March 2005

=20
Day)

The House Commerce Committee will discuss "Preparing Consumers for the End=
=20
of the Digital Television Transition" on Thursday (see link below). For=20
this and other upcoming media policy events, see=20
http://www.benton.org/calendar.htm

MEDIA & SOCIETY
The Internet and Campaign 2004
White House Approves Pass for Blogger
White House Mum on PR Contracts
Where're the Ratings, Dude?
FCC: Nip/Tuck Not Obscene

IN CONGRESS
Cable Under Attack
Barton: =9206 Cutoff Has Legs
Let Congress Set Media Limits
NTIA Reauthorization

TELECOM
Consumer Advocates Fear Losing AT&T's Voice

COMMENTARY
Careless Spectrum Auctions Waste Taxpayer Asset, Analyst Says
Regulatory Parity and Other Misgivings
Chamber Made

ED TECH
FCC Issues Contract to Evaluate E-Rate Program
72% of Districts will Expand Distance Ed

QUICKLY -- Center for Public Integrity; Recycling TV; TV & Teens; Video on=
=20
Demand; Jay Keithley Named FCC's Acting Chief, Consumer & Governmental=20
Affairs Bureau; Fighting Piracy with Price

MEDIA & SOCIETY

THE INTERNET AND CAMPAIGN 2004
The Internet became an essential part of American politics in 2004. Fully=20
75 million Americans =AD 37% of the adult population and 61% of online=20
Americans -- used the Internet to get political news and information,=20
discuss candidates and debate issues in e-mails, or participate directly in=
=20
the political process by volunteering or giving contributions to=20
candidates. A post-election, nationwide survey by the Pew Internet &=20
American Life Project and the Pew Research Center for The People & The=20
Press shows that the online political news consumer population grew=20
dramatically from 18% of the U.S. population in 2000 to 29% in 2004. There=
=20
was also a striking increase in the number who cited the Internet as one of=
=20
their primary sources of news about the presidential campaign: 11% of=20
registered voters said the Internet was a primary source of political news=
=20
in 2000 and 18% said that in 2004. See much more at the URL below.
[SOURCE: Center for American Progress, AUTHOR: Lee Rainie, John Horrigan,=20
Michael Cornfield]
http://www.pewinternet.org/PPF/r/150/report_display.asp
See also --
* Internet Passes Radio for Political News
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DMZK0CA2F0PUYUCRBAE...
Y?type=3DinternetNews&storyID=3D7818670
* Pew Finds Surge for Web as Source of Political News, As Newspapers Sink
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
_id=3D1000828005

WHITE HOUSE APPROVES PASS FOR BLOGGER
Garrett M. Graff is to be ushered into the White House briefing room to=20
attend the daily press "gaggle." Is it a big deal? Graff is considered the=
=20
first blogger to be granted a daily White House pass for the specific=20
purpose of writing a blog. He's the editor of fishbowlDC, a blog about the=
=20
news media in Washington. Scott McClellan, the White House press secretary,=
=20
said he had met with the White House Correspondents Association and they=20
had decided to let Mr. Graff in. "It is the press corps' briefing room and=
=20
if there are any new lines to be drawn, it should be done by their=20
association," he said. Graff said he was surprised at the help he received=
=20
from "real" reporters covering the White House, given what he described as=
=20
the animosity between some bloggers and the mainstream news media. Jay=20
Rosen, a journalism professor at New York University says Graff is helping=
=20
to expand the definition of what constitutes the press, just as radio and=20
television once pushed those boundaries.
[SOURCE: New York Times, AUTHOR: Katharine Seelyee]
http://www.nytimes.com/2005/03/07/technology/07press.html
(requires registration)
See also --
* At a Suit's Core: Are Bloggers Reporters, Too?
http://www.nytimes.com/2005/03/07/technology/07blog.html
(requires registration)
* Apple goes to the source
http://news.com.com/Apple+goes+to+the+source/2010-1071_3-5601664.html?ta...
nefd.ac

WHITE HOUSE MUM ON PR CONTRACTS
On January 28, a couple dozen high-profile House Democrats sent the White=20
House a letter asking for information on all public relations and=20
advertising contracts with government agencies. They requested a reply by=20
March 1, but there has been no reply at all from the Administration. The=20
request cited "secret publicity campaigns to promote administration=20
priorities" including an investigation that "revealed that the Department=20
of Education paid a conservative commentator [Armstrong Williams, though=20
the letter did not name him] to support the No Child Left Behind Act in=20
television and radio appearances," plus another contract with a commentator=
=20
unearthed following the Williams revelation. President Bush has said the=20
play-for-pay practice must end; the FCC is investigating the Williams=20
broadcasts for possible payola violations.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA508851?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

