Minority Commercial Radio Ownership in 2009: FCC Licensing and Consolidation Policies, Entry Windows, and the Nexus between Ownership, Diversity and Service in the Public Interest

CATHERINE J.K. SANDOVAL, Minority Commercial Radio Ownership in 2009: FCC Licensing and Consolidation Policies, Entry Windows, and the Nexus Between Ownership, Diversity and Service in the Public Interest, in COMMUNICATIONS RESEARCH IN ACTION: SCHOLAR-ACTIVIST COLLABORATIONS FOR A DEMOCRATIC PUBLIC

41 Pages Posted: 2 Dec 2009 Last revised: 20 Mar 2020

Date Written: November 1, 2009

Abstract

This study examines more than 11,000 records from the Federal Communications Commission’s (FCC) Consolidated Database System (CDBS) and Internet sources on radio ownership and program formats in mid-2009 to analyze the effect of FCC licensing and multiple ownership policies on minority ownership of commercial radio stations, program diversification, and service to the American public. This analysis is timely and important as the FCC prepares for its quadrennial review of broadcasting rules in 2010, mandated by the Telecommunications Act of 1996 (§202(h)). Analyzing media ownership is critical because "[i]t is upon ownership that public policy places primarily reliance with respect to diversification of content, and that has proven to be significantly influential with respect to editorial comment and the presentation of news." TV9 Inc. v. FCC, 495 F.2d 929 (D.C. Cir. 1974), cert. denied, 419 U.S. 986 (1974). This study’s finds that in 2009, 74.7% of minority commercial radio broadcasters air minority-oriented programming, demonstrating a robust nexus between ownership and program diversity. While the Internet is growing, 90% of all Americans still rely on radio each week for news and entertainment programming that facilitates our democratic dialogue.

This study finds that 324 minority owners control 815 commercial radio stations in 2009. It examines factors affecting entry into broadcasting including the FCC’s licensing and consolidation policies. It finds that fifty-three percent of minority commercial radio broadcasters in 2009 were awarded their first license among the radio station licenses they still control, prior to the Telecommunications Act of 1996, legislation which permitted a dramatic increase in radio ownership consolidation locally and nationally. This study recommends that the FCC consider these findings in its 2010 examination of broadcast rules, and simultaneously examine its auction rules used to assign broadcast construction permits. This study emphasizes the imperative of the FCC improving its database to identify and facilitate analysis of broadcast ownership trends including the increasing number of stations going dark for financial reasons, bankruptcies, liquidations, and lender workouts in light of the recession and shift to Internet advertising.

Keywords: Broadcasting, Minority Broadcasters, Broadcast Ownership, Broadcast Consolidation, Media Consolidation, Federal Communications Commission, Minorities, Media

JEL Classification: K20, K23

Suggested Citation

Sandoval, Catherine J.K., Minority Commercial Radio Ownership in 2009: FCC Licensing and Consolidation Policies, Entry Windows, and the Nexus between Ownership, Diversity and Service in the Public Interest (November 1, 2009). CATHERINE J.K. SANDOVAL, Minority Commercial Radio Ownership in 2009: FCC Licensing and Consolidation Policies, Entry Windows, and the Nexus Between Ownership, Diversity and Service in the Public Interest, in COMMUNICATIONS RESEARCH IN ACTION: SCHOLAR-ACTIVIST COLLABORATIONS FOR A DEMOCRATIC PUBLIC, Available at SSRN: https://ssrn.com/abstract=1516820

Catherine J.K. Sandoval (Contact Author)

Santa Clara University - School of Law ( email )

500 El Camino Real
Santa Clara, CA 95053
United States

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