Letter to the FCC Regarding Proposed Merger of Hispanic Broadcasting and Univision

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 Washington DC Office

Mark Cooper
Research Director
Consumer Federation of America

cc: FCC Commissioners

View Files Sorted By Office: Consumers Union OPI, New York - Washington DC Office
West Coast Regional Office - Southwest Regional Office - Consumer Policy Institute

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