, why not just get rid of the law?
Answer: Well, I'm sure there are
people in the music business and the radio industry that
would immediately advocate that kind of an idea. But
getting rid of the law would be a bad idea.
What we really need to do is
beef up enforcement. I want to hold informational
oversight hearings this year to look closer at potential
new forms of payola that appear to be everywhere now. We
need to examine the negative impact that consolidation in
the radio business has had on the public
airwaves.
Q: Given its past enforcement
actions, the Federal Communications Commission seems more
concerned about bad lyrics than bribes. The FCC has
imposed only one payola fine on a major radio group and
seems to have no problem with the U.S. record labels'
paying out an estimated $100 million-plus a year to
influence airplay on stations owned by the nation's
biggest broadcasters.
Maybe payola laws are obsolete
in a deregulated radio environment.
A: I disagree. Payola is against
the public interest. It turns the whole notion of
encouraging and promoting this important part of our
cultural heritage into a commercial vehicle.
Some of the most imaginative art
on earth was born in the hearts and souls of American
composers. I believe that music is one of our major
contributions to world culture. Allowing creativity to be
stifled because of questionable commercial endeavors or
legal gymnastics is just plain wrong.
I believe that's what the
government originally had in mind when they implemented
laws prohibiting the influence of money on
airplay.
Q: We're no longer just talking
about some tiny independent radio station pocketing a few
bucks under the table, but about giant broadcast
corporations devising questionable practices to generate
"nontraditional revenue" to sidestep payola
laws.
A: Well, at least that explains
why I'm hearing so much bad music so often lately. This
stuff that is cluttering up the public airwaves should be
an embarrassment to the folks who run the
industry.
Q: Do you think the
investigators at the FCC really care?
A: The environment for
enforcement is not alive in America anymore. There seems
to be a new environment now, one that says unless you are
a flagrant, notorious violator, no one will take you to
task anymore.
It's like no one is paying
attention to the federal laws on the books. Nobody is
encouraging anyone to go out and investigate practices at
radio stations that seem suspicious or fraudulent. We no
longer live in an enforcement environment that is
favorable to the consumer.
[FCC Chairman] Michael
Powell makes [former FCC Chairman] Bill Kennard
look tough now, doesn't he? But we can't just keep acting
like we're blind.
Q: What can be done?
A: The FCC and the antitrust
division of the Justice Department need to start paying
attention to the citizen groups, community activists and
musicians who have all thrown up their hands in
disgust.
A lot of artists' careers get
compromised after they get to the top because of these
[payola] transactions. And many more never even
get a chance to get near the top. They get squeezed
out.
In my opinion, it's not just the
artist who loses. The culture loses.
Q: It's illegal to air a song
for money or anything of value without saying so on the
air. The way record labels seem to sidestep the law is by
hiring independent promoters to pay stations annual
budgets to avoid the quid pro quo restrictions of the
payola statute. What's the difference?
A: I think that maybe some
clever lawyers helped the promoters think this annual
budget idea up. It's really pretty nifty.
I don't know how it fares
against the legal prohibitions that are in effect.
Because no one has ever really examined these deals, I
don't know if they are successful in skirting the law, or
if a court would just pull this aside as a cover window
dressing to accomplish what was, in fact,
prohibited.
We intend to look into this
matter more carefully.
Q: Most independent record
promoters these days base their budget deals with radio
stations on the bank formula concept. The bank is an
internal log that lists the date the station airs a song
followed by a specific dollar figure the station will be
paid by the artist's label. Isn't that a quid pro
quo?
A: Well, the bank log clearly
pulls away the guise of the annual budget. If the station
is being credited on a per-play basis, it changes things
pretty drastically, doesn't it? It's not good.
I don't know how they expect to
explain this bank idea in the light of long-standing
regulations against payola in the industry. We'll have to
ask the promoters and the radio corporations and the
record companies.
Q: How has consolidation after
the Telecommunications Act affected the public
airwaves?
A: It's bad. You know, the
original idea was that leasing the airwaves to broadcast
companies would be a service for our citizens. Back when
the government started issuing broadcast licenses, it
repeated over and over again: "The airwaves belong to the
people."
The idea was that we were only
renting these guys the airwaves on a temporary basis
subject to their living up to the modest
regulations.
But now we seem to be going in a
different direction. Less regulation. Less oversight.
Less enforcement. Competition is drying up. Monopoly is
on the rise. The whole thing is becoming more of a
business and less of an arena for communication about new
musical ideas.
