May 8, 2009 (Budget)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, MAY 8, 2009

A busy week starts with the Tech Policy Summit 09: Accelerating Innovation and Economic Growth and the Health Information Technology Policy Committee meeting on Monday. For the full slate of events, see http://www.benton.org/calendar/2009-5-10--P1W

BUDGET
   President's Proposed Budget Cuts Include $5 Million in Public Broadcasting Grants
   Federal Workers, Regulations to Increase

OWNERSHIP
   Copps: Tying Diversity To Fairness Doctrine Is Issue Mongering
   Big Media, R.I.P.
   Google's Strength May Be Part of Microsoft Defense Strategy
   Google defends itself over antitrust inquiries
   Murdoch: No more free lunch

INTERNET/BROADBAND
   Metering: The End of The Internet As You Know It
   Every State Needs A Broadband Authority Like e-NC
   Massachusetts looks to update broadband map

DIGITAL CONTENT
   Traditional Video Still Almost 100 Times More Popular Than Online Video
   Web-To-TV In 24 Million US Homes By 2013

AGENDA
   Genachowski Nomination Hearing Postponed
   FCC May 13 Meeting Agenda

BROADCASTING
   Chicago TV GM says station's independence too important for crew-sharing
   PBS to Shorten Time Commitments for Sponsorships
   Tuned-in kids get turned on earlier

Recent Comments on:
We Need More Users (And How The Stimulus Can Help)
Hawaii broadband bill fails by HawaiiWatcher

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BUDGET

PRESIDENT'S PROPOSED BUDGET CUTS INCLUDE $5 MILLION IN PUBLIC BROADCASTING GRANTS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Among President Obama's proposed $17 billion in budget cuts are $5 million in public broadcasting grants through the Department of Agriculture. The grants are to support rural stations conversion to digital, but the White House says they can be cut because the transition is "now almost complete." Also getting the ax was $66 million for Even Start, a Department of Education program to encourage childhood literacy. The administration said it shown no measurable outcomes and added that early childhood education "is accomplished through significant investments in proven, more effective programs." In a joint statement, the heads of the Corporation for Public Broadcasting (CPB), PBS, NPR and the Association of Public Television Stations (APTS) said they were grateful for what they did get. That was $502 million for CPB, which broke down as $440 million in a two-year advance appropriation for FY 2012 (actually a $10 million increase over 2011); $36 million for digital conversion; $27 million to finish replacing public radio's satellite system, and $25 million for the Ready To Learn project, which funds curriculum-based educational programming/initiatives. [more at the URL below]
http://benton.org/node/25162
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FEDERAL WORKERS, REGULATIONS TO INCREASE
[SOURCE: Wall Street Journal, AUTHOR: Elizabeth Williamson, Melanie Trottman]
President Barack Obama's inaugural budget sets the stage for an expansion of the federal work force and for hundreds of new rules that would widen Washington's involvement in the workings of private business. If enacted by Congress, the budget initiatives will mark a clear end to the deregulatory philosophy of the Bush administration, signaling profound change for the nation's biggest businesses. For example, President Obama is asking for $13.3 billion of discretionary spending to run the Labor Department, up 3% from fiscal 2009. The $400 million increase would boost enforcement of workplace-safety and wage rules, and pay for more staffers to ensure that businesses comply with equal-employment rules for federal contractors.
http://benton.org/node/25155
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OWNERSHIP