WHERE'S THE RATINGS, DUDE?
Television networks have been pressing Nielsen Media Research, the company=
=20
that measures TV audiences, to quantify college-campus viewing for years,=20
without success. In addition to colleges, the ratings company doesn't=20
monitor viewing in bars, hotels, prisons, offices or military housing,=20
among other out-of-home venues. Nielsen has declined to incorporate all=20
this viewing into its regular monitoring, citing cost and technology=20
problems involved in maintaining a "sterile" sample, with precise data on=20
the number of viewers and their exact viewing time per person. Meanwhile,=20
colleges, wary of opening the gates to outsiders conducting research on=20
their students, have been leery of providing access. To help capture and=20
measure out-of-home TV viewing, Nielsen now is testing several new devices,=
=20
among them a gadget that clips onto clothing and records the sound of any=20
TV a person may encounter during the day -- whether at the gym, the office=
=20
or at home. Fox and other networks that cater to younger viewers may soon=20
get a clearer picture of how many campus viewers they may be missing. In=20
coming weeks, Nielsen plans to release data from a two-year study of=20
college-student viewership. Viacom, owner of MTV Networks, Time Warner and=
=20
Fox commissioned the study in the hopes of nudging Nielsen into regularly=20
measuring TV viewing in college dormitories and residences -- and to gain=20
ammunition in negotiating ad hikes.
[SOURCE: Wall Street Journal, AUTHOR: Brooks Barnes brooks.barnes( at )wsj.com ]
http://online.wsj.com/article/0,,SB111016036647771860,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

FCC: NIP/TUCK NOT OBSCENE
Although available only on pay TV systems, Nip/Tuck has been the subject of=
=20
many complaints filed with the FCC. A variety of complainants asked the FCC=
=20
to fine cable network FX on grounds that the show is indecent and/or=20
obscene. The FCC decided that the show is not obscene. The Supreme Court's=
=20
test for determining whether content is obscene is a high bar: an average=20
person, applying contemporary community standards, must find the material,=
=20
taken as a whole, appeals to =93prurient interest,=94 depicts sex acts in a=
=20
patently offensive way and, lacks serious literary, artistic, political or=
=20
scientific merit. As to the indecency complaints, the FCC does not regulate=
=20
indecent programming on pay TV services.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA508743?display=3DBreaking+New...
ferral=3DSUPP
http://www.multichannel.com/article/CA508752.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
Also hear --
* Context is Everything
Last Veteran's Day, 66 ABC affiliates cancelled a scheduled broadcast of=20
"Saving Private Ryan," because of its spattering of profanity. The=20
affiliates said they were uncertain, in the post-Janet, post-Bono climate=20
of decency enforcement, about what would pass FCC's muster. This week, the=
=20
Commission unanimously ruled that "in light of the overall context of the=20
profanity," the movie was not indecent.
http://www.onthemedia.org/stream/ram.py?file=3Draotm/otm030405a.ra

IN CONGRESS

CABLE UNDER ATTACK
A long look at last week's news that key leaders in Congress now back=20
extending indecency regulation to pay TV and radio systems. Edgier cable=20
networks like FX and MTV could be forced to corral shows containing sex=20
scenes, profanity and bathroom humor to late-night and early-morning hours,=
=20
like broadcast TV stations do. Alternatively, cable could be forced to sell=
=20
channels =93a la carte=94 or one by one, so parents could pick and choose=
the=20
programming they want coming into their homes. Lobbyists for broadcasters=20
appear to love the idea; lobbyists for cable vow to fight it.
[SOURCE: Broadcasting&Cable, AUTHOR: ]
http://www.broadcastingcable.com/article/CA508877.html?display=3DNews&re...
al=3DSUPP
http://www.multichannel.com/article/CA508865.html&referral=3DSUPP
(free access for Benton's Headlines subscribers)

