• by Erik Sass  @eriksass1, April 9, 2009

The Federal Communications Commission Wednesday revealed two new initiatives to investigate possible threats to the future of minority-owned broadcasters. Taking their cue from the Obama administration, which evinced concern about the well-being of minority-owned media, the initiatives suggest that this area will be a main focus of the FCC under Democratic leadership.

In the first sally, Commissioner Jonathan Adelstein advocated an investigation into the methodology behind radio ratings produced using data from Arbitron's Portable People Meter, a passive electronic measurement device, as well as the effects of PPM service on minority-owned broadcasters.

Last year, the FCC was petitioned to open an investigation of PPM ratings by organizations representing minority broadcasters and advertisers, including the National Association of Black-Owned Broadcasters, the Spanish Radio Association, and the Association of Hispanic Advertising Agencies, which complained that PPM ratings did not include representative samples of African-American and Latino listeners.

This led to big drops in ratings for radio stations targeting minority audiences, they alleged -- followed by big drops in ad revenue. However, the push stalled amid concerns that the FCC doesn't have the relevant statutory power. Last year, Kevin Martin -- the FCC's former Republican chairman -- was also at odds with Congress over a number of issues, making him less receptive to calls from Democratic members of Congress for an investigation of PPM's effects on minority broadcasters.

Now that the FCC is under Democratic control, and at least temporarily on friendly terms with the Democratic Congress, the political stumbling blocks to an investigation of PPM appear to have been removed. As to whether the FCC is legally able to launch such an investigation, Adelstein seemed confident that it is: "Some have questioned whether we have the authority to conduct such an inquiry. Apparently they haven't read the Communications Act."

Also on Wednesday, the FCC revealed proposed amendments to its reporting process for minority-owned broadcasters. The amendments would do away with a previous exemption for broadcast stations owned by individuals and requires them to submit Form 323, titled "Ownership Report for Commercial Broadcast Stations," which solicits information about the race and ethnicity of station owners.

Under the earlier rule, the reporting process might have missed many minority or woman-owned stations because, as business owned by individual licensees, they weren't required to submit this information.