COPPS: TYING DIVERSITY TO FAIRNESS DOCTRINE IS ISSUE MONGERING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Speaking to the Federal Communications Commission's Diversity Advisory Committee, FCC Chairman Michael Copps said that there was one topic that he did not expect the committee to address: the fairness doctrine. "I almost hesitate to mention it because it seems so obvious," he said. However, he mentioned it anyway, saying that was because, "apparently there are some who remain confused—I hope not willfully so." That appeared to be a reference to criticisms leveled at the committee by conservatives that it was packed with liberals and could become a tool of the Obama administration to reinstate the doctrine in some other form, which the President has said on more than one occasion he has no plans to do. "Those who claim that promoting diversity and addressing the woeful effects of past discrimination are the equivalent of bringing back the Fairness Doctrine understand neither the Fairness Doctrine nor, more importantly, the lack of opportunity minorities and women have when it comes to owning and operating the enterprises that allow us to communicate with one another." Chairman Copps used words like "shameful" and "dismal" to describe the state of minority and women ownership of the media.
http://benton.org/node/25166
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BIG MEDIA, RIP
[SOURCE: Newsweek, AUTHOR: Johnnie Roberts]
On April 29, in a filing with the Securities and Exchange Commission, Time Warner CEO Jeff Bewkes officially announced the death of Big Media. Having sliced off Warner Music Group a few years ago and Time Warner Cable this year, Bewkes notified the SEC that he intended to soon spin off AOL—its greatest expansionary effort to achieve media greatness, a move that proved lethal. And now, even the corporate namesake, the magazine company Time Inc., has a funereal atmosphere about it. The entertainment industry is only the latest in which the idea of vertical integration failed to live up to its promise. So what was Big Media's legacy? What did it contribute, positive and negative, to humankind? It's bad form, of course, to speak ill of the departed, but the model has left mostly a negative mark on the media landscape and corporate America. Consider this list of dubious contributions: 1) Moguldom, 2) Synergy, 3) Diminished voices, and 4) EBITDA. The benefits? 1) Wired broadband, and 2) DVDs.
http://benton.org/node/25168
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GOOGLE'S STRENGTH MAY BE PART OF MICROSOFT DEFENSE STRATEGY
[SOURCE: Wall Street Journal, AUTHOR: Kevin O'Brien]
Apparently, Microsoft will argue against a European Commission proposal that it promote competing browsers in its Windows operating system on the ground that such a move would strengthen its rival Google's dominance in the global search-advertising market. The company will make the argument at a June hearing in Brussels as part of an antitrust inquiry about the packaging of its Internet Explorer browser with Windows, which powers more than 90 percent of the world's personal computers. Microsoft will outline the damaging effects to the search-advertising industry of incorporating competing browsers — like Firefox from Mozilla or Chrome from Google — into Windows.
http://benton.org/node/25154
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GOOGLE DEFENDS ITSELF OVER ANTITRUST INQUIRIES
[SOURCE: Financial Times, AUTHOR: Richard Waters]
Google executives on Thursday mounted a concerted public defence of how the search company wields its wide-ranging power on the Internet amid signs of growing regulatory concern. The comments came as a Google lawyer confirmed for the first time that US regulators had shown their interest in possible competition issues raised by chief executive Eric Schmidt's position as a director on Apple's board. Speaking ahead of the company's annual shareholder meeting, Schmidt acknowledged the company had entered a new phase in which its dominance of the Internet search business would bring close scrutiny from regulators.
http://benton.org/node/25153
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MURDOCH: NO MORE FREE LUNCH
[SOURCE: The Christian Science Monitor, AUTHOR: Andrew Heining]
News Corp Chairman and CEO Rupert Murdoch says the days of websites giving away content are numbered. Citing the success of his company's Wall Street Journal, Murdoch said that he saw no reason why its model couldn't be applied to more sites. "That it is possible to charge for content on the web is obvious from the Journal's experience. We are now in the midst of an epochal debate over the value of content and it is clear to many newspapers that the current model is malfunctioning," he said.
http://benton.org/node/25152
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INTERNET/BROADBAND

