Benton's Communications-related Headlines for 3/17/05
We're off tomorrow to celebrate our recovery from St Patrick's Day. See you=
=20
Monday. (Where can we find green beer in Orlando, BTW?)
And if you are hungry for media news tomorrow, check out these three great=
=20
sites: 1) Free Press News (http://www.freepress.net/news/), 2)
News for the Media Savvy (http://www.mediachannel.org/) and 3) IWantMedia=20
(http://www.iwantmedia.com/).
For upcoming media policy events, see http://www.benton.org/calendar.htm
TODAY'S QUESTION: Will Kevin Martin become the new poster boy for media=20
consolidation?
TOP STORY
Kevin Martin to Chair FCC
Kevin Martin's Moment
MEDIA & SOCIETY
Can democracy survive our media-saturated society?
Bush Stands By Video News Releases
Advocates Spent $229M on TV
Sen Stevens Pushes for Cable Self-Regulation
Pay TV in Brownback's Obscenity Sights
Food Advertising Pushed into Harsh Spotlight
OWNERSHIP
As Viacom Ponders a Breakup, Industry Rethinks Old Notions
Qwest Will Raise Its Bid for MCI
Spain's Auna and Ono Battle For Each Other's Media Assets
TELECOM REGULATION
GAO Questions FCC Management of E-Rate Program
Internet Phone Start-Ups could Bust amid a Boom
QUICKLY -- Comcast Deal Could be Last Best Chance for TiVo; TPRC Call for=20
Papers
COVERAGE/REACTIONS TO MARTIN APPOINTMENT
TOP STORY
KEVIN MARTIN TO CHAIR FCC
If you have not read yet, President Bush on Wednesday announced his=20
intention to designate Kevin J. Martin, of North Carolina, to be Chairman=20
of the Federal Communications Commission. A current FCC commissioner,=20
Martin indicated he will work to "ensure that American consumers continue=20
to enjoy the benefits of the best communications system in the world." The=
=20
WSJ reports that Martin is a hard-liner on indecency, supporter of the=20
universal service fund, and champion of small TV broadcasters. The=20
Washington Post notes that Martin has been a strong proponent of lifting a=
=20
30-year-old prohibition on one company owning a newspaper and television=20
station in the same city. Due to the importance of this position, there's a=
=20
great deal of coverage and reaction to the announcement which was expected.=
=20
We include just one shameless plug below for a fact sheet Benton published=
=20
yesterday on Chairman Martin's media policy decisions.
[SOURCE: White House]
http://www.whitehouse.gov/news/releases/2005/03/20050316-4.html
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257451A1.doc
http://online.wsj.com/article/0,,SB111098733218981149,00.html?mod=3Dtoda...
s_page_one
* Will Kevin Martin's FCC be the Public's FCC?
http://www.benton.org/press/KevinMartin.htm
KEVIN MARTIN'S MOMENT
[Commentary] Even though he undermined Michael Powell's deregulatory=20
agenda, Kevin Martin has been tapped as the new FCC chairman. President=20
Bush has touted telecommunications deregulation as an economic priority,=20
and we have to assume Martin will now pursue the President's goals.=20
Pervasive rule-making and public interest review of everything within the=20
FCC's jurisdictional sphere is not in the interests of markets,=20
technological advance or consumers. The White House is counting on its=20
Martin to put his considerable political adeptness to use creating working=
=20
majorities to continue down Chairman Powell's deregulatory path. This is=20
especially important with regard to broadband deployment. We're not sure=20
that the Bush Administration fully appreciates the extent to which=20
high-speed communication networks drive competition, productivity and=20
ultimately GDP. But Martin is well aware of broadband's potential, and we=20
hope he has learned enough from the past four years to do the right thing.
