Friday, April 30, 2010
Radio One Queen Cathy Hughes Rules By Keeping It Real, Native Omahan the Creator of the Urban Radio Format
I remember reading something about Cathy Hughes somewhere years ago and after digesting the fact this African-American woman was a major media mogul born and raised in my hometown my next reaction was: Why didn't I know about her before? I mean, she's a big deal, and her hometown didn't seem to acknowledge or celebrate her success the way you would expect. One of the nice things about what I do as a freelance journalist is getting the opportunity here and there to rectify such perceived wrongs or at least to put my own spin on someone's story and perhaps introduce a whole new segment of the population to the subject. That is precisely what I did in the following profile I did on Cathy Hughes for The Reader (www.thereader.com) newspaper in 2005.
I share the story here simply because hers is a story that cannot be told too often.
Radio One Queen Cathy Hughes Rules By Keeping It Real, Native Omahan the Creator of the Urban Radio Format
©by Leo Adam Biga
The cool hip-hop culture is driving the urban -- read: black -- entertainment industry explosion. Radio’s no exception. Omaha’s Hot 107.7 FM loudly carries the banner here for urban radio’s mix of rap, hip hop, soul and R&B. Contemporary rock KQCH 94.1-FM tries a little ebony flavor. But no matter how much they try positioning themselves as urban players, these stations are part of white owned and operated networks -- Waitt Radio and Journal Broadcast Corporation, respectively.
To be sure, a more authentic urban electronic media model exists. One with black ownership-management and a black sensibility. Just not in Omaha. That’s ironic, too, as the queen of the urban format is Omaha native Catherine Liggins Hughes, a 58-year-old African American whose Radio One network is described as “the voice of black America and the lightning rod for the black community.” Her stations feature music, news and talk from a black perspective. She and her son, Alfred Liggins Hughes, reign over the Baltimore-area-based Radio One empire comprising 69 radio stations, one television station and, since January 2004, the new cable/satellite channel, TV One, a lifestyle and entertainment option aimed at middle-age blacks. TV One is a joint venture with Comcast Corporation. Her parent company went public in 1999 and is valued at $3 billion, making it one of the largest radio broadcasting companies overall and the largest black-owned media firm. She estimates more than 2,100 of her 2,800 broadcasters are black. Many are women.
Hughes adventure in radio comes full circle on May 14, when she receives an honorary Doctor of Humane Letters degree during the 2005 commencement at Howard University in Washington, D.C., where she got her first big break in the industry. But it was in Omaha her love of radio first bloomed.
It’s been years since Omaha sustained a truly black station. One of the last was KOWH. A group of Kansas City, Mo. doctors and a consortium of Omahans, including Major League Baseball Hall of Fame pitcher Bob Gibson, NBA veteran Bob Boozer, social service director Rodney Wead and businessman Al Gilmore, bought it in 1969 and operated it through the mid-1970s. Warren Buffett was an advisor. It’s where Hughes got her start in radio as a do-everything volunteer.
Her rise to national prominence the last 25 years has made her, outside Oprah Winfrey, Eunice W. Johnson and Condoleezza Rice, perhaps the most powerful black woman in America. She’s been called so by Essence Magazine. She counts Ebony Magazine publisher John H. Johnson and award-winning journalist Tony Brown as friends and mentors. Yet, her story’s largely gone untold in her hometown. It’s not surprising given Omaha’s conservative daily newspaper and her penchant for ruffling feathers. But hers is the classic American success story. Despite hailing from an educated and accomplished family, she overcome major obstacles growing up. A shining example of black upward mobility, her climb serves both as an inspiration for how far passion can carry one and as a reminder of how too many blacks remain disenfranchised.
Growing up in the now old Franklin Plaza projects just off 24th and Franklin in north Omaha, Hughes fired her imagination to the museful sounds emanating from the oversized radio she listened to in her room at night.
“My love affair with radio started when I was 8-years-old when my mother gave me a 15-pound transistor radio. I used to get spankings, because at night -- when I was supposed to be asleep -- I had my radio on under my pillow,” Hughes said.
