Breaking Up Is Hard To Do

By David Mathison

In “Sleeping With The Enemy,” Jennifer Nix argues that progressive authors need to stop enriching corporate-owned book publishers, and partner with independents instead.

But when it comes to America's abusive relationship with media monopolies, breaking up is hard to do. Nix’s numerous citations of “sleeping with the enemy” are not limited to just book publishing – these slumber parties permeate all media - books, music, radio, TV, cable, film and print. They include every artist that trades their intellectual property to a conglomerate for their virtue (songs, books, films, etc), each community that hops into bed with a conglomerate in exchange for monopoly rights to our property (the public airwaves and cable rights-of-way), consumers that snuggle up to conglomerate media at bedtime, and elected officials that swap their integrity for corporate media favors.

In “Making Unnecessary Enemies,” David Corn responded that he would like to work with an Indy house “if the appropriate deal can be arranged.”

But until recently, Indies couldn’t match the distribution muscle and financial rewards offered by the majors. Due to unprecedented media ownership concentration, just five companies own most newspapers, record labels, concert venues, movie studios, cable companies, billboards, book publishers, and radio and TV stations. They control almost everything we see, hear and read. And the most important parts of the media value chain – artists on the one hand, and communities and consumers on the other – unnecessarily suffer most from these unholy sleeping arrangements:

Book Publishing: Just six firms dominate US book publishing. Two huge national retail chains sell 80% of books. Sales from independent booksellers dropped from 42% in 1992 to just 20% in 1998. Publishers give big advances to authors with a built-in audience, like Bill Clinton. Little is left for mid-list authors and new writers. If they are “lucky” enough to be signed, most authors receive just 7-15% of royalties. Less than 1% of writers make more than $50k a year, just 6% of writers make a living as authors. As Pat Holt, former book review Editor and Critic for the San Francisco Chronicle, points out, this may be why authors “get back” at the greedy and manipulative people in the publishing industry.

Music: The four largest music groups account for 87% of US album sales. The top ten retailers generate 80% of sales. Recent congressional anti-trust investigations found that artists suffer under unfair contracts and accounting practices, and that “pay-for-play” requires huge “promotional” fees of up to $400,000. If an artist is “lucky” enough to be signed and can sell 500,000 CDs, they may still end up broke. As shown in “Courtney Love Does the Math” and Steve Albini’s “The Problem With Music,” the end result of a seven-figure advance is that “the band members may as well be working at 7-11.”

Radio: In 98% of all local markets, the top four radio station owners control 70% or more listeners. Before the Telecommunications Act of 1996, Clear Channel owned just 65 radio stations. It is now has more than 1,240 radio stations, 37 TV stations, and more than 770,000 billboards. Clear Channel has a 95% market share of all concerts in the US. In 2002, it sold 30 million concert tickets, 26 million more than its nearest competitor. A Cornell University study found that Clear Channel’s dominance in radio makes it harder for local musicians to get airplay on local radio.

Cable: The ten largest cable companies account for over 89% of US cable revenues. The top seven possess effective monopolistic control over cable channels and programming to 80% of the nation. Just three media companies own all of the cable news networks. In the San Francisco Bay area alone, Comcast holds over 100 cable franchises, most of which function as monopolies. In an article titled “How About The Fat Chance Channel,” Broadcasting and Cable reports “new Nets need at least $100 million just to break even.”

Television: Since 1995, there has been a 40% decline in the number of companies owning commercial TV stations. Over 79% of commercial TV stations are affiliated with one of the top seven networks. In 1977, twelve of the top twenty suppliers of prime-time programs were independent production companies such as Lorimar, Mary Tyler Moore, and Aaron Spelling. Since the repeal of the financial-syndication (fin-syn) rules in 1995, the three major broadcast networks have increased their control over prime time programming by 450%, to 65%. By 2002, the top six networks owned 82% of prime time programs, and independently owned programs accounted for only four hours or 6%. As the NY Times reported, “independent TV producers have virtually disappeared.”

Film: There have been more federal anti-trust decrees in the film industry than in any other mass media market. Despite this, the ten largest movie studios still account for 99% of US theater revenues. The average cost to produce a Hollywood film is $70 million. Even if a documentary or an independent film gets made, it is extremely difficult to get wide theatrical release – just ask Michael Moore. The top ten theater chains control 70% of screens. Regal Entertainment Group operates 5,886 screens in 561 theaters in 36 states, nearly one out of every five theaters in the US, and twice that of it’s next nearest competitor, AMC Entertainment.