BARTON: '06 CUTOFF HAS LEGS
House Energy and Commerce Committee Chairman Joe Barton (R-TX) told a=20
National Association of Broadcasters audience last week that he'll soon=20
introduce a bill setting 2006 as the deadline for the transition to=20
digital-only TV broadcasting. The bill will have other provisions dealing=20
with making affordable converter boxes available to low-income households=20
that don't subscribe to cable or satellite. He also said he thinks he has=20
the vote to pass the bill in the House. Broadcasters oppose a hard date in=
=20
2006 because they say consumers aren't ready to acquire millions of boxes=20
to keep their analog sets working, and because they don't know whether=20
cable systems will be allowed to downconvert their digital signals to=20
analog at the headend. Rep Barton said his purpose is to provide certainty=
=20
for ending the transition, which will allow analog spectrum to be recovered=
=20
and reallocated to public-safety groups. Some of the spectrum will be sold=
=20
at auction to broadband-wireless companies.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA508764.html?display=3DPolicy&refer...
=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
Preparing Consumers for the End of the Digital Television Transition
Hearing by the Subcommittee on Telecommunications and the Internet
Thursday, March 10, 2005 1:00 PM 2322 Rayburn House Office Building
Witness List Not Yet Finalized
http://energycommerce.house.gov/108/Hearings/03102005hearing1451/hearing...

LET CONGRESS SET MEDIA LIMITS
Congress may be best placed to decide what restrictions should apply to=20
media ownership, rather than the Federal Communications Commission, said=20
departing Media Bureau Chief Kenneth Ferree Friday. Congressional action=20
would give the industry certainty with little chance of the sort of lengthy=
=20
court challenges that have tied up ownership regulations in the past, he=20
said. He also said one of his biggest frustrations while at the agency was=
=20
failing to set a final framework for completing the transition to digital=20
television. "I think the defenders of the status quo are finding fewer and=
=20
fewer places to turn," Ferree said. "Congress or the commission in the next=
=20
year are going to have to come up with a way to get us to the end in some=20
reasonable time frame."
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
http://www.reuters.com/newsArticle.jhtml?type=3DtopNews&storyID=3D7806396

NTIA REAUTHORIZATION
The Senate Commerce Committee is scheduled to consider reauthorizing the=20
National Telecom & Information Administration on Thursday, though no bill=20
has been introduced yet. A bill similar to the NTIA reauthorization bill=20
that passed the Commerce Committee last year (S-1478), may be introduced=20
this week. Before the measure passed last year, Sen. Sununu (R-NH)=20
introduced an amendment that would have killed the Technologies=20
Opportunities Program (TOP). The amendment was easily defeated, largely on=
=20
objections by Sen. Burns (R-MT), who favors the program=92s boost to=20
telemedicine. The Bush Administration, as in the past, has proposed in the=
=20
2006 budget eliminating the $14 million TOP program. The budget devotes $21=
=20
million to NTIA in 2006, a $4 million increase.
[SOURCE: Communications Daily]
(Not available online)
See http://commerce.senate.gov/newsroom/printable.cfm?id=3D232861

TELECOM

CONSUMER ADVOCATES FEAR LOSING AT&T'S VOICE
AT&T's days of playing spoiler to the Bells are just about over. The=20
company has announced plans to be bought by SBC Communications. Once that=20
deal closes, AT&T will become, for all practical purposes, a Bell company=20
itself. With AT&T out of the picture, some worry that consumers will lose=20
their strongest advocate. =93The AT&T-SBC merger removes from the scene a=20
major competitor who can express in a forceful way the opposite view of=20
things,=94 says James Baller, a lawyer who often represents small towns in=
=20
their fights with the Bells. =93I think that is a very scary prospect.=94=
With=20
AT&T's powerful voice silenced, Baller worries that small-fry rivals and=20
others will be ignored the next time telecom rules and policies are=20
drafted. Mark Cooper, director of the Consumer Federation of America, says=
=20
he thinks that with AT&T out of the picture, the Bells will steamroll their=
=20
rivals =97 in the regulatory arena, in the courts and in Washington. =93SBC=
can=20
almost justify the purchase price of AT&T for the political payoff alone,=94=
=20
Cooper says. Gene Kimmelman, director of the Consumers Union, worries that=
=20
without AT&T to stand up for the rights of small entrants and new=20
competitors, the USA risks being stuck with rules that unfairly favor the=20
Bells. =93A lot of people don't appreciate how much marketplace shifts drive=
=20
political shifts,=94 says Kimmelman. =93AT&T was the leader in the attempt=
to=20
create local phone competition.=94 Now that AT&T has vanished from the=20
political debate, he says, =93The entire fight has disappeared.=94 Andy=
Lipman,=20
a partner with Swidler Berlin in Washington, says AT&T's special brand of=20
swagger will be hard to replace. =93AT&T merging with SBC is like the United=
=20
States pulling out of NATO,=94 Lipman quips. =93All the other countries are=
=20
going to have to pay multiples of what they historically did just to=20
maintain their current defense posture.=94 The =93countries,=94 in this=
case,=20
are the consumer groups that relied on AT&T for support and guidance.=20
Lipman notes AT&T often took the lead in drafting legal briefs that=20
consumer groups would submit, under their own names, to local, state and=20
federal regulators. (The Bells do the same for their support groups.)
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
http://www.usatoday.com/printedition/money/20050307/1b_attcover07.art.htm

