Exploring Strategies That Have Advanced Media Diversity" Broadcast Symposium
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1 UNITED STATES OF AMERICA FEDERAL COMMUNICATIONS COMMISSION + + + + + "EXPLORING STRATEGIES THAT HAVE ADVANCED MEDIA DIVERSITY" BROADCAST SYMPOSIUM + + + + + THURSDAY MARCH 7, 2019 + + + + + The Symposium was held in the Commissioners Meeting Room, 445 12th Street, SW, Washington, D.C., at 9:00 a.m., Henry Rivera, Chair, Broadcast Diversity and Development Working Group, ACDDE, and Sarah Whitesell, Deputy Bureau Chief, Media Bureau, presiding. COMMISSIONERS PRESENT: AJIT PAI, Chairman MICHAEL O'RIELLY, Commissioner BRENDAN CARR, Commissioner GEOFFREY STARKS, Commissioner Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 2 PANELISTS: MAXWELL AGHA, Panelist, ICN-FV RAUL ALARCON, Panelist, Spanish Broadcasting System MARCELLUS ALEXANDER, Moderator, NAB Education Foundation CAROLINE BEASLEY, Panelist, Beasley Media Group, LLC MARIA BRENNAN, Panelist, Women in Cable Telecommunications SHEILA BROOKS, Panelist, SRB Communications, LLC RONALD BUSBY, Moderator, U.S. Black Chambers, Inc. VICTOR CERDA, Panelist, V-Me Media JEFF CHANG, Panelist, Chang Media Group MAURITA COLEY FLIPPIN, Panelist, MMTC DANIEL J. DAMON, Panelist, U.S. Bank JANNETTE DATES, Moderator, Howard University School of Communications MICHELLE DUKE, Moderator, NAB Education Foundation SUZANNE GOUGHERTY, Moderator, MMTC Broadcasting, LLC KIM GUTHRIE, Panelist, Cox Media Group RASHAAN HARRIS, Panelist, Emma Bowen Foundation for Minority Interests in Media DAVID HONIG, Panelist, MMTC DON JACKSON, Panelist, Central City Productions RONALD JOHNSON, Moderator, Wireless Infrastructure Association SHERMAN KIZART, Moderator, Kizart Media Partners GARRET KOMJATHY, Panelist, U.S. Bank BRIAN LAWLOR, Panelist, E.W. Scripps TV Stations Group MARK LIPP, Panelist, Fletcher, Heald & Hildreth SARA LOMAX-REESE, Moderator, WURD Radio CHESLEY MADDOW-DORSEY, Panelist, American Urban Radio Networks PAULA MADISON, Panelist, Madison Media Management JANE MAGO, Panelist, NAB DUJUAN MCCOY, Panelist, Bayou City Broadcasting BRIAN MCNEILL, Panelist, Alta Communications DEANA MYERS, Panelist, TMT Kagan Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 3 JOHN OXENDINE, Moderator, Blackstar, LLC RUSSELL M. PERRY, Panelist, Perry Publishing and Broadcasting STEVEN C. ROBERTS, Panelist, Roberts Radio Broadcasting ALFREDO RODRIGUEZ, Moderator, DISHLatino ORLANDO ROSALES, Moderator, Media Vista Group JOHNNY SHAW, Panelist, Shaw Broadcasting, LLC NIMISHA SHUKLA, Panelist, South Asian Broadcasting JEFFREY SMULYAN, Panelist, Emmis Communications MELODY SPANN COOPER, Panelist, Midway Broadcasting Group, WVON Chicago DIANE SUTTER, Panelist, ShootingStar Broadcasting NICOL TURNER-LEE, Moderator, Brookings Institution AUGUSTO VALDEZ, Panelist, Condista FRANK WASHINGTON, Panelist, Broadcast Investor BRENT WILKES, Moderator, Wilkes Strategies JAMES WINSTON, Moderator, NABOB PEDRO ZAMORA, Panelist, Zamora Entertainment ALSO PRESENT: HENRY RIVERA, Chair, Broadcast Diversity and Development Working Group, ACDDE SARAH WHITESELL, Deputy Bureau Chief, Media Bureau JAMILA BESS JOHNSON, DFO, ACDDE KRISTEN WELKER, NBC News White House Correspondent Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 4 CONTENTS Welcome and Introduction: Sarah Whitesell, Deputy Bureau Chief, Media Bureau . 6 FCC Chairman Ajit Pai. 6 Remarks: Kristen Welker, NBC News White House Correspondent. .16 Welcome Remarks: FCC Commissioner Michael O'Rielly. .26 FCC Commissioner Geoffrey Starks . .28 Diane Sutter, Chair, ACDDE . .31 Henry Rivera, Chair, Broadcast Diversity and Development Working Group, ACDDE . .33 Panel 1: Success Stories from Pioneers. .37 Panel 2: Success Stories from Today's Radio Entrepreneurs. .81 Panel 3: Success Stories from Today's Television Entrepreneurs.. 127 Remarks: FCC Commissioner Brendan Carr. 176 Panel 4: Success Stories from Today's Broadband and OTT Entrepreneurs and Content Providers. 181 Panel 5: How Diverse Entrepreneurs Can Use Mergers and Acquisitions as an Opportunity for Entry and Growth . 221 Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 5 CONTENTS Panel 6: The Important Rule of Lenders and Investors in Creating Success Stories. 267 Panel 7: The Important Role of Incubators and Mentors in Creating Success Stories. 316 Panel 8: Success Stories from Organizations Whose Mission It is to Foster Minority and Women Entrepreneurs. 364 Closing Remarks Diane Sutter . 403 Jamila Bess Johnson. 405 Adjourn. 408 Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 6 1 P-R-O-C-E-E-D-I-N-G-S 2 (9:02 a.m.) 3 MS. WHITESELL: Good morning. I'm 4 Sarah Whitesell, Deputy Chief of the Media 5 Bureau. On behalf of the Bureau and our very 6 hard-working partners on the Advisory Committee 7 on Diversity and Digital Empowerment, I'm 8 thrilled to welcome you to today's symposium. 