[SOURCE: Wall Street Journal, AUTHOR: Editorial Staff]
http://online.wsj.com/article/0,,SB111102281889581877,00.html?mod=3Dtoda...
s_opinion
(requires subscription)
MEDIA & SOCIETY
CAN DEMOCRACY SURVIVE OUR MEDIA-SATURATED SOCIETY
[Commentary] As suspected, young people are spending many of their waking=20
hours absorbed in media of one type or another, primarily television and=20
other forms of visual stimulation. They are obsessed with media -- but=20
seldom the news media or serious reading. Parents have a difficult time=20
even keeping up with the names of the newest electronics (MP3, TiVo, etc.),=
=20
let alone their effects. Politicians and other mass-media hucksters are=20
well ahead of parents and teachers. They know image trumps substance in a=20
multitasking world. Farsighted authors (Aldous Huxley's "Brave New World"=20
in 1932, Neil Postman's "Amusing Ourselves to Death," 1985) predicted a=20
society in which a love affair with technology and entertainment stripped=20
us of our capacity to engage in the serious thinking that sustains a=20
democratic society. In today's intense, media-dominated society, young=20
people have no spare time to reflect, to think deep or long-range thoughts.=
=20
They are never away from instant visual stimulation, often a m=E9lange of=20
media at the same time. In the media-saturated world, the importance of=20
image over substance dominates politics, and big money to purchase media=20
time decides elections. More ain't better, and our democracy is already=20
feeling the effects.
[SOURCE: Seattle Times, AUTHOR: Floyd J. McKay, Western Washington=
University]
http://seattletimes.nwsource.com/html/opinion/2002208706_floyd16.html
BUSH STANDS BY VNRs
President George W. Bush said Wednesday that the administration will=20
continue to use packaged video-news releases, and it's up to stations to=20
inform their viewers where they came from if they choose to. President Bush=
=20
cited a Justice Department opinion from last July, which held that such=20
VNRs are not "covert propaganda." That opinion conflicts with one from the=
=20
GAO that said they were, but Justice is the administration's controlling=20
legal authority. The President said it is up to local stations to make=20
those disclosures.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA511198.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
Inouye asks FCC to Investigate Broadcasters=92 Use of Government-Produced=20
VNRs without Attribution
In a letter sent to Federal Communications Commission Chairman Michael=20
Powell Tuesday, Sen Daniel Inouye (D-Hawaii) requested that the Commission=
=20
investigate broadcasters=92 usage of government-produced =93video news=20
releases=94 (VNRs) without providing any attribution for the source=
material.
[SOURCE: US Senate]
http://commerce.senate.gov/newsroom/printable.cfm?id=3D233662
Text of the letter: http://commerce.senate.gov/pdf/inouye-vnrltr.pdf
More coverage in --
NYTimes: http://www.nytimes.com/2005/03/17/politics/17video.html
ADVOCATES SPENT $229 MILLION ON TV
Corporations and advocacy groups spent $229 million on TV ads on national=20
broadcast and TV networks, as well as on Washington, D.C., stations, in=20
efforts to influence legislation during the last Congress, according to a=20
new study released by the University of Pennsylvania's Annenberg Public=20
Policy Center Wednesday. The figure for TV spending was up 459% from the=20
2001-02 Congress. Including print ads, Annenberg found that total spending=
=20
on issue advertising increased 285% to $404 million over the two=20
congressional terms.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA511352.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
STEVENS PUSHES FOR CABLE SELF-REGULATION
Senate Commerce Committee Co-Chairman Ted Stevens (R-Alaska) was beating=20
the drum for self-regulation of cable indecency Wednesday, continuing to=20
back off his warning about bringing pay TV under the same regulatory regime=
=20
as broadcasters. He still wants to level the playing field, but in a=20
breakfast speech to reporters in Washington, Stevens said he didn't think=20
that a just-introduced bill that could bring cable and satellite indecency=
=20
under the FCC purview would be necessary, and that he as confident the=20
cable industry would step up and create a system like the Motion Picture=20
Association of America ratings system combined with some form of a la carte.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA511395?display=3DBreaking+New...
