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Perceptions of Radio Localism Let Radio's Marketplace Decide: The Public's Perception of Localism
Consolidation and clusters are changing the radio dial. The economics of managing a radio station have created unimaginable programming philosophy shifts. Many radio stations are relying on programming techniques such as voice-tracking and satellite delivery to help realize economies of scale. In particular, Clear Channel Communications uses voice-tracking technology to bring large market radio personalities into smaller radio markets (Mathews, 2002). In other words, radio personalities located in one market record and distribute their 'show' to other stations in different communities. Although voice-tracking allows a radio personality to 'localize' the show for a community, the fact remains that the radio personality is out-of-market. This type of programming strategy, along with the growth of non-local group radio owners, has led to more questions about the effect of radio consolidation on the public interest. Critics of deregulation might argue that these strategies and developments are eroding one of the core goals of broadcast policy localism. Proponents of deregulation might view these developments as increasing the quality of radio programming available to local radio markets. Regardless, there is no question that the Telecommunications Act of 1996 ushered in new structures and programming strategies that have brought non-local owners and talent into radio markets. What perceptions of localism do radio listeners have? This study seeks to answer this question, and others, by examining the policy of localism from an audience perspective. Specifically, this paper will examine the policy of localism, explore the recent trends of localism in radio markets and analyze audience perceptions of the policy. Literature Review There is no doubt that the deregulation of radio ownership provisions of the Telecommunications Act of 1996 has led to the consolidation of radio properties. Recent studies indicated higher levels of ownership concentration in large radio markets (Drushel, 1998) and smaller markets (Chambers, 2001). The explosive growth of large radio groups like Clear Channel Communications has created concern about the effects of consolidation among politicians and regulators. In fact, the Federal Communications Commission (FCC) initiated public field hearings about the upcoming broadcast policy rules vote (Bishop, 2003). The problem for the FCC is reconciling the goals set out in the Telecommunication Act of 1996, competition and diversity, with the economic realities of local and national media marketplaces. FCC Commissioner Michael Copps highlighted the importance of an upcoming policy vote related to further relaxation of ownership rules: "At stake are core values of localism, competition, diversity and maintaining the vitality of America's marketplace of ideas" (Copps, 2003, p. 5). Under the current radio ownership rules, research has suggested that the radio marketplace is losing local owners and increasing the number of absentee owners (Chambers, 2001). Although there has been a shift from local ownership to absentee ownership in radio markets, localism has been a cornerstone in the FCC's public interest framework. The Public Interest & Localism As policy, localism has long been heralded as one of the cornerstones of communications policy (Napoli, 2001). From the FCC's 1941 Report on Chain Broadcasting to the Telecommunications Act of 1996, there have been several different rules and regulations targeted at insuring the local ownership and control of electronic media outlets. Former FCC Commissioner Andrew Barrett defined localism as the "basic notion that the best practicable service to the public is rendered by the broadcaster who maintains close ties with the community served and who provides programming that responds to issues affecting residents of that community" (1993, p. 147). Newton (1995) defined two methods of FCC regulation of localism geographic and audience. According to Newton (1995), geographic or spatial localism was "exemplified by the distribution of licenses to various communities and the traditional preference granted to local ownership in initial licensing" (p. 79). On the other hand, audience localism obligated the licensee to "identify and program for the needs and problems of the community" (p. 79). Throughout the development of radio, the FCC has attempted to operationalize localism in terms of ownership and content. In the original Communications Act of 1934, the licensing rules required an owner of a station to be involved with the daily operations of the station and be involved in the local community. Ownership rules restricting the total number of properties one individual or company could own at both a local and national level helped maintain the daily involvement with a radio station. In addition, the Commission attempted various program guides designed to help broadcasters 'operate' within the public interest. Napoli (2001) chronicled the various rationales and standards for localism policy in broadcasting. Although recent policies related to localism have focused on the direct broadcast satellite and cable television industries, the origins of the policy started with the development of the radio industry. In the 1929 Great Lakes Broadcasting decree, the Federal Radio Commission linked a station's license renewal with guidelines ranging from music choices to news reports (Federal Communications Commission, 1930). The FCC continued to regulate localism with policies mandating certain types of programming. Before the explosion of television, the FCC released a 1946 policy statement, the Public Service