SPECIAL REPORT
-CLEAR CHANNEL VS. THE WORLD-
the lastest from our pals at the guardian
Capital cool on American merger
Julia Day at the Radio Festival in Birmingham
Tuesday July 8, 2003
Mansfield: "I won't be picking up the phone"
David Mansfield, chief executive of Capital Radio, has ruled out a merger with Clear Channel, saying there would be a "major cultural clash" between the two companies.
Mr Mansfield said he would not even talk to the American radio giant when asked by the BBC director general, Greg Dyke, how Capital would respond to a takeover approach from America's largest radio group in the new regulatory environment following the passing into law of the communications bill.
"As far as the business in general is concerned, it is better to have as many people who can buy the stock as possible," said Mr Mansfield, speaking at the Radio Festival in Birmingham.
"There are some fundamental cultural differences in approaches between a company like Clear Channel and a company like Capital.
"Lowry Mays [head of Clear Channel] said at this conference last year that his business was all about selling hamburgers and Fords. But we are driven by listeners.
"We will probably have a major cultural clash should Clear Channel make an approach. They have said on a number of occasions that they would like to be involved in British radio, but by invitation only. I won't be picking up the phone."
The American company, with 1,200 radio stations - around 10% of the market - is five times bigger than its nearest competitor and wields huge power in the US and over the content of its radio stations.
Clear Channel is relatively unknown in the UK, even though it has interests in advertising - it owns the Adshell and More O'Ferrall poster companies - and owns part of SFX, the company that represents David Beckham and deals with all his public appearances.
During the war on Iraq it was accused of whipping up pro-war fervour among listeners and, it was claimed, ordered its radio stations to stop playing music by country group the Dixie Chicks after singer Natalie Maines said she was ashamed to come from Texas, the same state as President Bush.
Questions have also been raised about the issue of illegally taking "pay for play".
The company has denied banning the Dixie Chicks and of organising pro-war rallies.
Clear Channel, which started in 1972, did not begin to become a big radio player until the late 1990s. In 1996 it owned 43 stations and when ownership rules were relaxed it exploded in size.
It argues that, far from killing American radio, it has been its saviour by buying struggling stations and diversifying formats. Its supporters contend that consolidation actually forces more diverse programming to prevent overlap in a single market.
"The bigger the radio groups, the better they can serve advertisers, and more resources are then available to invest in output for the benefit of listeners," Mr Mays told last year's Radio Festival in Cambridge.
GWR, one of the UK's largest radio groups and owner of Classic FM, said it was not worried by Clear Channel's ambitions.
"It doesn't matter who owns the company, what matters is the content regulation. Clear Channel's approach is simply one that wouldn't be permitted in the UK and that is the biggest protection to what people see as the threat of American ownership," said Ralph Bernard, the executive chairman of GWR.
However, Mr Mansfield said he believed consolidation would take place, but "not as quickly as everyone would like. We have got to go through a lot of hurdles - the competition commission, Ofcom, the office of fair trading and now a public interest test."
He added that,although there were some signs that the recession was receding, Capital Radio did not foresee any short-term improvement in advertising revenue. "We're not planning in the immediate future any pick up in revenue," he said.
And Mr Bernard added: 'We are reasonably bullish for the future. But I think Classic is one of those companies that is always going to find it reasonably hard to find revenue
-WE REPORT...YOU DECIDE!-
-CLEAR CHANNEL VS. THE WORLD-
the lastest from our pals at the guardian
Capital cool on American merger
Julia Day at the Radio Festival in Birmingham
Tuesday July 8, 2003
Mansfield: "I won't be picking up the phone"
David Mansfield, chief executive of Capital Radio, has ruled out a merger with Clear Channel, saying there would be a "major cultural clash" between the two companies.
Mr Mansfield said he would not even talk to the American radio giant when asked by the BBC director general, Greg Dyke, how Capital would respond to a takeover approach from America's largest radio group in the new regulatory environment following the passing into law of the communications bill.
"As far as the business in general is concerned, it is better to have as many people who can buy the stock as possible," said Mr Mansfield, speaking at the Radio Festival in Birmingham.
"There are some fundamental cultural differences in approaches between a company like Clear Channel and a company like Capital.
"Lowry Mays [head of Clear Channel] said at this conference last year that his business was all about selling hamburgers and Fords. But we are driven by listeners.
"We will probably have a major cultural clash should Clear Channel make an approach. They have said on a number of occasions that they would like to be involved in British radio, but by invitation only. I won't be picking up the phone."
The American company, with 1,200 radio stations - around 10% of the market - is five times bigger than its nearest competitor and wields huge power in the US and over the content of its radio stations.
Clear Channel is relatively unknown in the UK, even though it has interests in advertising - it owns the Adshell and More O'Ferrall poster companies - and owns part of SFX, the company that represents David Beckham and deals with all his public appearances.
During the war on Iraq it was accused of whipping up pro-war fervour among listeners and, it was claimed, ordered its radio stations to stop playing music by country group the Dixie Chicks after singer Natalie Maines said she was ashamed to come from Texas, the same state as President Bush.
Questions have also been raised about the issue of illegally taking "pay for play".
The company has denied banning the Dixie Chicks and of organising pro-war rallies.
Clear Channel, which started in 1972, did not begin to become a big radio player until the late 1990s. In 1996 it owned 43 stations and when ownership rules were relaxed it exploded in size.
It argues that, far from killing American radio, it has been its saviour by buying struggling stations and diversifying formats. Its supporters contend that consolidation actually forces more diverse programming to prevent overlap in a single market.
"The bigger the radio groups, the better they can serve advertisers, and more resources are then available to invest in output for the benefit of listeners," Mr Mays told last year's Radio Festival in Cambridge.
GWR, one of the UK's largest radio groups and owner of Classic FM, said it was not worried by Clear Channel's ambitions.
"It doesn't matter who owns the company, what matters is the content regulation. Clear Channel's approach is simply one that wouldn't be permitted in the UK and that is the biggest protection to what people see as the threat of American ownership," said Ralph Bernard, the executive chairman of GWR.
However, Mr Mansfield said he believed consolidation would take place, but "not as quickly as everyone would like. We have got to go through a lot of hurdles - the competition commission, Ofcom, the office of fair trading and now a public interest test."
He added that,although there were some signs that the recession was receding, Capital Radio did not foresee any short-term improvement in advertising revenue. "We're not planning in the immediate future any pick up in revenue," he said.
And Mr Bernard added: 'We are reasonably bullish for the future. But I think Classic is one of those companies that is always going to find it reasonably hard to find revenue
-WE REPORT...YOU DECIDE!-
posted by steve @ 12:00 PM
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