Sunday, February 27, 2011

Deregulation of the Radio Industry: Positive or Negative Outcome?


Deregulation has changed the radio and the record industry in many ways both positive and negative. The invention of the radio changed the world by a storm. The radio became the medium for entertainment and news. During its prime-time, everyone had at least one radio in his or her household. This new technology changed the record industry because eventually people could hear new music on the radio instead of buying records. However, newer technologies such as the television caused the radio to have decreased importance as the main medium for entertainment and news.


Even though the radio industry is not the main medium for entertainment and news, the industry has still flourished for many reasons specifically deregulation. Deregulation allowed radio companies to purchase and own multiple stations within the same genre (talk, sports, music stations). Before deregulation companies that owned radio stations were allowed to only own one radio station in each genre. With this form of regulation out of the way allowed the radio industry to survive. Being allowed to purchase and own multiple stations within the same genre helped the companies cover the costs they spent on the radio industries, creating a better revenue stream. The one major down side of deregulation is that there really is no censorship of what is said and played on the radio. Before, when the radio was at its prime-time it was taboo to swear and talk about certain things on the radio such as sex, alcohol, etc. Today certain obscenities are said on the radio, even though it is technical not allowed it still happens. Yes, certain obscenities and topics are bleeped out, but it is very hard to censor what people listen to, particularly children. As a whole deregulation enabled the radio industry, to survive financially, but at the same time it undermined the importance of censorship on certain topics.

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