Jan 14, 2009 (More on Genachowski and DTV)
** Planning a communications-related course this year? See http://benton.org/headlines_in_the_classroom to learn how Headlines might help. **
BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY JANUARY 14, 2009
POLICYMAKERS
Obama's Pick for FCC Signals Change
Change Sweeping to the FCC
Obama's FCC choice faces long list of issues
What the New FCC Chairman Must Do
Privacy Group: Gov Needs Chief Privacy Officer
A Cabinet-Level Arts Czar?
DIGITAL TELEVISION
Boucher: I think we are not ready for the DTV transition
Turmoil Over TV Switch Grows
DTV Coupon Waiting List Grows Again
Kevin Martin: 50/50 Odds DTV Date Will Move
Wheeler Proposed Delaying DTV Transition
Making the DTV Transition Green
INTERNET/BROADBAND
Will Congress Give Billions to Broadband?
It's time to broadband the economy
Telecom Experts: Separate USF and Broadband Stimulus
The Right Broadband Stimulus Package
Regulation may hinder Fiber to the Home
TELECOM/WIRELESS
FTC Asked To Protect Mobile Privacy
A Text Arrives. Oh, It's Just an 'Idol' Ad.
Transition to Verizon puts some Alltel customers in flux
Good times still ahead for telecom?
Pay-TV providers send mixed signals on pricing
CONTENT
Report Calls Online Threats to Children Overblown
Sensing Coming Regulation, Online Ad Groups Unite
Lines Between Media Channels Increasingly Blurred
DRM Isn't Dead
MORE TRANSITION NEWS
Dems win committee edge in Senate
Retooling Obama's campaign machine for the long haul
Brands jostle to jump on US inaugural wagon
QUICKLY -- Israel's losing media strategy; Worst Ahead for Media; NY judge tosses Amazon.com lawsuit over sales tax; Reinventing the tech incubator
POLICYMAKERS
OBAMA'S PICK FOR FCC SIGNALS CHANGE
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz, Shira Ovide]
President-elect Barack Obama's choice of Julius Genachowski to lead the Federal Communications Commission signals that issues affecting telecommunications and media companies will take a high profile in the administration. Industry and consumer groups are scouring a nine-page technology plan released by the Obama team in 2007 for indications about what Mr. Genachowski -- who masterminded the plan -- might do at the agency. The Obama tech plan called for the U.S. to increase its definition of "high speed" Internet and reform a $7 billion federal phone-subsidy program to help cover the costs of offering broadband in rural areas. It also called for encouraging diversity in media ownership, a signal that efforts by big media companies to expand their empires could face tougher scrutiny. "I'd say to people who see this really genial guy, don't underestimate him. He can be tough when he needs to be," said Gigi Sohn, president of public-interest group Public Knowledge. She served on a Presidential Advisory Committee that wrote digital-television public-interest rules with Mr. Genachowski, who was then at IAC.
http://benton.org/node/20736
Comment on this Headline
back to top
CHANGE SWEEPING TO THE FCC
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Julius Genachowski, technology adviser to President-elect Barack Obama, is poised to become chairman of the Federal Communications Commission at a time when communications policy lies at the intersection of sweeping changes in the high-tech business landscape. With Genachowski's private-sector experience and ear to Silicon Valley, the appointment could signal greater focus on new Internet technologies for the agency, analysts said. Under the past few chairmen, the FCC has focused on policies of telephone and cable carriers like AT&T, Verizon and Comcast, analysts said. Reform of a $7 billion federal fund to bring phone service to rural and underserved areas, for example, has been wrangled over for years even as consumers increasingly cut their traditional wireline phone service for cellphones. But high-tech Internet and software giants and start-ups have expressed more interest in communications policy, highlighting the expanded scope of an agency that was first formed to hand out broadcast licenses but now oversees wireless industry competition, the convergence of Internet technology with phone and televisions, and new uses for radio wave spectrum to bring high-speed Internet to urban centers.