COMMENTARY

CARELESS SPECTRUM AUCTIONS WASTE TAXPAYER ASSET, ANALYST SAYS
Government needs to gradually auction off spectrum on a =93reasonable=20
schedule=94 if it wants to get maximum value for the =93taxpayer-owned=
asset,=94=20
said Capitol Solutions CEO David Taylor in a technology forum Friday held=20
by Citizens Against Government Waste. There are right and wrong ways to=20
auction spectrum, Taylor said. Selling it off in large chunks will result=20
in lower bids, while announcing auctions sporadically -- creating the=20
impression it=92s now or never to buy -- leads to
overbidding, as in the UK in 2000. Only a steady supply of spectrum=20
auctioned at regular intervals will lead companies to make rational=
decisions.
[SOURCE: Communications Daily, AUTHOR: Greg Piper]
(Not available online)

REGULATORY PARITY AND OTHER MISGIVINGS
[Commentary] Since the beginning of broadcast regulation, radio licensees=20
have argued that they should be treated just like newspapers -- after all,=
=20
they said, they are both in the communications business. Fortunately, the=20
courts could be relied upon to answer: Broadcasters are given a free=20
federal license to use public property to communicate while newspapers do=20
not require a license to use their printing presses or paper or ink. Well,=
=20
they=92re at it again. This time they have a fancy new name for it --=20
"regulatory parity." And it=92s not just the broadcasters -- all the=20
communications companies are joining in this new variation on an old theme.=
=20
Lloyd describes the efforts of telephone, cable and broadcast companies to=
=20
be treated equally and the actions currently being taken by legislators as=
=20
a response.
[SOURCE: Pew Internet & American Life Project, AUTHOR: Mark Lloyd]
http://www.americanprogress.org/site/pp.asp?c=3DbiJRJ8OVF&b=3D387675

CHAMBER MADE
[Commentary] Reaction to the U.S. Chamber of Commerce's report =93Sending=
the=20
Right Signals: Promoting Competition Through Telecommunications=20
Reform.=94 The report bemoans that regulation has caused the industry to=20
sink into =93a depressed economic condition.=94 It calls for closing=
networks=20
to sharing, ending regulated wholesale prices, giving valuable spectrum to=
=20
commercial wireless operators, ending common carrier rules and raising=20
funds for universal service from general tax revenues.
http://www.riedelcommunications.blogspot.com/

ED TECH

FCC ISSUES CONTRACT TO EVALUATE E-RATE PROGRAM
The FCC has given a nonprofit consulting group, the National Academy of=20
Public Administration (NAPA), a contract worth up to $750,000 to see if the=
=20
Commission can improve how it runs the E-rate program. The FCC wants to=20
find out if the current process can be improved and how other federal=20
agencies handle other multi-billion dollar grant programs. NAPA will be=20
given $400,000 for an analysis of the current system and alternatives used=
=20
by others, a process that=92s expected to take 5-6 months. The FCC has the=
=20
option of paying $350,000 for a 2nd phase in which NAPA would make specific=
=20
recommendations for improvements if required.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
Learn more about NAPA at:
http://www.napawash.org/

72% OF DISTRICTS WILL EXPAND DISTANCE ED
According to the first federal study of distance education, 72% of public=20
school districts in the United States plan to expand distance-learning=20
programs. The popularity of distance education has spread from colleges to=
=20
earlier grades, as students in more than one-third of U.S. school districts=
=20
take courses over the Internet or through video conferences. The main=20
reason is that districts want to offer courses students can't get at their=
=20
own schools.
[SOURCE: eSchool News]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D5560
Dept of Ed Press Release:
http://www.ed.gov/news/pressreleases/2005/03/03022005a.html
Distance Education Courses for Public Elementary and Secondary School=20
Students: 2002=AD03:
http://www.nces.ed.gov/pubsearch/pubsinfo.asp?pubid=3D2005010

