AT&T, OAN Called an Example for Incubators

AT&T’s relationship with cable network One America News (OAN) is the sort of lift-up that Black-owned businesses don’t receive, and it shows that incubators can work, panelists told a conference Friday. “If there’s a better example of incubation by a big media company, I don’t know what it is,” said Clint Odom, T-Mobile vice president-strategic alliances and external affairs. The conference was produced by the National Association of Black Owned Broadcasters and the U.S. Black Chambers.

“We need corporations to love what we’re doing and give us the love they are giving to OAN,” said Circle City Broadcasting CEO DuJuan McCoy. OAN reportedly receives most revenue through carriage on DirecTV and was created after discussions with AT&T executives. “We talk about access to capital -- the banks aren’t there. Can corporations themselves be the solution?” asked Odom.

“AT&T has never had a financial interest in OAN’s success and does not ‘fund’ OAN,” emailed an AT&T spokesperson. The spokesperson said DirecTV carried OAN only after a lawsuit settlement.

Odom said large companies could direct investment toward Black-owned media companies. The FCC’s broadcast incubator program has gotten no applications, said Multicultural Media, Telecom and Internet Council Senior Adviser David Honig on another panel. The agency needs to be more “aggressive” about promoting the incubator program, Honig said.

Without incubators or legislation to restore the minority tax certificate, broadcast ownership diversity won’t improve, said McCoy. “Our problem is we don’t own anything,” said McCoy. “The only way we get some is to get them from white companies.” Would-be minority owners “will never be the highest bidder,” he said. Even the prices for stations spun-off from much larger transactions have skyrocketed outside the range of most minority buyers, he said.

Advertisers should also make an effort to buy time on Black-owned stations, said the panelists. “Every major buyer of advertising in the U.S. should be asked ‘What are you spending on Black media?’” said Odom. “The answer that comes back will be shocking.” There's “a big difference between Black-owned and Black-targeted,” said Karen Slade, general manager of KJLH(FM) Compton, California, which is owned by singer Stevie Wonder.

“The vast majority of corporate America doesn't believe doing business with Black-owned businesses is important,” said Roberts Broadcasting President Steve Roberts. McCoy said big companies are paying more attention to diversity concerns in the wake of the death of George Floyd and subsequent demonstrations. “I’ve been invited to be on 20 different boards,” said McCoy. “This equality movement is working a little bit.”

Roberts said having to compete with larger broadcasters for ad dollars is why he's interested in geotargeted radio broadcasting. On another panel, NAB General Counsel Rick Kaplan slammed the proposal from GeoBroadcast Solutions, saying it would enable ad “redlining.” “I’m not sure why it’s still breathing,” Kaplan said. Honig said GBS’ tech would help minority-owned businesses afford commercials because they wouldn’t have to pay for an entire market. “This is the opposite of redlining,” Honig said.

The FCC is “reviewing” a petition for clarification on foreign-sponsored content regulations, and a stay request from NAB, said Holly Saurer, an aide to acting Chairwoman Jessica Rosenworcel (see 2110140038). Saurer said the agency is “finalizing” membership of the new Communications Equity and Diversity Council, formerly the Advisory Committee on Diversity and Digital Empowerment. The council will focus on the entire tech sector, broadband deployment, working with small businesses, and “upskilling,” she said. The first meeting is Nov. 3 (see 2110070061). Roberts, who was part of prior iterations of the diversity committee, said the FCC has listened to the committee “thoroughly” for the past several years.