Responsibilities of Licensees. In this statement, commonly referred to as the "Blue Book," the FCC outlined four expectations of programming for the purpose of license renewal. These elements included the carriage of sustaining programs, local live programs and public issue programs (Federal Communications Commission, 1946). During the development of television, the FCC issued the En Banc Programming Inquiry in 1960 that listed 14 program elements that met the public interest standards of broadcasting. These program standards included: "(1) opportunity for local self-expression, (2) the development and use of local talent, (3) programs for children, (4) religious programs, (5) educational programs, (6) public affairs programs, (7) editorialization by licensees, (8) political broadcasts, (9) agricultural programs, (10) news programs, (11) weather and market reports, (12) sports programs, (13) service to minority groups, and (14) entertainment programs" (Federal Communications Commission, 1960, 2314). In addition to these types of programming standards, the FCC also used licensing rules to maintain the local nature of broadcasting. In 1965, the Commission released its Policy Statement on Comparative Broadcast Hearings that outlined policies related to competition for a broadcast license. The statement highlighted the need for a diversified media, full-time participation in station operations by owners, proposed program service, minority interests and other goals for satisfying the public interest (Federal Communications Commission, 1965). After the FCC passed these rules, it later adopted a rule requiring broadcasters to survey the local population to 'ascertain' what the community interests were the Ascertainment Rules. Since the passage of these types of regulations, the FCC has relied more on marketplace forces than regulations to meet public interest standards. Beginning with the deregulation of radio in 1981, the Commission has eliminated the non-entertainment programming guidelines, ascertainment rules, commercial guidelines and program logging requirements. During the period of deregulation, the FCC relaxed some of the licensing and license renewal rules that attempted to insure a degree of localism in the daily operation of radio stations. The Commission has relaxed local ownership rules and various requirements related to the daily operation of radio stations. From the 1992 duopoly rules to the Telecommunications Act of 1996, the FCC relaxed local ownership requirements. At the same time, further relaxation of various licensee requirement standards such as owner involvement in the community, local program origination and studio location have changed. Specifically, in the current application for a Construction Permit (CP), the FCC only requires that one 'management-level' and one 'staff-level' employee be at the station during regular business hours (Federal Communications Commission, 2003, 12). These rules have allowed the development of programming tactics such as voice-tracking and satellite-delivery of programming. In addition, the main studio for a radio station can exist with 25 miles of the community of license. The application form does require applicants to state a responsibility for broadcasting programming to meet local needs. Despite this request, the current rules governing the radio industry do not mandate specific types of programming to meet 'local needs'. Therefore, the economics of the marketplace have initiated changes to the local model of radio broadcasting. Localism and the Radio Industry The issues of consolidation and using out-of-market radio personalities have attracted recent media attention. The Wall Street Journal (Mathews, 2002) and Now with Bill Moyers (Transcript, 2002) have devoted space and time to the use of voice-tracking as a tool to help large radio companies generate synergy and cut costs. The technology of voice-tracking allows computerized radio stations the opportunity to maintain shifts such as overnights and weekends. According to one manufacturer/distributor of voice-tracking systems, the technology allows a radio personality record a four-hour show in twenty minutes (Scott Studios, 2002). The technology has value for all types of radio stations -- from the small market, independently owned station to the large market, group owned station. A radio station can permit its own local personalities to voice track their shows; or a station can rely on an out-of-market personality to record and distribute their shows for immediate or a later broadcast. Although voice-tracking has received most of the recent media attention, there are other methods for distributing out-of-market radio personalities to distant stations. Radio networks such as Westwood One and Jones Radio Networks have utilized satellite delivery to provide radio programming ranging from individual shows to complete radio formats (Radio and Records, 2002). According to the 2002 Radio and Records Directory, there were more than 70 syndicated daypart personalities distributed via satellite by various companies. These shows include personalities like Rush Limbaugh, Kidd Kraddick, and Delilah (Radio and Records, 2002). In addition to using voice-tracking and satellites to provide program content, large radio companies have also experimented with developing radio format franchises. Mathews (2002) documented the Clear Channel Communications strategy for the "KISS" music format. According to Mathews, there were 47 Clear Channel stations throughout the country programming the "KISS" format. In fact, the strategy is "an effort to create a national KISS brand in which stations share not just logos and promotional bits but also draw from the same pool of on-air talent" (Mathews, 2002, p. 1). By