QUICKLY

THE DIGGING LIFE
16 years ago, TV producer Charles Lewis left "60 Minutes" to found the=20
Center for Public Integrity. In the years since, the Center has become the=
=20
largest non-profit investigative journalism organization in the world,=20
uncovering some of last decade's most important political stories.
[SOURCE: On the Media]
http://www.onthemedia.org/stream/ram.py?file=3Draotm/otm030405e.ra

THE GREENING OF TV
After seeing TV content recycled so many times in their lives, Sens. Ron=20
Wyden (D-OR) and Jim Talent (R-MO) have introduced legislation that would=20
give consumers a $15 tax credit for recycling their old TVs and computers.=
=20
Electronic waste is a main contributor to hazardous lead, mercury and=20
cadmium in landfills.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA508688?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

WHAT A TEEN WANTS
How TV chases an elusive demo.
[SOURCE: Broadcasting&Cable, AUTHOR: Anne Becker]
http://www.broadcastingcable.com/article/CA508875.html?display=3DFeature...
erral=3DSUPP
(free access for Benton's Headlines subscribers)

THE TRANSFORMING FORCE OF VIDEO-ON-DEMAND
With 21.5 million subscribers, Comcast is the nation's largest cable TV=20
company as well as a pioneering player in the business of turning TV sets=20
into video library machines, enabling consumers to watch anything they want=
=20
anytime they want. But what will video on demand (VOD) mean for=20
advertisers? As profound as the impact of VOD is for viewers, the potential=
=20
for marketers, and their advertising agency partners, is equally tremendous.
[SOURCE: AdAge, AUTHOR: Lisa Sanders]
http://adage.com/news.cms?newsId=3D44463

JAY KEITHLEY NAMED ACTING CHIEF, CONSUMER & GOVERNMENTAL AFFAIRS BUREAU
FCC Chairman Michael K. Powell has named Jay Keithley to be acting chief of=
=20
the Commission's Consumer & Governmental Affairs Bureau, following the=20
departure of current bureau chief K. Dane Snowden on March 11. Keithley=20
has been the bureau's deputy chief for policy since June 2004. Prior to=20
joining the Commission, Keithley was director of government relations and=20
regulatory counsel at PCIA, The Wireless Infrastructure Association, in=20
Washington, DC. Before that he had been vice president for regulatory=20
affairs at Sprint Corporation, Washington, DC; vice president , public=20
affairs, at United Telecom, Inc., Washington, DC; general counsel at United=
=20
Telephone Company of Indiana, Inc., Warsaw, IN; and chief trial attorney at=
=20
The National Credit Union Administration, Washington, DC. From 1974 to=20
1978 he was a captain, Judge Advocate, in the U.S. Marine Corps, stationed=
=20
in Washington, DC. As deputy bureau chief, Keithley was responsible for=20
oversight of the consumer policy division, the disability rights office and=
=20
the reference information center and dealing with issues=20
involving telemarketing rules, CAN-SPAM, slamming rules enforcement,=20
implementation of the Americans with Disabilities Act and ensuring the=20
public has convenient and reliable access to all Commission public=
documents.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257182A1.doc

MOVIE, MUSIC GIANTS TRY NEW WEAPON AGAINST PIRATES: PRICE
Rampant piracy in places like China, Russia and Mexico has prevented=20
Hollywood studios and major record labels from tapping the full growth=20
potential of those tantalizing markets. Now, some media companies are=20
trying to reverse the tide by cutting prices on legitimate DVDs and CDs low=
=20
enough to challenge the pirates at their own game.
[SOURCE: Wall Street Journal, AUTHOR: Kate Kelly kate.kelly( at )wsj.com, Ethan=
=20
Smith ethan.smith( at )wsj.com and Peter Wonacott peter.wonacott( at )wsj.com]
http://online.wsj.com/article/0,,SB111015143350171693,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
--------------------------------------------------------------
* No, not the director, silly. Revolutionary War Gen. Casimir Pulaski.
--------------------------------------------------------------
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.
--------------------------------------------------------------

MEDIA & SOCIETY
It=92s Time to Reconnect the Press and the Public
Cut Buster Loose
BBC Gets New Lease on Life, but Government Calls for Overhaul
The Best Television Filter
Localities Weighing Broadband Face Stronger Opposition in States

