Broadcasters Support Federal Assistance Proposal

RADIO ONLINE | , , | :am CT

Several minority-owned broadcasters have written a letter to Treasury Secretary Timothy Geithner asking him to support a proposal made by House Majority Whip Jim Clyburn to "ensure minority-owned broadcasters are afforded similar consideration for federal assistance and investment given to the financial services and the domestic auto industry."

The letter, signed by Spanish Broadcasting System President/CEO Raul Alarcon, Entravision CEO Walter Ulloa and Inner City Chairman Pierre Sutton, claims that the recession and bad economy is close to making minority-owned broadcasters "an extinct species." Even in good economic times, the letter says that minority broadcasters have historically had difficulties accessing the capital markets after the wave of media consolidation.

The letter says that unlike the auto business, radio had been healthy in the recent past, and could shortly be restored to a path of growth with some "temporary assistance." The letter also points to changes in Arbitron audience measurement," or PPM, as well as the loss of auto advertising, for declining ad rates.

"The federal government for decades has advocated the importance of minority voices in the broadcast industry as a precursor to a vibrant democracy and a more inclusive society. Financial foreclosure will roll back decades of work by the federal government to encourage more minority voices in the broadcasting industry," the letter continued.

In conclusion, the letter says that if the Treasury Department doesn't offer direct assistance, that he should "seriously demand that banking institutions receiving federal funds extend credit and be flexible to radio broadcasters.