September 2000

MEDIA & SOCIETY
Hollywood To Limit R-Movie Ads (WP)
Marketing Violence to Children (Senate)

MERGERS
The Threat to the Net (The Nation)
Missouri Firm Asks Regulators to Ban Time Warner Pacts
Instant Messaging Services at AOL Quietly Linked (WSJ)
NTT DoCoMo Confirms AOL Talks (NYT)
Vivendi, Seagram Address Concerns About Merging (WSJ)

INTERNET
FCC Report Opposes Moves To Regulate Internet Traffic (SJM)
Governor Vetoes Bill On State Internet Taxes (SJM)

TELEVISION
TV Stations Offer A Clear Picture Of Indifference (WP)
Kids' TV Goes Digital
Buying Time (Brennan)

WIRELESS
Verizon Breaks Ranks, Backs Ban Of Cell-Phone Use While Driving (WSJ)
The Dish is That DirecTV's Owner May Fetch Plenty (WSJ)
For Asian Satellite Network, Simplicity Is Simply Better (NYT)

MEDIA & SOCIETY

HOLLYWOOD TO LIMIT R-RATED ADS
Issue: Media & Society
As Hollywood gears up for a Congressional hearing tomorrow, word-about-town
has the movie industry agreeing to restrict marketing of adult-themed movies
to children (while watching TV or attending G-rated films) and would offer
more specific information about R-rated films in advertisements. The studios
will also add specific language to advertisements for R films, such as an
"L" for graphic language, "V" for violence and "S" for sexual content. A
similar rating system for television has drawn mixed reviews. "We're going
to govern more closely, more effectively. This will force us to be more
self-governing than we would've been," said one studio chairman on condition
of anonymity. But he added, "If we only made good wholesome movies we'd be
out of business."
[SOURCE: Washington Post (C1), AUTHOR: Sharon Waxman]
(http://www.washingtonpost.com/wp-dyn/articles/A16537-2000Sep25.html)
See Also:
FILM INDUSTRY TO UNVEIL SELF-POLICING MECHANISMS
[SOURCE: WSJ (B10), AUTHOR: Bruce Orwall]
(http://interactive.wsj.com/articles/SB969929290495447608.htm)
(requires subscription)

MARKETING VIOLENCE TO CHILDREN
Issue: Media & Society
The full committee hearing on Marketing Violence to Children II will be
broadcast Live on the Internet. To access the hearing go to the Commerce
Committee website at (http://commerce.senate.gov), or if computer is already
equipped with RealPlayer, go to (pnm://vrn1.webcasting.evoke.com
/basic/providers/senate/commerce.rm)
The hearing is scheduled for Wednesday, September 27, at 9:30 a.m. in room
253 of the Russell Senate Office Building. Senator John McCain (R-AZ),
Chairman of the committee, will preside.
Following is the tentative witness list (not necessarily in order of
appearance):
Mr. Rob Friedman, Vice Chairman, Motion Picture Group, Paramount; Mr. Jim
Gianopulos, President, Twentieth Century Fox; Mr. Mel Harris, President and
COO, Sony; Mr. Alan Horn, President and COO, Warner Brothers; Mr. Robert
Iger, President and COO, Disney, Miramax; Mr. Chris McGurk, Vice Chairman
and COO, MGM; Mr. Walter Parkes, Co-Head, Dreamworks; Ms. Stacy Snider,
Chairman, Universal.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-223.htm)

MERGERS

THE THREAT TO THE NET
Issue: Mergers/Open Access
[Op-Ed] Could the merger of America Online and Time Warner transform into a
collection of commercially driven "walled garden" and/or into "the biggest
shopping mall in the world." Chester warns it could as we move into the
broadband era and cables fat bandwidth pipes gain the largest market share
of Internet subscribers. Modeled on cable's closed video platforms, Internet
users may soon be trading their freedom of choice for ease of use and
"Internet Lite." In the coming weeks, the Federal Trade Commission and the
Federal Communications Commission will decide if the merger should go
through and with what conditions if it does. Chester offers two proposals:
"One would require AOL-TW to agree to a policy of open access and
nondiscriminatory transport, insuring that competitive ISPs and websites
would have a legal right to use the company's broadband pipes--including the
set-top boxes that will become the crucial link between cable's past and
interactive television's future. The other would cut the ownership ties
between AOL-TW and AT&T. Without new cross-ownership restrictions, these two
affiliated companies would have a
chokehold on high-speed Internet content and distribution." Chester
concludes: "Open access to the broadband Internet is essential if we are to
insure that a diverse range of voices has a chance of reaching out to
citizens in the new era of high-speed communications. And once such access
is secured, public-interest, nonprofit and other alternative voices must be
prepared to
offer interactive programming that will make a difference."
[SOURCE: The Nation, AUTHOR: Jeff Chester, executive director of the Center
for Media Education, which filed a formal petition in opposition to the
AOL-Time Warner merger]
(http://www.thenation.com/issue/001009/1009chester.shtml)
See Also:
THE FUTURE OF THE INTERACTIVE TELEVISION SERVICES MARKETPLACE
Wednesday, September 27, 2000 9:00 a.m. in 2322 Rayburn House Office Building
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a hearing on Wednesday, September 27, 2000 at 9:00 a.m. in 2322
Rayburn House Office Building. The hearing will be entitled: "The Future of
the Interactive Television Services Marketplace: What Should Consumers
Expect?" Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

MISSOURI FIRM ASKS REGULATORS TO BAN TIME WARNER PACTS
Issue: Mergers
According to Everest Connections Corp of Kansas City, Mo., Time Warner Inc.
struck agreements with cable television-equipment makers intended to stifle
competition. Everest has asked the Federal Communications Commission to ban
such behavior as a condition of approving the $120 billion merger between
Time Warner and America Online Inc. Everest won a bid to build a fiber optic
network Missouri, and eventually hoped to compete with Time Warner. But
when Everest tried to buy equipment from Scientific Atlanta, the
Atlanta-based company said it had an exclusive agreement with Time Warner.
Under that agreement, Scientific Atlanta agreed not to sell to any company
that competes with Time Warner equipment used to funnel programming into the
cable network, or the set-top boxes used in the home to access programming.
[SOURCE: WSJ (B10), AUTHOR: Staff Reporter]
(http://wsj.com/)
(requires subscription)

INSTANT MESSAGING SERVICES AT AOL QUIETLY LINKED
Issue: Open Access
Though AOL hasn't yet publicized the capability, it now is possible for many
users of ICQ, which AOL purchased two years ago, to sign on to AOL Instant
Messenger and communicate with other ICQ users. The compatibility suggests
that AOL may be on its way toward creating a world-wide instant messaging
system with 138 million potential users. AOL's dominance of
instant-messaging technology, the kind of real-time e-mail that also lets
users know when others are online, has emerged as a major concern of
regulators scrutinizing the company's planned merger with Time Warner.
Competitors to Instant Messenger, such as Microsoft and Yahoo!, have been
pressing the Federal Communications Commission to force AOL to make its
services compatible with competitors'. The FCC is considering forcing AOL to
open up once it combines its system with ICQ, or within six months of the
merger, whichever comes first. When asked, AOL acknowledged that an ICQ user
can now log on to AOL Instant Messenger, which is known by the acronym AIM.
The spokeswoman said the capability is a byproduct of a test being conducted
by engineers as it explores how to make its systems interoperate with
others. The feature doesn't work in the other direction, allowing an AOL
user to log on to ICQ. AOL created Instant Messenger 11 years ago with its
well known "buddy list," the feature that lets users know when somebody on
their list is online. Today, AIM has 65.5 million registered users. ICQ,
created by an Israeli company, is targeted at a more technically oriented
audience, including people who build more sophisticated online chat areas.
With 73 million registered users, it is the largest instant messaging
service in the world. Each on its own is more than three times the size of
the closest competitor.
[SOURCE: Wall Street Journal (B1), AUTHOR: Julia Angwin]
(http://interactive.wsj.com/articles/SB969922998866053561.htm)
(Requires Subscription)

NTT DOCOMO CONFIRMS AOL TALKS
Issue: Alliances/Wireless
NTT DoCoMo, the largest mobile communications company in Japan, is in talks
with America Online to form an alliance. NTT DoCoMo's imode service allows
12 million subscribers to gain access to the Internet from their mobile
phones. AOL introduced its service in Japan three years ago, but still has
attracted only 400,000 to 500,000 users. "Hooking up with DoCoMo allows them
to quickly gain a lot of users in this market," said Kevin Williams, a
senior analyst with IDC Japan, "since DoCoMo is the dominant player and the
effects are immediate." A DoCoMo linkup with AOL could prove enormously
useful to the Japanese company in its effort to expand internationally. The
alliance would "bring DoCoMo a lot of exposure to AOL customers in the
U.S.," Mr. Williams said. "A lot of consumers in the U.S. don't know much
about DoCoMo," he went on. "With this deal, it brings i-mode services and
other DoCoMo services out in the open and could potentially accelerate the
introduction of i-mode-type services in the U.S."
[SOURCE: New York Times (C16), AUTHOR: Miki Tanikawa]
(http://www.nytimes.com/2000/09/26/technology/26DOCO.html)
(requires registration)