http://benton.org/node/20735
Comment on this Headline
back to top
OBAMA'S FCC CHOICE FACES LONG LIST OF ISSUES
[SOURCE: Reuters, AUTHOR: Kim Dixon]
Julius Genachowski, President-elect Barack Obama's choice to lead the Federal Communications Commission, faces issues ranging from promoting wireless carrier competition to the problem-plagued shift to digital television. Many predict a smooth confirmation by the Senate; Senate Commerce Committee Chairman Jay Rockefeller (D-WV) called Genachowski's resume "brilliant." Among the FCC's responsibilities are the regulation of telephone and cable companies, overseeing the concentration of radio and television station ownership, and auctioning public airwaves. Analysts say they expect Obama's FCC to cast a more critical eye on the dominance of heavyweights AT&T and Verizon. The FCC's immediate headache is ensuring a congressionally mandated shift to digital television on Feb. 17 goes smoothly, a switch affecting some 20 million consumers. Other hot topics at the FCC include an attempt by public interest groups, Google and Microsoft to bar Internet service providers (ISPs) from favoring certain traffic over others. Comcast and other ISPs, mainly big phone and cable companies that manage Internet traffic, have been accused of interfering with some file-sharing programs. The FCC also has a controversial spectrum auction coming. Will Julius Genachowski take pressure off the cable industry regarding the pricing and packaging of TV channels? He's likely to focus instead on ensuring that cable broadband networks remain open to innovators that don't control access to consumers.
http://benton.org/node/20701
Comment on this Headline
back to top
WHAT THE NEW FCC CHAIRMAN MUST DO
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham, Om Malik]
[Commentary] If Julius Genachowski is the next Federal Communications Commission Chairman, here's a technology and broadband task list: 1) An Internet user bill of rights, with a focus on citizen privacy; 2) A focus on one key metric for all FCC decisions: a relentless obsession that helps the US return to the global forefront of Internet and mobile technology; 3) An emphasis on future technologies (mostly wireless) that boost marketplace competition. 4) Special incentives to attract new players (and not older companies) that bring broadband to the masses; 5) Incentives or tax breaks for incumbents to reach specific deployment goals before the end of 2010. Incentives will only be granted after those goals are met and broadband speeds of upwards of 20 Mbps down and 10 Mbps up for less than $50 a month without bandwidth restrictions are available. 6) Better and more connectivity to office buildings, especially from newer players; 7) An IP- and broadband-centric, rather than voice-centric, approach to reforming the Universal Service Fund; 8) Policies that bring quality of service into the wireless agenda, and penalize wireless companies which have high numbers of dropped call complaints; and 9) An understanding that web monopolist Google, and other web companies, are not the consumer's friend, so their agenda shouldn't automatically be trusted.
http://benton.org/node/20700
Comment on this Headline
back to top
PRIVACY GROUP: OBAMA NEEDS ANOTHER C-TITLE
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
The Future of Privacy Forum on Tuesday recommended that President-elect Barack Obama appoint a chief privacy officer to promote fair information practices in the public and private sector and ensure that interactive tools used by government are transparent to citizens. The recently launched group, which is backed by AT&T, also called for a standard definition of "personal information" and said the FTC should be given more technology and research resources as well as enhanced criminal law enforcement support.
http://benton.org/node/20693
Comment on this Headline
back to top
QUINCY JONES LEADS CHORUS URGING A CABINET-LEVEL ARTS CZAR
[SOURCE: Washington Post, AUTHOR: Jacqueline Trescott]
A call for President-elect Barack Obama to give the arts and humanities a Cabinet-level post -- perhaps even create a secretary of culture -- is gaining momentum. By yesterday, 76,000 people had signed an online petition, started by two New York musicians who were inspired by producer Quincy Jones. In a radio interview in November, Jones said the country needed a minister of culture, like France, Germany or Finland has. And he said he would "beg" Obama to establish the post. Depending on how you define culture, the portfolio could cover many areas, supporters say.