ferral=3DSUPP
http://www.multichannel.com/article/CA511382.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
Stevens Speech at Telecom Breakfast
Video available of speech at=20
http://www.senate.gov/src/television/files/Stevens_Ted_1/stevens_mar16.ram
PAY TV IN BROWNBACK'S OBSCENITY SIGHTS
At a Judiciary Committee hearing Wednesday, Sen. Sam Brownback (R-KS) noted=
=20
that more than one-half of all pay-per-view movies are porn and called for=
=20
the Justice Department to step up obscenity prosecutions. He said that the=
=20
government has a compelling interest in pursuing porn because of its ties=20
to criminality, addiction and family breakups.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA511381?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
FOOD ADVERTISING PUSHED INTO HARSH SPOTLIGHT
The advertising industry's own organization -- the Children's Advertising=20
Review Unit (CARU) -- announced its intentions to enforce a new level of=20
advertising oversight as it also released the findings of its reviews of=20
recent Burger King and Wm. Wrigley Jr. advertising. =93As the concerns=20
change, we begin to apply [the guidelines] differently,=94 said CARU's=20
director, Elizabeth Lascoutx. =93One of our guidelines was that=20
representation of food products should be made so as to encourage sound use=
=20
of a product toward healthy development of children and development of good=
=20
nutritional practices.=94 As CARU faulted ads of both companies for failing=
=20
to meet its new guideline philosophy, it was also seemed to be sending a=20
clear message to the industry as well as its government critics.
[SOURCE: AdAge, AUTHOR: Ira Teinowitz]
http://adage.com/news.cms?newsId=3D44546
* Guidelines Are Urged in Food Ads for Children
http://www.nytimes.com/2005/03/17/business/media/17food.html
OWNERSHIP
AS VIACOM PONDERS BREAKUP, INDUSTRY RETHINKS OLD NOTIONS
In a dramatic sign of how the consolidation frenzy of the 1990s is moving=20
in reverse, media giant Viacom said it is considering splitting itself=20
into two separate public companies. Viacom will divide its radio and=20
broadcast television operations -- which include the CBS network -- from=20
its MTV cable networks and Paramount film studio. Out of an entertainment=20
colossus stitched together during a decade of high-profile dealmaking, two=
=20
moderately sized, publicly traded media companies would emerge, each=20
controlled by media billionaire and Viacom Chairman and Chief Executive=20
Sumner Redstone. the possible split is evidence of how the business of=20
media and entertainment is under assault from new technologies, which=20
include the Internet, satellite radio and digital-video recorders such as=20
TiVo. New-media businesses are chipping away at the profits of media=20
conglomerates and exacerbating other stresses, mostly the result of merger=
=20
overload, such as political infighting and heavy debt loads.
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint joe.flint( at )wsj.com]
http://online.wsj.com/article/0,,SB111100451396281433,00.html?mod=3Dtoda...
s_page_one
How would split affect me, Leslie Moonves and Tom Freston?
http://online.wsj.com/article/0,,SB111103033634282079,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
See also --
http://www.nytimes.com/2005/03/17/business/media/17viacom.html
http://www.broadcastingcable.com/article/CA511389?display=3DBreaking+New...
ferral=3DSUPP
http://www.multichannel.com/article/CA511390.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
http://www.usatoday.com/printedition/money/20050317/1b_viacom17.art.htm
http://www.latimes.com/news/printedition/front/la-fi-viacom17mar17,1,501...
.story?coll=3Dla-headlines-frontpage
QWEST WILL RAISE ITS BID FOR MCI
Qwest's expected bid would consist of $26 a share in cash and stock, up=20
from its rejected offer of $24.60 a share. The new bid is expected to be=20
$5.25 a share higher than Verizon's offer, and includes about $1.6 billion=
=20
more in cash than Verizon's accepted bid.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com and=
=20
Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB111098552517381108,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
Also see --
* Washington Post
http://www.washingtonpost.com/wp-dyn/articles/A42277-2005Mar16.html
SPAIN'S AUNA AND ONA BATTLE FOR EACH OTHER'S MEDIA ASSETS
Auna Group SA, Spain's second-biggest telecommunications company by sales,=
=20
which also operates cable-television networks in urban markets, has been=20
preparing a takeover bid for rival operator Grupo Corporativo Ono valued at=
=20
more than $3.33 billion. Ono, for its part, has responded with a novel=20
defense: It has been talking to U.S. and European private-equity funds=20
about backing a rival bid for parts of Auna. Under that scenario, Ono would=
=20
buy Auna's cable and telephone business, leaving its large and profitable=20
mobile operations behind. The punching and counterpunching over cable and=20
telecommunications assets in Spain underscores how attractive media assets=
=20
-- especially those that combine cable, telephony and Internet -- have=20
become as possible acquisitions in Europe. (Where's Letterman when you need=
=20
him? "Auna. Ona. Auna. Ona.")
