About this issue.

Mega-broadcasters are gobbling up radio stations nationwide, leaving the unique voice of independent, black-owned radio in serious peril And Michael Powell, the lone black commissioner at the Federal Communications Commission, is making matters worse. Powell and the FCC are conducting a biennial review of whether to repeal or modify telecom rules that could eliminate what little boundary is left for radio ownership. If he recommends no restrictions, then it will result in a free-for-all that allows any company with enough money to buy and own any number of radio stations in any given market. Forever gone Will be the days of the independent, black-owned radio stations playing James Brown records and serving as a voice of the community. (Many people may not know that back in the 1960s, besides making hits like "Papa's Got a Brand New Bag" and "Say It Loud--I'm Black and I'm Proud." Brown owned Baltimore's only black-owned radio station [WEBB], a station in Atlanta, and one in his home town of Augusta, Georgia.) If Powell and the FCC have their way, the proposed deregulation of the radio industry will be a final blow that ends an era of entrepreneurs, like Brown, who own only one or two stations.

The new catch-word between today's radio station's sales department and its advertisers is "clusters," the number of radio stations any given company owns in a single market. Companies with clusters in multiple markets have a command over advertising dollars, which in turn squeezes out the little guy--like the James Browns of the industry. But what does this mean for us and our community? In essence, the broader issue means we've lost more than our voice. This latest FCC vote might now eliminate the restrictions of any one broadcaster from owning more than eight radio stations in larger markets and five in smaller markets.

In 1996, Clear Channel was the largest U.S. radio broadcaster with 86 stations render ownership. Today it owns 1,200 stations with 76 stations targeted to the urban audience. (The next three largest conglomerates are Cumulus Broadcasting, Citadel Communications, and Infinity Broadcasting.) Since 1997, the number of minority-owned broadcasters has dropped by 12%, from a total of 169 to 149 in 2001. And that number is expected to drop even more.

Radio One has been the only previously black-owned broadcasting company to truly thrive since 1996. In exchange for Cathy Hughes and family reducing its ownership of Radio One to below 51% in a series of public stock offerings, the company expanded its ownership to 65 stations. And while Radio One is the largest black-operated company to survive, Clear Channel makes Radio One look like a Mom & Pop operation by comparison. In spite of this success story, for every Radio One in our community, there are many smaller broadcasters forced to sell stations or go out of business entirely. Some black broadcasters like Tama's CEO Glenn Cherry and his brother, Charles II, are developing a new business model to stay competitive in an ever-changing industry.

In our feature "Battle for the Airwaves" we examine the survival strategies the remaining black-owned radio stations need to implement in today's environment. How will they grow if Powell and the FCC remove what little restrictions are already in place? There will be additional social and political consequences ff our independent, black-owned radio stations can't implement a successful strategy.

"The radio industry will become just as monolithic as the news and entertainment industry," says Matthew S. Scott, personal finance editor who first reported in 1993 that black radio was in trouble. (He co-wrote our latest report.) "With larger companies gobbling up smaller ones, we will eventually look up on, day and find that 99% of all of our news and entertainment will be controlled by only a handfull of companies. When this happens, it will be a tremendous disservice to our community."

--The Editors