http://benton.org/node/20730
Comment on this Headline
back to top
DIGITAL TELEVISION
BOUCHER: I THINK WE ARE NOT READY FOR THE DTV TRANSITION
[SOURCE: WSLS, AUTHOR: Ashley Roberts]
House Telecom Subcommittee Chairman Rick Boucher (D-VA) spent the day talking with television executives about the digital TV transition and a possible delay. "Are we ready in your opinion?" he was asked. "I think we're not ready," Chairman Boucher answered. "I think we are not ready for the transition." Some people don't have a choice not without a coupon to buy a converter box and the government running out of money to fund the program doesn't help. "We are looking at providing new appropriations for the program and that necessarily takes time," said Chairman Boucher. "The major concern that I would have about the delay is the potential effect it might have on the people who are anticipating receiving spectrum, first responders and the cellular companies that bought their spectrums for $20 billion dollars," added Boucher.
http://benton.org/node/20705
Comment on this Headline
back to top
TURMOIL OVER THE TV SWITCH GROWS
[SOURCE: Washington Post, AUTHOR: Kim Hart]
Plans to become a digital nation are in disarray just five weeks before television stations are supposed to shut off analog broadcasts. Consumers do not have quick access to coupons to purchase converter boxes, Congress is toying with postponing the switch, and now a possible way to distribute more coupons may no longer be plausible. A proposal to change a rule to let a government program distribute more converter box coupons to consumers could be shelved by House Democrats. The measure has run into opposition because it would probably come too late to ensure that consumers receive coupons before the Feb. 17 transition. Senate Commerce Committee members are still evaluating the option.Some members of Congress are now shifting their efforts. They're drafting legislation to provide additional funding for the coupon program or delay the transition by as much as three months, or both. But House Republicans, in a letter being sent to President-elect Barack Obama this morning, say they oppose a delay and are "working on bipartisan legislation" to allow more coupons to be issued to consumers. Any delay in the Feb. 17 transition to all-digital television will cost broadcasters tens of thousands of dollars each and could result in job cuts at cash-strapped stations, local television executives said.
http://benton.org/node/20734
Comment on this Headline
back to top
DTV COUPON WAITING LIST GROWS AGAIN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The National Telecommunications & Information Administration says that over 1.7 million requests for digital-to-analog converter box coupons are now on a waiting list. Between Jan. 9 and Jan. 11, 524,000 were added while only 134,814 were taken off the list. Getting off that list requires coupons to expire (which they do after 90 days) and the money to be freed up for new ones. If that pattern continues, the list will have topped two million by midweek.
http://benton.org/node/20704
Comment on this Headline
back to top
KEVIN MARTIN: 50/50 ODDS DTV DATE WILL MOVE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Taping C-SPAN's The Communicators, Federal Communications Commission Chairman Kevin Martin said the odds are 50-50 that the analog TV broadcasting deadline will be changed. But Martin said it was critical to take some action to fix the DTV converter box coupon program. He thinks the program can be fixed relatively quickly, and without moving the date. He said that if there is a way to fix the program without moving the date, it would be preferable, but said he recognized fixing the coupon program was critical. He pointed to the "significant" costs of moving the date, including contracts the FCC has with call centers and advertising, but added that the major cost was what had been invested in telling people about the hard date.
http://benton.org/node/20703
Comment on this Headline
back to top
WHEELER PROPOSED DELAYING DTV TRANSITION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Tom Wheeler, a former cable industry lobbyist and current aide to the Obama transition team, was the person inside the new Administration who proposed delaying the end of analog television broadcasting. he explains, "Congress passed the law [in 2005] saying that you will go to digital television and cut all analog signals...and in the intervening three-plus years, the groundwork hasn't been laid. First of all, there was a coupon program put in place so that people could get coupons to defray the cost of a converter so [viewers] could use their old television sets and not have to buy new television sets." He said heavy demand for the coupons -- which has forced the government to delay distributing them -- was in part because of the economy, but blamed the coupon box distribution problems on "underestimation" of demand, characterizing the result as the coupon program having "gone broke."
http://benton.org/node/20733
Comment on this Headline
back to top
MAKING THE DTV TRANSITION GREEN
[SOURCE: MediaWeek, AUTHOR: Kenneth Hein]
The Natural Resources Defense Council, is proposing the following steps for greening the digital transition: 1) Buy LCD over plasma because they use significantly less power; 2) Energy Star-labeled TVs are 30 percent more efficient than others; 3) Buy a digital-cable ready TV: This removes the need for a cable box that draws power all day; 4) Donate or recycle old TVs -- his helps keep the 4-8 pounds of lead found in older sets, and other toxic materials, out of landfills.
