Minority ownership of media outlets in the United States is the concept of having ownership of media outlets to reflect the demographic population of the area which the media serves. This is to help ensure that media addresses issues that are of concern to the needs and interests of the local population.
Federal Communications The Federal Communications Commission (FCC) is charged by federal law to ensure that the people of the United States have access to "rapid, efficient, Nationwide, and worldwide wire and radio communication service with adequate facilities at reasonable prices" Their longstanding policy and mandate is to make sure that there is access to communications for all, and this access is not discriminatory, especially in relationship to one's race or gender.United States Congress. (1934). "Communications Act of 1934." Retrieved from http://www.fcc.gov/Reports/1934new.pdf For many decades a pillar to the policies that the FCC followed was that of "competition, diversity, and localism" and this policy guided its decisions on "regulating media ownership"FCC, 2006 Quadrennial Regulatory Review, pg. 4 was first created by United States Congress through the Communications Act of 1934. Ever since its inception, one of the main goals of the Commission is to ensure that without the discrimination, all people of the United States would have access to "rapid, efficient, Nationwide, and world-wide wire and radio communication service with adequate facilities"United States Congress. (1934). "Communications Act of 1934. Section 1." Retrieved from http://www.fcc.gov/Reports/1934new.pdf
The FCC also was required by law to monitor and distribute a limited resource, the spectrum available for broadcast via the airwaves, in such a way that is to the maximum benefit of the people of the United States. From the very first section of the Act that institutionalized the FCC was the declaration that these services would not be withheld on the basis of "race, color, religion, national origin, or sex" To accomplish these goals, policies were crafted to ensure that consumers were able to have access to multiple voices, and that at least some of the precious resource of spectrum would be used for to give voice to educational, nonprofit, and diverse voice. Since the FCC controlled the regulation of information that was broadcast over the airwaves or traveled by wire, this eventually included granting licenses for television, radio, cable, and media outlets. For many years licenses were granted freely, but rather arbitrarily to organizations who were able to demonstrate to the commissioners their ability to serve the public with the bandwidth they were granted. Also the FCC would give consideration to applicants by "broadcasting content, the limits placed on explicit program regulation by the U.S. Constitution,...the economic importance," and following the goals of the FCC.Hazlett, T. W., Coase, R. H. (1998). "Assigning Property Rights to Radio Spectrum Users: Why did FCC License Auctions Take 67 Years?" Journal of Law and Economics. 2(2):529-580.
The ownership of media outlets is often strongly tied to freedom of speech, advocates for minority rights say that only through ownership of an outlet can a group be assured of a voice in the media marketplace. The philosophical background to seeking to ensure that media ownership be treated as a public good is credited to James Madison. His concept was that it is essential to have avenues of free speech to assure political equality, particularly if there are economic inequalities involved. Since the 1940s the FCC had several rules in place that helped protect diversity in the media, these included that no company could own: more than one major TV network; more than one TV station in the same local media market (unless there were at least eight stations in that market); more than one AM station while at the same time owning more than one FM station in the same market; both a radio and TV station in the same market; or both a daily newspaper and a broadcast station in the same market."Fact Sheets on Media Democracy." (2012). The Free Expression Policy Project. Retrieved from http://www.fepproject.org/factsheets/mediademocracy.html#18 Even in the 1960s there was a growing concern over the ownership of media as an important tool for free speech. Law professor Jerome Barron wrote, "the modern world is witnessing at present a Political Revolution as searing and as consequential as the Industrial Revolution, a revolution which has concentrated coercive power and thought control in a few hands. Power...has shifted from those who control the "means of production" to "those who control the media of mass communication"" It has been a concern since the publication of the first black owned newspaper in 1827, that well-meaning groups were trying to represent the interest of minorities without, "becoming acquainted with the true state of things."
