Radio Merger Under Fire From Black Lawmakers
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Senior members of the Congressional Black Caucus yesterday criticized a compromise plan for the proposed merger of the XM and Sirius satellite radio companies, saying the deal does not provide enough opportunities for minority-owned programming.
Federal Communications Commission Chairman Kevin J. Martin said over the weekend that he would support the merger after XM Satellite Radio Holdings and Sirius Satellite Radio voluntarily agreed, among a series of other concessions, to lease 4 percent of their radio spectrums, or 12 channels, for programming run by minorities and women.
Members of the black caucus on Capitol Hill have been arguing for the merged company to lease five times that amount of spectrum to companies owned by racial minorities. Short of that, caucus members have warned in letters to the commission and meetings with Martin, they would oppose the merger.
In an interview yesterday, Rep. G.K. Butterfield (D-N.C.), chairman of the Congressional Black Caucus’s working group on satellite radio, called Martin’s proposed compromise “completely unacceptable.”
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“It’s shocking to the conscience in this day and age, where the minority populations comprise a significant part of the satellite radio audience, that Mr. Martin would settle for what I deem to be crumbs that have fallen off the table,” Cummings [Rep. Elijah E. Cummings (D-Md.),] said. “We can do much better. I am hoping that this can be revisited.”
{snip}
Butterfield said he got the idea for the 20 percent set-aside for minority-owned companies from Georgetown Partners, a minority-run private-equity firm based in Bethesda, and its managing director, Chester Davenport.
The firm, which has invested in wireless and media companies, objected last year to the merger, arguing that a monopoly could limit opportunities for minority programming.
But Davenport said that if regulators give the marriage a green light, the combined company should be required to turn over some channels to a minority-controlled entity. He said he hoped Georgetown Partners would fill that role, making it a competitor to the merged company.
Butterfield said he was not pressing for the 20 percent leasing arrangement on behalf of Georgetown Partners or anyone else. He suggested that the spectrum could be leased to a single company or to several.
{snip}
Butterfield said that black caucus members planned to meet today with Karmazin and Nate Davis, chief executive of XM. “We’re going to close the door and have a very honest and open dialogue about the merger,” Butterfield said. “If they cannot meet us on any reasonable terms, we are going to be very adamant about not approving the merger. It’s not in the public interest. They are not concerned about the cost to the consumer.”
{snip}
If the merger is approved, it would be a major reversal of FCC rules. The agency distributed licenses to XM and Sirius in 1997 on the condition the two companies never combine.
But both companies have struggled financially, with heavy operating costs for contracts with celebrity hosts including Howard Stern and Martha Stewart. Sixteen months ago, XM and Sirius announced that they would merge, saying it was their best chance at surviving an increasingly competitive marketplace with Internet radio, MP3 music players and terrestrial radio. If they merged, the companies would have 17 million subscribers.
{snip}
(Posted on June 17, 2008)
Comments
“Radio voluntarily agreed, among a series of other concessions, to lease 4 percent of their radio spectrums, or 12 channels, for programming run by minorities and women.”
4 percent seems about right.
If the past offers us any perspective, there will be much initial excitement followed by disappointment and anger that black radio didn’t live up to its mandate.
If they want it, give it to them. In the long run, no one is going to be listening.
Posted by sbuffalonative at 5:43 PM on June 17
This is a racket ran by the Congressional Black Caucus no different than organized crime…
WHY have we let the government (let alone a racist Congressional Black Caucus) have this kind of power is beyond me & the founders would agree, this must stop.
If I were Karmazin or Nate Davis, I’d tell the Congressional Black Caucus to build their OWN damn satellite network! We all know thats a no go, let’s just keep TAKING what’s not ours because were poor dumb african-americans & Why work …
Posted by CW3 at 5:58 PM on June 17
Minority ideology seem to ‘own’ all the programming run on these networks, why not make it official?
