FCC: Minority Stations Face Discrimination by Advertisers

Advertisers discriminate against radio and television stations owned by minorities or that target black or Latino listeners, according to a new study to be released by U.S. regulators today.

The Federal Communications Commission report will show that minority stations earn less advertising revenue per listener than nonminority stations with similar ratings or programming formats, industry officials said.

Critics such as executives at BET Holdings Inc.’s Black Entertainment Television long have contended that advertisers and advertising agencies discriminate against minority stations by demanding discounts and generally spending less on advertising time. This is the first attempt by the FCC to examine whether advertising discrimination exists, beyond anecdotal evidence.

The FCC study confirms “the outright racism and discrimination that we’ve seen for years,” said Lewis Carr, Black Entertainment Television’s executive vice president for media and advertising sales. “I don’t think that the overall industry perceives black consumers as having value.”

FCC Chairman William Kennard, who will release the report, has made it a priority to remove barriers for minorities in the radio and TV industries, and he has pushed for steps to promote ownership and hiring diversity.

“To the extent that minority-oriented stations cannot get their fair share of advertising, that is a competitive barrier,” said Kofi Ofori, director of research with the Civil Rights Forum, who wrote the report. The nonprofit group conducted the study for the FCC.

The Civil Rights Forum reviewed more than 3,000 radio stations, sent a survey to minority broadcasters and conducted a series of interviews with radio and TV officials, Ofori said. The study recommends further examination of the issue.