VIVENDI, SEAGRAM ADDRESS CONCERNS ABOUT MERGING
Issue: Mergers
In hopes of appeasing concerns of EU antitrust regulators, Vivendi, Seagram
and Canal Plus SA told European regulators that they wouldn't discriminate
against competing music companies and cellular network operators.
Regulators are wary of the combined entity's potential to dominate music
distribution via the wireless Internet. French mobile-telecom and Internet
giant Vivendi agreed earlier this year to buy out Canada's Seagram, which
owns Universal Music, one of the five firms that dominate the record
industry. As part of that transaction, the French company is also buying the
51% of French pay-TV company Canal Plus that it doesn't already own. Last
week the European Commission's antitrust department got a set of proposals
from the companies anxious to avoid the burden of an extended inquiry.
Independent record companies have complained that Vivendi Universal would
have a near-monopoly in Internet music distribution. The European
Commission's review of the merger between America Online Inc. and Time
Warner Inc. could also have an impact on the way the Vivendi-Seagram deal is
handled, potentially putting it into an extended review. AOL and Time Warner
are similar in many ways to Vivendi and Seagram, bringing together a major
online presence with a major content provider. Seagram's Universal Music
would also be close in size to a merged Warner-EMI
[SOURCE: WSJ (A23), AUTHOR: Shiskin and Peers]
(http://interactive.wsj.com/articles/SB969916795854953187.htm)
(Requires Registration)

INTERNET

FCC REPORT OPPOSES MOVES TO REGULATE INTERNET TRAFFIC
Issue: Internet
According to a research report the Federal Communications Commission's
Office of Plans and Policy will release today, the Internet backbone
industry is functioning well as a free market and doesn't currently need
telephone-style regulation. The report opposes forcing U.S. Internet
carriers to fund part of the costs of linking traffic between the United
States and foreign countries, as carriers do with voice phone calls. Foreign
companies generally have paid to carry Internet traffic to and from the
United States. But some carriers are starting to complain that they're
unfairly subsidizing their U.S. counterparts
[SOURCE: San Jose Mercury News, AUTHOR: Jennifer Files]
(http://www.mercurycenter.com/svtech/news/front/docs/teleco092600.htm)

GOVERNOR VETOES BILL ON STATE INTERNET TAXES
Issue: E-Commerce
Gov. Gray Davis rejected a bill Monday that would have required companies
with retail stores in California to collect state sales taxes on items
purchased from their Web sites. In a veto message released Monday, Davis
said: "Imposing sales taxes on Internet transactions at this point in its
young life would send the wrong signal about California's international role
as the incubator of the dot-com community." Supporters of the bill
introduced by Assemblywoman Carole Migden (D-San Francisco) complained that
the governor miscast the bill as one imposing a new tax. In reality, they
said, all it did was to clarify that current sales tax laws apply to all
retailers with a physical presence in California. The bill, which was
closely followed in other parts of the country, was considered a potential
precedent for other states that are also wrestling with Internet taxation.
[SOURCE: San Jose Mercury News, AUTHOR: Hallye Jordan]
(http://www.mercurycenter.com/svtech/news/front/docs/nettax092600.htm)

TELEVISION

TV STATIONS OFFER A CLEAR PICTURE OF INDIFFERENCE
Issue: Political Discourse/Television
Columnist Marc Fisher was disappointed to discover that none of the
Washington, DC area television stations, which also serve a large area of
Northern Virginia, broadcasted either of two recent debates in the hotly
contested Virginia Senate race. "Shouldn't companies privileged to use the
public airwaves feel obliged to provide basic programming in support of
better democracy?" asks Fisher. He points out that in the past 20 years,
stations' income from political ads has increased by 500 percent, while the
time they dedicate to politics has plummeted to an average of 39 seconds a
night. According to a Web site GreedyTV.org, the major DC stations have
pulled in $4.7 million from political ads through July of this year.
"They're happy to cash the bloated checks candidates fork over for ad time,
yet sports, soaps and "L.A. Confidential" take precedence over public
interest," writes Fisher.
[SOURCE: Washington Post (B01), AUTHOR: Marc Fisher]
(http://www.washingtonpost.com/wp-dyn/articles/A16502-2000Sep25.html)

KIDS' TV GOES DIGITAL
Issue: DTV/Children
Tuesday, October 24, 2000, 8:45 am - 12:30 pm at the Rainbow Room, Pegasus
Suite, 30 Rockefeller Center, New York.
Digital television has the potential to be an entirely new medium,
encompassing the best attributes of TV and the computer. High-definition
pictures, channel multiplexing, interactivity, data delivery and other
possibilities will likely define the next decade of mass media. Yet,
technological promise is meaningless without thoughtful, engaging, fun and
enriching content. DTV must be a medium of new ideas, using both emerging
options and past experiences while keeping
young people's interests, needs and abilities foremost. Kids' TV Goes
Digital will feature current projects or prototypes as the starting point
for discussion of the creative potential of digital television for children.
There will be ample time for the audience to ask questions or contribute
their own experiences.
Confirmed Presenters
Ellen Sebring, Founder, Botticelli Interactive
Brian Smith, Assistant Professor, MIT Media Lab
Tom Williams, Senior Producer, BBC Digital
Lee Hunt, Vice President, Media and Entertainment, Razorfish
Ellen Wartella, Dean/College of Communication, University of Texas
847-390-6499 or kidstv( at )iaginteractive.com. There is no charge for this
event, but advance registration is required.
[SOURCE: American Center for Children and Media and the Markle Foundation]

BUYING TIME
Issue: Political Discourse
For years, the debate over sham issue advocacy has been driven by anecdote
and conjecture. While everyone agreed this new type of campaigning was
changing the face of campaigns, hard, empirical evidence on the scope and
content of these ads was missing. Who is running these ads? What are they
saying? How much money are they spending? To answer these questions, the
Brennan Center has compiled the largest existing data set on televised
political advertising by candidates, parties, and interest groups. The
Center acquired broadcast data on over 300,000 airings of 2,100 ads run in
1998 from CMAG, a company that monitors political advertising in the top 75
media markets, which reach 80 percent of the U.S. population. The largest
existing database on televised campaign advertising is now available to the
public. With the Buying Time research tool, you can delve into our data set
on television advertising.
[SOURCE: Brennan Center for Justice]
(http://www.buyingtime.org/)

WIRELESS

VERIZON BREAKS RANKS, BACKS BAN OF CELL-PHONE USE WHILE DRIVING
Issue: Wireless/Safety
Bucking the "education not legislation" approach that seeks to teach drivers
how to use their cell phones safely while driving, Verizon, the nation's
largest wireless provider, will back legislation that would ban the use of
handheld cell phones while driving. A study published in the New England
Journal of Medicine in 1997 found that a driver talking on a cell phone is
about four times as likely to get into a crash as a driver who isn't.
Annette Jacobs, president of Verizon's Great Lakes Area, testifying before
the Traffic Control and Safety Committee of the Chicago City Council, said
Verizon would support the repeal of the Illinois headset law and support
passage of a statewide ban on using cell phones in cars with anything but a
hands-free device. The use of headsets would be phased in over a period of
three years, according to a Verizon official. Shortly after hearing Ms.
Jacobs's testimony, the committee postponed its vote on the proposal. If the
proposal is adopted as law, Chicago would become the biggest U.S.
municipality to ban the use of cell phones while driving.
[SOURCE: WSJ (B5), AUTHOR: Harris (nicole.harris( at )wsj.com) & Ball
(jeffrey.ball( at )wsj.com)]
(http://interactive.wsj.com/articles/SB969927845816746107.htm)
(Registration Required)

THE DISH IS THAT DIRECTV'S OWNER MAY FETCH PLENTY
Issue: Satellite
The rivals for Hughes Electronics -- and its 10 million US subscribers may
be willing to pay a fat premium. Suitors include News Corp, Walt Disney,
Vivendi SA, Sony and Viacom. Hughes commands over 65% of the
satellite-broadcast market in North America, but its rate of expansion is
expected to trail off in coming years as the direct-to-home broadcast
industry matures. A major goal of bidders, say industry executives, is to
"lock in" as many as possible of the relatively
affluent, suburban families that historically have fueled the service's
dramatic expansion. In the short run, they add, that is much more important
than the potential revenue gains down the road when DirecTV and other
competitors start offering more powerful broadband and other services.
"Tough times may be coming for the satellite industry, but they are still
years away," and Hughes is looking "to take advantage of selling at the top
of the market," says Jimmy Schaeffler, head of the Carmel Group, an
industry-consulting firm.
[SOURCE: WSJ (B4), AUTHOR: ANDY PASZTOR, JOHN LIPPMAN and GREGORY L. WHITE]
(http://interactive.wsj.com/articles/SB969921678441689506.htm)
(Registration Required)

