Clear Channel's Position on Satellite Radio Merger Unclear

Clear Channel (CCU) is against the merger between Sirius (SIRI) and XM (XMSR). They state that the merger would create a monopoly, and give satellite radio competitive advantages. Clear Channel speaks of their terrestrial radio business, but always seems to neglect the other aspects of their business.

Some items to note:

On their website, Clear Channel offers some interesting facts as well as an interesting Myths vs. Facts section that they never seem to mention to the FCC.

MYTH: Consolidation in the radio industry is at dangerous levels.

CLEAR CHANNEL STATEMENT OF FACT: Radio is the least consolidated segment of the media industry — by far according to The Herfindahl-Hirschman Index, the metric often cited by the Department of Justice. Specifically, the top-5 music companies account for 85% of that industry’s market share; the top-8 film companies account for 84%; the top-10 cable companies account for 67%; the top 6 ad agencies companies account for 65%; and the top-10 radio companies account for 43%.

Is Clear Channel saying that the radio industry has less consolidation than other industries? If this is the case, how then can consolidation of two players that make up less than 5% of the market be so dangerous?

MYTH: Clear Channel Radio dominates radio in the United States.

CLEAR CHANNEL STATEMENT OF FACT: There are more than 13,000 radio stations in the United States and 3,800 station owners. Clear Channel Communications owns just 9% of U.S. radio stations and represents only 18% of the industry’s revenue.

Interesting. Clear Channel makes up 9% of the market and Sirius and XM combined make up less than 5%.

MYTH: Clear Channel is not committed to local news.

FACT: Clear Channel Radio is committed to providing communities with the highest quality local news. Specifically, Clear Channel Radio has 110 news bureaus employing approximately 500 local news reporters focused on the gathering, support, and production of local news throughout the country. In addition, the Clear Channel News Network and Clear Channel News Wire service are focused on providing small, medium and large size markets with locally focused news. Clear Channel Radio also partners with other local and national media outlets to bring its communities the highest quality local news, including local television stations, newspapers, as well as major Television Networks such as ABC and NBC news.

Due to Clear Channel Radio’s extensive news operations and large number of in-market reporters in middle and small-sized markets throughout the U.S., Clear Channel Radio’s news correspondents are often the first to report major local news developments that gain national attention. For example, the local Clear Channel Radio news reports and feeds were picked up by both CNN and ABC News for the first three hours after the Columbia Shuttle disaster — from Houston, Cape Canaveral and Nacogdoches, Texas — until the national networks could get correspondents to those sites. Clear Channel Radio also had an embedded reporter in Iraq.

So Clear Channel owns over 1,100 stations and 110 new bureaus. That means there is one news bureau for each 10 stations - each bureau has a staff of 4.54 people. How exactly do 4.54 people deliver the local news to 10 stations? How was the shuttle disaster a local story? It was a national story. This is why it received national attention. Perhaps this cites a good example of just how far terrestrial radio has strayed from its local roots.