Newspapers: In 1920, 700 US cities had competing daily newspapers. Today, almost every major city’s daily newspaper has a monopolistic market. To save money on staff, papers license content from syndicates, giving the syndicates incredible power. The top five syndicates control 96% of the distribution of new features by cartoonists and columnists.  Syndicates lock artists into long-term (10+ year) contracts that usually require a 50/50 revenue split, and control over the artist’s copyright. An average cartoonist syndicating to 100 newspapers makes barely $40,000 per year.

Slaves To The Machine
Clearly, artists are at the mercy of conglomerates. Whether it’s an aspiring author attempting to publish a first book, a songwriter’s first contract with a record label, a local radio personality aiming for national syndication, a filmmaker trying to get wide theatrical release, a cartoonist or columnist hoping for national newspaper syndication, or a new cable network desiring good carriage - the deck is stacked against independents.

Communities and consumers fare no better - from June 2001 to June 2002, cable rates rose 6.3% compared to a 1.1% increase in Consumer Price Index (CPI), and have jumped 40% since 1996.  In the music industry, concert ticket prices have increased at a rate 50% higher than the CPI since 1996. In 2003, the top five US CD distributors and three national retailers agreed to pay $143 million to settle allegations that they cheated consumers by conspiring to keep CD prices artificially high.

Waking Up Is Hard To Do
By “sleeping with the enemy,” we all perpetuate abusive relationships with corporate media. To break free, we need to first admit that we are in an abusive relationship, which is not easy. Harder still is replacing the old “enemy” with new friends. There are alternatives, but like health food, you need to do some extra work to find nutritional media. Nix demonstrated the “new publishing model” in independent book publishing, and thankfully, similar models are being used across all media, enabled by changes in content creation and distribution. Low-cost, digital quality “instant-publishing” technology makes content creation cheaper and easier than ever; and the Internet lets anyone market, publicize and deliver content to global customers - at costs approaching zero.

People Must Control What They Rightfully Own

For artists, the core of this “new model” is to control what you rightfully own, especially your copyright, royalties and customers. For example, artists can use Creative Commons licenses instead of the more restrictive, traditional copyright. According to the Washington Post, “more than 10 million creations have been distributed using these licenses.” The online record label Magnatune has 326 albums by 174 artists – all using Creative Commons licenses. Artists can now directly build a royalty base and a loyalty base for future projects, allowing them to create their own cottage media industry without “selling out” to corporate conglomerates. For example, Director Robert Greenwald sold over 100,000 “Outfoxed” DVD’s through House Parties organized by MoveOn.org.

Communities are also taking control of what they rightfully own, such as the public airwaves. Activists in many states are challenging radio and TV station license renewals to hold networks to their requirement to broadcast “in the public interest.” San Francisco area activists such as Media Action Marin are using the local cable franchise renewal process to force cable monopolies to improve public access, air tele-courses from local colleges, and to improve connectivity between government, fire, police, hospitals, ambulance and emergency services. Some cities are considering municipal wi-fi networks for Internet access as another way of breaking free of corporate media control.

“When Eating A Fruit, Think of the Person That Planted the Tree”

Consumers are waking up to healthy media choices as well. Musicians like Prince and Natalie Merchant have created their own labels so their fans can reward them directly, instead of having most of the price of a CD going to feed a conglomerate’s army of over-paid executives, lawyers, accountants, lobbyists, distributors and retailers. Consumers are increasingly transferring their wealth and allegiance from conglomerate media, and instead rewarding independent artists and organizations such as KPFA, Alternet and Democracy Now!

Breaking Up Is Hard To Do

On the federal legislative level, Congress is set to re-write the 1996 Telecommunications Act, which laid the groundwork for today’s vertical and horizontal concentration of media ownership. Goals should include re-setting ownership (and cross-ownership) limits to improve local, minority and female ownership opportunities, and a re-instatement of the Fairness Doctrine, which required equal airtime for opposing viewpoints. Breaking up the media cartels will allow Americans to choose from a variety of sleeping arrangements, instead of forcing the majority of artists, communities and consumers into bed with the likes of Rupert Murdoch and Sumner Redstone.

Communication is a Fundamental Human Right
The debate regarding independent media is not limited to progressives, conservatives, or book publishing. It is about core American rights such as freedom of speech and of the press. Communication is a fundamental human right, and a foundation of all social organizing. Everyone has the right to communicate, not just those with the most money, the biggest advance, the loudest microphone, the most lobbyists, or the best publisher. Artists, consumers and communities are waking up to the importance of making healthy choices not just in our physical relationships, but in our mental ones as well.

David Mathison is the author of BE THE MEDIA, the first solutions-oriented book to address the problem of media monopoly. BE THE MEDIA helps independent artists create and distribute their content without selling their royalties, rights, or souls in the process. The book will be available in Fall, 2006.