http://benton.org/node/20702
Comment on this Headline
back to top
INTERNET/BROADBAND
WILL CONGRESS GIVE BILLIONS TO BROADBAND
[SOURCE: internetnews.com, AUTHOR: Kenneth Corbin]
There seems to be consensus to include broadband deployment in a planned economic recovery stimulus. But is there consensus on how best to provide incentives to build high speed Internet networks? Rep Anna Eshoo (D-CA) called for tax credits that would allow Internet service providers to expense 100 percent of the costs of building out a next-generation network, which would entail speeds of 100 Mbps downstream and 20 Mbps upstream. She suggested a 50 percent expensing option for providers building "current-generation" networks in low-income and rural areas with speeds of 5 Mbps downstream and 1 Mbps upstream. She also suggested that the government authorize broadband providers to issue low-interest bonds to finance their network build-outs, essentially providing them with "cheaper access to credit." She finds historical precedent in the 1862 Pacific Railway Act, which authorized the issuance of bonds to finance the transcontinental railroad. Without stimulus, she warned, many providers would likely cut back on their build-out plans. Sen Olympia Snowe (R-Maine) would like to see in the stimulus package is funding for the Broadband Data Improvement Act, which directs federal agencies such as the Census Bureau and the Federal Communications Commission to improve the quality of data they have about the deployment of broadband services. The bill was signed into law in October, but has yet to garner funding.
http://benton.org/node/20699
Comment on this Headline
back to top
IT'S TIME TO BROADBAND THE ECONOMY
[SOURCE: San Jose Mercury News, AUTHOR: John Chambers]
[Commentary] President-elect Barack Obama's ambitious economic recovery plan has a goal to create 3 million American jobs in the next two years. Broadband is a part of the answer. Broadband has the potential to transform our country. It will create jobs in the growth sectors of our economy — jobs that are driving the collaboration and interaction economy. Obama deserves our full support as he looks to revitalize our economy. An economic stimulus package that focuses on infrastructure must put America's broadband infrastructure at the head of the list. We have the opportunity to bring broadband to those who do not have access to it today and to dramatically improve the quality and speed of existing broadband to 21st century standards. Broadband is the highway to our future. Broadband's economic power derives from two sources. The first is reach — how many people are using broadband at work, at home and in the community. The second is speed — the speeds of the connection determine the impact it has on user behavior. It's time to broadband our economy. The innovation, the productivity and the growth that is possible with a proper broadband infrastructure is nearly limitless. The time to act is now. Doing so will not only help stabilize and stimulate a recovery but create the foundation for long-term prosperity and competitiveness.
http://benton.org/node/20698
Comment on this Headline
back to top
TELECOM EXPERTS: SEPARATE USF AND BROADBAND STIMULUS
[SOURCE: IDG News Service, AUTHOR: Grant Gross]
At a BroadbandCensus.com event, telecom experts said government funding aimed at bringing broadband to unserved areas should go beyond the current Universal Service Fund, which mainly supports traditional telephone service in rural areas. Reforming USF involves several sticky issues, and the nation's broadband needs may exceed the available funding for USF. While efforts to convert the USF may continue, the U.S. government needs to make available a variety of incentives for wire-based and wireless carriers to bring broadband service to the entire U.S., said Gregory Rohde, executive director of the E9-1-1 Institute and E-Copernicus, a broadband financing consulting firm. A mixture of tax credits, grants and loans may be needed to bring broadband to the approximately 10 percent of U.S. residents who do not have it available, he said.