9 This is a special day. It marks the 10 first time we've gathered luminaries from across 11 the broadcast industry to share their wit and 12 wisdom with us on what we can do to promote 13 broadcast diversity. 14 We're excited to have so many members 15 of the Advisory Committee here today and we look 16 forward to hearing from a very diverse group of 17 speakers. But given that today's agenda packs 18 about as many speakers and panels into one day as 19 is humanly possible, I'm going to waste no time 20 in turning things over to Chairman Pai, who will 21 kick off the day. 22 (Applause.) Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 7 1 CHAIRMAN PAI: Well thank you so much, 2 Sarah. And good morning. Welcome to the FCC's 3 symposium on media diversity. Thanks to everyone 4 for coming. We have got a great day lined up for 5 you. But before I get to the program, a little 6 bit of history. 7 On my first full day as Chairman, a 8 little over two years ago, I spoke to the 9 Commission's terrific staff here in this very 10 room. And I said that my highest priority would 11 be bringing the benefits of the digital age to 12 all Americans regardless of race, or gender, or 13 religion, or sexual orientation, or anything 14 else. 15 And consistent with this pledge, I 16 moved quickly to recharter the agency's Advisory 17 Committee on Diversity and Digital Empowerment, a 18 committee that had gone dormant. And when it was 19 chartered in July of 2017, I charged this 20 important committee and its leaders with 21 developing real world solutions to spur diversity 22 and digital empowerment, especially in under- Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 8 1 served communities across this country. 2 I asked them to bring recommendations 3 that could be quickly implemented in order to get 4 solutions to the public rapidly. And one of the 5 deliverables to come out of this Advisory 6 Committee is today's workshop. And boy, have 7 they ever delivered. 8 To start we've got a special guest, 9 NBC News White House Correspondent, Kristen 10 Welker, who will be giving the featured remarks 11 of this opening session. We've had politicians, 12 and journalists, and many other luminaries come 13 to this room. This is the first time we've ever 14 had a movie star, the star of Transformers 3, 15 here at the FCC. So thank you, Ms. Welker, for 16 being with us. 17 In addition to that we also have eight 18 all-star panels on tap. You're going to hear 19 from experts in broadcast radio, in television, 20 over the top content providers, finance, media 21 mergers and acquisitions, and groups that 22 specialize in training those who are interested Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 9 1 in media employment and ownership. 2 Now building out eight panels takes a 3 lot of work. And that means that I have a lot of 4 people to thank. First I want to thank the 5 Advisory Committee's entire Broadcast Diversity 6 and Development Working Group for its great 7 planning efforts, and especially the chair of the 8 working group, the indefatigable former FCC 9 Commissioner, Henry Rivera. 10 (Applause.) 11 CHAIRMAN PAI: Henry and the working 12 group have done a fantastic job of putting 13 together a wonderful program in such a short 14 period of time, including several weeks when the 15 FCC staff was furloughed. So Henry and your 16 team, thank you for herding the cats so ably and 17 quickly. 18 Thanks also to Diane Sutter and Anna 19 Gomez, the Chair and the Vice Chair of the 20 Advisory Committee, for their outstanding 21 leadership. Thank you to all of the experts who 22 are going to be participating in today's panels, Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 10 1 including the moderators for all of the advanced 2 preparation for today's event. 3 And thank you also to our team here at 4 the FCC, including the Media Bureau led by Chief 5 Michelle Carey, along with Deputy Chief Sarah 6 Whitesell, who you just heard from earlier; and 7 Industry and Analysis Chief Brendan Holland; the 8 designated Federal Officer, Jamila Bess Johnson, 9 and Deputy DFO, Brenda Villanueva; the Office of 10 Communications Business Opportunities led by 11 Sanford Williams, who's the Chief; and the many 12 other staff members who have worked extremely 13 hard to make this symposium a success. And 14 particularly those who enabled us to use this 15 commission meeting room today. 16 Finally, thanks to three of my 17 colleagues, Commissioners O'Rielly, and Carr, and 18 Starks, who are also here this morning, if not in 19 the room yet. Make no mistake, promoting 20 opportunities for women and minorities in 21 broadcasting is a bipartisan issue at the 22 Commission as evidenced by the presence of four Neal R.