In recognition of this unique problem, in 1978 the FCC adapted a "Statement of Policy on Minority Ownership of Broadcast Facilities" This not only recognized the importance of minority ownership, but also provided tax incentives and special assessment when applying for licenses to media outlets. Also, a media owner who was in danger of losing their license could sell their outlet to another minority owned firm as long as it was approved by the FCC. This sale had to be at a reduced price, not more than 75% of its market value Even after years of having these policies in place, only 3.26% of all commercial broadcasting television stations are owned by minorities, and only 4.97% are owned by women.Turner, S. D. (2006). Minority & Female Ownership of TV Stations in the United States. Free Press. Retrieved from http://www.stopbigmedia.com/files/out_of_the_picture.pdf
Even the very definition of what constitutes a minority owned media outlet is highly debated. The issues of equity ownership and control are an important element in defining what is indeed a minority owned media outlet. Minority ownership includes outlets owned by women, African-Americans, Hispanic-Americans, Asian-Americans, or Native Americans. Ownership is often not easily defined as to raise capital for operating expenses or expansion firms that were started as minority owned often include substantial non-minority shareholders.United States: Department of Commerce.(2000). CHANGES, CHALLENGES, AND CHARTING NEW COURSES: Minority Commercial Broadcast Ownership in the United States. Retrieved from http://search.ntia.doc.gov/pdf/mtdpreportv2.pdf
Legal Challenges to the FCC's Minority Ownership Policies: Metro Broadcasting, Inc. v. FCC
For many years the FCC's policies to give opportunities, and sometimes even preference, to new minority run stations in underserved areas went unchallenged. In 1983, two companies applied for the same television broadcasting license in the Orlando area. The broadcasting license was initially granted to Metro Broadcasting, Inc., but then the license was reviewed and given to another company, Rainbow Broadcasting because it was under 90% Hispanic-American ownership, therefore meeting the qualifications for being minority owned. This initial granting, and then revoking, the license caused a quick reaction. Metro Broadcasting sued the FCC and case, known as Metro Broadcasting v. FCC, eventually came to the Supreme Court. The charges were that the FCC policy of favoring minorities violated the equal protection clause.Retrieved from http://www.enotes.com/metro-broadcasting-inc-v-federal-communications-reference/metro-broadcasting-inc-v-federal-communications The Supreme Court ruled that, "The FCC policies do not violate equal protection, since they bear the imprimatur of longstanding congressional support and direction and are substantially related to the achievement of the important governmental objective of broadcast diversity Pp. 563-601".Cornell University Law School: Legal Information Institute. Metro Broadcasting, Inc. v. Federal Communications Commission () 100 U.S. 1 No. 89-453,277 U.S.App.D.C. 134, 873 F.2d 347 (CADC 1989), affirmed and remanded; No. 89-700, 278 U.S.App.D.C. 24, 876 F.2d 902 (CADC 1989), reversed and remanded. Retrieved from https://www.law.cornell.edu/supct/html/historics/USSC_CR_0497_0547_ZS.htm Therefore, the court found that the FCC policy did not violate equal protection because it was promoting a long held goal of not just the FCC but also Congress and the United States government in promoting broadcasting outlets that speak to all the people represented in a community. This ruling was also significant in that it confirmed the constitutionality of affirmative action policies that promoted diversity rather than simply redressing past discrimination.http://www.enotes.com/metro-broadcasting-inc-v-federal-communications-reference/metro-broadcasting-inc-v-federal-communications
Even though the Metro Broadcasting, Inc. v. FCC decision was seen by some observers as, " an important element in the schema of vital civil guarantees that must be maintained and even expanded,"Williams, P. J. Harvard Law Review (Dec., 1990), Vol. 104, No. 2, pp. 525-546 the ruling was effectively overturned by another suit, Adarand Constructors, Inc. v. Peña, which stipulated that the federal government hold to "strict scrutiny" when reviewing claims against policies that are trying to further compelling interests of the government.
Congressional Support of Minority Ownership Policies: Minority Telecommunications Development Program
As part of the U.S. government's efforts to increase the opportunity for minority ownership of media outlets the National Telecommunications and Information Administration (NTIA) has administered a program since the late 1970s known as the Minority Telecommunications Development Program (MTDP). Part of the responsibility of this program, which is run under the U.S. Department of Commerce, is to establish the definition of a minority owned commercial broadcasting unit, monitor the number of active licenses for minority ownership, and how to best facilitate ownership of media outlets.United States: Department of Commerce.(2000). CHANGES, CHALLENGES, AND CHARTING NEW COURSES: Minority Commercial Broadcast Ownership in the United States. Retrieved from http://search.ntia.doc.gov/pdf/mtdpreportv2.pdf.
Despite efforts of the FCC, the NTIA, and the MTDP, the proportion of broadcast outlets owned by minorities is still low compared to their portion of the population. "Since 1990 when MTDP began collecting data on minority commercial broadcast ownership in the United States, African Americans, Asian Americans, Hispanic Americans, and Native Americans have consistently been underrepresented among the Nation's commercial broadcast owners. Ranging from a low of 2.7 percent in 1991 to a high of 3.8 percent in 2000, minorities' ownership of commercial broadcast facilities has remained far below their estimated 29 percent representation in the U.S. population".United States: Department of Commerce.(2000). CHANGES, CHALLENGES, AND CHARTING NEW COURSES: Minority Commercial Broadcast Ownership in the United States. Retrieved from http://search.ntia.doc.gov/pdf/mtdpreportv2.pdf Even though the number of broadcasting licenses owned by minority-owned companies has grown, the overall percentage of ownership has actually declined. This is especially predominant in the television broadcasting industry, "Minority owners' share of the commercial television market decreased in 2000. The 23 full power commercial television stations owned by minorities in 2000 represented 1.9 percent of the country's 1,288 such licensed stations. This is the lowest level since MTDP began issuing reports in 1990."United States: Department of Commerce.(2000). CHANGES, CHALLENGES, AND CHARTING NEW COURSES: Minority Commercial Broadcast Ownership in the United States. Retrieved from http://search.ntia.doc.gov/pdf/mtdpreportv2.pdf