Minority Broadcasters In Danger Of Extinction, Ask Geithner For Help

Fourteen minority broadcasters sent a letter to Treasury Secretary Timothy Geithner Monday asking for financial assistance.

In the current economic situation, "minority-owned broadcasters are close to becoming an extinct species," they said in the letter. They also noted that the percentage of broadcasting companies owned by minorities is in the low single digits.

The broadcasters called on the Treasury to institute a program similar to the recent Auto Supplier Support Program, which would increase the flow of credit to broadcast companies. They also asked Geithner to consider issuing government-backed loans.

The letter comes on the heels of a similar one from House leadership in June, including James Clyburn (D-SC), Barney Frank (D-MA), Charlie Rangel (D-NY) and Ed Towns (D-NY).

Read the letter below:

The Honorable Timothy Geithner
Secretary of the Treasury
1500 Pennsylvania Ave., NW
Washington, DC 20220

Dear Mr. Secretary:

The recession and current credit crisis are having disastrous impacts in all economic sectors, but minority-owned broadcasters are close to becoming an extinct species. Even in better economic times, minority broadcasters have historically had difficulties accessing the capital markets to make the meager gains achieved over a decade after the tidal wave of media consolidation. We write today to support and highlight a letter sent to you by House Majority Whip Jim Clyburn and a group of key House Committee Chairmen, including Reps. Barney Frank, Charlie Rangel, Ed Towns, Bennie Thompson, Carolyn Maloney, and Maxine Waters among others. The letter urged you to act to ensure minority-owned broadcasters are afforded similar consideration for federal assistance and investment given to the financial services and the domestic auto industry.

Unlike the auto business, the broadcasting has been healthy for many years and, upon a recovery, could shortly be restored to a path of growth with some temporary assistance. Given the global credit crisis, plummeting ad revenues, no-minority dictates by advertisers, and changes in Arbitron audience measurement, which have further deflated ad pricing, the short-term financial outlook for our broadcasting companies is not good. Many of us are now, or will soon be, weathering significant defaults of our credit facilities. Ironically, the loss of automobile advertising revenues, a substantial source of revenue for broadcast stations, is also weighing heavily on our businesses.

It is particularly concerning that the percentage of minority ownership in the broadcast industry is currently in the low single digits. What will happen to the communities we serve if this once in a lifetime financial crisis completely severs our access to capital and we lose our stations? The federal government for decades has advocated the importance of minority voices in the broadcast industry as a precursor to a vibrant democracy and a more inclusive society. Financial foreclosure will roll back decades of work by the federal government to encourage more minority voices in the broadcasting industry.

We are urging you to heed the recommendations from those key House leaders calling for:

The enactment of an investment facility similar to the Auto Supplier Support Program to help restore credit flows to the broadcast sector; and
Consideration be given to temporary bridge financing or government-backed loans (with warrants) until the economy improves.

We understand many businesses are seeking federal assistance. We don't diminish the worthiness of those sectors. However, the primary source of news and entertainment for millions of minority communities in the U.S. comes primarily from minority-owned broadcasters. It would be unconscionable to have financial institutions that have accepted billions of federal government assistance to foreclose on these vital American voices. If the Treasury does not want to enact a direct assistance program, at least it should seriously demand that banking institutions receiving federal funds extend credit and be flexible in restructuring credit facilities to insure that healthy, commercially-viable minority broadcasters can weather this unprecedented, but temporary, financial storm.

We look forward to working with you, your staff, members of Congress, and our colleagues in the broadcasting industry to find ways to move forward during these difficult economic times. Thank you for your time.

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Comments

[weebils]

Most of the stuff that parades itself as minority broadcasting is horrible. BET is a joke and was once owned by a Black man who is one the most conservative and racist people on earth. Black broadcasters have helped to push not just rap which was originally good but the so called "gangsta rap". Some of the stuff they broadcast has been very destructive in Black communities and helped make heroes of people like Fifty Cents or rather no cents. Spanish broadcasters show only Hispanics who past the paper bag test and have less diversity than mainstream broadcasters. Once in awhile they would show someone like Celia Cruz and that would be their only showing of a Black or dark skinned Hispanic for a year. They also don't show any Hispanics of Native American Heritage. So as far as I can see or hear most minority broadcasters would do minorities a favor if they disappeared.

