As we mentioned in our story Tuesday, not every radio group and organization is in favor of lifting radio’s ownership caps, despite the NAB’s hard lobbying efforts on the FCC. One of those organizations is The National Association of Black Owned Broadcasters.
The NAB says the current media ownership rules no longer enable broadcasters to viably operate in a competitive market or effectively serve the public interest. The NAB also believes ownership rules, as they are set up now, discourage women and people of color from getting into the radio business. NABOB does not agree with that position. In fact, it’s pretty much the opposite of the NAB position.
In its comments to the FCC, NABOB stated any change in radio ownership will have a significant negative impact on African Americans and other minority station owners and entrepreneurs. “Any elimination or relaxation of the Subcaps rule would be particularly damaging for the AM radio industry as a whole, in addition to being damaging to African American AM station owners.”.
The organization does not believe relaxing the rules would lead to more advertising for radio. “The proponents of elimination or relaxation of the Subcaps rule have put forth justifications for these rule changes that are not supported by the facts. Advertisers are unlikely to shift dollars away from Facebook, Google and other internet companies to broadcast media. Advertisers recognize that the two media deliver audiences in very different ways. Advertisers seeking to buy radio can buy it now regardless of who owns the stations.”
Jim Winston, President of NABOB said, “The reasons given for eliminating or radically relaxing the Commission’s local radio ownership rule are not adequate to justify increased consolidation of ownership in local radio markets. The AM radio industry would be greatly injured by the proposals that have been put forth. We are pleased to see iHeart Media and other companies rejecting these proposals.”
Read the NABOB filing HERE.
The Nab should represent all owners not just the mega corps. Just because Iheart and a few others control the majority of stations and markets doesn’t mean they should own the NAB.
FYI: iHeart opposes lifting caps on AMs.
Yes, because iHeart owns the largest numbers of stations and it wants, obviously, to protect that status.
And, BigA, one of the executives at iHeart already said, when this proposal was first presented by NAB over a year ago, that if the FCC enacts it, it will aggressively pursue as many more stations as it can to maintain its superiority over the competition. iHeart talks out of both sides of its mouth.
Generally speaking, David is correct, and why the newly-formed radio company that I own will not be joining the NAB. The NAB occasionally throws a bone to small broadcasters, but the ‘big picture’ at the group is for the ‘big boys’.
Instead, I will be joining the Independent Broadcasters Association, which far better represents the interests of small companies.