[SOURCE: Wall Street Journal, AUTHOR: Jason Singer jason.singer( at )wsj.com and=
=20
Keith Johnson keith.johnson( at )wsj.com]
http://online.wsj.com/article/0,,SB111101168933181559,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
TELECOM REGULATION
GAO QUESTIONS FCC MANAGEMENT OF E-RATE PROGRAM
The FCC is not effectively managing the $2.25 billion program to link=20
schools and libraries to the Internet know as the E-rate, the Government=20
Accountability Office told Congress yesterday. The GAO said that the=20
Commission has been slow to respond to problems uncovered by auditors, has=
=20
not tracked the effectiveness of the program, and a backlog of cases has=20
been growing. The findings by the GAO prompted U.S. House Energy and=20
Commerce Committee Chairman Rep. Joe Barton to say he plans to push=20
legislation to overhaul the program.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3D0FFB1AFALGFWMCRBAE...
A?type=3DinternetNews&storyID=3D7926476
See links to --
House E-rate Hearing:=20
http://energycommerce.house.gov/108/Hearings/03162005hearing1461/hearing...
Rep Barton's Press Release:=20
http://energycommerce.house.gov/108/News/03162005_1468.htm
Telecommunications: Greater Involvement Needed by FCC in the Management and=
=20
Oversight of the E-Rate Program. GAO-05-151 (February 9,2005)
http://www.gao.gov/cgi-bin/getrpt?GAO-05-151
Highlights - http://www.gao.gov/highlights/d05151high.pdf
USAToday:=
http://www.usatoday.com/printedition/money/20050317/erate17.art.htm
INTERNET START-UPS COULD BUST AMID BOOM
Most Internet telephone services depend on broadband lines that they don't=
=20
own and to which they don't have guaranteed rights to access. That wouldn't=
=20
matter if consumers could choose from a multitude of competing broadband=20
providers. But they can't. The broadband policy championed by the FCC, and=
=20
largely supported by the tech industry, is well on its way to creating a=20
cable and telephone broadband duopoly, for the time being. Further, as the=
=20
government works to deregulate that duopoly, it is vesting cable and=20
telephone firms with tremendous power to treat services that need access to=
=20
their lines, such as Net phones, as they wish. That could include outright=
=20
blocking of Internet calls, or more subtle forms of discrimination such as=
=20
poor connections to 911 services or favoring their own Internet telephone=20
traffic.
[SOURCE: San Jose Mercury News, AUTHOR:Miguel Helft]
http://www.mercurynews.com/mld/mercurynews/business/technology/11150577.htm
QUICKLY
COMCAST DEAL MAY BE DO-OR-DIE TEST FOR TIVO
Tivo's deal with Comcast, the nation's largest cable company, may be the=20
last and best chance for the beleaguered digital video recording company to=
=20
prove its brand strength.
[SOURCE: AdAge, AUTHOR: Beth Snyder Bulik]
http://adage.com/news.cms?newsId=3D44550
* Suddenly, It's Fast Forward at TiVo
The new long-term deal to put TiVo's digital video recording service into=20
millions of Comcast's cable set-top boxes "undoubtedly saves the=20
money-losing TiVo from extinction."
http://www.businessweek.com/technology/content/mar2005/tc20050316_2989_t...