Unlike her mother, Helen Jones Woods, a former musician, Hughes had “no musical talent. So, rather than being drawn towards music and embracing it, I kind of shied away from it...I felt awkward that I couldn’t sing, dance or carry a tune. The interesting thing about my relationship with radio is that the part I loved most was the commercials, not the music. Today, Radio One is a case study for the Harvard Graduate School of Business, and when they were doing their case study they said, ‘Well, no wonder y’all did OK, because your love of radio was not the music, it was the commercials.’ Yeah, I loved the commercials. I used to take my toothbrush and pretend it was a microphone and be up in the mirror -- in the projects -- giving commercials,” said Hughes in the earthy tones of a late-night urban deejay.She was on track meeting her family’s high standards, attending a private school, when, at 16, she got pregnant. Her marriage to the father didn't last. “I went into shock because I had my whole future ahead of me,” she said in a 1998 Essence Magazine interview. The birth of her son snapped her out of her “arrested development. I was a lost ball in high weeds.”
Being a mom, she said, “was the last thing I ever anticipated and it turned out to be the greatest blessing of my life. Absolutely, my son changed my life. He’s the reason I am who I am today. By that I mean spiritually. He necessitated a belief in a power much greater than myself.”
She managed supporting herself and her son, got an education and made a career out of her first love -- radio, and Alfred was beside her every step of the way. “I took him everywhere with me. I stayed in constant trouble with my employers, particularly when I moved to the East Coast, because I knew no one there and I was not going to entrust him to strangers. And, so, I brought him to work with me.”
Her wild success has not made her forget her struggle or the huge gap that still separates many African Americans from the good life. A self-described “black nationalist,” she’s all about promoting and strengthening the black community and emboldening her people’s sense of pride. She learned social activism from her parents, members of the social justice action group, the De Porres Club, and from crusading Omaha Star publisher Mildred Brown, for whom she worked and whose offices hosted De Porres meetings. The faith-based Club led Omaha’s early Civil Rights fight under the late Jesuit priest, John Markoe, of Creighton University. Formed in 1947, the Club agitated for change via demonstrations, sit-ins and boycotts that opened lunch counters, like that at Dixon’s Restaurant, and desegregated employment rolls at such work sites as Coca-Cola and the street-railway company.
Hughes was also a protege of Markoe’s. She recalls marching in demonstrations when she was only five. As a teen, she helped integrate Peony Park. Markoe, a close family friend, sponsored Hughes at Duchesne Academy of the Sacred Heart, where she became the first black graduate, and loaned her mother the money to attend nursing school. “He took special interest in a lot of young black people. He saw their potential. He was a pioneer,” said Hughes’ mother. The family visited Markoe when he was dying at the old St. Joseph Hospital, where a West Point classmate of his, President Dwight D. Eisenhower, also said goodbye.
Forging new ground and contributing to The Cause is a family trait Hughes inherited from her parents and maternal grandfather. “They were always very committed to trying to improve the plight of our people,” she said.
Her mother’s father, Laurence C. Jones, was one of the first African-Americans to receive an Ed.D from the University of Iowa. In 1909 he founded the Piney Woods Country Life School in Mississippi. Still a premier boarding school for disadvantaged African-American students, it places the vast majority of its graduates in college. Hughes is its largest contributor. Her mother, who was adopted by Jones and his wife, attended the school and played trombone in its touring all-girl swing band -- the International Sweethearts of Rhythm. As the band gained popularity down south, the Sweethearts chafed at being a cash cow for the school and left, en masse, to perform separately from the institution. Woods was among the rebels. The popular band, which included bi-racial and white members, played all over the U.S., even headlining the Apollo Theater. “When you play at the Apollo Theater, you know you’ve arrived,” Woods said. During World War II, the band entertained overseas black American military personnel as part of the USO. The orchestra disbanded in the late 1940s.
Helen Woods met and married her husband, and Cathy’s father, William Alfred Woods, while with the band in his hometown of Chatanooga, Tenn. After the couple moved to Omaha, he became the first African American to earn an accounting degree from Creighton University. When no one would hire him as an accountant, he worked an overnight line job at Skinner Macaroni. That is, until “the Jesuits just refused to accept the embarrassment any longer of their first black accountant bagging macaroni at night, and prevailed upon the Internal Revenue Service to give him an opportunity,” Hughes said. He later went into business for himself. Helen became an LPN and, later, a social worker at Douglas County Hospital. The couple’s first of four kids was Catherine Elizabeth, who helped raise her younger siblings.
Fascinated and Inspired
By the late ‘60s, Hughes was taking liberal arts courses at Creighton and then-Omaha University. “Fascinated with radio,” she leapt at the chance to get in on the ground floor at fledgling KOWH. “This was too good to be true, you know. Black folks owning their own radio station. This was a learning opportunity. That’s the reason I was motivated to volunteer and help out.” Even though her real radio education came later, she feels KOWH played a key role in her broacast odyssey.