http://benton.org/node/20697
Comment on this Headline
back to top
THE RIGHT BROADBAND STIMULUS PACKAGE
[SOURCE: eGov Monitor, AUTHOR: Robert Atkinson]
[Commentary] The stimulus package being considered by Congress presents a once in a generation opportunity to upgrade our nation's broadband infrastructure, but only if the proposals are based on pragmatic logic rather than ideological wishful thinking. Congress will hopefully include a sizeable investment in broadband infrastructure in the stimulus package expected to pass next month. If broadband is to be a sizeable component of the stimulus, it is critical that the measures are ones that get the most broadband built or most people added to the network in the quickest way. Unfortunately, some broadband advocates -- like Free Press -- see the stimulus package as a golden opportunity to advance their own particular agenda with policies that will end up spurring much less broadband investment in 2009 and 2010 than is possible with more pragmatically designed proposals. So what is needed? If Congress is serious about using the stimulus package to really drive broadband deployment in 2009, it needs to ensure that a sizeable portion of any stimulus package is focused on tax credits to companies to deploy broadband to areas without it and to expand speeds in areas with it.
http://benton.org/node/20696
Comment on this Headline
back to top
REGULATION MAY HINDER FTTH
[SOURCE: TelephonyOnline, AUTHOR: Carol Wilson]
Regulatory uncertainty continues to challenge fiber-to-the-home (FTTH) investment globally, as regulators struggle to find a way to encourage competition without discouraging investors or disadvantaging incumbents. While incumbents remain convinced that open access or wholesale models won't enable them to earn a return on their investment, regulators would prefer open access models, said Benoit Felten, senior analyst with Yankee Group. Felten advises regulators to be more decisive, choose a model for regulating next-generation access networks and move on, since regulatory uncertainty is almost guaranteed to slow investment in new networks. At minimum, Felten's advice to governments that don't want to subsidize FTTH deployment -- as the Japanese, South Koreans and Nordics have -- is to make sure the legal environment aids rather than hinders the network rollout and to make sure that laws regarding in-building wiring, dig-sharing or aerial networking don't disadvantage potential new competitors. In low-density rural areas where deployment is most expensive, governments may need to consider funding deployment of FTTH, Felten said.
http://benton.org/node/20695
Comment on this Headline
back to top
TELECOM/WIRELESS
FTC ASKED TO PROTECT MOBILE PRIVACY
[SOURCE: MediaPost, AUTHOR: Wendy Davis]
The Center for Digital Democracy and US Public Interest Research Group are asking the Federal Trade Commission to investigate whether mobile marketers are violating users' privacy. They allege that emerging mobile marketing shops deploy the same "unfair and deceptive" behavioral targeting strategies as older Web marketers. The groups are asking the FTC to probe how nascent mobile ad companies deploy techniques like behavioral targeting (or serving ads to people based on their online activity) and geo-targeting (serving ads based on people's physical location). The complaint also asks the FTC to order mobile ad companies to notify consumers about how their data is used, and seek explicit consent to its collection. Currently, marketers that send text ads to users first seek people's opt-in permission--which is a requirement under federal Can-Spam regulations. But marketers also are increasingly exploring search ads and banner ads, which are not subject to Can-Spam.
http://benton.org/node/20692
Comment on this Headline
back to top
A TEXT ARRIVES. OH, IT'S JUST AN 'IDOL' AD
[SOURCE: New York Times, AUTHOR: Matt Richtel]
Some AT&T Wireless customers have voted an emphatic no on a promotion for "American Idol" that popped up on their phones this week. AT&T, a sponsor of the show, said it sent text messages to a "significant number" of its 75 million customers, urging them to tune in to the season premiere on Tuesday night. But some recipients thought the message was a breach of cellphone etiquette, and gave it the kind of reaction that the "Idol" judge Simon Cowell might give an off-key crooner. The online service Twitter had a steady stream of complaints.
http://benton.org/node/20727
Comment on this Headline
back to top
TRANSITION TO VERIZON PUTS SOME ALLTEL CUSTOMERS IN FLUX
[SOURCE: Augusta Chronicle, AUTHOR: Tim Rausch]
Alltel wireless customers in many rural areas in South Carolina and Georgia will sit in limbo until a buyer is found for their territory. Verizon Wireless completed its $5.9 billion acquisition of rival Alltel on Friday, but through an agreement with the federal government Verizon did not acquire all of the overlapping areas. About 2 million of Alltel's 12 million customers will not automatically switch to Verizon Wireless. As a condition of the merger approval, the Federal Communications Commission told Verizon that it had to sell off 105 of its overlapping network areas, including Burke County in Georgia, and Edgefield, Barnwell, Bamberg and Orangeburg counties in South Carolina. "If they are interested in becoming a Verizon customer, then it is a normal process. They would have to port their number. They would have to come into one of our locations. It is just as though they were with another carrier," said Verizon spokeswoman Caran Smith. But they are still beholden to their Alltel service contract and would pay the penalties for breaking it in order to find another wireless service, Ms. Smith said.