It's bigger than a simple
dispute between the artists and the radio conglomerates.
This is a matter of national interest.
The problem has been growing
since the Telecommunications Act. The protections for the
airwaves just aren't the same anymore.
There is not enough oversight of
these kind of transactions. The government has been
snoozing. We intend to probe these issues and ask a lot
of questions this year. Thanks to By CHUCK PHILIPS, TIMES
STAFF WRITER
///
08 - July 31,
0001 J
Judge's decision
extends free-speech protections to ordinary users who
quote or reprint published statements.
A judge in
Northern California has thrown out a defamation lawsuit
against a San Diego woman whose Internet postings
included derogatory comments about two doctors--a ruling
that some lawyers say extends free-speech protections to
ordinary users of the Internet.
Free-speech advocates
said Monday that Alameda County Superior Court Judge
James A. Richman's ruling probably will provide a road
map for higher courts grappling with the boundaries of
acceptable speech on the Internet.
"Boundaries of
permissible public discourse have evolved significantly
in the last half-century," Richman wrote last week in his
27-page ruling. "This is an extremely important
decision," said Ann Brick, an American Civil Liberties
Union attorney in San Francisco. "The judge was right in
saying that the Internet is a 'free-wheeling and highly
animated exchange' of ideas. And you don't want to hold
ordinary people, who are engaged in this discussion, to
the same standards or restrictions that you would hold a
sophisticated publishing house or a
newspaper."
Stephen J. Barrett, a
retired psychiatrist from Allentown, Pa., who runs
"Quackwatch" and a Canadian doctor, Terry Polevoy, sued
several individuals, including Ilena Rosenthal, for
defamation after the two camps clashed on the efficacy of
alternative medicine.
"Quackwatch" is a
32-year-old nonprofit organization to "combat
health-related frauds, myths, fads and fallacies." It
focuses on distributing information "that is difficult or
impossible to get elsewhere." Its Web site was launched
in 1996.
Rosenthal runs an
Internet support group for women who have had problems
with breast implants. In postings on Internet news
groups, Rosenthal called Barrett and Polevoy "quacks,"
and that Barrett was "arrogant" and a "bully" who tried
to "extort" her.
She also posted a
message to a newsgroup that said, "Quackwatch appears to
be a power-hungry, misguided bunch of pseudoscientific
socialistic bigots," among other things.
Richman dismissed the
libel and defamation claims against Rosenthal in part
because the doctors were public figures and with only
limited protection under libel laws.
The judge also found
that Rosenthal was not liable for the comments of others
that she posted on news groups. He found that Rosenthal,
"is not the publisher or speaker" of statements made by a
third person," and thus "she cannot be civilly liable for
posting it on the Internet."
Richman based the
decision on the 5-year-old federal Communications Decency
Act, which provides immunity to Internet service
providers and "users."
Brick and other
attorneys said there have been several high-profile cases
involving Internet service providers, such as America
Online, but this was one of the first cases--if not the
first--that extends the same protections to ordinary
users.
"This revolutionizes
the law on defamation" as it applies to republishing
commentary on the Internet, said Mark Goldowitz, an
Oakland attorney who represents Rosenthal.
Christopher E. Grell,
an Oakland attorney handling the case for Barrett and
Polevoy, said they disagree with Richman's ruling and
would appeal.
"He's extending
immunity to where Congress never intended it to go,"
Grell said. "This was meant to protect the innocent
users, but the judge is granting immunity to someone who,
without trying to investigate or check the facts,
republishes false information. This basically cancels out
libel law where it currently exists."
Dale Herbeck, chairman
of Boston College's communications department, said
hundreds of other Internet defamation lawsuits are
percolating in courts around the country. "This is a
lively area of controversy," Herbeck said.
By MEG JAMES, TIMES STAFF
WRITER. LA Times, July 31, 0001
///
TUES.
FEB. 29, 2000
(San Antonio and New York) --
Lowry Mays, Chairman and
CEO of Clear Channel Communications, Inc. (NYSE: CCU) and
Robert F.X. Sillerman, Executive Chairman of SFX
Entertainment, Inc. (NYSE: SFX) announced today that the
companies have entered into a definitive merger
agreement. SFX is the world's largest diversified
promoter, producer and venue operator for live
entertainment events. As of the market close on February
28, 2000, the transaction values SFX Entertainment at
approximately $4.4 billion. This includes the assumption
of approximately $1.1 billion of SFX's debt net of
cash.