“I think the reason we have a $3 billion corporation today is because Bob Gibson, Bob Boozer, Rodney Wead and the other individuals who invested in KOWH inspired me to do it for myself and become a broadcast owner. I saw them do it and so I figured I could. I think none of my success would have taken place if I had not seen the example set by that group. That’s very important to me, because often times when I tell in interviews what a profound effect people in Omaha had on my life, it gets left out of the story because some editor doesn’t consider Omaha exciting.”
Hughes’ big break came on the heels of love and tragedy. It was the early 1970s and she served on UNO’s Black Studies Committee, which sponsored appearances by noted journalist Tony Brown, who befriended her. The man Hughes was dating at the time was hired by Brown, then the dean of Howard University’s newly formed School of Communications, to chair a department in the School. Meanwhile, her father was given a contract by the Office of Minority Business in Washington, D.C. to organize the books of small minority businesses. Her father was set to leave for D.C. when he fell ill and died of a heart attack.
A grieving Hughes went to D.C. and was surprised when Brown offered her a job as a lecturer in Howard’s School of Communications. “I said to him, ‘But I didn’t finish college,’ and he laughed and said, ‘Neither did anyone else on the faculty other than myself.’ The faculty he allowed me to join included Quincy Jones, Melvin Van Peebles, Stan Lathan. It was a list of non-degreed practitioners of the media and this was quite revolutionary for a major institution of higher learning.”
Hughes began volunteering at Howard’s radio station, WHUR. “When I found out they had a radio station I was like, ‘Oh, let me learn, let me help out. What can I do?” Within a short time she was hired as sales manager and, later, general manager, engineering a turnaround that dramatically increased advertising revenue and put WHUR near the top of D.C.’s highly competitive black radio market.
The Quiet Storm
It was at WHUR she created The Quiet Storm, a sexy late night music-chatter format that's come to dominate urban radio programming (once featured on 600 stations). She formulated the concept after Howard showed faith in her by sending her to a broadcast management course at Harvard University and a psychographic programming seminar at the University of Chicago. Psychographic studies help broadcasters design programming based on target audience lifestyles and trends.
So, what did Brown see in Hughes? “He saw my love of radio. My determination and commitment to the student body. He saw this was a passion for me. He knew it was like throwing a duck into water. That I was so happy for the opportunity and so fascinated with everything. I used to write back home saying, ‘My eyes are tired seeing the glory and the beauty of being an African living in America.’ Because I had never seen black men and women wrapping their heads and wearing African fabrics and having black plays and black radio. This was a new experience for me. Coming from Omaha, my daddy was the only black accountant, who knew the only black lawyer, who knew the only black dentist, who knew the only black doctor. These were the days when we had one of each in Omaha.”
When Howard University balked at licensing The Quiet Storm on the grounds it was commercially unviable, Hughes left for DC’s WYCB-AM and, in search of more creative control, began looking to acquire her own station. When DC’s WOL came up for sale, she sought to purchase it. Married at the time to Dewey Hughes, the couple made a bid with $100,000 of her own money, plus an additional $100,000 from 10 investors who put up $10,000 each. Another $600,000 came from a group of black venture capitalists. She still needed $1 million dollars from a senior lender. She was rejected by all-male lenders at 32 separate banks. Chemical Bank was her 33rd try and a new-on-the-job Puerto Rican female loan officer there approved the loan. The 1980 purchase made WOL the base of Radio One’s pioneering 24-hour talk from a black perspective format, with its theme: Information is Power.
“If that woman had not gambled on me then I would not be in business today. She was the one that made the difference,” Hughes said. “I never asked her why she did it. I assumed because she saw me a good investment. Those 32 men that told me no probably told some man yes the same week.”
Even today, after all her proven business acumen and personal wealth (in the mid nine figures), Hughes said women of color like herself still lack respect in the business arena. “It hasn’t changed. Not at all. Particularly when you’re one who’s outspoken. It’s not a role white women have enjoyed for too long and, so, it’s definitely still brand new for African American women. It’s the whole confidence factor. You find it with your lenders...your staff...your audience. The most perilous time in the history of my company was when I divorced my husband (Dewey Hughes). He was not making a contribution to the business. He was a drain. But that’s not how it was seen by advertisers, lenders, creditors...They saw it from the perspective that I wouldn’t be able to survive.”