http://benton.org/node/20683
Comment on this Headline
back to top
GOOD TIMES STILL AHEAD FOR TELECOM
[SOURCE: Orlando Sentinel, AUTHOR: Etan Horowitz]
Like businesses in other industries, telecommunications companies are in danger of losing revenue as consumers look for ways to cut back on their expenses. But one industry analyst said products and services such as high-speed Internet and cell phones are so essential to consumers that the effect will be minimal. "Telecom is holding up pretty well," said Jeff Kagan, a telecommunications analyst in Atlanta. "If this were 10 years ago, the wireless industry would be hurt much more because we were not using wireless phones as our main communication devices. Customers don't seem to be canceling in large numbers." Although droves of customers are not canceling Internet, phone or TV service altogether, many are cutting back on extra services and features, such as premium channels, faster Internet speeds and GPS service on cell phones, Kagan said. Thanks to the widespread availability of complete TV shows on sites such as Hulu.com and Apple's iTunes, many consumers have found they can cancel TV service and still watch their favorite shows. The recession also might be speeding up the trend of customers ditching traditional landline service in favor of using only a cell phone.
http://benton.org/node/20687
Comment on this Headline
back to top
PAY-TV PROVIDERS SEND MIXED SIGNALS ON PRICING
[SOURCE: TelephonyOnline, AUTHOR: Sarah Reedy]
Despite an influx of promotional pricing offers from telco, cable and satellite television providers, rates have gone up across the board. The increases have come as programming fees and operating costs have increased; however, they are largely incongruent with the economic climate of unemployment and cost-sensitivity, according to Bernstein Research senior analyst Craig Moffett. For the past several months, service providers have been realigning their marketing messages and discounting the price of their bundles to appeal to budget-conscious consumers. In any other economic climate, increased promotional activity coupled with price increases would be the right combination for increased churn. In today's economic downturn, however, service providers can get away with it - maybe even benefit from it. Churn rates are at an all-time low, according to Moffett. This is not because of pay TV providers' promotional pricing, customer service or marketing, but rather the collapse of the housing market. "With velocity in existing home sales at the lowest levels since World War II, customers are not moving, and therefore are not changing pay-TV providers," Moffett said. "Low housing velocity inevitably increases inertia, even in an environment of high unemployment and crumbling consumer balance sheets, making eye-catching promotions more necessary to offset lower gross additions. Faced with fewer purchase occasions, competitors are left to resort to more aggressive promotions to counteract the inertia of 'staying put.'"
http://benton.org/node/20694
Comment on this Headline
back to top
CONTENT
REPORT CALLS ONLINE THREATS TO CHILDREN OVERBLOWN
[SOURCE: New York Times, AUTHOR: Brad Stone]
A task force created by 49 state attorneys general to look into the problem of sexual solicitation of children online has concluded that there really is not a significant problem. The findings ran counter to popular perceptions of online dangers as reinforced by depictions in the news media. The panel, the Internet Safety Technical Task Force, was charged with examining the extent of the threats children face on social networks like MySpace and Facebook, amid widespread fears that adults were using these popular Web sites to deceive and prey on children. But the report concluded that the problem of bullying among children, both online and offline, poses a far more serious challenge than the sexual solicitation of minors by adults.
http://benton.org/node/20732
Comment on this Headline
back to top
SENSING COMING REGULATION, ONLINE AD GROUPS UNITE
[SOURCE: AdAge, AUTHOR: Michael Learmonth]
The American Association of Advertising Agencies, the Association of National Advertisers, the Direct Marketing Association and the Interactive Advertising Bureau are joining forces in a bid to head off government regulation of online advertising. They are hoping to convince Washington they can police themselves, and stop efforts to regulate behavioral targeting, an issue gaining steam on Capitol Hill. The groups envision a set of guidelines for how online advertisers can collect and use data, as well as standards for notifying users when and how their data are being used. The joint effort is at an early stage, but some see a system similar to the Children's Advertising Review Unit, which reviews advertising that targets children and can refer cases to the Federal Trade Commission for review.
