CEO Alfred Liggins Plans Name Change for Radio One

Story by Inside Radio

A name change is likely on the horizon for Radio One, but chief executive Alfred Liggins says a sale of America’s largest minority-owned media company is unlikely. “You will see us reposition the company from an image standpoint,” he told the Multicultural Media, Telecom and Internet Council’s 14th annual Access to Capital and Telecom Policy Wednesday, where he was named Entrepreneur of the Year.

“There’s probably going to be a name change for the parent company because we’re not just Radio One any longer,” Liggins explained. Over the past several years, Radio One has expanded into television programming with its TV One network and has launched a variety of digital properties under the Interactive One banner. Most recently, it’s expanded into the hospitality industry by acquiring a stake in MGM Resort’s Washington-area casino.

Long an inspirational figure for minority owners within the radio industry, Liggins believes more rests on the shoulders of the 36-year-old company launched by his mother, Cathy Hughes. “Radio One has become the poster child for minority owners because we haven’t sold,” he said. That’s unlikely to change. “We’re probably more interested in staying in the game and building something that lasts and stands the test of time,” Liggins added.

What is changing is that Radio One now embraces the African-American community more than ever. That means Radio One can be expected to take political positions and begin supporting specific candidates. “We don’t look at it as an entertainment platform; we look at it as a platform for advocacy,” Liggins told the audience.

Toward that end, MMTC President Kim Keenan thinks it is an “urgent time” for minority media and telecom proponents. On the media side, she suggested that the FCC’s television incentive auction is enticing broadcasters to give up spectrum in exchange for big dollar payouts, a policy that may convince some minority-owned operators to cash out.

“I am deeply concerned when that is over, media ownership will look like it did 100 years ago,” Keenan said. She challenged the crowd to not get caught up in the “wonky conversations” of Washington, and instead to do more to educate the public about diversity issues. “There is a lot to be done on ownership by people of color and by women,” Keenan said.

The two-day conference is designed to help connect minority communication businesses to the money it needs to expand. During a panel discussion, former FCC chair Reed Hundt said he hopes more attention will be paid to the issue when a new administration takes office next January. “We have to take a new and 21st century look at the question of diversity and we have to do that as a top agenda in the next administration,” Hundt said.

FCC commissioner Michael O’Rielly blamed the agency’s current media regulations for depressing the numbers of minority- and women-owned radio and television stations. “The FCC hasn’t allowed the media ownership rules to change for quite a long time and in doing so there haven’t been new entrants in the marketplace, including allowing a diverse population to grow,” he said. “We have seen the numbers shrink—and I have difficulty with the argument that we have to stay with the current course of action and keep our rules. Our rules need to reflect the current marketplace.”

O’Rielly also suggested the FCC is missing the bigger picture as it focuses on determining how many AM or FM radio stations a company can own in a single market. “It cannot just be a conversation about broadcast,” he said. “There are no limitations on the internet and it’s a very cheap entry point.”

While he sits across the political divide, President Clinton-appointee Hundt agreed with the Republican commissioner. “The FCC should be an agency that opens the doors to innovation and competition in new markets,” the former chairman said.