FOR ASIAN SATELLITE NETWORK, SIMPLICITY IS SIMPLY BETTER
Issue: Satellite
The Asia Cellular Satellite System (ACeS), an Indonesian satellite phone
venture focused strictly on Asia, debuts tomorrow with better prospects than
Iridium, the $5 billion global satellite system that went bankrupt last
year, or Globalstar, a $3 billion system struggling with patchy service and
too few customers. Using just one satellite in a fixed location more than 22
miles above earth instead of an expensive constellation buzzing around in
lower orbits, ACeS calls will cost only $0.35-$0.75/minute. "Everything from
one end to the other has been done right," said Roger Rusch, president of
Telastra, a satellite consulting company. The satellite is capable of
reaching from Korea to India, covering three billion people, but ACeS has
yet to reach an agreement for operations in China, the single biggest
potential customer.
[SOURCE: New York Times (C12), AUTHOR: Barnaby Feder]
(http://www.nytimes.com/2000/09/26/technology/26BIRD.html)
(requires registration)

--------------------------------------------------------------

POLITICAL DISCOURSE
Are the Media Tilting to Gore? (WP)
Family's Patterns Can Blunt The Effect of Video Violence (NYT)
Public Lives: From the Bayou to the Beltway,
With Slyly Civil Ferocity (NYT)

MERGERS
Liberty Media and News Corp. Said to Be Negotiating a Deal (NYT)
Time Warner and AOL Offer New Terms to Rescue Merger (WP)
Europe Eyes Megamergers with Caution (USA)
Joint Effort Set to Combine Cell Phone and Hand-Held Computer (NYT)

ECOMMERCE
Leading E-Mail Marketers to Issue Standards to Curb the
Use of Spam (WSJ)
E-Commerce Report: The Middlemen of Content (NYT)
'Privacy Gap' Splits Net Users, Execs (USA)

COMMUNICATIONS AND THE OLYMPICS
Leery of the Web, Olympic Officials Set Limits on News (NYT)
If Cell Phones Were Sport, A Platinum Medal for Aussies (NYT)

INTELLECTUAL PROPERTY
Copyright Lesson For Kids Angers Napster Fans, Legal Experts (USA)

INFOTECH
Analysts Say High-Tech Spending Boom Is Starting to Level Off
and May Decline (WSJ)

RADIO
Reconsideration Order for Low Power FM Radio (NYT)

POLITICAL DISCOURSE

ARE THE MEDIA TILTING TO GORE
Issue: Political Discourse
Some journalists are joining Republican voters in expressing concern
that the media has tilted their coverage to favor VP Al Gore. The turning point
seems to have been The Kiss. While journalists disagree that their personal
ideologies are favoring the VP, the perception that the press is favoring
Gore has taken hold. More than half of all Bush supporters say the press is
biased against the Texas governor, according to an Editor & Publisher poll.
Only a minority of Gore backers see the media as biased, not surprisingly,
but 35 percent of those who do concede that Gore has gotten more than an
even break. Granted, Bush has received more favorable coverage for longer
than Gore in this election - the spring being particularly good for Bush.
But since Sept. 4, according to the Center for Media and Public Affairs,
comments about Gore on the ABC, CBS and NBC evening newscasts have been 55
percent positive, compared with 35 percent positive for Bush. By contrast,
Bush got 62 percent positive evaluations in July. "Bush did get good press
for a long time," said Robert Lichter, the center's director. But, he said,
"the pattern has been that in the general election, Democrats get balanced
coverage and Republicans get terrible coverage." What really riles those on
the right is the conviction that not all gaffes are treated equally by the
media. For example, they say, the rats were big news and the dog was not.
The NYT ran a front-page story on a Republican ad that included the word
"rats" for 1/30th of a second. But when the Boston Globe reported last week
that Gore had misstated the prices of prescription drugs for his
mother-in-law and his dog, the Big Three evening newscasts didn't touch the
controversy for three days.
[SOURCE: Washington Post (A1), AUTHOR: Howard Kurtz]
(http://www.washingtonpost.com/wp-dyn/articles/A8949-2000Sep24.html)

FAMILY'S PATTERNS CAN BLUNT THE EFFECT OF VIDEO VIOLENCE
Issue: Media & Society
All us '80s hipsters know that video killed the radio star, but can Mom and
Dad kill the video bad guys? Members of the Senate Commerce Committee
prepare for Round 2 on Wednesday in the debate over violent entertainment.
Some childhood development experts contend that the issue is not just what
children see, but how and where they see it. Private household choices --
where to put the family computer or video game console, how many television
sets a household has -- can greatly affect the impact these entertainments
have. As more of the machines find their way into children's rooms, "the
whole pattern of use of mass media works to isolate children from adults,"
said William Damon, director of the Stanford University Center on
Adolescence. "Parents don't feel they have access to their children's
electronic worlds," Dr. Damon said. "In lots and lots of ways, parents have
stepped back from believing kids need their guidance, including a 'no.'"
There's much more about the media choices of kids and parents at the URL below.
[SOURCE: New York Times (A1), AUTHOR: John Leland]
(http://www.nytimes.com/2000/09/25/technology/25TEEN.html)
(requires registration)

PUBLIC LIVES: FROM THE BAYOU TO THE BELTWAY, WITH SLYLY CIVIL FEROCITY
Issue: Policymakers
A profile of House Telecom Subcommittee Chairman Billy Tauzin (R-LA) who, if
Republicans retain majority control of the House, will become Chairman of
the Commerce Committee. He is a top fund-raiser for Republicans, helping
pull in, by his count, "well more than $8 million" for candidates in tight
races across the country. Making his career as a Democrat, Rep Tauzin became
a Republican just in time to sign the Contract With America in 1995. The
secret for surviving in a "corrupting world" is he says, "Always remember
where you come from and how you got there, and who you really answer to."
[SOURCE: New York Times (A14), AUTHOR: Christopher Marquis]
(http://www.nytimes.com/2000/09/25/politics/25LIVE.html)
(requires registration)

MERGERS

LIBERTY MEDIA AND NEWS CORP. SAID TO BE NEGOTIATING A DEAL
Issue: Mergers
In a complicated deal, John Malone's Liberty Media and Rupert Murdoch's News
Corp would increase investments in eachother's companies. The deal could put
News Corporation in a better position to bid for the Hughes Electronics
division of General Motors. G.M. has said it is considering an outright sale
of the company, a merger or partnerships and joint ventures with other
companies. Liberty's primary business is owning stakes in cable programming
companies, including a 20 percent interest in Gemstar-TV Guide, which owns
TV Guide and provides electronic program guides like VCR Plus. That stake is
worth about $6 billion. In the next month, News Corp is expected to take
public its global satellite TV operations, calling it Sky Global.
[SOURCE: New York Times (C2), AUTHOR: Geraldine Fabrikant]
(http://www.nytimes.com/2000/09/25/business/25NEWS.html)
(requires registration)

TIME WARNER AND AOL OFFER NEW TERMS TO RESCUE MERGER
Issue: Merger
AOL and Time Warner agreed to extend from three years to five the duration
of equal treatment they would provide to rivals seeking access to the
combined company's music distribution channels and music catalog, according
to people familiar with the situation. Last week, in an effort to gain
antitrust clearance from the EU, AOL and Time Warner spelled out in more
detail what they are prepared to do to escape the regulatory ax from the
European Commission. But one point sticks out -- an extra two years during
which the combined entity would be obliged not to discriminate against rival
Internet-service providers that would like to compete with AOL for online
distribution of music. One of the more pressing antitrust concerns is that
a merged EMI/Time Warner will favor AOL for online distribution of
music. For that reason, the two separate merger discussions are bleeding
into one another. Last week, the European Commission's antitrust department
circulated two documents recommending that both deals be blocked. The
revised set of remedies came under fire from the companies' competitors,
which say AOL and Time Warner simply rehashed their previous promises
without adding any more substance. The competitors, including British
Telecommunications PLC and Walt Disney received the list of the new
antitrust remedies Thursday and have until midnight Monday to give their
opinions to the commission. Their response is expected to emphasize that the
nondiscrimination clause applies largely to music distribution but fails to
specifically mention other content, such as news and videos.
[SOURCE: Wall Street Journal (A27), AUTHOR: Philip Shishkin]
(http://interactive.wsj.com/articles/SB969818841290458500.htm)
(Requires Subscription)
See Also:
BOTH SIDES GET TOUGH IN LATEST MANEUVERS ON AOL-TIME WARNER MERGER PROPOSAL
[SOURCE: Wall Street Journal (B6), AUTHOR: John R. Wilke]
(http://interactive.wsj.com/articles/SB969827037958535866.htm)

