Nov 5, 2008 (America Elects Barack Obama President)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY NOVEMBER 5, 2008
ELECTIONS & MEDIA
Burned Before, Networks Prove Reluctant to Name Next President Early
Obama, Democrat Win Could Cause Ad Industry 'Pain'
TV stations bemoan end of campaign ads
Who might receive the call to head the FCC?
Media Change We Can Believe In
Schumer on Fox: Fairness Doctrine 'fair and balanced'
The Media-Go-Round Stops
FCC NEWS
FCC Approves Wireless Use of 'White Space'
FCC green lights wireless deals
FCC meeting delayed; Verizon, Sprint deals mulled
Group warns FCC that Block D reserve is still too high
The Very Expensive Myth of Long Distance
Supreme Court hears case on broadcast indecency
Transition to yesterday: subsidizing the killer app of 1952
INTERNET/BROADBAND
AT&T will gamble with monthly bandwidth caps in Nevada
Air Force Aims to 'Rewrite Laws of Cyberspace'
Surfing violent websites linked to violent behavior
BROADCASTING/CABLE
Media Ownership Challenge Moved To Third Circuit
Nielsen: DTV Unready Households Decline
NFL Keeps Bashing Comcast, Time Warner
Repeats of Viacom's Struggles Head for Disney, Time Warner
ELECTIONS & MEDIA
BURNED BEFORE, NETWORKS PROVE RELUCTANT TO NAME NEXT PRESIDENT EARLY
[SOURCE: New York Times, AUTHOR: Jacques Steinberg]
Television network anchors weighed the shifting fortunes of Barack Obama and John McCain on Tuesday night, but two other names were on their minds: Al Gore and John Kerry. Painfully aware of having been thrown off course by exit-poll data in 2000 and 2004, the networks sought this time to balance caution with a concern that they not be beaten in the reporting of results by a competitor. But newer media — including the Web sites Slate, Huffington Post and The Page, a political site within Time.com — showed much less restraint, tweaking their electronic elders in the process. The networks — which dressed up their coverage with holograms (CNN) and virtual-reality sets (NBC) — had hoped to match the boldness of their counterparts on the Web by signaling an early winner. But as the first polls closed, they held back, saying that exit surveys and actual vote counts did not permit them to proclaim a victor.
http://benton.org/node/18556
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OBAMA, DEMOCRAT WIN COULD CAUSE AD INDUSTRY 'PAIN'
[SOURCE: AdAge, AUTHOR: Ira Teinowitz]
Now that the election's over and Sen. Barack Obama is the president-elect, the real fighting can begin. With the Democrats riding to victory with promises of change, it's a safe bet the next Congress and administration will look to make a mark on advertising and marketing issues. Most of those battles won't start until next year, but some of the implications could become apparent in coming weeks as Congress reorganizes and the new administration names its leadership. Washington advertising and marketing association officials suggest that the election's focus on the economy and health care could mean many marketing issues would take a back seat, but that doesn't ease their worries. Their biggest concerns: A major debate about health care could prompt discussion of limiting direct-to-consumer drug ads and perhaps of ad taxes.
http://benton.org/node/18555
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TV STATIONS BEMOAN END OF CAMPAIGN
[SOURCE: Boston Globe, AUTHOR: Jenifer McKim]
It's a dark day for television. The conclusion of the US election means the end of a bounty of political advertising nationwide for television stations, which now have few new business prospects ahead. Massachusetts and New Hampshire TV stations received about $23 million this year in political advertising, according to the advertising tracker TNS Media Intelligence/CMAG. The presidential election alone injected $6.5 million into those two New England states during the last five months, the company said. But these funds don't offset a drop in general advertising dollars, said Gary Belis, spokesman for the nonprofit Television Bureau of Advertising. Even-numbered years are generally "fat" times for television, and odd-numbered ones lean, he said. But the slowing economy - particularly in auto sales - already has reduced advertising revenues.
http://benton.org/node/18554
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WHO MIGHT RECEIVE THE CALL TO HEAD THE FCC?
