The effect of deregulation on today's radio

The radio and recording industry’s relationship with the FCC, or Federal Communications Commission, has been ever-changing since the public radio emerged in the 1920’s. The means of their relationship was permanently altered when a trend called deregulation presented itself 60 years later in the 1980’s. Deregulation is a slow progression of reducing government’s control and regulation on the radio industry. Today, it’s control is significantly reduced.

Radio companies, such as Clear Channel, can own no more than 8 stations in a market. Though, they have bended that rule by merging with other companies to maximize station ownership, creating corporate chains. In the 1920’s, the number was strictly limited. Also, these stations had to own a license for their station. The license required the station to only broadcast in their specific frequency and also restricted the content of material the station produced depending on public interest. If the station did not follow the license’s rules, they could be removed from the radio. So, why has the FCC calmed it’s restrictions on radio companies?

Radio was a new technology back in the 1920’s in which the range of frequencies in the electromagnetic spectrum was a mystery. This created a channel scarcity, which is when there are an insufficient number of frequencies therefore needing the FCC to license and limit the present stations. Though, with advancement in radio technology, there are plenty of frequencies available now allowing a wider range of stations, increasing the number of listeners and reducing FCC’s control.