Feingold Introduces "Competition in Radio and Concert Industries Act” Senate Commerce Committee to Hold Hearings On Thursday, Feingold to Testify January 28, 2003 Washington, D.C. – U.S. Senator Russ Feingold today introduced the "Competition in Radio and Concert Industries Act," as the Senate Commerce Committee prepares to hold a hearing on the issue later this week. Senator Feingold will be the lead witness at the hearing. Feingold's legislation would help consumers and small and independent radio station owners and promoters by prohibiting anti-competitive practices in the radio and concert industries. Senator Zell Miller (D-GA) is an original co-sponsor of this legislation. "The time has come for Congress to address the issue of consolidation in the radio industry," Feingold said. "Since originally introducing this legislation in June of 2002, I have seen a groundswell of interest both in Congress and among artists, consumers, independent radio stations, and local promoters in restoring fairness to radio. My legislation will reduce concentration and crack down on anti-competitive practices, such as the new pay-to-play system." Feingold's legislation will: • Help small and independent radio owners and promoters by curbing concentration to level the playing field in the marketplace • Help 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 shake down the music industry in exchange for playing their songs Feingold's legislation has been endorsed by Consumers Union, the National Association of Black Owned Broadcasters (NABOB), the Spanish Broadcasting Service, 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, and concert promotion services or 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.

# # #