[SOURCE: TheDeal.com, AUTHOR: Ron Orol]
As the Federal Communications Commission has emerged from obscurity over the past few decades, the position of the agency's chairman has become more and more coveted. Today, the FCC is building the infrastructure of the 21st century, a far cry from the pure-play broadcast licenser it was a few decades ago. Some names being bandied about as Barack Obama's picks include Julius Genachowski, Lawrence Strickling, Don Gips, Blair Levin, and current FCC Commissioners Jonathan Adelstein and Michael Copps. If Sen McCain is elected, his pick could be Pablo Chavez, a top Google Inc. lobbyist; Bill Baily, a former McCain staffer and Disney lobbyist; or Rick Davis, McCain's campaign manager who has represented Verizon and SBC Communications. Charles Black, a political adviser to McCain's campaign, is another possible McCain chairman, as is FCC commissioner Robert McDowell, a GOP nominee.
http://benton.org/node/18544
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MEDIA CHANGE WE CAN BELIEVE IN
[SOURCE: MediaChannel.org, AUTHOR: Rory O'Connor]
[Commentary] The next president will have a full press plate awaiting him. Items needing urgent action include, but are not limited to: 1) combating the pernicious effects of decades of relentless media deregulation and consolidation; 2) correcting the vast preponderance of conservative opinions on the radio airwaves by somehow leveling the unbalanced distribution playing field; 3) ending the hate speech spewed regularly on the public airwaves by talk radio's leading shock jocks; 4) finding a way to encourage more localism and diversity resulting in more choices and voices on the public airwaves; 5) returning fairness, balanced discussion and coverage of important issues to those airwaves, while dealing with what the industry trade journal Broadcasting & Cable rightly termed "the manufactured crisis" of the rumored return of the Fairness Doctrine; 5) passing a federal shield law to protect journalists, their sources and the public's right to know; 6) rationalizing the current content crackdown and FCC obsession with supposedly "indecent" material; 7) freeing public broadcasting by ending Rovian political partisanship and content coercion within the Broadcasting Board of Governors and CPB, and hence PBS, NPR and other outlets; 8) finding a mechanism to deal with the declining economic health of newspapers and along with them, investigative and public service-focused reporting — by recognizing and countering the ongoing crisis in journalism, and hence in democracy, occasioned by the "lost revenue model;" 9) embracing the fact that producing, identifying and sharing credible, trustworthy news and information is a public good — and treating it as such; and 10) helping to support independent media and journalism economically and otherwise — as a necessary counterpart to more establishment forms.
http://benton.org/node/18543
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SCHUMER ON FOX: FAIRNESS DOCTRINE 'FAIR AND BALANCED'
[SOURCE: The Hill, AUTHOR: Bob Cusack]
Sen Charles Schumer (D-NY) on Tuesday defended the so-called Fairness Doctrine in an interview on Fox News, saying, "I think we should all be fair and balanced, don't you?" Schumer's comments echo other Democrats' views on reviving the Fairness Doctrine, which would require radio stations to balance conservative hosts with liberal ones. Asked if he is a supporter of telling radio stations what content they should have to air, Schumer used the fair and balanced line, claiming that critics of the Fairness Doctrine are being inconsistent. "The very same people who don't want the Fairness Doctrine want the FCC [Federal Communications Commission] to limit pornography on the air. I am for that... But you can't say government hands off in one area to a commercial enterprise but you are allowed to intervene in another. That's not consistent."
http://benton.org/node/18542
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THE MEDIA-GO-ROUND STOPS
[SOURCE: The Big Money, AUTHOR: Chadwick Matlin]
If politicians really cared about the media's role in our democracy, they'd mandate a never-ending election season. This year has been very kind to the media. Record Internet traffic! Record TV ratings! Record magazine sales at the newsstand! Hillary Clinton's, Barack Obama's, John McCain's, and Sarah Palin's mere existences have essentially bailed out the electronic-media industry. On Nov. 5, that handout expires. The media's election bubble is about to pop.
