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FCC's Genachowski & McDowell Talk PPM Methodology At NABOB Conference
September 29, 2009

FCC Chairman Julius Genachowksi and Commissioner Robert McDowell both spoke late last week at the National Association of Black Owned Broadcasters (NABOB) 33rd Annual Fall Broadcast Management Conference. Genachowski discussed a number of the issues facing minority broadcasters, noting that broadcasters are facing a "perfect storm" of "with a difficult economy, a plummeting advertising market, and rapid technological change buffeting traditional business plans. And I will add, for minority owners and would-be minority owners there is the added challenge of capital, which is made even more difficult by a capital market that's in the basement."

Genachowki called minority ownership "a long-time concern of the agency" and noted that the FCC "currently does not possess reliable data on the precise status of minority and female ownership. The Commission is working to obtain more accurate and precise ownership data from broadcast stations in order to better assess the status of minority broadcast ownership."

He also touched on the hot button issue of PPM methodology, saying, "I understand that several attorneys general have looked into whether PPM methodology undercounts minority audiences. And I know that several members of Congress are actively examining the issue. As most of you know, prior to my getting sworn in, the Commission, under the leadership of Acting Chairman Michael Copps, issued a Notice of Inquiry on Portable People Meters. While the Commission's authority over the core issue is somewhat limited, the NOI sought comment on how the FCC's own use of Arbitron PPM data might impact the integrity of agency analyses and trend reporting, and thus policymaking. The Commission is still reviewing the record. I will be asking the Media Bureau to pull together a roundtable with different stakeholders in this debate in the near future to try to reach greater understanding and perhaps resolution of issues in disagreement."

In McDowell's comments, he discussed a December 2007 Diversity Order from the FCC, which includes a rule barring broadcasters "from accepting advertising that comes to them as part of a 'no urban/no Spanish' media-buying campaign. Our enforcement of this rule is rather indirect because the Commission does not have authority over advertisers or media buyers themselves. Instead, we must work through broadcasters, relying upon them to act appropriately and to alert us – or other entities, like NABOB – when they encounter problematic solicitations."

He also spoke on the PPM issue, saying, "It’s difficult to predict at this point what, if anything, the Commission may do next on the PPM reliability issue. I have been plain-spoken in raising questions about the FCC’s statutory authority in this area. But, at a minimum, having FCC commissioners talk about it often could be constructive. While the FCC’s authority is debated, however, it seems appropriate to me that NABOB and others concerned about the matter have been making their case in other venues, including before various state Attorneys General and, most recently, the Senate Judiciary Committee. And I hope that progress is being made."




 
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