EUROPE EYES MEGAMERGERS WITH CAUTION
Issue: Mergers
The European Commission is taking a tough stance as it considers Time
Warner's proposed megamerger with America Online and its joint music
venture with EMI Group. It is likely that it will take a harder line
than U.S. regulators will. "They are more suspicious of the possibility
for competitive harms, especially when one of the parties has a
commanding position in the market,'' says Bill Kovacic of George
Washington University Law School. Last week, the companies offered
concessions aimed at addressing some of the EC's issues. The commission
is vetting proposed concessions and is expected to consult with its
member states before it makes final rulings in mid-October. The only
time it barred a deal involving two U.S. firms came recently when it
rejected WorldCom's $129 billion planned merger with Sprint. The U.S.
Justice Department also opposed it.
[SOURCE: USAToday (3B), AUTHOR: Paul Davidson]
(http://www.usatoday.com/usatonline/20000925/2680527s.htm)

JOINT EFFORT SET TO COMBINE CELL PHONE AND HAND-HELD COMPUTER
Issue: Convergence
Motorola and Palm today will announce plans to collaborate on a new portable
phone that will have all the features of a Palm hand-held computer, but have
the size and shape of a cell phone. Mike Zafirovski, president of the
Motorola PCS division, said the company had been working with its own
operating system, as well as Palm and Symbian, and planned to continue all
three efforts. "Obviously a number of companies are working with various
devices," he said. "We're absolutely convinced that putting our two
companies together will produce the right product for the first quarter of
2002."
[SOURCE: New York Times (C6), AUTHOR: Lawrence Fisher]
(http://www.nytimes.com/2000/09/25/technology/25PALM.html)
(requires registration)
See Also:
AOL TO LINK UP WITH NTT DOCOMO TO DEVELOP MOBILE INTERNET SERVICES
[SOURCE: Wall Street Journal (A28), AUTHOR: Robert A. Guth]
(http://interactive.wsj.com/articles/SB969818624558759722.htm)
(Requires Subscription)

ECOMMERCE

LEADING E-MAIL MARKETERS TO ISSUE STANDARDS TO CURB THE USE OF SPAM
Issue: Ecommerce
The unwanted stuff known as spam that clogs your email box with unwanted
messages may stop coming your way. Several top companies in the e-mail
marketing industry have banded together to form the Responsible Electronic
Communications Alliance (RECA), which Monday will announce new "privacy
protection standards" designed to curb unwanted e-mail. The proposed
privacy-protection standards are based on guidelines issued by the Federal
Trade Commission, the RECA says. The rules require mailers to give
recipients a way to register complaints and to unsubscribe -- also known as
"opt out" -- from lists. Only people who have previously given their consent
will receive marketing communications. Although details of the rules remain
to be worked out, they will be enforced by RECA. The industry came together
because it recognizes that if it's going to grow and prosper it's got to
respect privacy, and we're not unaware that if we don't go ahead and do it,
the government might," said Washington lawyer Chris Wolf, who will serve as
the group's president.
[SOURCE: Wall Street Journal (B6), AUTHOR: Glenn R. Simpson]
(http://interactive.wsj.com/articles/SB96982808494289528.htm)
(Requires Subscription)

E-COMMERCE REPORT: THE MIDDLEMAN OF CONTENT
Issue: Ecommerce
Many Web sites struggle with the challenge of filling the public's
insatiable appetite for new information. While many sites depend on
their own stables of writers and multimedia producers to constantly
refresh editorial content, some Web sites are striking deals with other
companies that provide material. Syndicators such as iSyndicate,
ScreamingMedia, YellowBrix and News-Edge are quickly building their
client lists as Web executives look for help in filling their sites with
content. Media companies and others that supply content have found that
syndicators have given them a much-needed, and unexpected, revenue
source."Demand for these services is definitely growing," said Dan
O'Brien, senior analyst with Forrester Research, an Internet consulting
firm. "And the law of supply and demand indicates that as the Web grows
- and as the need for content grows faster than the supply - this will
pay off much more than it does now." Jupiter Communications forecasts
that online content syndication and licensing will amount to a $1.5
billion market in 2004, up from $343 million this year. Analysts say the
leading content syndicators are iSyndicate and ScreamingMedia.
[SOURCE: New York Times (C12), AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/2000/09/25/technology/25ECOMMERCE.html)
(requires registration)

'PRIVACY GAP' SPLITS NET USER, EXECS
Issue: Privacy
While research shows privacy is a foremost concern among Net users, few
Internet executives think it is an issue. The Pew Internet & American
Life Project has found that 84% are worried about privacy online. But
only half Web executives in a recent poll think consumers worry about
it, according to a Millward Brown IntelliQuest survey out today. Anand
Jagannathan, CEO of Responsys.com, which commissioned the study, calls
the difference the ''privacy gap.'' The survey, conducted among 352
online business executives Aug. 29-31, reveals another gap: While Pew
found that 79% of consumers think their movements are being tracked
online, only 30% of sites said they do such tracking. Jagannathan, who,
like most industry executives, opposes Net regulation, nevertheless is
calling on the Federal Trade Commission to develop privacy guidelines
that businesses can voluntarily follow.
[SOURCE: USAToday (1D), AUTHOR: Janet Kornblum]
(http://www.usatoday.com/usatonline/20000925/2680389s.htm)

COMMUNICATIONS AND THE OLYMPICS

LEERY OF THE WEB, OLYMPIC OFFICIALS SET LIMITS ON NEWS
Issue: Intellectual Property
Ah, the thrill of victory and the agony of intellectual property in the
digital age. The 27th Olympic Games may be remembered for many things, but
it will surely be a benchmark in the struggle between those who hold
intellectual property rights in sporting events and those seeking to cover
sports, especially for the ever-expanding universe of news outlets on the
Internet. The Olympic Committee fears that the power of the Internet could
undermine the economic foundation of the games and, therefore, is going to
great lengths to control how accounts and images of events reach the public.
[SOURCE: New York Times (A1), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/2000/09/25/technology/25WEB.html)
(requires registration)

IF CELL PHONES WERE SPORT, A PLATINUM MEDAL FOR AUSSIES
Issue: Wireless
"For telecommunications, these Games have produced the largest concentration
of demand for services at any singular event ever," said Brian Pilbeam,
general manager of Olympics services for Telstra, Australia's publicly
traded but still state-controlled phone company, which has prompted company
executives to strain for superlatives. The company connected 500,000 mobile
calls in Olympic Park on the first day of the Games. About 125,000 of those
were made inside Stadium Australia, which was packed with 110,000 people for
the opening ceremony. "We believe it's the densest cellular network in any
structure in the world," said Anthony Goonan, regional manager of Telstra's
mobile division. He said the network's only potential rival had been at the
Stade de France in suburban Paris, where the World Cup soccer final was
played in 1998.
[SOURCE: New York Times (C1), AUTHOR: Mark Landler]
(http://www.nytimes.com/2000/09/25/technology/25CELL.html)
(requires registration)

INTELLECTUAL PROPERTY

COPYRIGHT LESSON FOR KIDS ANGERS NAPSTER FANS, LEGAL EXPERTS
Issue: Intellectual Property
Critics say that a cyber-ethics Web site financed by the Justice
Department and the recording industry is pushing anti-Napster
propaganda. They say the site, www.cybercitizenship.org, which is
supposed to teach children not to break copyright and other laws on the
Net, understates the rights consumers may have with online technologies
such as Napster, a popular song-sharing service. The controversy is
focused on a section titled ''What is cyber crime?'' that originally
declared: ''Recently, tools have surfaced that allow Web users to
download and save music from the Internet for free -- music that is
copyrighted by artists and sold in stores. Taking tracks from the
Internet is no different from stealing a CD or tape from a music
store.'' Information Technology Association of America (ITAA), which
administers the site under a government grant, has soften the language
as a result of complaints. Gary Shapiro, president of the Consumer
Electronics Association, which filed a court brief backing Napster in
its fight against the recording industry, says: ''I'm offended the DOJ
would fund a Web site which is telling millions of Americans they are
committing a crime when they are not. This is wishful thinking by the
(music industry). The fact is, my son is not a criminal; 20 million
Napster users are not criminals.''
[SOURCE: USAToday (3D), AUTHOR: Will Rodger]
( http://www.usatoday.com/usatonline/20000925/2680686s.htm)

INFOTECH

ANALYSTS SAY HIGH-TECH SPENDING BOOM IS STARTING TO LEVEL OFF AND MAY
DECLINE
Issue: InfoTech
Many would agree that technology spending -- which has been a major
underpinning of the economy for the past several years, accounting for about
30% of the growth in the nation's gross domestic product -- is the driving
force behind the U.S economic strength. Is that strength beginning to fade?
While statistics continue to show that companies are spending a fortune on
building high-technology infrastructure, some economists and analysts warn
that the growth in spending on a wide variety of high-technology will level
off soon at best and possibly even decline. The reasons for the predicted
pull-back, say economists, are numerous. After shelling out huge amounts of
money to upgrade equipment to handle the so-called year-2000 computer glitch
or to improve productivity, some companies are running out of things to buy.
Others, seeing the recent demise of many dot-com companies, are adopting a
wait-and-see attitude regarding their digital futures. Then there is the
obvious problem: The economy is slowing, which typically leads to spending
cuts. "When growth slows, and corporate profits come under pressure, you see
a deceleration in capital spending, and I don't see tech spending as any
different," says Richard Berner, chief U.S. economist at New York securities
firm Morgan Stanley Dean Witter. "We've been in this virtuous cycle where
companies have been investing heavily and using it to improve productivity,
which has boosted profits," says Mark Zandi, chief economist at
Economist.com. "If businesses stop investing, that virtuous cycle becomes
less potent, and the economic nirvana we're in loses its luster."
[SOURCE: Wall Street Journal (B6), AUTHOR: Patrick Barta]
(http://interactive.wsj.com/articles/SB969829967682879241.htm)
(Requires Subscription)

