Radio Merger Under Fire From Black Lawmakers

[Kire]

Source: Washington Post

Radio Merger Under Fire From Black Lawmakers
Caucus, FCC Chair Differ On Setting Aside XM, Sirius Channels for Minorities

By Jeffrey H. Birnbaum
Washington Post Staff Writer
Tuesday, June 17, 2008; Page D01

Senior members of the Congressional Black Caucus yesterday criticized a compromise plan for the proposed merger of the XM and Sirius satellite radio companies, saying the deal does not provide enough opportunities for minority-owned programming.

Federal Communications Commission Chairman Kevin J. Martin said over the weekend that he would support the merger after XM Satellite Radio Holdings and Sirius Satellite Radio voluntarily agreed, among a series of other concessions, to lease 4 percent of their radio spectrums, or 12 channels, for programming run by minorities and women.

Members of the black caucus on Capitol Hill have been arguing for the merged company to lease five times that amount of spectrum to companies owned by racial minorities. Short of that, caucus members have warned in letters to the commission and meetings with Martin, they would oppose the merger.

<snip>

Rep. G.K. Butterfield (D-N.C.) said he got the idea for the 20 percent set-aside for minority-owned companies from Georgetown Partners, a minority-run private-equity firm based in Bethesda, and its managing director, Chester Davenport.

The firm, which has invested in wireless and media companies, objected last year to the merger, arguing that a monopoly could limit opportunities for minority programming.

But Davenport said that if regulators give the marriage a green light, the combined company should be required to turn over some channels to a minority-controlled entity. He said he hoped Georgetown Partners would fill that role, making it a competitor to the merged company.

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Read more: http://www.washingtonpost.com/wp-dyn/content/article/2008/06/16/AR2008061602470.html

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I've heard some people say that the new company would have to give away the "minority-owned" channels for free, but this article calls it a "20 percent leasing arrangement". I'm not sure where find the real truth about this.

Also, I also heard that the Spanish language channels do not count as "minority-owned". Does anybody else know about this?

[Kire]

1. Okay, I reread the article...

It does say this:

Butterfield said he was not pressing for the 20 percent leasing arrangement on behalf of Georgetown Partners or anyone else. He suggested that the spectrum could be leased to a single company or to several.

I don't want anybody to tell me I'm quoting anything "out of context" or anything.

thanks

[Grown2Hate]

2. Howard made some great points about this today, though.

Why the FUCK is this taking so long? The justice department has already (I should say FINALLY, after 16 months of sitting on it) decided that this is NOT A MONOPOLY. The FCC is dragging their feet FURTHER. Fucking EXXON-MOBILE MERGED QUICKER! Are you KIDDING me?! Satellite has to compete with COUNTLESS forms of entertainment (iPod, FREE radio, CDs, etc.). It's not something anyone NEEDS to live. Say they merge. And say they raise their fees to $100 per day. Guess what? People will say "FUCK YOU", not pay it, and satellite will die. So WHAT is the problem? Why are there ANY stipulations to the merger? Why didn't Exxon-Mobile have to give out minority ownership rights?

NOW, I have nothing against the minority ownership provision as stated above (although what I read earlier made it sound like they were to GIVE AWAY free stations, which shouldn't be done for ANYONE). I have no problem with it. HOWEVER, why the stipulations on satellite radio specifically? Why not do the same to iPod (or anyone else mentioned above)? The fact that they haven't been allowed to merge yet is simple: LOBBYISTS. Lobbyists for the NAB (National Association of Broadcasters, read: terrestrial radio) do not WANT this to go through. They want to hold the ball long enough for one (or both) company(ies) to go bankrupt. Corrupt motherfuckers. :rant:

[Grown2Hate]

3. Oh, not only that...

... but "blacks of Spanish descent" ALSO do not count as minorities. It's almost like the entire set of stipulations were specifically designed to make them all impossible to meet without adding enough of a financial burden to make the merger an actual DETRIMENT to a company that can't yet turn a profit.

[Ian David]

4. I never realized I was a black person.

I never realized I was a black person.

The Congressional Black Caucus continues to represent my interests and beliefs better than Congress as a whole.

[Ian David]

5. We just need to stop the merger. Period. n/t

[Grown2Hate]

6. Stop the merger?

Pray tell; WHY? I continue to be shocked by this attitude. Let's CONTINUE to let the lobbyists run the show on EVERY conceivable level? The only ones trying to block the merger are terrestrial radio. And FUCK terrestrial radio. They continue to pump out SHIT, they add NO listen-able programming, they don't have to pay to play music, and do you see CLEAR CHANNEL giving away free radio stations to ANYONE? Viacom? Is Cox or Cablevision giving away free channels? What's wrong with the merger? There is ZERO conceivable reason to stop it. ZERO.

[Ian David]

7. Have you seen how XM and Sirius have treated AirAmerica and TalkLeft? n/t

[Grown2Hate]

8. Not really.

I've always listened to Air America on AM radio, and I do occasionally listen to Talk Left as well. What did they do to them? I'm actually curious now.

HOWEVER, it's really neither here nor there. That's like wanting to destroy a cable network for canceling your favorite show. It doesn't make it any less wrong.