Feingold Introduces "Competition in Radio and Concert Industries Act" Promotes Legislation to Help Independent Radio Station Owners, Promoters and Consumers June 27, 2002 Washington, D.C. – U.S. Senator Russ Feingold today introduced the "Competition in Radio and Concert Industries Act." Feingold held a press conference with representatives of the artist, consumer and labor communities to outline his legislation. Feingold's legislation would help small and independent radio station owners and promoters, and consumers by prohibiting anti-competitive practices in the radio and concert industries. "I have worked hard to curb the influence of special interests," Feingold said. "Radio is one of the most important mediums we have for exchanging ideas and expressing our creativity. I am committed to fairness and competition and to ensuring that cross-ownership of promotion services or venues is not used to hurt musicians, concert promoters, or other radio stations." Feingold's bill: Helps small and independent radio owners and promoters by curbing concentration to level the playing field in the marketplace Helps consumers by curbing concentration to promote diversity of information and bring down high ticket prices Addresses anti-competitive practices by stopping the current shakedown system, where some radio corporations allegedly leverage their market-power to shakedown the music industry in exchange for playing their songs "I have been hearing from independent radio stations and concert promoters in Wisconsin who are being pushed out by anti-competitive practices that are in turn a result of concentration," Feingold said. "The Telecommunications Act of 1996 opened the floodgates for concentration in the radio and concert industry, and that's exactly why we are here today – because we need to repair the damage that has been done through this anti-competitive behavior." Feingold was joined at the press conference today by representatives of Consumers Union, The National Association of Black Owned Broadcasters (NABOB), The American Federation of Television and Radio Artists (AFTRA) and The Future of Music Coalition. # # # Outline of the Competition in Radio and Concert Industries Act Section 1: Title: The Competition in Radio and Concert Industries Act Section 2: Findings and Purpose To promote the values embraced by the First Amendment to the Constitution through diverse radio programming based on local input. This bill also helps facilitate better service to local communities by increasing competition in radio programming, content, radio advertising, concert venues, and concert promotion. Section 3: Prohibit the use of radio to reduce public access to diverse radio and concert programming This section prohibits any entity that owns radio stations, concert promotion services, venues from acting in an anti-competitive manner. This section directs the Federal Communications Commission (FCC) to revoke the license of any radio station that uses its cross-ownership of promotion services or venues to discriminate against musicians, concert promoters, or other radio stations. Section 4: Enhanced scrutiny of further consolidation in radio This section requires the FCC to scrutinize the effect of national and local concentration on independent radio stations, concert promoters and consumers. This section also prevents any upward revision of the limitation on multiple ownership of radio stations in local markets. Section 5: Review of use of privately-controlled audience measurement systems for determination of local markets of radio stations This section requires the FCC to ensure that any measurement of local radio markets is independent of and not subject to manipulation. Section 6: Modification of attributable interest in radio stations and limitations on local marketing agreements This section closes a loophole in the local marketing agreement regulations to ensure that any station that receives a significant amount of its play lists or advertising from another station is considered under the local ownership cap. Section 7: Modification of regulations on announcement of payment for radio broadcast This section closes a loophole in the FCC regulations covering "Payola" – pay for play – to ensure that radio station broadcasts are not improperly influenced by the payment, whether directly or indirectly, to the licensee of any radio station unless an appropriate sponsorship identification announcement is made. Section 8: Limitation on suspension or waiver of rules The FCC may suspend these rules only when it determines that there is a compelling justification. Section 9: Annual reports The FCC is required to issue an annual report on compliance with these rules and industry practices. It is required to consult independent sources and to solicit public comments.

# # #