RADIO

RECONSIDERATION ORDER FOR LOW POWER FM RADIO
Issue: Radio
From Press Release: The FCC has affirmed its order creating a new low power
FM radio service, created a procedure to resolve complaints from listeners
of full power radio stations claiming unexpected interference from LPFM
stations and provided additional protection for those stations providing
radio reading services for blind or low vision listeners. In a Memorandum
Opinion and Order on Reconsideration, the Commission reiterated its views
that the new 100 watt (LP100) and 10 watt (LP10) classes of FM radio service
would provide opportunities for new voices to be heard, while at the same
time preserving the integrity and technical excellence of existing FM radio
service and safeguarding a digital transition for radio. The Commission
reaffirmed its finding that the risk of interference from LPFM stations is
small and did not require LPFM stations in general to provide 3rd adjacent
channel protection to full power FM stations. However, in response to
concerns expressed by parties, including Radio Reading Service and National
Public Radio, the Commission adopted an exception that provides additional
protection to radio reading services transmitted via FM station subcarrier
facilities. Pending its analysis of a study being conducted to assess the
performance of specialized equipment used to receive radio reading services,
the Commission will require LPFM stations to meet 3rd adjacent channel
spacing standards with respect to existing full power stations operating
radio reading services as of the date of this Order.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/2000/nrmm0040.html)
For more on LPFM, see:
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/)

--------------------------------------------------------------

DIGITAL DIVIDE
Lower-Income Surfers Spend Most Time Online, Study Says (WSJ)
Study Shows Many Non-Web Users Distrust Internet,
Don't Want Access (WSJ)
Clinton Focuses on Access of Disabled to Computers (NYT)
Rating the E-rate (EdWeek)

POLITICAL DISCOURSE
Bill Gates's Senator Confronts Upstart Internet Challenger (NYT)
Blurring Distinctions While Chasing Laughs (NYT)

RADIO
New F.C.C. Rules Could Smooth Way for Low-Power Stations (NYT)

TELEVISION
Cutting-Edge Commercials Get Axed After Complaints (USA)
Not Another Peep out of CBS (WP)

INTELLECTUAL PROPERTY
A Question on Music Piracy (NYT)

PRIVACY
Cuecat Lets Privacy Out Of The Bag, Critics Say (SJM)

DIGITAL DIVIDE

LOWER-INCOME SURFERS SPEND MOST TIME ONLINE, STUDY SAYS
Issue: Digital Divide
People with lower incomes spend more time surfing the Web at home than more
affluent people, according to a study a study by Nielsen//NetRatings. The
study was based on data from a panel of 57,000 at-home computer users.
Although the digital divide still exists, "when lower socioeconomic groups
get onto the Net ... they find enough services and content to keep them
there," said Peggy O'Neill, an analyst with Nielsen//NetRatings. She noted
that people with higher income and more education tend to have easier access
to the Internet on the job than blue-collar employees, who typically have
lower income and less education. This could account for the latter group's
longer home-surfing sessions, she said. This is the first study
Nielsen//NetRatings has done that uses Prizm clusters to analyze the number
of hours people spend online. Prizm clusters are a statistical tool
developed by marketing-information provider Claritas Inc. that divides the
U.S. into neighborhoods based on demographic and psychographic, or
lifestyle characteristics. The 62 clusters have names such as "Shotguns and
Pickups," for rural blue-collar workers, and "Country Squires," for "elite"
married professionals who live in the country.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Melinda Patterson
Grenier]
(http://interactive.wsj.com/articles/SB969578398278162051.htm)
(Requires subscription)

STUDY SHOWS MANY NON-WEB USERS DISTRUST INTERNET, DON'T WANT ACCESS
Issue: Digital Divide
A new study by The Pew Research Center for People and the Press suggests
that many people who aren't online simply don't want to be. Many say
Internet access is too expensive, and that the online world is dangerous,
confusing and generally not worth bothering with. Those who said they either
would probably not or would never venture online tend to be above 50 years
old, are less likely to be employed and live in households earning less than
$50,000. Pew said its report suggests that the booming growth of the U.S.
Internet population of the past few years will slow. It added, however, that
most people under 30 who aren't online plan to get access, especially
parents with children living at home. The report's findings were based on
separate surveys of as many as 12,751 people conducted from March through
June. The margins of error for the surveys were 2.5 and three percentage
points.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Staff Reporter
(http://interactive.wsj.com/articles/SB96959131498234003.htm)
(requires subscription)

CLINTON FOCUSES ON ACCESS OF DISABLED TO COMPUTERS
Issue: Digital Divide
Studies show that only 24 percent of the country's 54 million people with
disabilities have access to a computer, compared with 52 percent of those
without disabilities. And a review of state and federal government Web sites
by Darrell M. West, a Brown University professor, found that only 278 of
1,813 sites provided disability access. So, in continuing efforts to bridge
the digital divide, President Clinton announced some modest proposals to
increase the number of disabled people with access to computers including:
1) 45 technology companies have pledged to do more to make their products
and services accessible to the disabled and 2) The Department of Education
will provide $16 million in grants to make cyberspace more accessible. "We
all know that not everyone has shared in the American economic renaissance,"
president Clinton said in a speech at Mott Community College in Flint (MI).
"We all know there are people and places who have been left behind,
including millions of Americans with significant disabilities who want to go
to work, but whose path is blocked and who could work and contribute, not
only to their own lives, but to the rest of us, as well."
[SOURCE: New York Times (A14), AUTHOR: Marc Lacey]
(http://www.nytimes.com/2000/09/22/technology/22CLIN.html)
(requires registration)
See Also:
On September 21, President Clinton announced that NTIA's Technology
Opportunities Program will provide a grant to the Pangea Foundation, based
in San Diego, California. The foundation will create Web-based templates
that will make it easy for organizations to enter information in a format
that is accessible to people with disabilities. People with disabilities
will be able to find information on local services through a central
clearinghouse on the Web in a format that they can use. The Administration
has proposed tripling the budget for the Technology Opportunities Program
from $15 million to $45 million so that the government can support creative
uses of information technology for underserved communities.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/new.html)

RATING THE E-RATE
Issue: Erate
Global Connections, Local Static: Gauging the E-rate's Impact
This special section examines the federal government's attempts to help
close the digital divide by means of the E-rate program.
Includes:
Rating the E-rate; Leveraging the E-rate's Power; The Future of the E-rate;
Following the Money; and Frequently Asked Questions
[SOURCE: Education Week]
(http://www.edweek.org/ew/ewstory.cfm?slug=03eratemain.h20)

POLITICAL DISCOURSE

BILL GATES'S SENATOR CONFRONTS UPSTART INTERNET CHALLENGER
Issue: Political Discourse
The man known as the Senator from Microsoft, Slade Gordon (R-WA), is being
challenged by a woman who could come to be known as the Senator from
RealNetworks, Maria Cantwell. In a race for a seat that had been thought to
be safe for Sen Gordon, Ms. Cantwell, a former Member of Congress, is the
first woman of the "new economy" to run for the Senate. And, according to
the Center for American Women and Politics at Rutgers University, no woman
in the country's history has spent a greater amount of money earned entirely
by herself on a race for major elective office. Ms. Cantwell is a top
executive at RealNetworks and her campaign estimates her personal fortune at
$40 million; she's vowed to spend as much as it takes to win the race.
[SOURCE: New York Times (A1), AUTHOR: Sam Howe Verhovek]
(http://www.nytimes.com/2000/09/22/technology/22SENA.html)
(requires registration)
See Also
AS HIGH-TECH GROWS UP, EYES TURN TO WASHINGTON
[SOURCE: Wall Street Journal (Interactive), AUTHOR: JASON ANDERS
(http://interactive.wsj.com/articles/SB969397791983214036.htm)
(Requires subscription)

BLURRING DISTINCTIONS WHILE CHASING LAUGHS
Issue: Political Discourse
The politics of personality are in full swing. Would you rather have a
president who can hold cue cards or one who dresses like a game show host?
The candidates are getting big publicity by appearing on puffball talk shows
like Oprah, Live With Regis, The Tonight Show and Late Night with David
Letterman. On each, the candidates try to do the same things: prove that
they have a sense of humor and love their families. The unspoken bargain is
that serious considerations are outside the range of these shows. For VP
Gore, the shows help preserve the image he's had since the convention that
he's not wooden. For Gov Bush, the appearances play to his strengths,
letting him display his personal appeal in a friendly atmosphere.
[SOURCE: New York Times (A17), AUTHOR: Caryn James]
(http://www.nytimes.com/2000/09/22/politics/22CRIT.html)
(requires registration)