http://benton.org/node/18541
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FCC NEWS
FCC APPROVES WIRELESS USE OF 'WHITE SPACE'
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
After delaying a decision for hours, the Federal Communications Commission Tuesday gave the go ahead to using the so called "white space" between broadcast TV channels for new wireless devices, adding some last-minute limits on how the devices can initially be used. Computer and consumer electronics companies including Google and Microsoft have said the availability of the white space frequencies will allow "wi-fi on steroids" and fuel the availability of high-quality video through portable devices. They have predicted the devices would start arriving on the market a year after the FCC acted. Broadcasters, however, have been worried that the devices would cause interference and lessen the quality of TV broadcasts.
http://benton.org/node/18551
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FCC GREEN LIGHTS WIRELESS DEALS
[SOURCE: Associated Press, AUTHOR: ]
The Federal Communications Commission approved Sprint-Nextel's deal with Clearwire to create a new WiMax wireless broadband network. In a 5-0 vote, the FCC approved a plan to combine Sprint's Xohm network with Clearwire's WiMax-like network. Google, Intel and a group of cable companies are investing billions into the $14.6 billion venture, which will carry Clearwire's name. The Justice Department has already indicated that it will allow the deal to proceed, but will continue to monitor it. The 11am meeting did not start until nearly 4pm, but the Commission also approved the $28 billion acquisition between Verizon Wireless and Alltel. The delay was attributed to discussions among commissioners and Verizon to hammer out a deal that satisfied concerns over roaming conditions put on the deal. During the meeting, Commissioners Michael Copps and Jonathan Adelstein, expressed concern that combining Verizon and Alltel will limit the number of roaming partners that smaller carriers in rural markets could work with. And as a result, they say this will limit competition and drive up prices for consumers. As part of a compromise, Verizon agreed to keep its roaming rates the same for the next four years. In addition to keeping roaming rates the same, the FCC is also requiring Verizon to divest service in a total of 100 markets. It is also requiring e911 accuracy and Universal Service Fund contributions.
http://benton.org/node/18550
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FCC MEETING DELAYED; VERIZON SPRINT DEALS MULLED
[SOURCE: Reuters, AUTHOR: Kim Dixon]
The Federal Communications Commission meeting on Tuesday was delayed as the five commissioners sought to finalize conditions for Verizon Wireless's acquisition of Alltel. The agency was scheduled to vote on Verizon Wireless's $28 billion acquisition of Alltel, a rural wireless provider, and on Sprint Nextel $14.5 billion deal with Clearwire, a wireless Internet service provider.FCC Chairman Kevin Martin told reporters that the other four commissioners were likely discussing what roaming conditions to put on the Verizon deal. Verizon had already offered to accept roaming conditions on the Alltel deal, but many smaller rural cell-phone companies worry that Verizon will change the rate structure after existing agreements expire. Democratic commissioners have been pushing to require those roaming agreements, which require Verizon Wireless to offer rivals the same rates it offers itself, for seven years. Martin had agreed to condition the deal on having those contracts in place for two years.
http://benton.org/node/18549
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GROUP WARNS FCC THAT BLOCK D RESERVE IS STILL TOO HIGH
[SOURCE: ars technica, AUTHOR: Matthew Lasar]
top trade group has asked the Federal Communications Commission to dramatically cut the minimal bidding price for its "D Block" license—that big swath of 700MHz public safety spectrum that the agency failed to sell off in March. Or maybe the Commission should just drop it altogether, recommends the Telecommunications Industry Association (TIA). "The economic crisis of the past few weeks is expected to influence the financial markets for months to come," TIA notes in a recent FCC filing, "and the ability of potential bidders to raise money in a tight credit market could continue to be affected in the time frame proposed for this auction." The group urges the FCC to at least trim the "reserve price" way down from its current proposed level of $750 million.
