Clear Channel Poor Strategy

Clear Channel (NYSE:CCU) testifies before Congress about audio flag technology. The broadcast flag system is a technological method identifying content as copy-protected and involves the formation of rules that classify how devices must handle flagged content (restricting or allowing certain uses like multiple copying or playback). Audio Flag technology promises to help prevent the unauthorized downloads of music without appropriate compensation to the record label and or artists. Clear Channel makes the case that because of changes that HD radio is bringing which are expensive (approximately $100,000 per station or $400,000,000 for the industry) they should not go the extra mile and support audio flag. Their reasoning is incredibly weak. Radio needs content. If economic theft persists they will eventually marginalize their business model. People listen to radio because of the specific content not because the call signs sounds clever. Actually they are missing another major revenue stream. If you could monetize downloads you would be very valuable.