RADIO

NEW F.C.C. RULES COULD SMOOTH WAY FOR LOW-POWER STATIONS
Issue: Radio
The Federal Communications Commission could release new rules as early as
today aimed at defusing opposition to its plans to license hundreds of new
low-power FM radio stations. The new rules will permit larger stations to
raise complaints about any signal interference from the start-ups. FCC
Chairman William Kennard said that he continued to believe there would be no
interference from the new stations and that the new order was an important
way of assuring the critics that there would be no problems. "We have gone
the extra mile to address their concerns," he said. "This order will put to
rest any question about whether these services can coexist." The FCC has
received 1,200 applications for licenses from organizations in 20 states.
[SOURCE: New York Times (C2), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2000/09/22/business/22RADI.html)
(requires registration)
For more on Low Power Radio, see:
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/programs/lpfm/index.html)

TELEVISION

CUTTING-EDGE COMMERCIALS GET AXED AFTER COMPLAINTS
Issue: Advertising
Some big advertisers, including Campbell Soup, Nike and John Hancock, have
been force to pull new commercials from the airwaves or have them dumped by
TV networks because of consumer complaints. Experts say that the Internet
has helped facilitated a consumer backlash. Groups can now use e-mail to
build large protests in short time. Nike got more than 2,000 e-mails within
days of airing its "Horror" commercial showing a chain-saw killer attacking
Team USA runner Suzy Hamilton. Advocacy groups also pressured Campbell to
drop a commercial pitching soup as a diet tool to weight-conscious girls.
And John Hancock was forced to twice recut its "Immigration" spot showing a
gay female couple at an airport talking about their newly adopted Asian
infant.
[SOURCE: USAToday (1B), AUTHOR: Michael McCarthy]
(http://www.usatoday.com/usatonline/20000922/2675520s.htm)

NOT ANOTHER PEEP OUT OF CBS
Issue: Television
After birders cried foul, CBS has decided to stop broadcasting canned bird
songs during its coverage of golf tournaments. Some birders complained that
the tapes interfered with their hobby of listening for songs during sports
events, while other enthusiasts were thrilled that the network cared enough
to use bird sounds at all.
[SOURCE: Washington Post (C05), AUTHOR: Lisa de Moraes]
(http://www.washingtonpost.com/wp-dyn/articles/A57076-2000Sep21.html)

INTELLECTUAL PROPERTY

A QUESTION ON MUSIC PIRACY
Issue: Intellectual Property
The Audio Home Recording Act of 1992 makes crystal clear that consumers may
use digital audio tape players or similar audio recording gadgets to make
copies of digital music for their personal, noncommercial use. But is it OK
to do so with a home computer? Advocates for Internet-based music
file-sharing networks say the answer must be "yes," or tens of millions of
people who swap music by computers could be subject to lawsuits for
copyright infringement. The music industry disagrees, claiming that people
who download and distribute music files without authorization or payment are
engaging in massive theft, not lawful copying. Several lawyers and law
professors who are experts in Internet law and copyright infringement say
that the 1992 law was designed to deal with CD players, digital recorders
and other emerging technology of the time -- not with Internet file sharing,
which is at issue in the Napster case. "I'm afraid the recording industry is
correct on this one," said Terry Fisher, a professor at Harvard Law School
who teaches Internet law and intellectual property. "It is true there is
some ambiguity in the statutory language involving home recording," Fisher
said of the 1992 law. "However, the construction that Napster is arguing for
would have a huge implication. It would immunize all forms of recording of
copyrighted material in the home. It's unlikely the Court of Appeals would
accept that."
[SOURCE: CyberTimes, AUTHOR: Carl Kaplan]
(http://www.nytimes.com/2000/09/22/technology/22CYBERLAW.html)
(requires registration)

PRIVACY

CUECAT LETS PRIVACY OUT OF THE BAG, CRITICS SAY
Issue: Privacy
CueCat, a new bar code-reading gadget that allows readers jump to a specific
site online after reading an ad or article in a magazine, is being chased by
privacy watchdogs. CueCat is different from many other forms of tracking
online - such as the ubiquitous "cookies" left on computers when people
visit Web sites - because that CueCat has the constant ability to link a
user's name to his or her behavior. Users must register the software to use
it, providing their names, e-mail addresses, age, gender and ZIP code.
DigitalConvergence, the creator of the CueCat, vows in its privacy policy
not to share personally identifiable data with marketers unless users give
express permission. But privacy advocates are still concerned that
DigitalConvergence hasn't completely explained the conditions under which it
will release personal data to third parties.
[SOURCE: San Jose Mercury News, AUTHOR: Deborah Lohse]
(http://www.mercurycenter.com/svtech/news/front/docs/cuecat092200.htm)

--------------------------------------------------------------
...and we're outta here. Go for the gold this weekend!

POLITICAL DISCOURSE
A Barrage of E-Mail Helps Candidates Reach Media Instantly
and Constantly (WSJ)
Hollywood cash has softened Dem critics, Bush says (USA)
The Wrong Message (NYT)
The Ad Campaign: Battle on Prescription Drugs (NYT)

TELEVISION
Bill to Protect Children from Violent Programming (Senate)
Space: Network TV's Commercial Frontier (NYT)
The Future of the Interactive Television Services Marketplace:
What Should Consumers Expect? (House)

MERGERS
AT&T Reaching Out to British Telecom (USA)
Time Warner, EMI Bow to EC (USA)
The U.S. Consumer's Friend (NYT)
FCC Staff Proposes AOL Terms (WP)
Market Place: Telecommunications Woes Seem to Be Rolled
Up in Sprint (NYT)

INTERNET
Third Annual Privacy and Human Rights Survey (EPIC)
Olympic Web Watchers Show Muscle In Protecting Games'
Video Copyright (WSJ)
Satellite Web Links Let Indian Tribes Take a Technological Jump (NYT)
Boring 50 Percent of the People 80 Percent of the Time,or Vice Versa
(NYT)
E-Mail You Can't Outrun (NYT)

FCC
Technological Advisory Council to Hold Sixth Meeting (FCC)

POLITICAL DISCOURSE

A BARRAGE OF E-MAIL HELPS CANDIDATES REACH MEDIA INSTANTLY AND CONSTANTLY
Issue: Political Discourse
With only 47 days left to Election Day, the presidential candidates can do
little to affect broad trends in the economy or world affairs that might
sway voters. But e-mail lets them reach reporters instantly, and constantly,
with their takes on important issues and their attacks on opponents. When
George W. Bush released his 16-page economic plan, "Blueprint for the Middle
Class," half a dozen aides to Vice President Al Gore labored furiously
at their Nashville headquarters, came up with a 24-page rebuttal, and
quickly dispatched it to the media. The delivery system: e-mail. The Gore
camp aimed to raise enough doubts about the Bush plan that reporters would
either ignore it or give the Gore critique equal time. This is politics at
cyberspeed. The e-mail barrage is designed to shape how news outlets portray
the presidential campaign to Americans who often distrust political
messages. But the growing importance of electronic mail also reflects a
broad irony: The more powerful communications technology becomes, the less
reliably campaigns can communicate directly with voters. More voters are
using new technology -- voice mail, caller ID, satellite dishes, remote
controls and digital programming -- to shut out political messages via
telephone bank or TV ad. Even the growth of the Internet hasn't helped
campaigns much. Many Web-heads aren't logging on for politics, and just 10%
of Americans tuned into live Web-casts from the GOP convention.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Bob Davis And Jeanne
Cummings]
(http://interactive.wsj.com/articles/SB969499866323238.htm)
(Requires subscription)

HOLLYWOOD CASH HAS SOFTENED DEM CRITICS, BUSH SAYS
Issue: Media & Society
Republican presidential candidate George W. Bush accused his opponent of
softening his stance towards the entertainment industry after raking in
millions of dollars from Hollywood. Last week Gore said he would give the
entertainment industry six months to ensure that violent films are not
marketed to children. But, according to Bush, Gore has since backed off his
tough position. "At the beginning of the week, he was sounding awfully tough
on Hollywood. . . . After a couple of fundraisers, he's changed his tune,"
Bush said. "Go out there to Hollywood to collect some money -- no longer is
it six months and tough talk." The Gore camp insists that it has not changed
its position and that the candidate "is not afraid to disagree with his
friends."
[SOURCE: USAToday (10A), AUTHOR: Jim Drinkard]
(http://www.usatoday.com/usatonline/20000921/2668997s.htm)
See Also:
LIEBERMAN IS CRITICIZED ON VIOLENT ENTERTAINMENT
[SOURCE: New York Times (A22), AUTHOR: Richard Perez-Pena]
(http://www.nytimes.com/2000/09/21/politics/21LIEB.html)
(requires registration)

