NTIA FINDS SLIGHT GROWTH IN MINORITY OWNERSHIP, BUT DROP IN TV
Minority ownership of commercial TV and radio stations increased 0.9% overall over last 2 years, but minorities’ share of TV market actually declined in 2000, NTIA said in report released by Commerce Secy. Norman Mineta Tues. “Unfortunately,” this was increase “that we must attribute mostly to an industrywide economic boom and an improved reporting methodology,” Mineta said, and “clearly there is reason for concern.” NTIA survey showed that consolidation in industry threatened survival of minority and single-station owners, he said.
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Saying trend of consolidation in industry imposed very serious barriers for future expansion of minority ownership, NTIA Administrator Gregory Rohde said there was strong need for developing consensus definition of what constituted minority ownership, given various definitions being used now. Such definition is important for future policymaking purposes with issues such as equity ownership and control having to be part of revised definition, he said. As part of solutions, Rohde said there was strong support from minority broadcasters for increased access to capital and reinstatement of tax credit program.
Report said that in 2000, 187 minority broadcasters owned 449 full-power commercial radio and TV stations, accounting for 3.8% of 11,865 stations in U.S. However, report said half of 0.9% increase over 1998 was result of improved methodology in identifying minority owners. In radio industry, where minority owners made some gains, 175 minority broadcasters owned 426 stations -- 4% of 10,577 AM and FM radio stations in 2000 compared with 305 stations in 1998. Again, half of increase resulted from newly identifying already existing owners, report said.
Minority share of ownership of TV market hit lowest level since 1990 when NTIA’s Minority Telecom Development Program (MTDP) began issuing reports. Minority ownership fell to 23 full-power TV stations in 2000 (representing 1.9% of country’s 1,288 stations) compared with 29 in 1990 and 38 in 1995-1996. Since 1998, there has been loss of 5 Hispanic American and 4 African American-owned stations and new identification of 2 Asian American stations for net loss of 7 stations, report said. At time when single-station owners are struggling to remain competitive, 70% of minority owners operate standalone stations, it said.
Obstacles to obtaining ads ranked highest in problems experienced by minority broadcast owners who responded to MTDP survey July 1999-June 2000. Other difficulties listed were accessing capital, loss of key personnel to competitors, lack of awareness about stations for sale, and regulatory barriers.
BET CEO Robert Johnson said at briefing that ability of individual, standalone broadcasters to enter market became difficult when public policy opened doors to consolidation and concentration of ownership. As for access to capital, he said individual operators couldn’t run business successfully when market was arrayed against them, with consolidation and concentration of ownership determining where capital would flow. Tax credits served only as means to bring minorities into business without partner, he said: “It’s a hook, not an answer.” Acknowledging “impressive” efforts of NAB in promoting minority ownership, Rohde said he wanted programs such as that Assn.’s management and entry level training for minorities and women to continue.