6993: Minority Broadcasters Need A Bailout.

From The New York Daily News…

Obama, throw a lifeline to black and Hispanic radio

By Pierre M. Sutton

Now that the transition to digital television has stranded many low-income Americans, broadcast radio is the last remaining free over-the-air medium for millions of low-income families, including many African-Americans and Latinos.

But as the economic crisis leaves wreckage in its wake, minority-owned and oriented radio stations are fast becoming an endangered species, with dire consequences for our diverse democracy.

African-Americans and Latinos — who comprise about 28% of the U.S. population — now own only an estimated 6.3% of full-power radio stations in America. Pittsburgh’s only black-oriented radio station, WAMO, has recently been sold, as have Spanish-language radio station KLOK in San Jose, Calif., and Border Media, a leading chain of Latino-oriented radio stations in Texas.

Imagine how different New York City’s history would have been — or how difficult our future could be — without African-American and Latino radio stations. During the decades of civil rights struggle, the pioneering black-oriented radio stations, WLIB and WWRL, focused listeners’ minds on the movement, while broadcasting the jazz, rhythm-and-blues and gospel sounds that soothed their souls. Pioneering Spanish-language stations played a similar role, publicizing voter registration drives while providing music and talk that helped generations of newcomers feel more at home in New York.

Now, though the soundtrack has changed, these stations still play a vital role in keeping their listeners informed, inspired and involved in their communities and their country, as well as promoting businesses and generating jobs in black and Hispanic neighborhoods.

Perhaps you’re thinking: Just about every industry under the sun is hurting during this deep recession, and the traditional media have been adapting and contracting over the course of many years. Why should minority-oriented radio stations get any special consideration or treatment?

Because these radio stations — which serve a vital and underappreciated role — have been suffering economic body blow after body blow in the current crisis.

First, banks and other lenders are becoming de facto owners of the nation’s airwaves, driving out diversity of all kinds.

Second, Arbitron, whose ratings determine where advertisers buy airtime, has initiated a new method of measuring audiences that we believe dramatically undercounts minority stations’ listeners.

Third, advertisers across the board are cutting back their buys on minority radio. That’s especially true of the troubled auto industry, long a leading advertiser on black stations.

Black and Hispanic radio stations must not be allowed to go extinct — but today, that’s looking like a very real possibility.

That is why leading members of the U.S. House of Representatives, including House Majority Whip Jim Clyburn (D-S.C.) and New York’s own Charles Rangel (D-Manhattan) and Edolphus Towns (D-Brooklyn) are urging that the federal government help minority-owned radio stations weather this financial storm.

In a meeting today with senior Obama administration officials, minority broadcasters will make our case for emergency federal assistance. We appreciate the administration’s attention to these important issues thus far and hope for its help.

No new laws would have to be passed. The Treasury Department can easily tap into funds already appropriated under the Troubled Asset Relief Program, which has helped to restore credit flows to the financial and domestic automobile supplier industries. Bridge financing or government-backed loans could also be provided until the financial system recovers.

Minority radio stations aren’t failing businesses begging for handouts; they’re healthy enterprises, beset by a perfect storm of bad circumstances, that are in need of a lifeline. At a time when millions of African-Americans and Latinos need information and opportunities to get jobs and build businesses, let’s not pull the plug on black and Hispanic radio.

Sutton is the chairman of Inner City Broadcasting Corp.