THE WRONG MESSAGE
Issue: Political Discourse
[Editorial] Gov Bush is trying to present an image of a more diverse,
inclusive Republican party, but a pro-Republican issue ads hampers this
effort. The ad features a white woman complaining that she had to "act fast"
and get her son out of a public school that had "a bit more diversity than
he could handle." The Associated Press noted that the ad is running in
Kansas City, where a bitter battle over school desegregation is being
fought. Kathleen Hall Jamieson, dean of the Annenberg School for
Communications at the University of Pennsylvania, said in the Associated
Press article: "Instead of making a case for parental choice it appears to
make the case against diversity." Gov Bush quickly disavowed the ad. Ari
Fleischer, a spokesman for the Texas governor, said: "We talked to the
governor about that. His thought is that it is an inappropriate message and
the ad should not air....We think that diversity is a strength of America's
public school system. It's a strength of our country." The ad's producer was
asked if Gov Bush's objections would lead him to pull the ad. He said:
"Probably not. But we'll see."
[SOURCE: New York Times (A31), AUTHOR: Bob Herbert]
(http://www.nytimes.com/2000/09/21/opinion/21HERB.html)
(requires registration)

THE AD CAMPAIGN: BATTLE ON PRESCRIPTION DRUGS
Issue: Political Discourse
The advertising war over prescription drugs escalated this week: the
Republican National Committee broadcast a biting new commercial in 17
states, and the Gore campaign quickly responded. This story compares the
Republican and Gore campaign ads -- what's on the screen, the scripts and
their accuracy. Toner concludes: The Republican advertisement is appealing
to two powerful fears: The fear of "big government" intruding into private
health care decisions, and the fear of H.M.O.'s doing the same thing.
Democrats, meanwhile, are offering themselves as guardians of Medicare,
portraying the Republicans as bent on privatizing the system. With a month
and a half to go to Election Day, the advertising debate is already
reminiscent of the last two big health policy struggles: over Medicare
restructuring in 1995-96, and over national health insurance in 1993-94.
[SOURCE: New York Times (A20), AUTHOR: Robin Toner]
(http://www.nytimes.com/2000/09/21/politics/21ADBO.html)
(requires registration)

TELEVISION

BILL TO PROTECT CHILDREN FROM VIOLENT PROGRAMMING
Issue: Media & Society
From Press Release: The Committee on Commerce, Science, and Transportation
today approved 16-2 with one member voting present, a substitute bill to the
Children's Protection from Violent Programming Act, S.876. The bill was
introduced by Senator Fritz Hollings (D-SC), Ranking Democrat on the
Committee, on April 26, 1999.
The bill would do the following:
* Direct the Federal Communications Commission (FCC) to determine how
effectively the V-Chip and content-based rating system are protecting
children from television violence.
* If the FCC determines that the V-Chip and ratings system do not
effectively serve the governments' compelling interest in protecting
children from television violence, then the FCC must impose a blanket
prohibition on the delivery of violent programs when children are likely to
be watching.
* Directs the FCC to determine what constitutes violent programming and to
determine during what hours it may be shown.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-217.htm)

SPACE: NETWORK TV'S COMMERCIAL FRONTIER
Issue: Television
NBC signed a deal to hold a televised contest to send a civilian into space
aboard a Russian-built rocket. [Pause. Think of what we know of
Russian-built spacecraft and consider if you'd really want to "win."] A new
"space race" is on: A company with ties to NASA, Dreamtime Holdings,
proposed -- at meetings Monday with CBS, ABC, and Fox -- a show that would
use NASA facilities at the Johnson Space Center in Houston to train 20
contestants hoping to be selected to spend a week aboard the new
International Space Station, executives at the three networks said.
So-called 'reality TV' is reaching new heights [or depths, depending on your
perception] and upcoming programs involve everything from a scavenger hunt
around the world to a competition to escape from a high-technology prison.
Skepticism about reality shows is not widespread inside the network
entertainment divisions. "The networks not only remain enthusiastic about
the reality genre, but the next iterations are all about one-upping the
others," said Ben Silverman, the head of international packaging for the
William Morris Agency. Mr. Silverman noted that the shows have mainly been
imported from Europe, "and there shows like "Who Wants to Be a Millionaire"
and "Survivor" are several years old. The Europeans are already onto the
next wave."
[SOURCE: New York Times (C1), AUTHOR: Bill Carter]
(http://www.nytimes.com/2000/09/21/business/21SPAC.html)
(requires registration)

THE FUTURE OF THE INTERACTIVE TELEVISION SERVICES MARKETPLACE: WHAT SHOULD
CONSUMERS EXPECT?
Issue: Television
Wednesday, September 27, 2000 11:00 a.m. in 2322 Rayburn House Office Building
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a hearing on Wednesday, September 27, 2000 at 11:00 a.m. in 2322
Rayburn House Office Building. The hearing will be entitled: "The Future of
the Interactive Television Services Marketplace: What Should Consumers
Expect?" Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

MERGERS

AT&T REACHING OUT TO BRITISH TELECOM
Issue: Merger
At AT&T's annual summit in Basking Ridge, NJ, Chief Executive C. Michael
Armstrong is expected to ask his board for approval to merge the business
services divisions of AT&T and British Telecommunications into a separately
held company. The pair would build on international business services
venture Concert that offers Internet and data services to businesses
worldwide. This weekend, AT&T directors and top executives will also attempt
to address the question of how to deal with AT&T's ailing consumer
long-distance business. While long-distance generates $8 billion a year in
cash for the company, it is dragging down the company's overall growth rate.
AT&T, along with MCI and Sprint, has seen its market value collapse by more
than half over the past year. One option the phone giant might consider is
to spin off the consumer long-distance, which could then be sold to a
consortium of cable companies.
[SOURCE: USAToday (3B), AUTHOR: Thor Valdmanis]
(http://www.usatoday.com/usatonline/20000921/2668942s.htm)

TIME WARNER, EMI BOW TO EC
Issue: Merger
To gain European Commission approval for their $20 billion merger, Time
Warner and EMI Group each offered to sell off four of their foreign record
labels. They also agreed to divest their CD distribution businesses and to
make digital music available to at least three music software players not
owned by themselves or America Online through 2005. Time Warner and EMI
offered the concessions to convince European antitrust authorities that
their joint venture would not control the recorded music market or Internet
music distribution. The EC is scheduled to rule on the Time Warner-EMI deal
by Oct. 18 and the AOL-Time Warner deal
by Oct. 24.
[SOURCE: USAToday (1B), AUTHOR: Keith L. Alexander]
(http://www.usatoday.com/usatonline/20000921/2668966s.htm)

THE U.S. CONSUMER'S FRIEND
Issue: International/Mergers
[Op-Ed] The best friend of American consumers may be the European Union's
office in Brussels, rather than Congress; federal and state consumer
protection agencies, or trial lawyers who sue companies in favor of
consumers. As all business goes global, the European Commission has more
power over decisions involving U.S. industries. Europe's regulatory agencies
provide a needed counterweight to the American tradition of keeping
government out of the marketplace -- a practice that has let the market go
too far at times. The EC and the Federal Trade Commission recently agreed to
a del that will protect the privacy of European consumers online. "How long
will it be until Americans start wondering why their government is willing
to insure the privacy of Europeans but not Americans?" Richter asks.
European review of mergers -- like the now dead Sprint WorldCom deal and
pending AOL Time Warner deal -- strengthens the hand of U.S. antitrust
agencies by sharing information and looking at the international
repercussions of mergers between American companies. Richter concludes: The
European Union's active role in protecting consumers doesn't mean that it is
slowing the march toward global economic integration. In fact, the E.U.
helps the cause by reducing the abuses of globalization. That takes
ammunition away from the powerful anti-globalist forces. In this way, Europe
is providing a public service not only to American consumers but to its
corporations as well.
[SOURCE: New York Times (A31), AUTHOR: Stephan-Gotz Richter, publisher of
TheGlobalist.Com, an Internet magazine]
(http://www.nytimes.com/2000/09/21/opinion/21RICH.html)
(requires registration)

FCC STAFF PROPOSES AOL TERMS
Issue: Merger
A Federal Communications Commission draft obtained by the Washington Post
recommends the agency approve the $183 billion merger of America Online and
Time Warner, on the condition that the companies make legally binding their
pledge to allow rival providers of high-speed Internet access to reach
customers over their cable television systems. AT&T and Time
Warner, the nation's two largest providers of cable service, are joint
investors in a cable partnership and AOL is the world's most-frequented
gateway to the global computer system. According to the draft order, FCC
staff believe that linking those three players "would create a powerful
duopoly through which AOL/Time Warner and AT&T would have the ability and
incentive to coordinate their cable deployment strategies." The draft
concludes that an "open access" condition--a rule requiring that Time
Warner's cable customers be allowed to freely choose their Internet
provider--would sufficiently protect against potential collusion with AT&T.
"It's astounding that, having found enormous dangers in the combined
ownership of the two companies, that the agency is not calling for an
absolute clear-cut divestiture of the Time Warner-AT&T partnership," said
Gene Kimmelman, co-director of the advocacy group Consumers Union. "Open
access is not enough." The FCC has set an Oct. 12 deadline for its staff to
issue a recommendation to Chairman William E. Kennard, according to sources.
The FCC's draft order comes to light as two other regulatory agencies, the
Federal Trade Commission in Washington and the European Union in Brussels,
are also reviewing the deal
[SOURCE: Washington Post (E01), AUTHOR: Peter S. Goodman and Alec Klein]
(http://washingtonpost.com/wp-dyn/articles/A46622-2000Sep20.html)