METERING: THE END OF THE INTERNET AS YOU KNOW IT
[SOURCE: The Huffington Post, AUTHOR: Josh Silver]
[Commentary] Cable companies Time Warner and Comcast, and phone giants AT&T and Verizon sell the vast majority of high-speed Internet service in the United States. Phone and cable companies like these have no other competition in 97% of US markets, thanks to corrupt policies passed by the Bush Administration at the companies' behest. These duopolies are betting on the future of their "triple-play" phone-Internet-TV service, so that you'll pay them more than $100 per month and they can keep earning record profits. They know that if you start downloading video from online innovators like Hulu.com and Roku.com, eventually you won't need their expensive, advertising-ridden television service. If you decide to use online phone providers like Skype, you won't need their expensive phone service. The answer? Jack up the cost of Internet, and once again eliminate the competition. This is exhibit A for when we need government to establish and enforce consumer protections; the same brand of policies we needed to prevent the financial meltdown and protect New Orleans.
http://benton.org/node/25167
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EVERY STATE NEEDS A BROADBAND AUTHORITY LIKE E-NC
[SOURCE: App-Rising.com, AUTHOR: Geoff Daily]
Every state should have a broadband authority. Too many states don't yet have an entity or individual officially designated as the go-to source for all things broadband. Too often those responsibilities end up falling under the larger umbrella of commerce or some other arm of government. The reasons for establishing a state broadband authority are manifold. One, broadband is a multifaceted complex set of issues. Two, to tackle these issues you need people dedicated to solving them. Three, to best leverage federal support you need an entity coordinating at the state level. Four, each state has different terrains, needs, and resources, so the best way to tailor plans to spur deployment and adoption are to have state-level entities that are intimately familiar with the makeup of their states. No federal-level agency can know as much about what's going on on the ground as a state-level entity, and you need something at the state level to help coordinate the efforts of localities. [more at the URL below]
http://benton.org/node/25165
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MASSACHUSETTS LOOKS TO UPDATE BROADBAND MAP
[SOURCE: Boston Globe, AUTHOR: Chris Reidy]
Several state agencies are teaming up to develop "sophisticated mapping that will help the state determine the highest priority areas for investments in broadband infrastructure and technology," the administration of Governor Deval Patrick (D-MA) said. "The mapping project will initially focus on Western Massachusetts, where problems with broadband coverage are most acute," Patrick's office said in a press release. One of the project's goals is to update a broadband map of the state developed in 2007, said the press release, which added, "The new mapping project will identify the availability of broadband access at a much more detailed level, based on mapping of broadband infrastructure by individual block." Among entities involved in the project are the Massachusetts Executive Office of Housing and Economic Development, the Executive Office of Energy and Environmental Affairs, and the Massachusetts Broadband Institute, the press release said.
http://benton.org/node/25164
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DIGITAL CONTENT

TRADITIONAL VIDEO STILL ALMOST 100 TIMES MORE POPULAR THAN ONLINE VIDEO
[SOURCE: MediaPost, AUTHOR: Jack Loechner]
According to the recent Magna Online Video Forecast, the US market for online video will grow by 32% this year, rising from $531 million in 2008 to $699 million in 2009. Though these figures represent downward revisions from a previous forecast, these gains, says Magna, will likely outpace growth rates for most other emerging media platforms. The report says that as marketing budgets are reduced across industries, advertisers look to reach their consumers in a more targeted and cost-effective manner. In recent periods, the expanding availability of premium network and cable TV programming combined with increasing broadband penetration now covering 60% of US homes by Magna estimates, collectively led to a 24% increase in time with professionally produced online video during 2008, following a 50% rise during 2007, according to Accustream. Few large advertisers can achieve broad reaching objectives solely by using an online video-only campaign if there are any content preferences involved, concludes the report. As a point of reference, during 2008 490 billion person-hours of traditional television were consumed according to Nielsen. This equates to 244 times more consumption of professional content video than of online video. Even assuming last year's growth rate continues through 2012, traditional TV would still account for 98 times more consumption.
http://benton.org/node/25159
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WEB-TO-TV IN 24 MILLION US HOMES BY 2013
[SOURCE: MediaPost, AUTHOR: Mark Walsh]
Technology research firm In-Stat forecasts that by 2013 the number of U.S. broadband households watching Web-to-TV content will grow to 24 million, generating $2.9 billion in revenue from streaming services. In-Stat points out that almost 30% of those ages 25 to 34 already use game consoles to view streaming video off the Internet. But in the coming years, Web-enabled televisions and set-top boxes will supplant game consoles as the main technologies for people to access Internet video on their TVs. "Consumers will have either an Ethernet jack on the back of their TVs to interconnect to the Web or through a Web-enabled set-top box," said In-Stat analyst Keith Nissen. "By 2011, Web-to-TV will be taking off because it will be very simple and convenient to do this."
http://benton.org/node/25158
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AGENDA

