The Effect of Deregulation on the Radio and Recording Industries

Deregulation refers to the 1980’s Ronald Reagan era, in which he claimed during his tenure in office that he would “get government off the backs of business”. Deregulation happened through such avenues as the Telecommunications Act, which relaxed the limits of how many radio stations one company could own, the Fairness Doctrine, and also through government regulation of the issue of channel scarcity. The recording industry is affected by radio regulations because radio airplay is the industry’s main advertising outlet.
Originally the FCC had established “localism,” in which there would be no national stations, to guard against broadcasting becoming a “one-voice government mouthpiece,” according to the text. Stations became licensed through local ownership, within local service areas. Radio networks weakened the localism by creating affiliates. The Mutual Broadcasting System was established, which allowed for an emerging national appeal. Reagan’s dream of deregulation had come true seven years after leaving office in 1996.

Vivian, John. (2011). The Media of Mass Communication (10th ed.). Pearson Education. Boston, MA.