This year's survey results indicate that minorities own 322 of 11,475 commercial broadcast stations, representing 2.8 percent of total commercial ownership. Black ownership represents 1.7 percent of total commercial stations; Hispanic ownership represents 1.05 percent of total commercial stations; Asian ownership represents .03 percent of total commercial stations; and Native American ownership represents .04 percent of total commercial stations.⁽²³⁾

Minority Owned Commercial Broadcast Stations Licensed in the United States in 1997 Report
Industry Station Totals	Black	Hispanic	Asian	Native American	Minority Totals
AM                  4,814	101	80	1	2	184	3.8 %
FM                  5,468	64	31	2	3	100	1.8 %
TV                   1,193	28	9	1	0	38	3.2 %
Cumulative       11,475	193	120	4	5	322	2.8 %

Table One

During the last year, Black ownership totals decreased by 30 stations (see Appendix C for specific station losses). The decline in Black ownership totals can be ascribed, in part, to the sale of US Radio (the largest Black-owned broadcast company in the U.S.) to Clear Channel Communications. Clear Channel Communications currently owns 93 FM stations and 53 AM stations, many of which are in the top 10 markets with annual revenues in excess of five million dollars.⁽²⁴⁾ US Radio owner Ragan Henry cited "competitive pressures from market dominators and insufficient capital" as his primary reasons for selling.⁽²⁵⁾ Only 2 of US Radio's 17 stations were sold to other minorities. MTDP data indicate that only 9 radio stations and 3 television stations exchanged hands between minorities in 1996 (see Appendix B).

Blacks consistently have owned the largest number of commercial radio and television stations of all minority groups since the National Association of Broadcasters began collecting this data in the late 1980s. This year's data show that a total of 98 Black owners control the 193 radio and television stations on this year's minority ownership list.⁽²⁶⁾ Sixty-eight of the 193 Black owned radio stations listed in this year's report are in the top 50 Arbitron ranked markets; 24 are in the top 100 Arbitron ranked markets; and 31 are in markets ranking below 100. Arbitron ranks were not available for 70 of the stations (see Appendix D).⁽²⁷⁾

Hispanic ownership totals increased by 5 stations since MTDP conducted its survey in December 1995 (see Appendix A for specific station acquisitions).⁽²⁸⁾ In spite of this moderate increase, Hispanic ownership totals represent only 1.05 percent of all commercial broadcast properties. Both Asian and Native American ownership have remained under 1.0 percent since December 1995. There were no new acquisitions for either of these groups in 1996, with owners citing increased competition and lack of expansion capital as primary factors for the consistently low numbers. There are 3 Asian-owned radio stations that appear on this year's list are in the top 10 Arbitron ranked markets. Two of the Native American- owned stations that appear on this year's list are located in the top 100 Arbitron ranked markets, the remaining stations are located in markets for which MTDP could not identify an Arbitron rating.⁽²⁹⁾

In our research, we found that since December 1995, minorities lost a total 16 stations that are in the top 50 Arbitron rated markets and acquired a total of 6 that are in the top 50 Arbitron markets (see Appendix C). The acquisitions of AM stations were distributed more evenly among a variety of Black and Hispanic owners (see Appendix A). Some minority owned stations that appeared in the 1995 Minority Broadcast Ownership Report went off the air; others were sold to non-minorities (see Appendix C). Only 9 radio stations were sold to other minorities (see Appendix B).

Our data show that 12 of the minority owned FM stations lost were in the top 50 Arbitron ranked markets, and that minorities acquired 8 stations which are in the top 50 Arbitron ranked markets. The acquisition of these 8 stations were made by 2 Black owners and 2 Hispanic owners (see Appendix A).

