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Minority Broadcast Hearing Sways to PRA

More news stories on Media Bias

Radio Business Report/Television Business Report, July 9, 2009

What was advertised as a House Judiciary Committee hearing on trends affecting minority broadcast ownership devolved at times into a discussion of John Conyers’ (D-MI) Performance Rights Act, which included an attack on Radio One, which turned down an invitation to testify. Conyers said that Arbitron’s PPM technology and broadcast ownership consolidation were two big culprits afflicting minority ownership, then launched into PRA, noting many who joined Radio One in turning down opportunities to testify.

At least three of the four witnesses seemed to understand the purpose of the meeting. The only one who mentioned PRA at all, not surprisingly, was Kendall Minter of the Rhythm and Blues Foundation—he suggested his musicians’ group would support minority broadcast owners’ position on PPM in return for some royalty cash.

{snip}

Media Access Project frequent testifier Andrew Schwartzman had a number of suggestions, including ownership cap rollbacks, three-year operator licenses with teeth, reinstatement of the minority tax certificate; approval of Robert Johnson’s proposal to create a TV group anchored on DT side channels; and expansion of LPFM.

{snip}

Lamar Smith (R-TX) seemed to suggest that it could be time for media ownership rules to undergo another round of deregulation, saying there is much more competition from other entertainment sources now than when the current rules were written. He also noted that PPM problems were not just a minority problem, but a problem for all small broadcasters.

“I fear the loss of these minority stations. They are our talking drum,” said Rep. Maxine Waters (D-CA). She said her entire political career had been spent trying to maintain minority institutions, which she said have always been at risk. It’s not just minority broadcasters who are struggling in the current economic downturn. She worried that black auto dealerships are about to be wiped out. In a rare split with Committee Chairman Conyers, Waters had voted against his performance royalty bill, but she didn’t mention that difference of opinion in her remarks at the hearing on minority ownership trends.

{snip}

Following are more detailed summaries of witness testimony.

* James L. Winston, Executive Director and General Counsel, National Association of Black Owned Broadcasters: Two major areas of concern: debt service and problems with Arbitron’s PPM technology. As advertising revenues fall, the broadcast companies soon find themselves having difficulty with their lending institutions, particularly when it comes to meeting covenants. While in the past broadcasters and lenders have worked through tough times, new lenders—hedge funds—are more interested in getting quick liquidity and are not interested in workouts. Among them: Goldman Sachs, GE Credit, Wachovia Bank,Wells Fargo, J.P. Morgan Chase, and Bank of America. As TARP recipients, they should be required to cooperate. Alternatively, Rep. James Clyburn’s request to Treasury that a special fund be provided to get companies through current difficulties. As for Arbitron’s PPM, minority broadcasters are dealing with huge losses in audience after the change from diaries to PPM—with a resulting loss of revenue often far worse than the market as a whole. {snip}

* Michael Skarzynski, President and CEO, Arbitron, Inc.: We recognize the critical role of Black and Hispanic radio. Three challenges are creating a perfect storm. {snip} Arbitron is committed to work with all industry stakeholders survive this perfect storm.

* Andrew Schwartzman, President and CEO, Media Access Project: Looking for internet to add to diversity. Radio listening and television watching is still going up. Minority ownership is distressingly low, and FCC needs to do better job collecting data on this—although this has been addressed by Michael Copps. {snip}

* Kendall Minter, Chairman of the Board, Rhythm and Blues Foundation: PPM needs to be fixed so minority broadcasters are paid properly by advertisers. In turn, these broadcasters should support the musicians who they play over the air with a performance royalty. Consolidation is also a problem, and the lack of ownership diversity limits access to the airwaves to minority musicians. {snip}

Original article

(Posted on July 10, 2009)

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Comments

1 — Question Diversity wrote at 6:14 PM on July 10:

I wish every city in America had a regular Jared Taylor, or the Council of Conservative Citizens, style radio or TV show in the air on a regular basis. But if not that, then I would be more than happy to have more of these black radical bigmouths like St. Louisans Lizz Brown, Onion Horton, Jacob Israel (who believes that black Americans are the true “Jews,”) and nationally like Bob Law. Five such stations in every city are the second best advertisement for WNism/RRism.

