Preparations(?) for an LPFM Showdown

Posted by Mitchell - February 26, 2004 (entry 153)

Clear Channel has announced that it has suspended Howard Stern's radio show. This comes on the cusp of Clear Channel firing Bubba the Love Sponge, a Florida DJ renowned for his sexually explicit radio show. Clear Channel is evidently carrying through on its so-called "responsible broadcasting intiative".

It could be fallout over the Super Bowl/Janet Jackson flashing, but methinks that Clear Channel is scared of the resurrected LPFM initiative which has serious traction in Congress (and across party lines--John McCain has announced right away that he vowed to bring LPFM to law). Clear Channel is probably taking such initiatives to show that it's a "responsible" broadcast owner and intercept LPFM at the pass, because it's quite likely that LPFM on a mass scale would depress the value of the monopoly radio licenses which are the heart of Clear Channel's profits.

In other news, in a ruling that would make Regis Philbin proud: RCN is now being penalized $1 million dollars per day for its financial negligence against the city and against CAN TV. It just so happens that RCN is also filing for Chapter 11 once it gets its creditors happy.

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