Great pair of articles on media issues
http://www.reason.com/news/show/119743.html
A few good snippets:
Last year, the National Association of Broadcasters (NAB), the lobbying group for local radio and TV stations, began running a series of truly awful advertisements attacking satellite radio. In one, for example, you hear the play-by-play for a baseball game. Just as the announcer gets to a crucial point in the action, an operator interrupts, and asks you the listener to deposit money to keep listening, as if you were on a pay phone. A voiceover then announces, "Radio. You shouldn't have to pay for it."
The ads were economically illiterate (as if the time you spend listening to the endless commercials on traditional radio were free), blatantly dishonest (you pay a monthly fee for satellite radio, not by the hour), and roundly criticized for their broad assault on the intelligence of the average radio listener. But the NAB stuck with them. They were part of the NAB's longstanding, sometimes vicious attack on satellite radio, an emerging medium that the NAB clearly sees as a long-term threat. And with good reason.
...
NAB initially opposed the federal government allocating any spectrum at all to satellite start-ups. Its lobbying efforts then managed to delay that allocation for seven years. Finally, the FCC doled out the spectrum, but licensed only two companies to broadcast in the U.S., what would become XM and Sirius. Thanks in large part to the NAB's recalcitrance, satellite radio would get just two chances to find its footing. To borrow a cliched analogy, imagine if buggy whip manufacturers had successfully lobbied Congress to limit all manufacture of automobiles in the U.S. to just Ford and Chevrolet. If both failed, well, then that probably would have been a good indication that there just wasn't much of a market for automobiles in America.
The second article: http://www.opinionjournal.com/federation/feature/?id=110009954
Throughout most of history, humans lived in a state of extreme information poverty. News traveled slowly, field to field, village to village. Even with the printing press's advent, information spread at a snail's pace. Few knew how to find printed materials, assuming that they even knew how to read. Today, by contrast, we live in a world of unprecedented media abundance that once would have been the stuff of science-fiction novels. We can increasingly obtain and consume whatever media we want, wherever and whenever we want: television, radio, newspapers, magazines and the bewildering variety of material available on the Internet.
This media cornucopia is a wonderful development for a free society--or so you'd think. But today's media universe has fierce detractors, and nowhere more vehemently than on the left. Their criticisms seem contradictory. Some, such as Democratic congressman Dennis Kucinich, contend that real media choices, information sources included, remain scarce, hindering citizens from fully participating in a deliberative democracy. Others argue that we have too many media choices, making it hard to share common thoughts or feelings; democracy, community itself, again loses out. Both liberal views get the story disastrously wrong. If either prevails, what's shaping up to be America's Golden Age of media could be over soon.
...
Both liberal groups would love to put their thumbs on the scale and tilt the media in their preferred direction. Scarcity-obsessed Dennis Kucinich has recently introduced plans in Congress to revive the Fairness Doctrine, which once let government regulators police the airwaves to ensure a balancing of viewpoints, however that's defined. [...] Mr. Sunstein also proposes a kind of speech redistributionism. For the Internet, he suggests that regulators could impose "electronic sidewalks" on partisan Web sites (the National Rifle Association's, say), forcing them to link to opposing views. The practical problems of implementing this program would be forbidding, even if it somehow proved constitutional. How many links to opposing views would secure the government's approval? The FCC would need an army of media regulators (much as China has today) to monitor the millions of Web pages, blogs, and social-networking sites and keep them in line.
That leftist media critics start sounding so authoritarian is no surprise. In a media cornucopia, freedom of choice inevitably yields media inequality. "In systems where many people are free to choose between many options, a small subset of the whole will get a disproportionate amount of traffic (or attention, or income), even if no members of the system actively work towards such an outcome," writes Clay Shirky of New York University's Interactive Telecommunications Program. Overcoming that inequality would require a completely regulated media.
