Minority Ownership Too Tough for FCC

[Commentary] On April 8, the Federal Communications Commission will launch an inquiry into media ownership by women and minorities -- a priority topic for the current and future FCC chairmen and President Obama. But Jessell doesn't think that there is much the FCC can do about ownership diversity. Over the past 30 years, the agency has implemented a number of policies aimed at increasing minority and female ownership. All have failed. It turns out that African-American and Hispanic businessmen and businesswomen are just like their white counterparts — something that apparently has never occurred to Copps or his predecessors. They are in business to make a buck. Sooner or later, most FCC-enabled minority owners will want to cash out. And when that time comes, they are going to be far more interested in how much money is being waved in front of them than the color or sex of the person doing the waving. Thus, the minority-owned station can quickly revert to a non-minority owned station. Minority ownership policies have other problems. They tend to be horribly abused. If the Obama administration wants to increase minority ownership, FCC policies won't do it. It's going to have to come up with a big pile of money earmarked for disadvantaged or small businesses hankering to get into broadcasting. The best of the applicants for the federal grants may be able to come up with the supplemental financing and buy some TV or radio stations on the cheap. And if some are minorities or women, that's a good thing. But keep in mind that the increase in minority and female ownership will likely be transitory.