.htm
TELECOMMUNICATIONS POLICY RESEARCH CONFERENCE
The deadline for submitting paper abstracts for the 2005 Telecommunications=
=20
Policy Research Conference is approaching -- it is March 31, 2005. We are=20
now inviting submissions of abstracts for the program; information on the=20
procedure for submitting a paper to TPRC can be found at the link below.=20
TPRC also invites suggestions on special panels and tutorials.
http://www.tprc.org/TPRC05/call05.htm
COVERAGE/REACTIONS TO MARTIN APPOINTMENT
* LATimes:=20
http://www.latimes.com/business/printedition/la-fi-fcc17mar17,1,4647582....
y?coll=3Dla-headlines-pe-business
* New York Times:=
http://www.nytimes.com/2005/03/17/business/media/17fcc.html
* USAToday:=20
http://www.usatoday.com/printedition/money/20050317/martin17.art.htm
* Wall Street Journal:=20
http://online.wsj.com/article/0,,SB111098733218981149,00.html?mod=3Dtoda...
s_page_one
* Washington Post:=20
http://www.washingtonpost.com/wp-dyn/articles/A40355-2005Mar16.html
* Broadcasting&Cable:=20
http://www.broadcastingcable.com/article/CA511233?display=3DBreaking+New...
ferral=3DSUPP
* Multichannel News:=20
http://www.multichannel.com/article/CA511205.html?display=3DBreaking+New...
ferral=3DSUPP
* News.com:=20
http://news.com.com/Bush+chooses+Martin+as+next+FCC+chairman/2100-1036_3...
0520.html?tag=3Dnefd.top
* Powell Congratulates Martin:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257450A1.doc
* Abernathy Congratulates Martin:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257453A1.doc
* Adelstein Congratulates Martin:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257455A1.doc
* Copps Congratulates=20
Martin:http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257454A1.doc
* Senate Commerce Committee Chairman Stevens and Co-Chairman Inouye Welcome=
=20
Martin:
- Senator Stevens said, =93I look forward to working with Kevin in his new=
=20
role as FCC Chairman. Kevin has a strong legal background in=20
telelcommunications law and has demonstrated a keen understanding of the=20
issues before the FCC. He has traveled throughout Alaska and understands=20
the role of communications in rural America. The Alaska Telephone=20
Association endorsed Kevin because of his sensitivity to rural issues. We=20
have worked in the past with Kevin to address the challenges that rural=20
areas face in the ever-evolving world of the telecommunications and look=20
forward to continuing our work in these and other areas. Kevin=92s promotion=
=20
will now create a vacancy on the Commission and it is my continued hope and=
=20
recommendation that Earl Comstock be named to fill the now vacant seat.=94
- Senator Inouye said, =93The President's decision to appoint Commissioner=
=20
Martin to be the next Chairman of the FCC comes at an important time for=20
consumers and for the communications and media industries. We look forward=
=20
to working with Chairman Martin as he endeavors to build consensus and=20
adopt policies that will spur competition and innovation, and will bring=20
the benefits of the Internet age to all Americans.=94
http://commerce.senate.gov/newsroom/printable.cfm?id=3D233675
* Campaign Legal Center's Media Policy Program
http://www.campaignlegalcenter.org/FCC-199.html
* Center for Creative Voices in Media
http://www.creativevoices.us/php-bin/news/showArticle.php?id=3D115&PHPSE...
=3Dd6948969c5bbac1f36c1f80311d71448
* CompTel/ALTS
http://www.comptelascent.org/news/recent-news/031605_martin.html
* Common Cause
http://www.commoncause.org/site/apps/nl/content2.asp?c=3DdkLNK1MQIwG&b=3...
883&ct=3D546303
* CTIA (the Wireless Industry)
http://www.ctia.org/news_media/press/body.cfm?record_id=3D1513
* Free Press
http://www.freepress.net/news/release.php?id=3D54
* National Association of Broadcasters
http://www.nab.org/newsroom/pressrel/statements/031605fcc_chairman.htm
* National Cable & Telecommunications Association
http://www.ncta.com/press/press.cfm?PRid=3D588&showArticles=3Dok
* National Telecommunications Cooperative Association
http://www.ntca.org/ka/ka-3.cfm?content_item_id=3D3073&folder_id=3D522
* Progress & Freedom Foundation
http://www.pff.org/news/news/2005/031605fccchairman.html
* Telecommunications Industry Association
http://www.tiaonline.org/media/press_releases/index.cfm?parelease=3D05-12
* United States Telecom Association
http://www.usta.org/news_releases.php?urh=3Dhome.news.nr2005_316_2
--------------------------------------------------------------
...and we are outta here. See you again Monday -- have a great St Patrick's=
=20
Day!
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------