GENACHOWSKI NOMINATION HEARING POSTPONED
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Put back on hold, at least until after the Memorial Day recess, the nomination of Julius Genachowski to serve as Chairman of the Federal Communications Commission. Apparently, Republican congressional leaders have indicated that Genachowski's nomination and that of South Carolina utility regulator Mignon Clyburn would need to be paired with Republican nominees before they could be installed so that the commission would have the requisite complement of Republicans. But Republicans have apparently yet to offer up their candidate, though there was word that a Republican nomination might be coming down any day. Scheduling the hearing before the Memorial Day break may have been an effort by Democrats to force the Republican's hand and get the process moving.
http://benton.org/node/25161
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FCC MAY 13 MEETING AGENDA
[SOURCE: Federal Communications Commission]
On Wednesday May 13, the Federal Communications Commission will consider: 1) the collection of regulatory fees for Fiscal Year 2009, 2) requirements of interconnected VoIP providers when discontinuing service, and 3) the interval for porting a customer's telephone number in response to wireline-to-wireline and intermodal port requests.
http://benton.org/node/25160
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BROADCASTING

CHICAGO TV GM SAYS STATION'S INDEPENDENCE TOO IMPORTANT FOR CREW-SHARING
[SOURCE: Chicago Sun-Times, AUTHOR: Lewis Lazare]
For Emily Barr, it took all of about four minutes to decide she didn't want to be part of a groundbreaking -- and potentially risky -- Chicago television newsgathering collective that begins Monday. That is when NBC-owned WMAQ-Channel 5, Fox-owned WFLD-Channel 32, CBS-owned WBBM-Channel 2 and Tribune Co.-owned WGN-Channel 9 will start sharing eight pooled camera crews (two from each station). The crews will be dispatched to selected news events to shoot pool footage each station can use as it sees fit. So far as anyone involved can ascertain, this is the first time four "competing stations" in a major television market have joined forces in this fashion for daily news coverage. Barr, general manager at local news leader ABC-owned WLS-Channel 7, said she instinctively felt the new venture would strip WLS of some, if not all, of what the station most zealously seeks to safeguard: its image as an independent Chicago news operation.
http://benton.org/node/25157
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PBS TO SHORTEN TIME COMMITMENTS FOR SPONSORSHIPS
[SOURCE: New York Times, AUTHOR: Brian Stelter]
Companies will soon be able to sponsor some PBS programs for as little as one week at a time, rather than a full year. Feeling the pinch of marketing budgets, public television stations are being forced to be more creative when they approach corporate underwriters. This week the Sponsorship Group for Public Television, a sales organization for the Boston station WGBH and other producers, said it would encourage companies to underwrite children's shows like "Arthur" and "Clifford" for as little as a single week or as many as 10 weeks this summer. Until now, the Sponsorship Group offered only full-year sponsorships. "We're trying to be more flexible," said Suzanne Zellner, the vice president for corporate sponsorships for WGBH. While PBS officials spurn the word advertising, critics say shorter sponsorship stints are another example of the creeping commercialization of public television. Susan Linn, the director of the Campaign for a Commercial Free Childhood, an advocacy group, said that PBS had been moving toward a more commercial approach "for a long time," and said that changes to the sponsorship model were "undermining parents and harming children." She expressed concern that PBS would now be able to show seasonal ads for toys or PG-13 movies on the children's shows and drew parallels to commercial channels like Nickelodeon and the Cartoon Network.
http://benton.org/node/25156
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TUNED-IN KIDS GET TURNED ON EARLIER
[SOURCE: Reuters, AUTHOR: James Hibberd]
Watching adult-oriented TV shows and movies might prompt kids to start having sex at an earlier age, according to a new study released by Children's Hospital Boston. The research suggests that early onset of sexual activity among teens might relate to the amount of adult content they watched as children. "Television and movies are among the leading sources of information about sex and relationships for adolescents," said Hernan Delgado, a pediatrician at the hospital who is lead author of the study. "Our research shows that their sexual attitudes and expectations are influenced much earlier in life." When the youngest children in the sample were exposed to adult-targeted entertainment, they were more likely to have sex earlier. In fact, the study found that for every hour the youngest group of kids watched adult-targeted content over two sample days, their chances of having sex during early adolescence increased by 33 percent. But the reverse wasn't true: Becoming sexually active early did not increase their viewing of grown-up shows.
http://benton.org/node/25163
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