Most of the minority owners interviewed reported that they believe the decline seen in this year's numbers is a direct result of increased ownership limits, which has given a significant competitive advantage to groups owners, who are more likely to be non-minority and have greater financial resources. The ability to own multiple stations in the same market has proven to be an effective tool for obtaining market share while increasing economies of scale for those who are well-financed. These owners also are more likely to be non-minority.⁽³⁰⁾ The minority owners interviewed contend that the 1996 Act and the FCC's new ownership limits have the potential to translate into even greater economic possibilities for a handful of companies that already were generating high streams of advertising revenues, and to squeeze out smaller stations in weaker markets. Lending some credibility to this claim is the phenomenal growth occurring for companies such as Gulfstar, Clear Channel and Chancellor, and the declining minority ownership numbers, particularly for FM stations. In their examination of the top ten radio groups, authors of the study "Media Ownership Concentration," reveal that three of the top ten groups -- Chancellor, Gulfstar, and Capstar --are controlled by a single private investment firm, Hick, Muse, Tate & Furst Inc. The study further indicates that one year after the passage of the 1996 Act, national ownership by the top (based on annual revenue) 50 radio groups increased from 876 stations in 1995 to 1,435 stations in 1996.⁽³¹⁾ An August 1997 Broadcasting and Cable article reported that Hick's Capstar Broadcasting Partners LP will pay $2.1 billion for SFX Broadcasting Inc., giving Hicks ownership control of 413 radio station and $1.38 billion in revenue.⁽³²⁾ MTDP was unable to identify any minority owner or consortium of minority broadcast businesses who could raise the capital necessary to reach these ownership levels. Several minority owners reported that they may be forced to sell by the time MTDP conducts its next annual survey.

While MTDP has anecdotal data to support its findings regarding the impact of deregulation on the broadcast marketplace and minority broadcast ownership, it has no substantial empirical evidence to show that the 1996 Act has had a detrimental effect on minority ownership. MTDP will continue to gather the data and statistics that will help MTDP to assess more accurately the impact of the 1996 Act and the increased ownership limits on minority broadcast ownership.

CONCLUSION

Overall, the numbers for minority broadcast ownership in the United States remain low in comparison to the overall minority population and non-minority ownership totals. Our data, and other independent studies, indicate that this underrepresentation bears a direct relationship to the lack of access to investment capital and the lack of legislation and policy initiatives that promote minority ownership.⁽³³⁾ The disparities reflected in these findings emphasize the continuing need for initiatives that address the issues preventing minorities from participating fully in telecommunications ownership. We welcome the opportunity to meet with any persons or groups that would like to discuss possible solutions to this national problem.

A five-year comparative analysis shows that although commercial broadcast industry totals rose by 641 stations, increasing from 10,834 in 1992 to 11,475 in the 1997 report, minority ownership totals declined. In the 1992 report, minorities owned 330 stations, compared to 322 stations today.

TOTAL OF MINORITY AND NON-MINORITY OWNED COMMERCIAL BROADCAST STATIONS LICENSED IN THE UNITED STATES IN 1992 - 1997
YEAR		Industry	Minority	Black	Hispanic	Asian	Native American
1 9 9 2	AM	4,969	189	123	64	0	2
	FM	4,723	107	75	24	5	3
	TV	1,142	34	20	7	7	0
TOTAL		10,834	330	218	95	12	5

1 9 9 3	AM	4,950	185	120	63	0	2
	FM	4,920	108	80	23	2	3
	TV	1,151	29	20	8	1	0
TOTAL		11,021	322	220	94	3	5

1 9 9 4	AM	4,929	190	111	76	1	2
	FM	5,044	121	80	35	3	3
	TV	1,155	32	22	9	1	0
TOTAL		11,128	343	213	120	5	5

1 9 9 5	AM	4,906	185	109	72	2	2
	FM	5,285	127	86	34	3	4
	TV	1,221	38	28	9	1	0
TOTAL		11,412	350	223	115	6	6

1 1 9 9 9 9 6 7	AM	4,814	184	101	80	1	2
	FM	5,468	100	64	31	2	3
	TV	1,193	38	28	9	1	0
TOTAL		11,475	322	193	120	4	5

Industry totals are based on information from the Federal Communications Commissions, Office of Public Affairs.
Ownership totals for 1992 - 1995 have been adjusted to reflect a total of 20 stations for Black Ownership.
Table Two

The pattern of ownership for each minority group indicates very little growth. Black ownership decreased from 218 stations in 1992 to 193 stations five years later, for an aggregate loss of 25 stations. For the same time period, Hispanic ownership totals increased from 95 stations in 1992 to 120 stations in 1997, for an overall increase of 25 stations. However, Hispanic ownership has never exceeded 1.05 percent. Asian ownership totals steadily declined over the past 5 years, going from 12 stations in 1992 to 4 stations in 1997. Native American ownership was at 5 stations in 1992 and is at 5 stations today. In 1995, Native American ownership reached its highest level since we began our survey in 1990 with 2 AM stations, 3 FM stations, and 1 television station for a total of 6 stations.

