Radio homogenization is the shift in which previously locally programmed and hosted radio stations increasingly air remotely pre-recorded program material and central-cast via Internet or satellite.
Background of corporate consolidation
Deregulation The 1996 Telecommunications Act removed all national and local restrictions on national ownership that specified the number of stations one company could own in a set market. Before 1996, a company was prohibited from owning more than 40 stations, and from owning more than two AM and two FM stations in one market. The bill covered a wide range of formats and was the first time the Internet was included in broadcasting and spectrum allotment. The federal government has regulated the extent of ownership for radio stations since the 1934 Communications Act. The policy was based on the notion that the airwaves were accessible to the public and therefore had an accompanying public trust. However, the U.S. Federal Communications Commission (FCC) began to relax these limitations. Lydia Polgreen's research indicates that the 1996 Telecommunications Act was one of the most lobbied bills in history. Media interests spent $34 million on campaign contributions for the 1995–96 election cycle – nearly 40% more than the previous election. Martin Scherzinger claims the public was mostly uninformed of potential consequences, as "the media covered the Telecommunications Act as a business technicality instead of a public policy story," assuring deregulation would increase competition and generate high-paying jobs. There was no discernible public debate. Since deregulation in 1996, more than a third of all US radio stations have been bought and sold. Polgreen indicates that in the year following the legislation alone, 2045 radio stations were sold – a net value of $13.6 billion. Of the 4,992 total stations across 268 set radio markets, almost half are now owned by a company owning three or more stations in the same market. The Future of Music Coalition reported the number of stations owned by the ten largest companies increased by roughly fifteen times between 1985 and 2005. Robert F. X. Sillerman, Chairman of SFX Broadcasting, noted that consolidation also helps spread overhead costs around, and even adding a second station can cut costs. Consolidation doesn't necessarily mean less stations, merely less owners.
Clear Channel
Two companies in particular, Clear Channel and the Infinity Broadcasting unit of Viacom, own roughly half the USA's airwaves. Clear Channel grew from 40 stations to 1,240 stations in seven years (30 times more than congressional regulation previously allowed) . Their aggressive acquisitions have gained them enemies as well as supporters, but their ownership of 247 of the nation's 250 largest radio markets and their domination of the Top 40 format makes them undeniably a significant player in the music industry. After 42 years, the country's largest radio broadcaster switched its name to iHeartRadio Inc. Though most of their revenue still comes from advertising on its airwaves, iHeartRadio only accounts for 10% of total listening for the company. Clear Channel has built the iHeartRadio brand beyond the Internet (see: iHeartRadio Festival, Jingle Ball, Pool Party, iHeartRadio Music Awards). After the company's concert promotion division spun off in 2005, it ditched the Clear Channel name in favor of Live Nation. This follows a general trend of Consolidation of Media Ownership, where corporate interests take precedence over the artistic integrity of the content. An analysis of a wide range of music professionals by Frontline illustrates this is especially true of the music industry.
Recorded music According to Martin Scherzinger, "recorded music is the most concentrated global media market today." When he wrote this in 2005, six leading firms – PolyGram, EMI, Warner Music Group (at the time, a unit of AOL Time Warner), Sony Music Entertainment, BMG (at the time, a unit of Bertelsmann), and Universal Music Group (at the time, a unit of Vivendi, before becoming public in 2021) – were estimated to control between 80% and 90% of the global market. As of April 2025, the industry has consolidated even further. A series of mergers has reduced the big six to just three large corporations: Universal Music Group (which purchased EMI's recorded music operations, and has merged with Polygram), Sony Music Entertainment (which merged EMI publishing into Sony/ATV Music Publishing, and purchased BMG in 2008), and Warner Music Group (which absorbed EMI's Parlophone and EMI/Virgin Classic labels). Most of these companies are part of larger conglomerates. Vertical concentration and horizontal integration allow cross pollination to promote products across multiple mediums. For instance, Sony owns film and television studios, cable channels, retail stores, video game developers, etc., and can thus promote one through the utilization of another.
Effects
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