Clear Channel pushing for indecency regulations on satellite
Posted: July 12, 2005 10:36 pm
Mark Mays: Giving Clarity To Clear Channel
July 08, 2005
By Tamara Conniff
Mark Mays, president/CEO of Clear Channel Communications, is full of energy. He bounds into the Billboard Radio Monitor offices ready to talk about the spinoff of Clear Channel Entertainment, Jack radio, indecency legislation and a cause very close to his heart: City of Hope.
Earlier this year, Clear Channel Radio introduced a "Less Is More" campaign to reduce the commercial spotload. How is this strategy working?
As you look at radio, over the next five to 10 years, between satellite radio, iPods and cell phones, we're really competing for people's time. So what we have to do is make sure we're providing a compelling entertainment proposition for them. "Less Is More" is about creating a great environment. We're doing that today rather than waiting five years from now. We're trying to be pre-emptive in a lot of aspects.
Yes, it's a short-term revenue loss for us, but the listening environment is getting much better. When our stations sound better, people listen more. We're seeing it in our ratings.
As the audience increases, the price of ads and airtime goes up. Will you be able to make up the revenue you are losing?
Historically, advertisers have only bought 60-second advertisements. Well, we've gone to advertisers and said, "Listen, you can take your same advertising budget and get a better reach. You can reach more people if you use 30-second and 15-second advertisements. It can be just as effective, reach more people and get a better reach frequency at a lower cost."
Do you think 60-second ads are on their way out?
It has just been archaic. Radio has not changed in 25 years. Around the world, no one sells 60-second advertisements. It's a cultural challenge to change it. It is something we've been talking [about] and working on for a long time, but to actually get up and change it is a process.
Is it starting to happen?
Oh, yeah! Even the big national advertisers are starting to switch.
Do you see the iPod, satellite radio or podcasting as a competitive threat?
I don't think there is one particular competitor that's going to supplant radio. It's just going to be lots of different competition. Satellite radio is not going to replace radio in the near future . . . The great thing about radio is that it's local—it's focused on local content. Sirius and podcasting can't create local content. Podcasting is a great thing. Have you listened to any of these podcasts? It is painful.
What do you think of the Jack format?
Historically, the wide-variety formats that are big, brush off eventually.
Why is that?
At first you love the eclectic-ness of it, and you think, "Oh, wow, I haven't heard that song in a long time." However, then you think, "OK, now that I've heard it, I don't want to hear it for the fourth time."
We're trying Jack in different markets. I applaud the radio industry for doing things differently. I hope it sticks, because it'll be great.
Why is Clear Channel pushing for indecency regulations on satellite and cable?
We're pushing for a level playing field. If you're going to regulate us, you have to regulate them. If you're not going to regulate them, then don't regulate us.
It's not our course to determine indecency. We personally feel like people can regulate themselves. People can push the "off" button. Clearly, that's not what Congress thinks right now. If the theory is that we broadcast over the public spectrum, that's what satellite radio does too. You can't all of a sudden force all this content over to satellite radio.
Why are you spinning off Clear Channel Entertainment?
I feel like it's our job to create operating environments for people to grow their businesses as fast as they can. We're taking entertainment and putting it outside the Clear Channel umbrella. Underneath that umbrella we have regulatory hurdles. Taking it outside of that umbrella is an opportunity to grow; it allows [the entertainment operation] to get into businesses it wasn't in. It aligns the interest of management.
Is it a disappointment that the vision for all of Clear Channel's properties to work together and "synergize" didn't work? It sounds like the implementation of that was much more difficult than expected.
I think there is a lot of that in business. We think of it as getting the best of both worlds. By bringing entertainment into the organization, we've developed all these relationships. So all those synergies that did exist can now still exist.
When you bought the entertainment property, were you thinking at some point you would spin it off?
No. As soon as 9-11 happened, the world changed a lot. The live-entertainment business wasn't nearly as robust as it once was. As things change, you try to evolve your business. This realignment lets us evolve with the marketplace and with consumer preferences.
How do you feel about being honored by City of Hope?
City of Hope has been so involved in the music industry but never really brought in the radio and touring aspect of it. From our perspective, we kind of bring that to the table for them. So it's a great opportunity for them to expand their reach.
We're excited to be a part of it. Our goal is to raise money for them so they can do what they need to do—just go out there, get the cold hard cash and give it to them. These are people getting out there and solving diseases and actually curing them. It's fascinating. It's much harder than going out there and selling radio airtime. ••••
City of Hope annually honors an outstanding member of the music community with the Spirit of Life Award. This year, Mays will be feted during a star-studded gala Sept. 29 in Los Angeles. The event will raise funds for City of Hope's extensive research into the treatment of cancer, diabetes, HIV/AIDS and other diseases. Mays is ready to put his radio resources to work for the cause and plans to do spots and possibly a fund-raising drive.