using out-of-market talent, this may have an effect on the perceived relationship between radio personalities and local listeners. Research in the area of Radio Most of the academic research dealing with the consolidation of the local radio industry has dealt with issues of market structure (Chambers, 2001; Williams, 1998; Drushel, 1998). Other radio studies have focused on radio programming issues (Wirth, 2002, 2001). Overall, these studies have focused on the structural changes resulting from the drastic local ownership changes in radio markets. In general, the studies confirmed the concentration of ownership (Drushel, 1998), the loss of local owners (Chambers, 2001) and the existence of format oligopolies at the national level (Wirth, 2001). Although these studies have examined the structural implications of local radio consolidation, there appears to be a research void in terms of effects of consolidation on actual listeners. In general, research in the area of radio use has been targeted to a listener's personal connection with radio and different types of radio programming. Specifically, recent studies in the area of radio listeners have focused on issues including listener involvement with talk radio (Bennett, 2002; Rubin & Step, 2000; Hofstetter & Gianos, 1997), radio news credibility (Powell & Ibelema, 2000), meanings of radio to teenagers (Carroll et al., 1993) and listener attitudes toward radio promotional announcements (Potter & Callison, 2000). For the most part, listeners to radio develop relationships with radio stations to satisfy various gratifications (Rubin & Step, 2000). The selection of a radio station involves matching personal belief systems (Edwards & Singletary, 1989). In addition, other research indicated that talk radio listeners felt that they were active participants in the listening experience (Tankel, 1998). These types of relationships suggest that listeners do more with the radio than just turn it on. Since 1996, large radio group owners have changed the programming strategies for stations within the group and these changes may have had some sort of effect on listener perceptions. Before the development of large radio corporations like Clear Channel, Citadel and Cumulus, research in the area of programming strategy indicated the existence of corporate format strategies. Greve (1996) found that even before the 1996 Telecommunications Act that many stations mimicked corporate formats. Borrell (1995) discovered that corporations were the most likely radio owner type to adopt satellite programming. Research Questions and Hypotheses Based on the recent research in radio listeners, it would seem logical to assume that radio listeners develop relationships with particular stations. Part of that relationship includes the information communicated by that station in terms of programming, advertising and promotions. The trends of consolidation and the development of non-local strategies seem to suggest that audience members might be able to discern those changes. In general, the majority of recent research in the area of radio consolidation and the public interest focused on the economic effects of the Telecommunications Act of 1996 (Berry & Waldfogel, 2001; Chambers, 2001; Wirth, 2001; Drushel, 1998; Williams, 1998). There has been some research that analyzed news programming on radio (Lacy & Riffe, 1994; McKean & Stone, 1994; Riffe & Shaw, 1990). While these studies have provided valuable insight into the structure of the radio industry in radio markets, the research has not measured attitude and opinion about radio consolidation among radio listeners. As policy, localism has ranged from ownership to programming issues. Although deregulation has relaxed the ownership and programming standards for localism, previous policies seem to provide common themes related to the public interest standard. First, radio stations are licensed to a local community. The license to broadcast requires at least one management employee and one staff employee. While the main studios of the station can be 25 miles away, these employees operate a transmitter that serves a local community. Despite radio deregulation, there remains the requirement of a minimal level of 'management' operation of a station. Therefore, there should be some audience sense of local management operation of a station. Some of these daily operation activities might include the owner, the management, and the air personalities. In particular, audiences may have a perception of the level of involvement of owners, managers and air personalities. Likewise, the audience may perceive the business of broadcasting. A second theme of localism policy has been anchored in the programming of the station. Although the FCC no longer requires certain types of programming on stations, the provision of local news, weather, sports, political information and other types of program elements would seem to help stations connect with local audiences. The audience may discern the different types of program elements. Based on these themes of localism and the lack of research into this area from an audience perspective, this study will seek answer to the following research questions. The first two research questions focus on the core themes of localism: RQ1: What are the general audience perceptions toward the management theme of localism? RQ2: What are the general audience perceptions toward the programming theme of localism? The final research question deals with the recent consolidation of radio. Specifically, critics have claimed that the trends of consolidation and out-of-market programming have led to a negative effect on the public interest. The third research question explores the relationship between radio ownership type and localism.