http://benton.org/node/18548
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THE VERY EXPENSIVE MYTH OF LONG DISTANCE
[SOURCE: New York Times, AUTHOR: Saul Hansell]
[Commentary] In the debate at the Federal Communications Commission about complex plan to restructure how long distance carriers pay local phone companies to complete calls the words many competing interest use to define the fight don't mean anything anymore. Start with this dreadfully inconvenient fact: On today's phone systems, there is virtually no difference between a local call and a long-distance call. The biggest expense of offering local phone service is maintaining the wires to each customer's house (wires which in many cases also carry Internet traffic). In any case, virtually all of the costs of offering phone service are fixed and have nothing to do with how many calls customers make, how long they talk or what distance the calls travel. But you'd never know any of that from looking at the vast apparatus that sets and regulates phone rates.
http://benton.org/node/18547
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SUPREME COURT HEARS CASE ON BROADCAST INDECENCY
[SOURCE: Los Angeles Times, AUTHOR: David Savage]
The Supreme Court justices talked about indecency and foul language Tuesday, but they did so without using any of the actual words that federal regulators hope to ban from television and radio broadcasts. At issue before the court today was a crackdown on broadcast expletives announced by the FCC four years ago. Broadcasters can face fines of more than $325,000 for airing an expletive, but they won a lower-court ruling that blocked the policy from being enforced. Chief Justice John G. Roberts and Justice Antonin Scalia made clear that they strongly support the drive to keep the F-word and the S-word off broadcasts during the hours when children and families are likely to be watching. But they may not speak for the majority. Justice John Paul Stevens commented that the F-word, in some formulations, can be "very funny." He also wondered whether the government could ban other words that refer to sex or excrement.
http://benton.org/node/18546
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TRANSITION TO YESTERDAY: SUBSIDIZING THE KILLER APP OF 1952
[SOURCE: ars technica, AUTHOR: Thomas Hazlett]
[Commentary] With the transition from analog broadcasting, policy-makers should seize a blessed moment to move boldly into the future. Opening TV bands to new entrants would inject a potent booster shot into the Information Economy. Consider that some 250 million mobile subscribers in the US paid about $140 billion to make 2 trillion minutes' worth of phone calls in 2007, accessing just 190MHz of radio spectrum. The digital TV band, in contrast, is allocated some 294MHz—and it's more productive bandwidth. Tapping into this mother lode would unleash powerful waves of rivalry and innovation.
http://benton.org/node/18545
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INTERNET/BROADBAND
AT&T WILL GAMBLE WITH MONTHLY BANDWIDTH CAPS IN NEVADA
[SOURCE: ars technica, AUTHOR: Matthew Lasar]
AT&T has told the Federal Communications Commission that it's going to conduct a little experiment out west. Starting in this month, some of its customers in Reno, Nevada will be informed that their broadband will be "subject to a certain monthly usage tier for the total amount of data they may send and receive, as well as a per gigabyte charge in the event they exceed the usage tier." How will these lucky test consumers know when they have reached this threshold? Two AT&T representatives outlined the plan in a meeting held on October 30 with a legal adviser to FCC Chair Kevin Martin. Customers will be equipped with an "online usage metering tool that displays a running total of the amount of data the customer has transmitted during a given month," the reps explained. If they reach 80 percent of their quota, Reno's broadband borderliners will get a notice from AT&T about the usage tier and the charges incurred if they exceed it.