Networking and Visioning
Today, her network of stations is in virtually every major black market: Los Angeles, Dallas, Houston, St. Louis, Detroit, Minneapolis, Cincinnati, Cleveland, Philadelphia, Baltimore, Boston, Washington, DC, Louisville, Atlanta, Charlotte and Miami. Radio One's 1995 purchase of WKYS in Washington, D.C. for $40 million, reportedly the largest transaction between two black companies in broadcasting history, made Hughes the first woman owner of a #1 ranked major market radio station.
Radio One’s among the few black-owned media companies to stave off the Wall Street wolves and conglomorates that began buying up black stations and networks. Hughes’ corporate strategy of acquiring and turning around underperforming urban stations has proven profitable and grown the company exponentially. “We’re turnaround experts,” she said. Yet, only a few years ago, she tells how at “a big affair of financial types a gentleman who was not very well informed stood up and thanked my son for saving my company. Gave him full credit. And when my son tried to correct him, he was like, ‘Oh, yeah, but you made a difference.’ Alfred tried to say, ‘No, I wasn’t even old enough to be around to save her company,’ but they weren’t having it. Alfred has an MBA from Wharton. He’s the one that took us public and, so, he gets the credit for about 15 years of hard work that existed before he became part of the scenario.”
Hughes’ vision for the company was big from the start and then federal legislation compelled her to keep getting bigger. “I always wanted more than one station but our corporate strategy crystallized in 1996 with the passage of the TeleCom bill (Telecommunications Act),” which removed limits on the number of stations a company could own. “It basically says, Either you grow or you go. Either you become one of the big boys or you sell out. I wasn’t interested in selling out,” she said. According to Hughes, that same Act has made radio/TV ownership a rigged system that forces vulnerable stations into the hands of giants and prevents smaller companies from buying in. She’s bought out many stations herself. The spiraling cost of media properties makes it harder, especially for prospective black owners.
“Black folks own more stations, but there are fewer owners. Sixty-nine of them belong to me. It costs several million dollars before you can get a station. It’s very difficult, unless you’re independently wealthy, to put together the financing and go through the rigors and the process of securing the license. There’s some great (black) individuals who would do a great job of running a radio station, but they’re not able to get the start-up money and organizational revenue they need.”
No dilettante operating from afar, Hughes is a hands-on media owner. It makes sense considering she came up through the ranks of radio. She’s done everything at the station level except engineer. Her first days at WOL found her scrounging for everything and even sleeping some nights on the office floor. Up until the mid-’90s she was a popular on-air personality who set the frank tone and assertive agenda for Radio One’s fierce community activism and involvement. These days, she hosts her own show, TV One On One, on the new TV One network.
A Passionate Woman
She said critics’ decrying her pro-black stances “misinterpret” her. “I’m a very passionate woman. My voice raises. I get excited. I start to talk fast. When I was on the radio, nationalism was not quite as understood and accepted as it is now. So, a lot of white journalists mistook my passion, my excitement, my commitment to my people as me being a fire-breathing activist who didn’t like white folks. Well, my second in command to my son is a white woman, Mary Catherine Sneed. She’s like a daughter to me. Just because I love my people doesn’t mean I don’t like other people. I laugh about it, because I grew up in Omaha, and if you’re black and not an integrationist in Omaha, you perish. OK? There’s not enough black folks.”
Even with Radio One and TV One ever expanding, (at one point, TV One was gaining a million new subscribers per month), Hughes is not complacent. “I don’t see it as success yet. I still see it as a work in progress. The reason I have to keep driving forward is the reality that my community seems not to be making the progress for the masses we should be making considering how blessed more of us are each year.” She feels whatever success she’s had is rooted in her community focus. “Our commitment to our community is what has built brand loyalty. It’s a misnomer that you can’t do good and do well. You don’t have to forsake your peoplehood in order to get wealthy. In fact, I’ve had just the opposite experience.”
Of her many riches, she said she’s proudest of “rearing a son by myself that grew up to embrace my vision, my dream, my commitment to electronic media.” She still get backs to Omaha, where her mother resides. Aside from being honored at a Native Omaha Days, Hughes keeps a low profile here with family and friends, seeing old haunts and attending mass at St. Benedict the Moor. “I earn my living being in the spotlight. When I come home, the best past of it is that there is no spotlight.”
Helen Woods never imagined all this for her daughter, although she suspected something special was in store. “Some people are destined for greatness,” she said.
Howard University's newest crop of grads have a model of greatness they can call their own.