A-nicegroove
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“No Urban†and “No
Spanish†Dictates are instructions given by
advertisers, instructing their ad agencies not to buy airtime on
Black or Spanish radio. The FCC held a hearing on this subject in
1984. The National Association of Black Owned Broadcasters (NABOB)
and others asked the FCC to ban discrimination in advertising. The
FCC bumped the matter to the Federal Trade Commission, which in
turn decided that it was an FCC issue. So nothing was done. In
1996, the “Katz Memo†was leaked to
civil rights leaders from a “rep
firm†(a company that helps local radio stations secure
national advertising). The (draft) memo asked advertisers to
consider the “more important
‘whiteâ €™ audienceâ€
and infamously asked the advertisers to go after
“prospects, not suspects.†Although
there was a public furor, the FCC didn’t do
anything. After four attempts to persuade the FCC to ban
advertising discrimination, the Minority Media and
Telecommunications Council (MMTC) — the leading
civil rights organization in the media and telecom industries
— finally succeeded in getting the FCC to ban
racial discrimination in the sale of broadcast advertising. The FCC
awarded MMTC this victory on December 18, 2007 in a unanimous 5-0
ruling. (On the same day, the FCC, also 5-0, granted
MMTC’s petition to ban racial discrimination in
the sale of a broadcasting station.) Here’s how
much money is involved in no-urban dictates: the radio industry
generates about $19B in annual gross revenues. Black radio gets
about 7% of that, or about $1.33B. MMTC has conservatively
estimated that no urban dictates deprive Black radio about 5-10% of
the revenues they would have earned if the Black radio stations
collected the money that represents what Black consumers are really
worth to advertisers. Using the midpoint of that estimate (i.e., a
7.5% revenue hit against Black radio from no urban dictates), it
follows that the economic loss incurred annually by Black radio
from no-urban dictates is on the order of $100,000,000. How much
money is $100,000,000 a year? It’s enough, every
year, to pay for the average tuition and fees of 10,000 Black
students in college – roughly the entire student
body of Howard University.
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