[lvogt]

Get a patron. You can't win in a dying market without a compelling product. If you have something people want to see they will... but advertising is plummeting on TV and radio.

[captainindustry]

It seems that African-Americans are quite content watching and listening to the mainstream media. There are black newscasters, entertainers, athletes. contestants on American Idol, actors and actresses in programming and commercials. Most rock stations play a lot of "black" music.

African-Americans appear fairly represented in the media. .

Having too many all-black stations seems rather like segregation.

Hispanics do seem to love and need their Spanish programming. They are loyal to their telenovelas and "Sabado Gigante" type programming. That's a different ball game. Are they asking for assistance as well?

[thankulord13]

You know, get out of your sla.ve mas.ter mentality and shu.t the he.ck up!

[Totto]

More and more of this ra.cist stuff here.

[noudidnt]

seconded

[damilitantone]

Black folks can't rely on white folks to be above board all the time. We could give up all of our black media and we would be at the mercy of others who may or may not want to treat us fairly. We already been down that road, hence, we have black media.

[captainindustry]

thank you for sharing. i am here to learn.

[unite4change]

Captainindustry, I believe it's about choice. Why do you believe blacks are content to watch and listen to mainsteam media? Programming on TV is generally white all day and all night and minorities are not represented in the media. Plus having to many white station is segregations and there are more than whites in this country. America has been watch all white TV since the invention of the television.

[captainindustry]

Simply Cause and Effect. If it is true, as you are claiming, that there is little support for African-American media outlets, then, obviously, African-Americans are content to enjoy mainstream media.

[BluFoxx]

Wow Captain, you're ignorant........

[captainindustry]

Well thank you for that BluFoxx.... Thank you for that insightful contribution to this discussion. Do yourself a favor. Look up "ad hominem" in the dictionary, and try to avoid it in the future.

[ebanks84]

I wouldn't give a plugged nickel to any media to sponsor more bad @$$ news. When one gives some good news for a change, then I'll give.

[faith2hope]

I"m not sure that I agree with this plan of action at all. I do however, want to point out that when you say "Minority" that does not mean black, regardless of the fact that it is only blacks that lead the charge. This is typically of so many fights for people of color, blacks are the ones who put up the fight and other minority races reap the benefits. There are other minority media outlets that need to either work with this group to come up with a solution that doesn't require a handout from the government.

In today's time there are enough black entertainers, athelets and successful business men & women to come up with what is need to maintain a voice, but we as AA have to be prepare to work together to be successful. As usual you have hispanics, asians, Italians, Greeks, etc that will reap the benefits of the fight lead by the AA people who then will only receive the smallest amount of assistance or credit.

Before you all jump down my throat, I'm not saying that other races don't do there part or aren't doing anything I'm just stating that history shows in so many ways that black are out there first but the last to receive. So for my AA people we can do this without a handout but it's got to be accomplished the old school way "Together" and in todays time that has always been a problem for us.

[Rictracee]

this is the problem.. no advertisers want to buy advertising spots on radio stations that play music that demonize women, sexually explicit, etc.... I stop listening to minority (black) radio stations 5 years ago.. I sure a lot of people who use to listen to hip/hop and rap music did.. When the music started saying the exact same thing over and over, w/ the same beat.. I moved on to ... Rap music is dying industry.. whats happening to rap is what happen to Heavy Metal back in the 80's.... i sure by the end of the his decade Rap will be something that just accent to other songs, no more whole songs being just rap.

[JFaye]

Thank you.

[damilitantone]

You are on to something. I still listen to Motown, Stax, TSOP, and the rest of the old school because that was music. Gangster rap was something different when NWA and the GETO Boys did it 20 years ago. Even then Delores Tucker and Tipper Gore took them to task. After 20 years, it's time for folks to try something more positive. As soon as the record companies have milked every last dime out of this genre, it will go by the wayside.

[captainindustry]

Has it been 20 years? my gosh.

