| May 7, 2003
The Honorable Michael Powell
Federal Communications Commission
445 Twelfth Street, SW
Washington, DC 20554
Dear Chairman Powell:
We understand the Federal Communications Commission
is deliberating on the proposed merger between Hispanic
Broadcasting Corporation (HBC) and Univision. We are
concerned that this merger, if approved, could result
in a few large corporations obtaining excessive control
over the most important sources of news and information
in a number of communities where the Hispanic population
is large enough to support Spanish-language media outlets.
The possible approval of this merger is sounding alarm
bells in the Hispanic community, and among consumers
in general. Empirical studies show that when minority
targeted stations are not owned and controlled by minority
entrepreneurs, the stations offer programming that is
less desirable to minority audiences than when run by
minority owners. This transaction could consolidate
some of the most valuable Hispanic media properties
in the hands of non-Hispanic owners, potentially undercutting
the ability of Hispanic owners to grow and compete in
many important local markets.
The Justice Department's consent decree altering this
transaction was limited to reducing concentration solely
in radio markets. Beyond antitrust, we believe there
are substantial competitive and public interest concerns
about the close relationship between significant Spanish-language
radio and television owners that would result from this
proposed merger between the dominant Spanish-speaking
radio/broadcast TV and cable station owners in many
markets with large Hispanic populations.
We urge you to carefully assess the impact this merger
would have on competition, independent ownership and
the ability of broadcast and radio stations to address
the local needs, tastes and interests of the Hispanic
community across the nation. We believe that all consumers
benefit from a diverse and competitive media market,
and the FCC should not approve this merger if it finds
that this transaction increases concentration in already
highly concentrated Spanish language local radio/television
markets, or makes it more difficult for minority-controlled
media enterprises to enter these markets and prosper.
Sincerely,
|
Gene
Kimmelman
Senior Director of Public Policy and Advocacy
Consumers Union
|
Mark
Cooper
Research Director
Consumer Federation of America |
cc: FCC Commissioners |