3-22-2013
Since 1986, the Minority Media and Telecommunications Council has represented more than 70 national minority, civil rights, and religious organizations in selected proceedings before the FCC. The MMTC also operates the nation?s only full-service, minority-owned media and telecom brokerage firm. President/CEO David Honig took time out of his busy schedule to offer advice to minorities with ownership aspirations.
What is the market like today for minorities and women seeking to acquire radio properties?
Broadcasting defines our country to the rest of the world. They look at what is broadcast to determine how our democracy works. Broadcasting also helps decide and communicate who gets elected. Being sure our industry looks like America is extremely important. The media and telecom industries make up one sixth of the economy and 72 percent of newly created jobs. As of 2009 (the most recent information), minorities owned 7 percent of the nation?s full-power radio stations, and African Americans owned only 3 percent of that total.
These already low numbers are decreasing by 9 percent annually. Women make up 51 percent of the nation?s population, yet own only 6 percent of radio stations. During the peak of minority ownership, in 1992, African Americans owned 23 full-powered television stations; today, they own only eight. Women own just 5 percent of TV stations. We are seeing some change as business becomes more multi-cultural and radio reflects Hispanic, Asian, and other American cultures. According to Arbitron, multicultural audiences are heavy users of radio who listen to a variety of formats. They are also heavy users of cell phones, so radio in cell phones is important long-term.
Minorities and multi-cultural communities represent 34 percent of consumers, brainpower, entrepreneurial ability, managerial skills, and innovative ideas. Our hope is to see that reflected in business plans and format rollouts and to encourage broadcasters to take risks in ownership, etc.
How has that changed in recent years?
The best change has been the alignment of the workforce to reflect the community. Broadcasters and other businesses see that it?s good business to hire a team and grow talent that reflects multi-cultural communities. Those on the air, in sales, and, slowly, in management at the local market level are starting to reflect the diverse multi-cultural communities they serve. We are encouraged by this ?bench building? because it?s those personalities, sellers, and managers who will become the corporate executives and entrepreneurs in broadcast and broadcast online in the future.
What are the biggest hurdles that small operators need to overcome to get financial backing?
The most important factor is a solid and definable track record. It?s important at all levels of business, both private and public. Buyers have to start somewhere, perhaps in a small market, and then build their business to prove that their business, operating, and programming plans are successful!
Broadcasters who want to be owners need to get experience managing under good leadership, learn from good coaches, and then take that solid experience into their own business. Entrepreneurs who want to buy a small-market radio station must be able to explain their experience in the field and demonstrate that their business plan and their personal commitment to their funding are rock solid. We also try also help ?new entrants? translate their success in other businesses to the broadcast business, which is an excellent way to enter media ownership. We plan to be working more with multicultural businesspeople, teaching them why broadcast is such a good business and a complementary footprint to other businesses.
What characteristics does it take to be a successful small owner?
Persistence, determination, and resourcefulness are the most important factors. Since the most difficult step is funding a new business, I would also add these:
1. Have family and friends assist in the funding of your first project. After the first deal, outside funding is easier.
2. Prepare a business plan that is responsive to the market?s needs in programming, sales, and promotion.
3. Be a smart operator who watches every dollar and focuses on the important sides of the business ? product
and revenue.
4. Have excellent sales skills, and know how to help local advertisers move product and build their businesses.
5. Skillfully turn your profit into additional acquisitions
Is there a particular MMTC achievement you would like to share here?
Growing our portfolio of stations that were donated to us and using the stations to train a new generation of broadcasters serving multicultural communities that often went without broadcast service have been rewarding experiences.
Deborah Parenti is EVP/Radio for Radio Ink. E-mail:parenti@aol.com
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