July 08, 2005
By Tamara Conniff
Mark Mays, president/CEO of Clear Channel Communications, is full of energy. He bounds into the Billboard Radio Monitor offices ready to talk about the spinoff of Clear Channel Entertainment, Jack radio, indecency legislation and a cause very close to his heart: City of Hope.
Earlier this year, Clear Channel Radio introduced a "Less Is More" campaign to reduce the commercial spotload. How is this strategy working?
As you look at radio, over the next five to 10 years, between satellite radio, iPods and cell phones, we're really competing for people's time. So what we have to do is make sure we're providing a compelling entertainment proposition for them. "Less Is More" is about creating a great environment. We're doing that today rather than waiting five years from now. We're trying to be pre-emptive in a lot of aspects.
Yes, it's a short-term revenue loss for us, but the listening environment is getting much better. When our stations sound better, people listen more. We're seeing it in our ratings.
As the audience increases, the price of ads and airtime goes up. Will you be able to make up the revenue you are losing?
Historically, advertisers have only bought 60-second advertisements. Well, we've gone to advertisers and said, "Listen, you can take your same advertising budget and get a better reach. You can reach more people if you use 30-second and 15-second advertisements. It can be just as effective, reach more people and get a better reach frequency at a lower cost."
Do you think 60-second ads are on their way out?
It has just been archaic. Radio has not changed in 25 years. Around the world, no one sells 60-second advertisements. It's a cultural challenge to change it. It is something we've been talking [about] and working on for a long time, but to actually get up and change it is a process.
Is it starting to happen?
Oh, yeah! Even the big national advertisers are starting to switch.
Do you see the iPod, satellite radio or podcasting as a competitive threat?
I don't think there is one particular competitor that's going to supplant radio. It's just going to be lots of different competition. Satellite radio is not going to replace radio in the near future . . . The great thing about radio is that it's local—it's focused on local content. Sirius and podcasting can't create local content. Podcasting is a great thing. Have you listened to any of these podcasts? It is painful.
What do you think of the Jack format?
Historically, the wide-variety formats that are big, brush off eventually.
Why is that?
At first you love the eclectic-ness of it, and you think, "Oh, wow, I haven't heard that song in a long time." However, then you think, "OK, now that I've heard it, I don't want to hear it for the fourth time."
We're trying Jack in different markets. I applaud the radio industry for doing things differently. I hope it sticks, because it'll be great.
Why is Clear Channel pushing for indecency regulations on satellite and cable?
We're pushing for a level playing field. If you're going to regulate us, you have to regulate them. If you're not going to regulate them, then don't regulate us.
It's not our course to determine indecency. We personally feel like people can regulate themselves. People can push the "off" button. Clearly, that's not what Congress thinks right now. If the theory is that we broadcast over the public spectrum, that's what satellite radio does too. You can't all of a sudden force all this content over to satellite radio.
Why are you spinning off Clear Channel Entertainment?
I feel like it's our job to create operating environments for people to grow their businesses as fast as they can. We're taking entertainment and putting it outside the Clear Channel umbrella. Underneath that umbrella we have regulatory hurdles. Taking it outside of that umbrella is an opportunity to grow; it allows [the entertainment operation] to get into businesses it wasn't in. It aligns the interest of management.
Is it a disappointment that the vision for all of Clear Channel's properties to work together and "synergize" didn't work? It sounds like the implementation of that was much more difficult than expected.
I think there is a lot of that in business. We think of it as getting the best of both worlds. By bringing entertainment into the organization, we've developed all these relationships. So all those synergies that did exist can now still exist.
When you bought the entertainment property, were you thinking at some point you would spin it off?
No. As soon as 9-11 happened, the world changed a lot. The live-entertainment business wasn't nearly as robust as it once was. As things change, you try to evolve your business. This realignment lets us evolve with the marketplace and with consumer preferences.
How do you feel about being honored by City of Hope?
City of Hope has been so involved in the music industry but never really brought in the radio and touring aspect of it. From our perspective, we kind of bring that to the table for them. So it's a great opportunity for them to expand their reach.
We're excited to be a part of it. Our goal is to raise money for them so they can do what they need to do—just go out there, get the cold hard cash and give it to them. These are people getting out there and solving diseases and actually curing them. It's fascinating. It's much harder than going out there and selling radio airtime. ••••
City of Hope annually honors an outstanding member of the music community with the Spirit of Life Award. This year, Mays will be feted during a star-studded gala Sept. 29 in Los Angeles. The event will raise funds for City of Hope's extensive research into the treatment of cancer, diabetes, HIV/AIDS and other diseases. Mays is ready to put his radio resources to work for the cause and plans to do spots and possibly a fund-raising drive.