RQ3: Are there differences in audience perceptions toward localism between group-owned stations and independent stations? Method Overview US households were contacted through a telephone survey center, and qualifying individuals were asked to respond to a series of questions concerning perceptions of localism in terms of the radio station they listened to the most. English-speaking persons over the age of 18 were eligible respondents. A purchased list of 3890 contiguous-US household telephone numbers served as the initial sample. Of these numbers, 662 were not called and 597 were business numbers, fax numbers or numbers that had been disconnected. A total of 2595 numbers were deemed to represent households, and of these 919 eligible respondents were contacted. Ineligible non-English speaking respondents answered 36 calls. From the eligible households were an eligible person answered the telephone, callers completed 293 interviews. As the goal was to record 500 interviews, two other number lists were generated from the first. Two randomly generated digits were added to all numbers from the initial list resulting in an additional 7780 telephone numbers. For example, the random digits 5 and 7 were added to all initial numbers transforming (768) 639-4412 to (768) 639-4417 and (768) 639-4419. These newly generated numbers had a higher problem incidence but nonetheless resulted in 262 additional completed interviews from the 2117 numbers actually used. In these additional calls, 1206 calls resulted in an eligible person actually answering the telephone. Ultimately, the rate of eligible, answering households who responded to the survey was 26.1 percent. This cooperation rate seems to be inline with recent survey research and reflects the declining response rates resulting from increased use of answering machines, caller identification systems, and the increased magnitude of telephones solicitation (Massey, O'Connor, & Krotki, 1997). Procedure Trained student callers conducted the telephone survey from a 15-station telephone bank housed at a large Southwestern university. Calls were made Feb. 17 20, Feb. 24 27, and March 3 5 nightly from 5:30 p.m. CST to 9 p.m. CST. States in the Eastern Time Zone were called from 5:30 p.m. CST to 8 p.m. CST; states in the Central Time Zone from 6 p.m. CST to 9 p.m. CST; states in the Mountain Time Zone from 6:30 p.m. CST to 9 p.m. CST; and states in the Pacific Time Zone from 7:30 p.m. CST to 9 p.m. CST. Callers recorded call disposition noting completed interviews, no answers, answering machines, refusals, language barriers, disconnects, fax numbers, and business numbers. Numbers that resulted in answering machines or no answers were called a maximum of seven times. Callers introduced themselves to potential respondents by giving their name, university affiliation and providing a statement concerning the academic purpose of the call and promising no attempt to sell goods or services. Callers then asked to speak to the person at least 18 years of age who experienced the most recent birthday. This method of selecting respondents has proven effective at ensuring broad representation as demographics are equally distributed across the calendar year (Salmon & Nichols, 1983). Data Collection and Measures A computer assisted data entry system prompted callers through the 21-item questionnaire, and responses were entered directly into a computer data file hosted on a main server. The measures were designed to collect three types of data through a joining of experimental and survey methods. Initially, callers asked respondents to provide the radio station that they listen to the most. Since this was a nationwide survey, respondents provided call letters or slogans of the station they identified as listening to the most. After collection, the station call letters were traced in industry resources such as the most recently published Broadcasting & Cable Yearbook and the Radio & Records online ratings database (www.rronline.com) for ownership, format and ratings information. Although there might be validity concerns related to recent ownership changes, every effort was made to gain the most up-to-date information from these resources. Ownership type was coded as either group-owned or independently-owned based on information from the Yearbook. Format and ratings information were also recorded. Each of these station elements were matched by respondents who identified a station. Once the callers identified the station, interviewers asked a series of 11-point items related to ownership and program elements. Respondents were asked: "Thinking about the radio station you listen to the most, please rate the following statements on a 1 to 10 scale where 1 means "I Strongly Disagree" and a 10 means "I Strongly Agree." The items are listed in the Appendix. Gender, education and age were also collected. Results Overall, there