When Rush Limbaugh has more listeners than NPR, or Tom Clancy sells more books than Noam Chomsky, or Motor Trend gets more subscribers than Mother Jones, liberals want to convince us (or themselves, perhaps) that it's all because of some catastrophic market failure or a grand corporate conspiracy to dumb down the masses. In reality, it's just the result of consumer choice. All the opinions that the left's media critics favor are now readily available to us via multiple platforms. But that's not good enough, it seems: they won't rest until all of us are watching, reading and listening to the content that they prefer.
Let's get rid of the FCC and privatize the radio spectrum, already...
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Comments :
amen
any government regulation of the media is keeping us in a precarious state that could tip towards totalitarian control at any time. Freedom of speech is at stake.
"To discuss evil in a manner implying neutrality, is to sanction it." AR
I don't
have a problem with private radio, but I don't think that means we have to get rid of free (commercial) radio either. False either/or.
It can work like TV: room for both pay cable and free television. My only complaint with cable (as I'm sure will happen with pay radio) is that they also have commercials except the premium stations. Why pay for something when you can get it free (or rather paid for by business interests whom wish to get their message out to customers)?
You pay
so you'd get acceptable (in case of analog cable) or good quality (in case of digital cable or satellite) picture. Similarly with the radio - satellite radio allows you can listen to your favorite station everywhere you drive, which is priceless in areas where with "free radio" you used to have a choice of three country stations.
Sic semper tyrannis
Further, technological change is introducing new competitors
In effect, new technology allows you to "create your own radio station" from music you've downloaded online. This would be entirely commercial-free.
WAN and WiFi technology open up the possibility of Internet radio in your car in most developed areas, providing even more competition.
Cell phone vendors are already providing ways to listen to radio and watch TV on your cell phone. Easy enough to plug that into a car. Again, yet another competitor.
It's particularly easy for new disruptive competitors to get into the radio business compared to the TV business, simply because audio is not very bandwidth-hungry compared to video. You can provide pretty good quality at bitrates of 64Kbps or even less, and extremely high quality (good enough for all but the extreme audiophiles) at 128Kbps. Compare to video where you need Mbps for a high-quality stream.
If the spectrum was freed up, there would be room for a practically infinite number of 64Kbps digital audio broadcasts.
Spectrum leasing
And how do you privatize it? Just have an auction? Why not just lease it instead? The spectrum becomes wider as technology improves and narrower frequencies become sufficient and I'd rather not sell my share of the spectrum any more than I'd be OK privatizing the internet backbone.
Yes, spectrum auctions have been done many times before
Exactly.
Why not just sell it? Get the government out of the business of allocating the scarce resource that is radio spectrum. It becomes a privately held asset just like land.
Not a problem. Just like I can split up a parcel of land, if I buy the range from 100 to 101 MHz, I could choose to resell it as 2 0.5 MHz or 10 0.1 MHz pieces. Whatever maximizes my profit.
Putting the radio spectrum in private hands is a great way of taking advantage of the profit motive to ensure that radio spectrum is used efficiently (in the ways that create the greatest amount of value).
Right now the way we are using the radio spectrum is exceedingly inefficient -- there's a lot of spectrum being wasted by old, inefficient technologies like old analog broadcast TV. If that spectrum was put up for auction, it would be bought up by someone who would put it to much better use.
Instead, because it's under government control, lobbyists for existing analog TV stations (who don't want to have to pay market prices for that spectrum) block constructive technological change, aided by lobbyists for the poor who complain that not everyone can afford an HDTV or cable or satellite (never mind that the proceeds of the auction could probably buy an HDTV tuner box for every household in America).
But I don't feel like selling
I don't want to give up my share of the RF spectrum. I'm not willing to let someone else own it from now on. I'll let them lease it and if they use it properly, then they will make enough profit to re-lease it in the future.
You don't want the government out of the business of allocating the resource, you just want them to do it all at once.
What goal does that serve?
I'll ignore the fact that the analogy between the government doling out spectrum and your owning a small fractional share of the spectrum is a very weak one.
1. Why do you want to own a fractional share of the spectrum? What purpose are you serving by owning it, as opposed to owning other asset classes like stocks, bonds, etc.?