http://benton.org/node/18540
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AIR FORCE AIMS TO 'REWRITE LAWS OF CYBERSPACE'
[SOURCE: Wired, AUTHOR: Noah Shachtman]
The Air Force is fed up with a seemingly endless barrage of attacks on its computer networks from stealthy adversaries whose motives and even locations are unclear. So now the service is looking to restore its advantage on the virtual battlefield by doing nothing less than the rewriting the "laws of cyberspace." Some of the rewrites being considered: 1) Making hostile traffic inoperable on Air Force networks. 2) Locating and identifying once-anonymous hackers. 3) Enabling Air Force servers to evade or dodge electronic attacks, somehow.
http://benton.org/node/18539
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SURFING VIOLENT WEBSITES LINKED TO VIOLENT BEHAVIOR
[SOURCE: Reuters, AUTHOR: ]
Young people exposed to violent media are more likely to lash out violently themselves, new research published in Pediatrics shows. "Our findings add to the growing evidence that violence in the media is related to aggressive behavior, including seriously violent behavior among youths," Dr. Michele L. Ybarra of Internet Solutions for Kids in Santa Ana, California and her colleagues report. "Reduction in youths' exposure to violent media should be viewed as an important aspect of violence prevention."
http://benton.org/node/18552
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BROADCASTING/CABLE
MEDIA OWNERSHIP CHALLENGE MOVED TO THIRD CIRCUIT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Ninth Circuit Court of Appeals has agreed to consolidate the challenges to the latest Federal Communications Commission media ownership rule change and move them to the Third Circuit. That court blocked the FCC's media ownership rule changes back in 2003. The Media Alliance had sought the move, arguing the Third Circuit should have jurisdiction anyway since it was the court that remanded the rules back to the FCC for changes/justifications. The Ninth Circuit said the decision was final and "no motions for reconsideration, modification, or clarification" would be entertained.
http://benton.org/node/18538
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NIELSEN: DTV UNREADY HOUSEHOLDS DECLINE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Nielsen said Tuesday that the number of TV households "completely unready" for the DTV switch declined from 8.4% of TV households in September to 7.7%, the biggest decline in the past six months. Since there are 114,500,000 TV households, according to Nielsen, that would mean if the switch to DTV happened today, about 8.8 million households would not be ready, meaning they do not have a DTV set, an analog-to-digital converter box or cable or satellite service. The "completely unready" figure is down from 9.8% in May as broadcasters and the government continue to alert viewers to the switch via public service announcements and outreach efforts. Nielsen says that Hispanic viewers, who tend to have a larger percentage of over-the-air viewers, continue to lag their non-Hispanic counterparts, with 12.4% completely unready vs. 7.1% for non-Hispanic households.
http://benton.org/node/18537
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NFL KEEPS BASHING COMCAST, TIME WARNER
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
National Football League Commissioner Roger Goodell is continuing to heap blame on Comcast and Time Warner Cable for the inability of some fans to see their home teams play when pro football games are televised by the league-owned NFL Network. "These cable operators are denying their consumers fair access to this popular NFL programming or charging them exorbitant monthly fees to view the Network," Goodell said in an Oct. 31 letter to Sen. Arlen Specter (R-PA). The NFL released the letter Tuesday. When the NFL Network airs a game, it is shown on free local TV stations in the markets of the teams on the field. The rest of the country needs access to the NFL Network on a pay-TV system. But many cable operators either do not carry the network or make it an optional purchase.
http://benton.org/node/18536
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REPEATS OF VIACOM'S STRUGGLES HEAD FOR DISNEY, TIME WARNER
[SOURCE: Wall Street Journal, AUTHOR: David Gaffen]
The close of the election season also means the end of the extensive advertising that has saturated the airwaves for months. The major media companies are probably wishing it could go on a bit longer, if only to help their bottom lines. The economic downturn has cut into advertising budgets of many a company, and analysts expect that to be reflected when Time Warner reports earnings Wednesday and Walt Disney releases its results Thursday. Advertising is hardly the only source of revenue for these companies, as it accounts for less than 25% of revenue at each of these media giants, but the decline is expected to be substantial.
http://benton.org/node/18553
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