http://benton.org/node/20691
Comment on this Headline
back to top
LINES BETWEEN MEDIA CHANNELS INCREASINGLY BLURRED
[SOURCE: MediaPost, AUTHOR: Gavin O'Malley]
From 2006 to 2008, the share of U.S. consumers using shopping Web sites doubled from 17% to 35%, according to a study released Monday by public relations firm Ketchum and the University of Southern California Annenberg Strategic Public Relations Center. More revealing, perhaps, is that 44% of those online shopping consumers reported reading consumer reviews and comments found on the sites, the study found. This demonstrates that such e-commerce sites have transformed into virtual social gathering places and information destinations, according to Nicholas Scibetta, Ketchum partner and director of the agency's Global Media Network.
http://benton.org/node/20689
Comment on this Headline
back to top
DRM ISN'T DEAD
[SOURCE: The Big Money, AUTHOR: Farhad Manjoo]
Last week record labels agreed to give up DRM on all songs sold on iTunes—within a few months, you'll be able to copy every song in the store to an unlimited number of computers, and you'll be able to play any song on any device, Apple or non-Apple. In return, Apple will let the industry sell songs at three different prices—69 cents, 99 cents, or $1.29, rather than today's universal 99-cent price. For music lovers, this is fantastic news. But that's not the approach Hollywood is taking. Instead, studios announced last week that they're going ahead with something called the Digital Entertainment Content Ecosystem, which promises to let people easily move shows and films between a bunch of approved devices. There's one problem: Apple's devices aren't on that list. So movies you buy for your iPhone wouldn't work on your DECE device, and movies you buy for your DECE devices wouldn't work on your iPhone—nor on any other new product that isn't approved by the industry. In other words, you're better off on the dark side.
http://benton.org/node/20688
Comment on this Headline
back to top
MORE TRANSITION NEWS
LEADERS GRANT DEMS COMMITTEE EDGE IN SENATE
[SOURCE: Politico.com, AUTHOR: Manu Raju]
Senate leaders have reached agreement on how many seats each party will hold on committees, granting Democrats a three seat edge on most committees and a four seat margin on the powerful Armed Services and Appropriations Committees. The breakthrough came after weeks of tough negotiations between Senate Majority Leader Harry Reid (D-NV) and Senate Minority Leader Mitch McConnell (R-KY). The margins on committees gives Democrats a huge political advantage, enabling them to push through legislation much more easily than they could in the last Congress, when they held a one vote edge on Senate committees. The number of seats each party holds on committees are intended to reflect the overall partisan breakdown of the upper chamber. And the number of Democrats versus Republicans on the committees will have a profound effect on President-elect Obama's ability to move his agenda to the Senate floor, since bills are drafted, shaped and sometimes defeated in committees
http://benton.org/node/20686
Comment on this Headline
back to top
RETOOLING OBAMA'S CAMPAIGN FOR THE LONG HAUL
[SOURCE: Los Angeles Times, AUTHOR: Peter Wallsten]
As Barack Obama builds his administration and prepares to take office next week, his political team is quietly planning for a nationwide hiring binge that would marshal an army of full-time organizers to press the new president's agenda and lay the foundation for his reelection. The organization, known internally as "Barack Obama 2.0," is being designed to sustain a grass-roots network of millions that was mobilized last year to elect Obama and now is widely considered the country's most potent political machine. Organizers and even Republicans say the scope of this permanent campaign structure is unprecedented for a president. People familiar with the plan say Obama's team would use the network in part to pressure lawmakers -- particularly wavering Democrats -- to help him pass complex legislation on the economy, healthcare and energy.