Mathison was previously Chairman and CEO of the Kinecta Corporation, acquired in 2002 by the Stellent Corporation, a provider of enterprise content management solutions with more than 3,500 customers, including much of the Global 2000 (NASDAQ: STEL). Prior to that, Mathison was Vice President with Reuters, Ltd., the world's largest news agency (NASDAQ: RTRSY; FTSE: RTR.I).

Comments

[Vox Populi]

The point about Amazon dot com is an excellent one. One of the media activists mentioned in the original "sleeping with the enemy" piece, Pacifica's Amy Goodman, has a direct link to Amazon on the allegedly noncommercial "Democracy Now" homepage. This is despite the fact that Democracy Now Productions has the means to sell the books themselves. When you click the link to Amazon, the commercial bookseller suggests other books you may want to buy from other authors. This is made even stranger by the fact that Democracy Now Productions recieved a gift of 1,000 shares of Amazon dot com stock prior to the link being added to the site (if you don't believe me, check out the 2003 IRS Form 990 report for Democracy Now Productions). Lew Hill must be rolling in his grave right now.

[CalifSherry]

Thanks, Dave, for asking for feedback. I'm very please to see the fine job you've done of pulling together an overview. The "Sleeping with the Enemy" metaphor certainly resonates. As does another, compatible image. The Enemy here is also a beast of mythical proportions. Not only do we want to avoid the danger of sleeping with the enemy, we are also well advised not to feed the beast. Your use of Slaves to the Machine introduces two more images and shifts us from the heroic role to something more dire and even less empowering.

I am particulary disturbed at the frequency with which all of us who buy books (is it records now, too?) are sent to Amazon.com by Progressive organizations. It's as if there weren't dozens of independent bookstores with online purchase options. Several years ago, Pat Holt, whom I'm glad to see you reference here, launched HoltUncensored, a weekly online column, to comment on books, the publishing industry, the internet and generally defend the First Ammendment. It's a wonderful read and she has a dedicated and growing following of writers, editors, indy publishers, bookstore owners and readers.

Over time, HoltUncensored evolved into a website and I harrassed Pat to provide names and links of independent book sellers - mentioned in her columns - in one place. Readers, writers and editors can find that comprehensive list (with links) at http://www.holtuncensored.com/members/bookstores.html It might be necessary to register with her site (and column) in order to have access to that page. I hope your readers, as well as Pat's, will forward this list far and wide.

In your section "Waking Up Is Hard To Do," you write: "Nix demonstrated the new publishing model in independent book publishing, and similar models are being across all media, enabled by changes in content creation and distribution." I'd like a link to that information.

I wonder about your final section, "Communication is a Fundamental Human Right." Communication is a human necessity and the ability to communicate in as many ways as we do, is a defining characteristic of human being. But, as Americans, our rights are articulated in the First
Ammendment. And what exactly is the debate? Surely, you are not debating the value of concentration of ownership. You have already determined that it is a negative phenomenon. Perhaps what is needed is the ressurrection of the idea of the common good, in which case we can argue about who benefits from concentration of ownership. I see this piece also as the beginning of a call to action for individuals as well as groups. The discussion needs to be about strategies and tactics for mobilizing large numbers of us, no matter our concerns, to understand our role in society as citizens as well as consumers and to make our individual and group choices wisely.

[CalifSherry]

Thanks, Dave, for asking for feedback. I'm very please to see the fine job you've done of pulling together an overview. The "Sleeping with the Enemy" metaphor certainly resonates. As does another, compatible image. The Enemy here is also a beast of mythical proportions. Not only do we want to avoid the danger of sleeping with the enemy, we are also well advised not to feed the beast. Your use of Slaves to the Machine introduces two more images and shifts us from the heroic role to something more dire and even less empowering.

I am particulary disturbed at the frequency with which all of us who buy books (is it records now, too?) are sent to Amazon.com by Progressive organizations. It's as if there weren't dozens of independent bookstores with online purchase options. Several years ago, Pat Holt, whom I'm glad to see you reference here, launched HoltUncensored, a weekly online column, to comment on books, the publishing industry, the internet and generally defend the First Ammendment. It's a wonderful read and she has a dedicated and growing following of writers, editors, indy publishers, bookstore owners and readers.

Over time, HoltUncensored evolved into a website and I harrassed Pat to provide names and links of independent book sellers - mentioned in her columns - in one place. Readers, writers and editors can find that comprehensive list (with links) at http://www.holtuncensored.com/members/bookstores.html It might be necessary to register with her site (and column) in order to have access to that page. I hope your readers, as well as Pat's, will forward this list far and wide.

In your section "Waking Up Is Hard To Do," you write: "Nix demonstrated the new publishing model in independent book publishing, and similar models are being across all media, enabled by changes in content creation and distri