On Wednesday FCC FCC Commissioner Mignon Clyburn spoke to the NAB Capital Assets Conference on “Financing Minority and Women Ownership in Broadcasting.” The Commissioner said owning a television or radio station is a dream. “But the hard, cold reality is this: a new entrant, with no existing license, has a supreme challenge when it comes to acquiring the capital necessary to seal a broadcast property deal. Compound this with being a woman or person of color, and it may seem next to impossible, to break into the business. Then Clyburn had a message for CBS Radio.”
She said, “Last year a major group owner announced plans to IPO their radio business, which includes more than 100 stations in 26 U.S. markets. I would encourage this group owner and others like it, to consider offers from women and minority-owned businesses seeking to enter or expand their presence in the radio business.”
Clyburn suggested The Commission establish a pilot incubator program, designed to increase women and minority ownership. “One way to achieve this, is by waiving certain ownership restrictions for an incumbent broadcaster, if that broadcaster incubates a new entrant or a disadvantaged business. Such incubation, perhaps in the form of lending financial, programming or technical support, could result in the successful entry of a new broadcaster, increasing the diversity of voices available to the public. Even absent an explicit FCC program that entices such incubation in exchange for a waiver of local ownership rules, the industry should strive to nurture and support minority and women-owned broadcasting businesses, starting with conferences like this one as well as existing initiatives such as the NAB Education Foundation’s Broadcast Leadership Training Program.”
Currently minorities only hold a majority of the voting interests in just over eight percent of commercial radio licenses.
Clyburn wants to see the reinstatement of the FCC’s Minority Tax Certificate Program. She says during its 17 years of existence, the program successfully helped to bring the highest number of diverse entrepreneurs into the broadcast industry. “In fact, according to Dr. Jeffrey Layne Blevins of the University of Cincinnati, “Prior to the policy, minorities owned just 40 of 8,500 U.S. radio and television [stations], and during the existence of the policy minorities acquired 288 radio stations and 43 television stations.” Despite ending in 1995, I am convinced not only does bipartisan support for this program remain, but that we should collectively push for an updated bill.”