2. If you did want to own it, why in the world would you designate the federal government as the custodian of that investment, rather than a private company?
The federal government lacks the profit incentive to maximize the value of your investment. In fact, the evidence shows that it is doing a very *poor* job of maximizing your investment's value. It is paying more attention to lobbyists than to maximizing your investment's value. Why *wouldn't* you want to hand it over to a better custodian?
I'm sure that there would be hedge funds, etc. bidding in whatever auction takes place. If you really want to get into "extreme" asset classes like radio spectrum (probably for diversification purposes?), you really should be a hedge fund investor. Alternatively, there might be publicly traded holding companies that buy the spectrum -- you could buy shares in those companies and, in effect, own a piece of spectrum indirectly.
Privatizing the spectrum does not mean that the people who buy it in the auction keep it forever -- no more than the buyer of land in a government land auction is the permanent owner of that land. Chances are it will be resold many times and held by many different owners over the next 100 years, and that the function that it is used for will also change many times.
Chances are
As a general rule the public is somewhat skeptical because the chances are that
the ownership will fall into fewer and fewer hands.
We have seen examples of this over and over again disguised as "free market competition", where merger after merger consolidates ownership from the hands of the many to the hands of the few. And as we all know ownership has its priveleges.
It is the economy, stupid.
If that is really the concern...
...then why is government ownership and licensing of spectrum the solution? It seems like stronger antitrust laws/antitrust enforcement would be a much more targeted and effective solution to that problem.
While I am not generally in favor of antitrust laws, I would be willing to make a political bargain pairing (1) significant deregulation of the economy with (2) stronger antitrust laws and enforcement.
To give an example: why does the FCC need to have its own set of media ownership rules? Why isn't general-purpose antitrust law sufficient to solve the "problem" (I don't agree that there is a problem, but supposing there was) of concentrated media ownership?
One could ask the same question for the air travel industry. Why do we have special rules on airline ownership? Why isn't general-purpose antitrust law sufficient?
If general-purpose antitrust law *isn't* sufficient, then shouldn't we fix antitrust law, rather than "working around" the problem elsewhere?
The bargain sounds intriguing
a.
That sounds reasonable.
There is just one teeny weeny problem. We have to get the govt to go along ;)
That is like asking an ant to move a rubber tree plant.
It is the economy, stupid.
Huh?
Who exactly is comparing Tom Clancy to Noam Chomsky? Who is suggesting legislation that would even the playing field between Motor Trend and Mother Jones?
The WSJ builds up paper tigers and tears them down. Zzzzzzzzzzz.
skymutt: wise and powerful... enlightened...
Yeah
But Balko is usually on target, and not as paranoid.
Come, my friends. 'Tis not too late to seek a newer world -- Tennyson
Fairness Doctrine
Those may be cheesy examples, but many on the left advocate bringing back some form of the Fairness Doctrine.
The Fairness Doctrine is nothing other than government regulation of the ideological content of speech. Or, more frankly, it's censorship: the government tells media outlets what they are and are not allowed to put on the air.
The death of the Fairness Doctrine was well-deserved and a great victory for freedom of speech. Restoring it would be a giant step backwards.
XM/Sirius Vs. Free Radio
I'm an XM listener and am glad to be one, and I don't understand why the Free Radio companies would lobby against the satellite radio companies because of "competition" issues. Those who'd rather pay--let them pay! There's probably a good reason--personally, I don't like having to listen to the same 10 songs every hour on the hour, and the satellite companies allow you to pay for such a service. Plus, I can get stations for political talk and also hear Braves and ACC games up here in the Northeast.
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I'm a Sirius subscriber
I never listen to free radio anymore. I hate the damn commercials, especially the screaming car dealers.
Not only does satellite radio have a gazillion music channels (Sirius just added a Sinatra channel), they have a 24/7 NASCAR channel, which I listen to way too much, and a left-wing political talk channel, which is a lot better than Air America.
qui tacet consentire
any cool rightwing
political channel that is not full of pro-Bush conservatives?
"To discuss evil in a manner implying neutrality, is to sanction it." AR