MARKET PLACE: TELECOMMUNICATIONS WOES SEEM TO BE ROLLED UP IN SPRINT
Issue: Antimergers
Although the telecommunications industry is supposed to be improving the
lives o people around the U.S. and the world, from an investor's perspective
too many companies and too much newly raised capital are chasing too few
customers and too few revenue opportunities. Sprint has not been performing
as well as it did in the past, perhaps as a result of the failed merger with
WorldCom. "There was a belief that in getting the merger completed we would
have to divest some of the Internet business," Arthur Krause, Sprint's chief
financial officer, said. "So the focus on those sorts of products was not
the same as if we were trying to grow those markets independently. If the
deal had gone through, you wind up saying, 'O.K., we're looking at a
combined unit going forward.' So when the deal failed, we lost some momentum
that we can regain with some effort." Schiesel notes Krause's candor: the
company is now stuck with a data communications unit that was damaged
through neglect when Sprint thought it would have to sell that division to
someone else.
[SOURCE: New York Times (C14), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/2000/09/21/business/21PLAC.html)
(requires registration)

INTERNET

THIRD ANNUAL PRIVACY AND HUMAN RIGHTS SURVEY
Issue: Privacy
On September 19, 2000 EPIC and Privacy International announced the release
of "Privacy and Human Rights 2000: An International Survey of Privacy Laws
and Developments". The report reviews the state of privacy in over fifty
countries around the world and finds worldwide recognition of privacy as a
fundamental human right. At the same time, the report notes that both law
enforcement agencies and private corporations are extending surveillance
powers through the use of new technologies and new Internet-based commercial
services, such as interactive television -- or "SpyTV" -- that record the
preferences of individuals." The report is available for sale at the EPIC
Bookstore (http://www.epic.org/bookstore/). See the Press Release
(http://www.epic.org/bookstore/phr/PHRrelease.htm) for more information.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

OLYMPIC WEB WATCHERS SHOW MUSCLE IN PROTECTING GAMES' VIDEO COPYRIGHT
Issue: Intellectual Property
Policing the Internet is an Olympian task, but the International Olympic
Committee is willing to undertake the challenge. To protect the $1.3 billion
of television-broadcast rights that the IOC sold to the Sydney Games, it
imposed a ban on almost all video of official Olympic events from being
broadcast over the Internet. To enforce the ban, the IOC hired French
software and services company Datops SA and NetResult, a joint venture
co-owned by Copyright Control, and digital copyright experts Active Rights
Management Ltd., London. The companies are working with the IOC and NBC
network to protect Olympic intellectual property on the Net. NBC also has
rights to show some tape-delayed Olympic footage online. Since the Olympics
opened Friday, Copyright Control has contacted 35 sites about violating the
video ban. If a webcaster refuses to take video off its Web site, the
IOC can pull their broadcast feed, and can contact the Internet service
provider and ask them to remove connectivity to that site, says Mr. Powell,
president and founder of London-based Copyright Control Services. His
company has helped close some 6,000 sites for copyright infringement since
it was founded two years ago. But a notice sent by Copyright Control to a
Russian site that has been running video of the Olympic opening ceremony so
far has been ineffective. "We didn't sign any international rights
agreement," says TV6 news Editor in Chief Mikhail Ponomarev, adding, "I have
received some interesting e-mail from this organization in London -- their
name doesn't mean anything to me. I don't know them. Anybody can send me
such an e-mail." "I know international laws about rights for broadcasting,"
Mr. Ponomarev says. "I do have the copyrights because my pictures are taken
from RTR." Russia's RTR-television channel is government-owned.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Jeanette Borzo]
(http://interactive.wsj.com/articles/SB96952976371837686.htm)

SATELLITE WEB LINKS LET INDIAN TRIBES TAKE A TECHNOLOGICAL JUMP
Issue: Digital Divide
Earlier this month, two-way broadband satellite technology was deployed
among 120 locations on the Navajo, Hopi and Havasupai reservations. Ed
Groenhout, vice president for strategic initiatives at Northern Arizona
University said, "They are jumping generations of technology in a couple of
hours and into the 21st century." The three year pilot project is the first
commercial venture for StarBand, which plans to begin selling it's two-way
satellite broadband services to the public later this year. "This is a
turning point for our community," said Sally Tilousi, director of
Havasupais' Head Start School. "It's hard for people on the outside to
understand how isolated we are from so much technology." Sandy Colony, vice
president for corporate communications at StarBand Communications said, "In
some of these cases, this was their first Internet connectivity. It allows
more people access to all the benefits of the Internet with high-speed
delivery, long-distance learning, and it's always on."
[SOURCE: New York Times (E11), AUTHOR: Mindy Sink]
(http://www.nytimes.com/)
(requires registration)

BORING 50 PERCENT OF THE PEOPLE 80 PERCENT OF THE TIME, OR VICE VERSA
Issue: Internet
Internet research has been commanding the sort of media attention that was
once reserved for political polls. And according to Maryann Jones Thompson,
editorial director of the Metrics section for the Industry Standard, which
devotes six pages of each issue to Internet statistics, "It's really about
money. There's such a clamor for attention in the press that companies have
learned that a great way to get publicity is to produce a study about your
market and issue it as a study and have reporters pick it up." Such market
research reports are used as tools to sell products. And corporate clients
are more than willing to pay $45,000 a year to receive sales projections for
e-commerce, m-commerce, cell phones and hand held devices. However, Dr.
Stephen Fienberg, professor of statistics and social science at Carnegie
Mellon University, contends that people should be skeptical of studies
masquerading as social science. He said, "One needs to make a distinction
between the carefully crafted surveys that get done by government agencies
like the Census Bureau, and just using the tools to make a buck, where the
methodology isn't taken all that seriously."
[SOURCE: New York Times (E9), AUTHOR: Katie Hafner]
(http://www.nytimes.com/)
(requires registration)

E-MAIL YOU CAN'T OUTRUN
Issue: Internet Appliances
Recently, BlackBerry, a wireless handheld e-mail device, has become a
coveted tool by America's business professionals who are dependent on being
accessible to colleagues and clients. BlackBerry's appeal has been its
ability to help users watch incoming messages and conduct other business at
the same time. Research in Motion, the Canadian company that makes the
original BlackBerry models, has marketed its $40-per-month email service to
corporations -- about 5,00 companies now use it. Consumers can now buy the
BlackBerrys online and soon they will be available in retail stores.
BlackBerry is expected to receive more intense competition from the cellular
market, but since the cellular network in the United States is a patchwork
of often incompatible standards, the BlackBerry, which uses a wireless data
network built for two-way messaging, has so far been able to provide better
coverage at lower prices that most mobile phone services. However, a
BlackBerry backlash of sorts has been developing in corporate meeting rooms
where the devices are present. For instance, they have been banned from
staff meetings at Loudcloud, an Internet company based in Sunyvale, CA.
"Staff meeting are not worth holding if everybody is there thumb-typing,"
said Ben Horowitz, Loudcloud's chief executive.
[SOURCE: New York Times (E1), AUTHOR: Amy Harmon]
(http://www.nytimes.com/)
(requires registration)

FCC

TECHNOLOGICAL ADVISORY COUNCIL TO HOLD SIXTH MEETING
Issue: FCC
From Media Advisory: The Technological Advisory Council ("Council"), will
hold its sixth meeting on Wednesday, September 27, at 10:00 a.m. at the
Federal Communications Commission, 445 12th St. S.W., Room TW-C305,
Washington, D.C. 20554. The Council was established by the Federal
Communications Commission to enable a wide array of distinguished
technologists from industry, academia, government, and the public to provide
recommendations to the FCC concerning technological developments in the
communications industry.
The subjects that will be considered include: (1) software defined radios
and similar devices, and ways that the availability of such technologies
might affect the FCC's traditional approaches to spectrum management in
light of electromagnetic noise levels, including the possibility of creating
a set of principles governing the behavior of intelligent communications
devices and the initiation of a noise floor study; (2) current technological
trends in telecommunications services, including changes that might
decrease, rather than increase, the accessibility of telecommunications
services by persons with disabilities, and ways by which the FCC might best
communicate to designers of emerging telecommunications network
architectures, the requirements for accessibility; (3) telecommunications
common carrier network interconnection issues and how the Council should
address those issues; (4) additional issues that the Council may choose to
address in the future.
Brief oral comments to the Council may be made with prior notice to, and
approval by, the Federal Communications Commission's Designated Federal
Officer for the Technological Advisory Council, David Farber (e-mail:
DFARBER( at )FCC.GOV).
For further information, contact Kent Nilsson at 202-418-0845 or TTY
202-418-2989.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Engineering_Technology/Public_Notices/2000/da002
120.html)

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