[Puddin]

The station I listen to doesn't play music such as you mentioned, and still they are losing out. So, what is your answer to that scenario? I wish you people would stop using such a broad brush to paint "minorities". We are not all the same, we don't listen to the same music, we don't read the same books, we don't view the same movies, etc. When you people (including the entertainment industry and book publishers) realize this simple fact, the world be a better place, and certainly the artist who speak to a base other than what you mentioned, get the contracts and the airplay, I believe you will have a different opinion. Corporate america determines who gets the airtime, the contracts, etc. So speak to the people who have the power and pull the strings. If more you would direct your sentiment to the people who make the real decisions, that would help, I think.

[ebanks84]

You're so right. I still listen to the "Oldies" when good music was made. The crap made nowadays is hogwash!

[AbstractionAction]

Heh, they called Tim Geithner "honorable."

[oneniner]

lol....caught that too...:)

[JFaye]

However, the primary source of news and entertainment for millions of minority communities in the U.S. comes primarily from minority-owned broadcasters. .... I would like to know the source and/or validity of this statement.

Furthermore, these millions in the minority communities, particularly their children, should not have as its primary source of news, minority-owned broadcasters unless of course, it is news from their homeland and if they have dual citizenship. Rather, millions of minorities dependent on mainstream media, should make their voices heard for a more diverse pool of reporters and newsworthy stories affecting as well reflective of the vast number of ethnic groups assimilating in the United States.

It's been my experience, when you offer a useful and interesting product the market will respond accordingly. We cannot replace ingenuity and human resourcefulness with government bailouts: Besides, there is an overriding conflict of interest should the government invest in our media ... minority or not.

[Raiderfan0524]

They're just asking for some of the tax cut money that Clear Channel got during the entire Bush Administration. I don't see the harm.

[JakeMontero]

it's corporate welfare for unwatchable media. next we will be asked to bailout faux and msnbc

[MyTurn2020]

I find this very interesting and disturbing for two primary reasons.
First, minority broadcasters consistently find themselves with smaller audiences, whether it's BET, Univision, Ebony magazine, or BlackAmericaWeb.com and yet there has been little movement in the last decade for these companies to significantly revise their business model. Like the auto industry, minority broadcasters had a hand in their own failing, it seems.
Second, I am in love with the diversity of media which minorities contribute yet I am unsure if a federal assistance plan is the right remedy. The marketplace may be doing it's thing. Don't get me wrong, I'd hate...just cringe at losing any of the above media sources, but if they were valued in the marketplace, there would be no reason for such a request.

[Rictracee]

these minority brodcasters need to appeal to ALL MINORITIES.. but they dont they appeal to one segment , that is BLACK .. your right they never changed their business model to expand their appeal to a more broad audience.. I don't listen to their stations. I use to be a avid listener of
V-103 in atlanta , however the music that they play, Akon, Pretty Ricky, Keisha Cole, and other artist that just makes music that just not that appealing. Its all about the same thing sex, drugs, ghetto life, i was not raised in the ghetto, and there is nothing to glorify about the ghetto. Its really sad to see these broadcasters fail.. but so be it.. go back and retool and come out with a station that will attract sponsors..

CYA GOODBYE

[awaitingmd]

i agree.

[socialtalker]

i would like to see MORE niches, not less. black programming can exist without whoring itself off to please other folks (i reject the term minority). it needs a new biz model, thats for sure, they should have hooked up with african programming and other folks in the black diaspora.
unfortunately, however in these hard times, i cant see a bailout of black stations.
i look at the internet and the latest technologies and i see little to no black participation.
perhaps new and cheaper ways to serve their audience exist but i dont know if these folks are taking the proper steps to achieve it.

[Maanu]

More white people like this music than blacks, proven again and again.

I'm black and I sure as heck don't like what's played today, and I'm not alone.

[Mustang Sally]

If the "adult film" industry didn't get one, other entertainment venues should not expect good news.

[noudidnt]

No more bail outs. Change the programming to something people are willing to listen to...like political talk.

[EllaBee]

This is the most ridiculous thing I've read in a while. How pathetic. Get it together without federal assistance and get out of that welfare mentality.

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