SFX provides integrated
promotion, production, venue operation and event
management services for a broad variety of live
entertainment events. SFX currently owns or operates 120
live entertainment venues in 31 of the top 50 U.S.
markets, including 16 amphitheaters in the top 10
markets. In addition, SFX is a leading fully-integrated
sports marketing and management company, representing
more than 650 professional athletes and is the largest
producer and promoter of specialized motor sports shows
in the U.S.
Including pending acquisitions,
Clear Channel will own and operate radio stations and/or
outdoor advertising properties in virtually every U.S.
market where SFX owns and/or operates live entertainment
venues. Lowry Mays said: "This transaction allows Clear
Channel, through SFX, to gain immediate leadership in the
highly attractive live entertainment segment, while
taking advantage of the natural relationship between
radio and live music events. It leverages the marketing
and promotional strength of Clear Channel's broadcasting
and outdoor advertising platforms and adds a new
component to the marketing solutions, which Clear Channel
can provide to its customers to help them sell their
products.
Additionally, it creates an
exceptional platform for Clear Channel to pursue
initiatives relating to the Internet and music." Robert
F.X. Sillerman said: "Having known the Mays family for
almost 20 years and having watched the spectacular growth
of the company and performance of their stock, it was a
surprisingly easy decision to accept their offer. In the
ever-expanding world of media and entertainment, the
combination of distribution and content is becoming
increasingly important. While what we have created as the
world's leader in live entertainment and sports marketing
is gratifying, there is no question that the combination
with Clear Channel will accelerate our growth and further
strengthen our already excellent prospects. This is a
classic win-win situation for our shareholders and for
Clear Channel's shareholders."
///
Clear Channel
Closes Its Merger With SFX Industry Veteran Brian Becker
to Take Over as Chairman and CEO of SFX
San Antonio, Texas
- August 1, 2000 -
Clear Channel
Communications, Inc. (NYSE: CCU) announced today that the
company has closed its previously announced merger with
SFX (NYSE: SFX). Pursuant to the terms of the Merger
Agreement signed by the Companies on February 29, 2000,
each SFX Class A shareholder will receive 0.6 shares of
Clear Channel common stock for each SFX share, and SFX
Class B shareholders will receive one share of Clear
Channel common stock for each SFX share, on a fixed
exchange basis. Brian Becker, an industry veteran with 20
years of experience and former Executive Vice President
of SFX, has been named Chairman and CEO of SFX. In this
capacity, Becker will oversee all operations of
SFX.
"This merger allows Clear
Channel, through SFX, to gain immediate leadership in the
highly attractive live entertainment segment, while
taking advantage of the natural synergy between radio and
live music events," said Lowry Mays, Chairman and CEO of
Clear Channel Communication, Inc. "Moreover, a seasoned
executive such as Brian Becker at the helm ensures that
the mutually-beneficial relationship between the two
companies will be fully realized and expanded upon in the
years to come."
"While I move on to new
challenges, I can say with confidence that Brian Becker
is an exceptional leader who brings unmatched experience
in successfully guiding and growing a company in the
midst of, as well as after, a merger," said Robert F.X.
Sillerman, Executive Chairman of SFX. "Additionally, the
fact that he is already highly respected within SFX, as
well as among the executives at Clear Channel, makes him
the most qualified person to take SFX into a new
era."
"I am eager to move SFX forward
as part of the Clear Channel family," said Becker.
"Augmenting SFX's extensive network and superior talent
with Clear Channel's unparalleled global resources will
offer previously unimaginable opportunities in live
entertainment to sponsors, performers and marketing
partners."
About Clear Channel
Communications and SFX Clear Channel Communications,
Inc., is a global leader in the out-of home advertising
industry with radio and television stations and outdoor
displays in 40 countries around the world. Including
announced transactions, Clear Channel operates over 900
radio and 19 television stations in the United States and
has equity interests in over 240 radio stations
internationally.
Clear Channel also operates more
than 700,000 outdoor advertising displays, including
billboards, street furniture and transit panels across
the world. The Company is headquartered in San Antonio,
Texas.