were 382 usable responses from the data set. Since some respondents were not able to clearly identify a radio station by call letter or slogan, some of the responses had to be coded as missing. In addition, there were some station identifications that did not match the information provided in the industry data. These responses were also unusable for the analysis. Despite these setbacks, the sample included 54 percent females and 79 percent identified as Caucasian. The education category included 5.5 percent with some high school, 17.5 percent with high school, 28.5 percent with some college, 32.2 percent with a college degree and 16.2 percent with a graduate degree. Localism From a localism perspective, the overall sample appeared to indicate some degree of a connection with the local program elements rather than the local operation elements. The overall mean scores for each localism item were reported in Table 1. At first glance it would appear that the respondents rated the localism items related to ownership lower than the items related to the program choice. Table 1. Mean Scores for Localism Scale Items Localism Item Mean Std. Deviation Ownership The air personalities live in my community 6.5 3.8 The managers of the station live in the local community 5.7 3.4 The money the station makes stays in the local community 5.4 3.1 The owners of the station live in the local community 4.5 3.5 The station has personalities who work at other radio stations 3.5 3.4 Program Elements The station provides local news 8.1 2.7 The station promotes the local community 7.7 2.9 The station provides local weather information 8.4 2.6 The station provides local sports information 7.1 3.5 The station provides educational programming 4.2 3.8 The station provides children's programming 2.03 2.9 The station plays a variety of music 4.6 3.7 The station provides information about local politics 6.2 3.5 The station provides public service announcements 7.6 2.9 *Note: The item for 'personalities who work at other stations must be interpreted according to the reverse scale.
In terms of the first research question, the lowest rated item was that the owners lived in my community (M = 4.5). The highest rated items were related to the air personalities. For the most part, it appeared as if the respondents felt connected with the air personalities at the station they listened to the most. The second research question sought answers to the perceptions of the program-related localism items. From the information provided in Table 1, it would appear that respondents rated local news and weather as the highest. Not surprisingly, educational programming and children's programming rated the lowest (M = 4.2, M = 2.03). The final research question examined the relationship between group ownership and perceptions of localism. Overall, the respondents reported stations from 150 different radio owners. The list of the top 20 most reported radio owners is listed in Table 2. By far, the owner of stations most listened by the respondents was Clear Channel Communications which accounted for almost 25% of the total. Clear Channel's dominance accounted for almost double the number of stations for the nearest owner, Infinity at 12.3% of the total. Table 2. List of the Top 20 Radio Owners Owner Name Frequency % of Total Clear Channel Communications 87 23% Infinity 47 12.30% ABC 12 3.10% Cumulus 12 3.10% Citadel 8 2.10% Entercom 8 2.10% Greater Media 8 2.10% Emmis 5 1.30% Radio One 5 1.30% Midwest Communications 4 1% Bonneville 4 1% Cox 4 1% Fisher Broadcasting 3 0.80% LBJ-S 3 0.80% Minnesota Public Radio 3 0.80% Salem 3 0.80% Susquehanna 3 0.80% WNYC Radio Corporation 3 0.80% Central Valley Broadcasters 2 0.50% Crawford Broadcasting 2 0.50%
Each owner was coded as either a group owner or an independent owner. The results showed that there were 287 groups and 75 independents. Independent samples t-tests were used to compare the differences between the group-owned and independently-owned stations for each of the localism items. As reported in Table 3, the independent stations rated higher on the ownership issues than group-owned stations. In particular, listeners to the independent stations rated 'their' managers, money and owners as living in their community more so than listeners to group-owned stations (managers, t-value = 3.297, p<.001; money, t-value = 4.052, p<.0001; owners, t-value = 4.64, p<.0001). For the program elements, the independent stations rated their station as providing more children's programming (t-value 2.94, p<.003), educational programming (t-value = 6.865, p<.0001) and public service announcements (t-value = 2.439, p<.015). Of all the localism items, sports programming was the only significant element for group-owned stations with a mean higher than independents (t-value = -3.351, p<.001). Table 3. Comparing the Radio Ownership Types by Localism