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Coalition to Legislature: Minorities Will Benefit Most from Rapid Build-Out of Video Platforms
March 23, 2006
TALLAHASSEE, FL - Paula Hoisington, communications director for the Video Access Alliance today called on the Florida Legislature to pass legislation that encourages increased investment and rapid build-outs of new video networks.
Responding to a request from the House Utilities and Communications Committee to speak about the Alliance's views and recommendations, Hoisington noted that video platform expansion has broad benefits for consumers, entrepreneurs and communities, and that minorities in particular will be well served.
"Studies have shown that Hispanics and African Americans spend more on media products and services than do non-minorities," said Hoisington. "In other words, minorities are the high-margin customers that all companies naturally seek to serve. In addition, increased platforms will mean that underserved minority and emerging networks will have greater opportunities to be distributed into all communities."
Responding to discussions in the Florida Legislature about redlining, Hoisington noted that although such a practice is a concern, the coalition believes the best way to ensure that networks are built is to let the markets work. "Given the fact that minority consumers have enormous buying power, the Alliance believes that they will be particularly attractive to new entrants in the video distribution marketplace."
Sounding a note of caution, Hoisington told the committee that if the legislature attempts to fix a hypothetical redlining problem by mandating onerous build-out requirements, they will unintentionally create a barrier to the deployment of new and expanded video networks.
"These barriers would prohibit minority and other entrepreneurs from building additional networks by making them cost prohibitive. The real tragedy then would be that no one would benefit because service either will not be delivered or will be provided at a price that is not affordable."
The Video Access Alliance believes that a market-based approach to video network expansion is the right solution to any redlining fears.
The Video Access Alliance is a not-for-profit organization designed to serve as an advocacy and advisory group for minority networks, independent networks, content providers, independent film producers, video programmers, entertainers, and other industry participants.
