Lower-Power FM Reintroduced

It's been a messy week in music industry news. In a continuation of the music industry's crusade to alienate internet-using music lovers, EMI unleashed a slew of lawsuits against several internet start-ups, including their investors. The RIAA unveiled massive layoffs. MusicFIRST, a music industry lobbying group, pushed to tax radio stations. And LiveNation and TicketMaster are fighting for a merger in Congress.

There is some goods news. Congress has reintroduced the Community Radio Act in the House of Representatives. The Community Radio Act is a bi-partisan bill promoting low-power FM Radio and failed to pass in 2007. It's co-sponsored by Reps. Mike Doyle (D-Pa) and Lee Terry (R-Neb).

Low-power FM (LPFM) allows for more localized broadcasting. Churches, unions, high schools, and colleges could all occupy space on the radio dial to reach out to their individual audience. Because a LP signal is 100 watts or less, it only reaches a radius of about 5 miles. Five miles is powerful enough to reach a community but too weak to disrupt the signal of stronger commercial stations.

Since the Telecommunication Act of 1996, radio has experienced massive consolidation. Future of Music Coalition's report on deregulation revealed that Clear Channel and Viacom controlled 42% of listeners, and playlists suffered from lack of diversity across formats. Internet radio has stepped in to offer diversity where terrestrial radio has failed, and LPFM returns to terrestrial radio to add diversity. Internet radio cannot be consumed by mobile commuters without internet access or satellite radio. Thus, there is a demand for diversity in terrestrial radio, and LPFM can fill the void.

Opponents of LPFM cite "crosstalk" as a major objection. They argue that LPFM signals could interfere with nearby commercial stations allowing both broadcasts to be heard simultaneously. The National Association of Broadcasters (NAB) is one such opponent. NAB was a staunch supporter of the Telecommunications Act of 1996, which led to deregulation and rapid loss of localism in radio. NPR was also a surprise opponent of LPFM, claiming to support diversity but harping on the "crosstalk" issues that scientists debunked.

The verdict on LPFM is still on the table, but things look more promising in 2009 than in 2007. Look to Future of Music Coalition for future developments in LPFM.