2 — SKIP wrote at 10:52 PM on July 10:

Whatever happened to the loudmouth Rev. Ike from P.O. Box 1000 Boston, Mass.? I worked (very briefly) at a black owned, black staffed body shop so I had to listen to him and the local blacks talk about how much money they sent Ike, “to do god’s good work” pathetic.

3 — Anonymous wrote at 12:34 AM on July 11:

If we have radio station ownership that reflects America, i.e., women and persons of color, can we have white artists played on all the radio stations? Call it compensation or even diversity if you’d like.

4 — John Galt wrote at 6:34 AM on July 11:

So the musicians want a performance royalty? I always thought it was tantamount to free promotion for a radio station to play an artists music. An up and coming artist or a lesser known with a new album should be in the station manager’s ear begging to get thier stuff played for the exposure.

Oh well. Maybe all radio will go to the talk format.

5 — exkcresident wrote at 8:12 AM on July 11:

Question Diversity:

First of all, hello from St. Louis! I’m visiting family in Bridgeton for the weekend. Which radio stations feature these people? I’d like to tune in sometime.

6 — Question Diversity wrote at 10:07 AM on July 11:

exkc: Not anywhere at the moment, Onion Horton will return when the 1490 station changes format this month.

Are there actually any residents left in Bridgeton? That was the last almost all white suburb in north St. Louis County, which of course had to be paved over for a new airport runway that nobody uses, because Lambert isn’t a hub anymore. They could have ran the runway east over Kinloch, which was almost levelled to the ground anyway by its “diverse” residents, but I suppose the 100 blacks still living there were too precious to displace.

7 — exkcresident wrote at 5:27 PM on July 11:

Question Diversity:

The Irish Catholic side of my family from Bridgeton/St. Ann is a jovial, happy-go-lucky, if you can laugh at it you can live with it typeB of people. I enjoy their company immensely and always enjoy my visits with them.
I shared your observations with some of my relatives that are well in their 60’s; let’s just say that happy-go-lucky countenance changed rather abruptly. I definitely whacked a nerve.
This may not be a fair comparison since the events took place decades apart. But, the final completion of Hwy. 71 from 75th St. to downtown was a much welcomed traffic congestion reliever. Well, mayor Cleaver didn’t want to disrupt the ghetto’s fragile ecosystem, so instead of using tunnels or overpasses, he had the road made at grade and installed red lights at Gregory, 59th and 55th Sts. on a perfectly good new highway. For some reason, only 63rd St. has an overpass. These red lights have blocked traffic up so badly that it has almost defeated the purpose of building a new highway and pedestrians from the ghetto walk across the highway without a second thought. I’ve even seen women pushing baby strollers across 71 with a couple of kids skipping along right behind her during evening rush hour.
Well, nobody seemed to care when the construction of I-70 disrupted, scattered and deracinated almost the entire Italian neighborhood in NE KC. That area was not only safe and culturally enriched but it gave back to the community as well.

8 — Question Diversity wrote at 7:14 PM on July 11:

exkc:

I know that part of Highway 71. All MoDOT did was to end the main lanes and default them onto the one-way outer roads. There’s more than enough grass in the median to build the interstate highway quality lanes when “community” (read: ghetto) opposition subsides. That will be I-49 one of these days.

9 — Fed Up wrote at 1:12 PM on July 12:

Possibly a “dumb” question but why would (or should) radio station owner be marketing to anything other an the listener base THE OWNERS desire to target? If you own a station and broadcast a certain program style, you cannot control WHO choses to listen or who does not. So you select your program fare according to what YOU, the owner, would perceive to attract the greatest local audience (listeners with what is called “discetionary income”) in order to induce advertisers to buy air time with your station. In other words, draw your own conclusions. It’s something called marketing strategy and economics.

If Blacks in a geographic area consider themselves underrepresented in radio or TV broadcasting, the simple answer is to organize and pool their financial resources to BUY their own radio or TV station. The government does not, emphatically NOT need to stick its collective noeses into this picture.


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