http://benton.org/node/20731
Comment on this Headline
back to top
BRANDS JOSTLE TO JUMP ON US INAUGURAL WAGON
[SOURCE: Financial Times, AUTHOR: Andrew Edgecliffe-Johnson]
It is meant to be the inauguration of a president, but it is turning into an adman's dream. When Barack Obama takes the US presidential oath on January 20, he will draw vast audiences normally associated with American football's biggest event, the Super Bowl. Viewers should prepare for a commercial onslaught. Media outlets are all tapping into an event once seen as formulaic viewing. Television channels have announced marathon schedules usually rolled out only on election days.
http://benton.org/node/20728
Comment on this Headline
back to top
QUICKLY
ISRAEL'S LOSING MEDIA STRATEGY
[SOURCE: Los Angeles Times, AUTHOR: Jonathan Finer]
[Commentary] Through more than two weeks of fighting in the current conflict in Gaza, Israel has relegated the international news media to the cheap seats despite a high court ruling that called for greater access. Unable to enter Gaza, correspondents peer in from beyond a security buffer two miles from the border. Israeli officials justify the policy on two grounds: the reporters' own safety and Israel's national security. No doubt the Israeli government is worried about sympathies generated by stories of Palestinian suffering. But it cannot be enjoying media coverage from Gaza dominated by a context-free stream of images of the wounded, disseminated by people with unknown agendas. To be sure, the presence of foreign journalists on the ground is no guarantee of accuracy. But on balance, the closer journalists are to the events unfolding, the clearer the picture that will emerge.
http://benton.org/node/20729
Comment on this Headline
back to top
TWELVE MAJOR MEDIA BRANDS LIKELY TO CLOSE IN 2009
[SOURCE: 24/7 Watt St, AUTHOR: Douglas McIntyre]
No one working in the media industry will ever have seen a year as bad as 2009 will be. The sharp slide in advertising began in 2008, and, based on the worsening economy, there is no reason to think that advertising will improve. Most Wall St. analysts have predicted a harsh year for the ad business. If the downturn deepens and unemployment rises above 10% most predictions about media, no matter how negative, will have been unexpectedly optimistic. The most endangered of the media sectors is the newspaper industry. Scores of papers, large and small, will fold this year. Newspaper expert Alan Mutter recently wrote that any paper in a major city with two dailies is in tremendous trouble. The magazine industry is not in much better shape although its very sharp downturn did not begin until last year. A year ago, most analysts expected that the online marketing business would be largely recession-proof. It is now clear that this is not true. Gawker owner Nick Denton expects online ad revenue to drop by double digits.
http://benton.org/node/20684
Comment on this Headline
back to top
NY JUDGE TOSSES AMAZON.COM LAWSUIT OVER SALES TAX
[SOURCE: Reuters, AUTHOR: Alexandria Sage, Edith Honan]
A New York judge has tossed out a lawsuit brought by Amazon.com Inc that challenged the state's right to collect sales tax from out-of-state Internet retailers. New York State Supreme Court Justice Eileen Bransten wrote in an order released Tuesday that "there is no basis upon which Amazon can prevail." The original complaint, filed last April, argued that a newly-enacted tax statute in New York was unconstitutional, overly broad and vague. Through Amazon's "Associates Program," the company pays unaffiliated Web site operators across the country a commission if they advertise Amazon on their sites. Those ads often allow consumers to click through from the advertiser's Web site to Amazon.com. Under New York law, that amounted to solicitation of business in the state.
http://benton.org/node/20690
Comment on this Headline
back to top
REINVENTING THE TECH INCUBATOR
[SOURCE: Fortune, AUTHOR: Jessi Hempel]
Technology incubators are resurfacing, and among the most promising is Betaworks. Started by well-connected former AOL execs John Borthwick and Andy Weissman, along with a couple of initial investors, the startup is seeding a new round of innovation on the Web. Betaworks makes small investments - average is about $100,000 - and then Borthwick, 43, who is CEO, and Weissman, 42, who is COO, offer hands-on help developing the business, advising entrepreneurs on strategy, pairing them with other interesting companies and even providing them engineers to help build out their products. The companies Betaworks funds get something else: the best connections in the business. Unlike the old incubators that focused on churning out as many dot-coms as possible, Betaworks is building an integrated universe of connected media properties that augment each other. Borthwick calls his venture a loosely coupled media company.
http://benton.org/node/20685
Comment on this Headline
back to top