SFX is the world's largest
diversified promoter, producer and presenter of live
entertainment events. SFX currently owns and/or operates
120 live entertainment venues in 31 of the top 50 US
markets, including 16 amphitheaters in the top 10
markets. In 1999, more than 60 million people attended
approximately 26,000 events promoted and/or produced by
SFX, including more than 7,800 music concerts, 13,300
theatrical shows, 1,400 family entertainment shows and
520 specialized sports shows.
SFX produces and promotes live
music events, as well as develops and manages touring
Broadway shows in 55 markets. SFX is also a leading fully
integrated sports marketing and management company
specializing in the representation of athletes and
broadcasters, integrated event management, television
programming/production and marketing consulting services
in sports, news and other entertainment industries.
Additionally, SFX Sports produces and promotes
specialized motor sports events.
For further information:
Investor Inquiries: Randy Palmer, Vice President of
Investor Relations, Clear Channel/Gabrina Soliz (210)
822-2828 web-site: www.clearchannel.com.
Media Inquiries: Sean
Cassidy/Lenore Moritz (212) 685-4300 website:
www.sfx.com
Certain statements in this
release constitute "forward-looking statements" within
the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors
which may cause the actual results performance or
achievements of the Company to be materially different
from any future results, performance or achievements
expressed or implied by such forward-looking statements.
///
June, 2000 - Gerry
Cagle joined the SFX
when it was
know as Album Network -- eight years ago, and most
recently, was Executive VP, Publishing for SFX
Multimedia. Mr. Cagle replaces Steve Smith, who was
recently promoted to a corporate Executive Vice President
role at SFX.
Mr. Cagle will
oversee
all of SFX Multimedia's activities, including: the
publication of seven trade magazines for radio
broadcasters, music retailers and record industry
executives, including the Album Network, Network 40 and
the Urban Network; Live Tonight, a consumer publication
distributed at all SFX venues; plus the popular broadcast
industry reference publication The Yellow Pages of Rock;
a research business that gathers radio airplay and music
retail information for record labels, artist managers,
retailers and broadcasters; production and distribution
of network radio special events and live concert
programming; and coordination of several broadcast
industry conferences, including the Top 40 programmers'
"Summer Games."
Mr. Cagle has
enjoyed a 30-year
career in
radio programming at some of the most legendary Top 40
stations in the country, including KHJ in Los Angeles,
KFRC in San Francisco and WAPP New York. The five-time
winner of the Major Market Programmer of the Year Award
took time off from the broadcast industry in 1980 to
serve as Chief of Staff for the Governor Cliff Finch of
Mississippi. Mr. Cagle has also authored three published
fiction novels, including Sheet Music last year.
"Gerry Cagle has the
experience and vision to continue the growth and
expansion of SFX Multimedia, while remaining focused on
strengthening its solid reputation as a resource for the
entire music industry," said Brian Becker, Chairman and
CEO of SFX.
"I'm thrilled to be
part of the largest live entertainment company in the
world. Continuing to grow the core business of SFX
Multimedia while creating synergistic opportunities
between SFX and Clear Channel is a challenge I accept
enthusiastically. The future of our combined companies is
bright and I'm proud to be a part of it," said Cagle.
About SFX
SFX, a
subsidiary of Clear Channel Communications (NYSE:CCU), is
the world's largest producer and marketer of live
entertainment events. SFX currently owns, operates and/or
exclusively books 130 live entertainment venues,
including 44 amphitheaters in the U.S. Each year, more
than 60 million people attend approximately 26,000 events
promoted and/or produced by SFX, including: Live music
events; Broadway and touring Broadway shows; family
entertainment shows; and specialized sports and motor
sports shows. SFX also provides strategic sports
marketing sales and consulting services to professional
and college teams, leagues, venues and properties.
In addition, SFX
owns
a leading full-service talent management company,
specializing in the representation of athletes and
broadcasters. SFX is headquartered in New York City. More
information is available at http://www.sfx.com .
Clear Channel
Communications, Inc., headquartered in San Antonio,
Texas, is a global leader in the out-of home advertising
industry with radio and television stations, outdoor
displays and entertainment venues in 40 countries around
the world. Including announced transactions, Clear
Channel operates over 1,120 radio and 18 television
stations in the United States and has equity interests in
over 240 radio stations internationally. Clear Channel
also operates more than 750,000 outdoor advertising
displays, including billboards, street furniture and
transit panels across the world.
Respectfully
,
Bernie
Schwartz,
Editor/Legal
- TVI Magazine
By MEG JAMES, TIMES
STAFF WRITER. LA Times, July 31, 0001
com/legalside