Between 1994 and 1995, the total number of commercial stations increased by 284 stations, a period of time during which minority ownership totals increased by only 7 stations. Between 1995 and 1997 industry totals increased by 63 stations but minority totals decreased by a total of 28 stations. The greatest increase in industry totals occurred in the number FM stations (the most powerful commercial broadcast service available) which rose from 4,723 in 1992 to 5,468 in 1997, an increase of 745 stations. Industry FM stations increased most significantly, between 1994 and 1995 with a gain of 241 stations. Comparatively, minority ownership showed a modest increase of 6 stations. Minorities experienced a steady increase in FM ownership until this year when FM ownership totals decreased by 27 stations.

YEAR	INDUSTRY FM TOTALS	MINORITY FM TOTALS
1992	4,723	107
1993	4,920	108
1994	5,044	121
1995	5,285	127
1996-1997	5,468	100

Industry totals are based on information from the Federal Communications Commissions, Office of Public Affairs.
Table Three

Industry totals for AM stations decreased by 155 between 1992 and 1997. Minorities experienced the greatest fluctuations in their ownership of AM stations, with a loss of four stations in 1993, an increase of five stations in 1994, a decrease of five stations in 1995, and a decrease of 1 this year.

YEAR	AM INDUSTRY TOTALS	AM MINORITY TOTALS
1992	4,969	189
1993	4,950	185
1994	4,929	190
1995	4,906	185
1996-1997	4,814	184

Industry totals are based on information from the Federal Communications Commissions, Office of Public Affairs.
Table Four

Over the past five years, the majority of minority ownership reductions have occurred in larger markets with higher streams of revenue. The majority of minority acquisitions have occurred in small, financially deprived markets (see Appendix A).

23. MTDP updates the information in the list from previous years based on information from various sources and periodicals, and contacts each station to verify its ownership. The FCC does not require broadcast licensees to identify their race or ethnicity. This methodology does not ensure a complete listing of all U. S. commercial radio and television stations owned by minorities. Thus, it is difficult to determine whether additional stations should have been included in this compilation. Input from the private sector is therefore invaluable and any corrections to the current list would be appreciated. Information supplied to MTDP in July 1997, increased reportable Black ownership totals for 1993-1997 by a total of 20 stations. Please note this correction when referring to reports dating back to 1993.

24. Broadcasting and Cable, June 23, 1997, at 28.

25. In this study which will soon be released by the Dubios Bunche Center for Public Policy at the Medger Evers College of the City University of New York, the authors include interview responses from former U.S. Radio Owner and CEO, Ragan Henry about specific information on his stations and general industry information. Kofi Ofori and Karen

Edwards, Blackout! Media Ownership Concentration and the Future of Black Radio, at Section IV/E (Dubois Bunche Center for Public Policy, Medger Evers College, City University of New York, forthcoming 1997).

26. Bishop L.E. Willis, President of Willis Broadcasting, is currently the largest Black commercial radio station group owner with a total of 32 stations, followed by Cathy Hughes, Owner of Radio One, with a total of 9 stations.

27. BIA Publications, Inc., Investing in Radio (1st ed. 1997).

28. Amador Bustos of Z Spanish Radio Network is the largest Hispanic station owner. He purchased 11 stations since December 1995.

29. BIA Publications, supra note 27.

30. In the industry today media concentration has driven up the prices of stations in many markets. In the Washington, D.C. market, the price of radio stations has increased by at least 20 percent over the past two years. Prior to 1997, stations were traded at about 10 times their projected annual revenues. Now, that multiple goes as high as 15. Peter Kaplan, Radio Chains That Dominate the Dial, The Washington Times, August 4, 1997, at D12-14.

31. Ofori and Edwards, supra note 25, at Section III.

32. Elizabeth Rathburn, Hicks Tops 400, Broadcasting and Cable, August 25, 1997, at 6.

33. National Telecommunications and Information Administration, The U.S. Dep't. of Commerce, Capital Formation and Investment in Minority Business Enterprises in the Telecommunications Industries, at iii (April 1995).