Posted by at 6:02 PM on June 17
It’s not like either XM or Sirius has a big listener base to begin with. If this merger happens, and 24 minority-themed channels are created, this means that nobody will listen to them on a system that nobody has to begin with. If a tree falls in the forest…
Posted by Question Diversity at 6:33 PM on June 17
“people of color and women”
In other words the majority of the population wants special rights at the expense of white males.
Posted by at 6:40 PM on June 17
Anyone ever hear the “Bev Smith Show” on the American Urban Radio Network? Pure adversarial anti-white propaganda. We don’t need the airwaves opened up to any more of these types of “opportunities for minority-owned programming.” I hope the FCC, XM, and Sirius all tell the Congressional Black Caucus to eat spit!
Posted by KonfederateKarl at 6:46 PM on June 17
Have you noticed that since the presidential campaign began, every panel on CNN and Fox News has a black on it? I am not making this up.
Posted by at 9:16 PM on June 17
Why don’t black entrepreneurs launch satellites into space and start their own stations?
Oh, now I remember; because they couldn’t even run a lemonade stand without a gov’t subsidy.
Posted by Madison Grant at 1:30 AM on June 18
Wouldn’t a Native American Indian person fulfull the minority requirement? Maybe they (radio) should lease 25% to one such person to keep the blacks out and still comply with the extortion demands (I meant suggestions)
Posted by Skip at 1:51 AM on June 18
Have you noticed that since the presidential campaign began, every panel on CNN and Fox News has a black on it? I am not making this up.
Posted by at 9:16 PM on June 17
I have also noticed that 90% (or more), of the commercials on TV has atleast one black or a family of blacks. They are also portrayed as rich,smart and leaders of whites. I see enough lies on the news, the last thing I want to see is bigger lies on commercials.
I think Al Sharpton should talk to those ol boys at XM and Sirius and promise boycotts unless they make the channels atleast 50 % black themed and ban Mark Liven, Wilkow ( just spell my name right), and Hannity. Channel 144, get it, listen and be informed.
Posted by at 2:08 AM on June 18
All these blacks can do is whine about something. Why don’t we have a white caucus. Oh I forget, that would be racist and the “black cacus” would have something else to whine about. On a different note, I see by the newspaper this morning that Mugabe in Zimbabwe has doubled his efforts to eradicate his opposition. Keep up the good work Robert.
Posted by at 8:05 AM on June 18
In all fairness to black broadcasters media consolidation has left us with fewer and fewer organizations controlling more and more media outlets.
Even before 2003 many people were concerned about increasing consolidation of media outlets.
http://en.wikipedia.org/wiki/Concentration_of_media_ownership
However in 2003 a critical vote occured at the FCC allowing further consolidation in an already heavily consolidated market.
http://money.cnn.com/2003/06/02/news/companies/fcc_rules/
Admittedly for economic reasons XM and Sirius do need to merge.
However this only highlights the trend of more outlets operating under the same owners.
Not to be harsh but I feel that many Amren readers would probably consider themselves outside the mainstream. If outlets for freedom of expression become increasingly concentrated doesn’t this hurt people here too?
In this case I think Amren readers should look past race and realize that they have far more in common with the Black Congressional Congress than with FOX or Disney,or the other media conglomerates who produce much of the television programming that Amren readers seem to find so appauling.
Posted by Yellow Man at 2:51 PM on June 18
Skip @ 1:51AM on 06/18,
To answer your question, no Indians don’t trump blacks. You can use Indians sometimes as minorities but not anywhere as much as you used to be able to. The govt. got wise to that a long time ago. However, what companies do anymore in these cases is to set up dummy black owned companies to get what they want.
Tom Iron…
Posted by Tom Iron at 3:14 PM on June 18
“We’re going to close the door and have a very honest and open dialogue….” Then why close the door? Maybe a little arm twisting? Threats of boycotts? I have Sirius radio (listen to a lot of country—so I am a racist) and will cancel if the company bows to this kind of pressure. Blacks would not need quotas (and that is what this is about) if they had anything worthwhile to say.
Posted by Frank at 3:31 PM on June 22