Item Localism Item Group Mean Independent Mean Ownership The air personalities live in my community 6.5 6.8 The managers of the station live in the local community** 5.3 6.8 The money the station makes stays in the local community** 5.1 6.6 The owners of the station live in the local community** 4.1 6.2 The station has personalities who work at other radio stations 3.5 3.1 Program Elements The station provides local news 8.2 8.05 The station promotes the local community 7.7 8.1 The station provides local weather information 8.5 8.1 The station provides local sports information** 7.4 5.9 The station provides educational programming** 3.5 6.7 The station provides children's programming** 1.7 2.8 The station plays a variety of music 4.5 4.6 The station provides information about local politics 6.1 6.8 The station provides public service announcements* 7.4 8.3 *p<.05, **p<.01
Although the single-item measures provide an interesting examination into audience preference, the measures appeared to have relevance for future research. Ratings on the nine items were subjected to principal component analysis without rotation of components. Two factors emerged, accounting for 58.4% of the variance (42.3% and 16.1%, respectively). All individual items loaded higher on factor 1 (Eigenvalue 3.8) than they did on factor 2 (Eigenvalue 1.5), with Factor 1 showing high loadings on all items, namely The air personalities on the station live in my community (.54); The station provides local weather information (.69); The station provides local news (.77); The station promotes the local community (.79); The managers of the station live in the local community (.69); The station provides local sports information (.67); The money the station makes stays in the local community (.57); The owners of the station live in the local community (.53); The station provides information about local politics (.54). Likewise the measure showed a high degree of inter-item consistency (_ = .83). This warranted construction of a composite measure, labeled Station Localism, by averaging the ratings across all nine items into a single value. Based on this factor, an additional t-test indicated an overall difference between independent (M = 7.1) and group (M = 6.5) stations (t-value = 1.913, p = .056). A difference that was not statistically significant at the .05 level. While the overall localism index failed to account for a statistically significant difference, it did appear that the scale has merit for additional analyses. Discussion In general, the results appeared to confirm what recent economic analyses have shown in local radio markets. Overwhelmingly, group owners like Clear Channel Communications and Infinity Broadcasting accounted for approximately 35 percent of all station owners. Currently, Clear Channel Communications controls more than 1,200 radio stations. Likewise, all of the top ten reported radio owners were classified as group owners. These results seem to mirror the current trends of consolidation in radio markets. From a localism perspective, analysis of the single-item measures indicated that the audience rates the programming on stations as more local than the ownership of the stations. Subsequent analyses found that there were significant differences between independent and group owners for three of the five items classified as 'ownership' localism measures and three of the nine items in the 'programming' localism measures. These findings suggest that there may be some negative consequences of consolidation on radio listeners. In particular, it appeared as if those who listened to independent stations felt that their owners, managers and money were more likely to stay in the local market than those who reported listening to group owned stations. Before making conclusions about deregulation policy, there were definite limitations to this study. First, there was a cooperation rate of less than 30 percent. Of those respondents, there were only 382 usable responses. Despite this lower than average response rate, the information collected did provide some valuable insight into audience perceptions of localism. Related to the responses, the matching of call letters and slogans may not be as valid as being able to have respondents clearly identify the radio stations in their markets. Likewise, by using yearbook information, there may be validity concerns for some of the stations who might have had a transfer in ownership since the last printing of the information. Although there were some limitations to the study, the data seemed to offer a few conclusions related to policy. First, recent research has indicated a loss of local ownership in radio markets (Chambers, 2001). The present findings suggested that the changes in ownership might have led to lower ratings on some of the measures of ownership. 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