NBCU Merger Steps Up Boycott Against Comcast

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NCAAOM Files Opportunity to Comcast - NBCU Merger Steps Up Boycott Against Comcast

A week ago, we reported that the National Coalition of African-American Owned Media (NCAAOM) was looking to boycott Comcast if it didn't feature 100 percent African American-owned channels. Well, the group made good on its promise, filing an opposition to the Comcast-NBCU merger on Sunday.Amid controversy surrounding CNN's hiring of Eliot Spitzer and Kathleen Parker, and talk about how increasingly white cable news stations are becoming, is the argument that cable across the board is lacking black representation, especially on the ownership level.

Today, the two black-centered networks that offer black programming are not wholly owned by blacks: TV One is a partnership with Comcast and Radio One. BET, even in its initial stages, was influenced by investor John Malone, and eventually BET founder Bob Johnson sold the network to Viacom.

The question is whether there are wealthy black entrepreneurs interested in financing a black-owned channel? Or even a pool of middle-income black businesspeople interested in a black network? African Americans are the second largest consumer group in the country, with a buying power of an estimated $892 billion-plus.

Can't we pull the money together for an independent black-owned channel? Or in this increasingly integrated sitcom and reality show television landscape, is there just not any interest anymore?

Stanley E. Washington, NCAAOM president and CEO, thinks there is. In a newswire report, he says:

"The time has come for Comcast to know that African Americans will no longer live on the Comcast plantation. Comcast must immediately do business with African American-owned media in a significant way. Until they do so, we're continuing to boycott and actively campaign to have African American families and our supporters disconnect Comcast services."

Washington continued:

"Our community represents up to 40 percent of Comcast's subscriber base, which means that we are paying them at least $15 billion a year. By not supporting African American ownership in a significant way, Comcast denies the African American community the same opportunity they afford others. We continue to advocate strongly for 100 percent African American channel ownership, because Comcast has a history of requiring equity for distribution from independent channel owners. Further, in order to protect the integrity of our content and to build multiple long-term owners, we seek to reduce the reliance on private equity, which typically has mandatory five- to- seven-year exit points, which forces a significant reduction in African-American ownership control. The overall lack of African-American ownership is a national disgrace and continues one of our nation's most important unfinished agendas."


Here are the findings from the report:

· *In many of the U.S. cities where Comcast has a dominant share of the cable market, African Americans comprise a majority or near majority of the population. For example, in Philadelphia -- the city in which Comcast is headquartered -- African Americans make up more than 43 percent of the city's population. A little more than half of all residents of Washington, D.C., are African American. In Detroit, 8 out of 10 residents are African American. Other Comcast markets with high concentrations of African American subscribers include: Atlanta, Baltimore, Birmingham, Chicago, Jackson, MS, Memphis, New Orleans, Oakland, CA, Pittsburgh, Raleigh-Durham and many more.

· *Comcast brings in approximately $3 billion per month, $36 billion per year, from nearly 24 million cable subscribers. Based on the large African American populated cities served by Comcast, we estimate there are millions of African American subscribers who contribute approximately 40 percent or $15 billion of Comcast's annual revenue. Because of the enormous support that the African American community has shown Comcast over four decades, we find it unconscionable that none of the 250 plus channels that are offered on the Comcast platform are 100 percent African American owned and widely distributed.

· *Not one of the networks on Comcast's cable television platform is 100 percent African American owned and widely distributed.

· *The deal will reduce competition by permitting Comcast- NBCU to play favoritism to their massive portfolio of 44 owned cable networks, and more to be launched in the future, in lieu of 100 percent African American-owned channels, which will never get widely distributed.

· *The 2009 compensation packages of Brian Roberts, chairman, and Steve Burke, chief operating officer of Comcast, were in excess of $35 million each. These two men, Brian Roberts and Steve Burke, paid themselves significantly more than what Comcast paid to wholly owned African American media collectively.

· *Comcast spends approximately $7 billion per year on content from cable networks and less than $2 million per year is allocated to wholly owned African-American networks.

· *Businessman Alvin James, along with Marlon Jackson of the Jackson 5, Attorney Willie E. Gary, Heavyweight Champion Evander Holyfield and baseball icon Cecil Fielder, raised in excess of $60 million to fund a 100 percent African American-owned network called The Black Family Channel. Instead of Comcast ensuring that The Black Family Channel succeeded, they exploited these African American entrepreneurs by charging them millions of dollars in unnecessary launch fees. If Comcast did not support a network called The Black Family Channel, why should black families support Comcast?

Comcast's perspective is probably "if ain't broke why fix it?" Black people are watching and giving their money to the cable company without having a black-owned network, why should it change its formula?


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