TELEVISION
Report to Congress on Over-the-Air Viewers
=91Big Four=92 Nets Abusing Power, Cable Operators Say
ACA: Give Small Ops DBS=92 Local Signals
NAB Might Skip Multicast Court Battle
Cable Wants Overhaul of Retrans Rules

OWNERSHIP
FCC Weighs In on Rule Challenge
Stock Gambit Strains Relations Between Two Media Titans
House Shoots Few Tough Questions at Telecom Executives

QUICKLY -- Armstrong Williams Gets NY Show on Radio; TV Ads & L.A. Mayoral=
=20
Race; Willful Blindness in Hollywood Reporting?/Diversity in Journalism?;=20
Radio Medium of Choice in Emergencies; Educators use Radio; FCC=20
"Admonishes" Verizon; Google AutoLink Pits Convenience, Ownership Issues;=20
Web Marketers Fearful of Fraud in Pay-Per-Click; An Introduction to=20
Activism on the Internet; Library to Launch Digital Gallery Today; Court=20
Overturns $521 Million Ruling Against Microsoft; Thierer joining Progress &=
=20
Freedom Foundation

MEDIA & SOCIETY

IT'S TIME TO RECONNECT THE PRESS AND THE PUBLIC
[Editorial] As FCC Chairman Powell limps off the policy stage, his attempts=
=20
to loosen media ownership rules are still having an effect. The ownership=20
debate was poorly covered, yet an impressive number of Americans tuned in=20
and decided that big media =97 so much in their face already =97 was big=20
enough, thanks. That's a good thing. But to the extent that people see=20
media as a self-serving behemoth they may disconnect from the behemoth,=20
including the part of it that produces the news. If journalism is seen as=20
just another hungry special interest, the public will toss the good out=20
with the bad. That's... well, bad. Getting straight news now from this=20
hyped and opinion-loaded beast may feel like trying to drink from a fire=20
hose. All that individual journalists can do is rededicate ourselves to=20
journalism=92s central mission and find ways of explaining that mission to=
=20
the public. The quality of our press and our democracy really are linked;=20
journalism must produce work that actually benefits the public.
[SOURCE: Columbia Journalism Review, AUTHOR: Editorial Staff]
http://www.cjr.org/issues/2005/2/editorial.asp

CUT BUSTER LOOSE
[Commentary] Why should government subsidize the production and=20
distribution of entertainment and, even worse, journalism? In today's=20
500-channel environment, public television is a preposterous relic. Public=
=20
television, its supporters say, is especially important for people who=20
cannot afford cable or satellite television. But 62% of poor households=20
have cable or satellite television, and 78% have a VCR or DVD player.=20
Public television's survival, with no remaining rationale, should fill=20
students of government with awe, wonderment and melancholy. Would it vanish=
=20
without the 15% of its revenue it gets from government? Let's find out.
[SOURCE: Washington Post, AUTHOR: George Will georgewill( at )washpost.com]
http://www.washingtonpost.com/wp-dyn/articles/A2711-2005Mar2.html
(requires registration)

BBC GETS NEW LEASE ON LIFE, BUT GOVERNMENT CALLS FOR OVERHAUL
After months of rancorous debate over its status and standards, the=20
venerable British Broadcasting Corporation won a reprieve on Wednesday when=
=20
the government approved a further 10-year Royal Charter guaranteeing=20
compulsory public financing. But for the first time in the 83 years that=20
the BBC has been the country's prime public service broadcaster, the=20
government called for a radical overhaul of its top management. It also=20
urged the institution to desist from "copycat" programming intended to=20
"chase ratings for ratings sake."
[SOURCE: New York Times, AUTHOR: Alan Cowell]
http://www.nytimes.com/2005/03/03/international/europe/03bbc.html
(requires registration)

THE BEST TELEVISION FILTER
[Editorial] Sen. Ted Stevens (R-Alaska) on Tuesday suggested that federal=20
legislation is necessary to protect children from programming that their=20
parents are paying to have beamed into their living rooms. Rep. Joe Barton=
=20
(R-Texas) seconded the motion, arguing that cable and satellite services=20
enjoy an unfair advantage over broadcasters, which are bound by federal=20
indecency rules. But before these and other legislators move forward with=20
the idea, they should read this from the Supreme Court: "Targeted blocking=
=20
is less restrictive than banning, and the government cannot ban speech if=20
targeted blocking is a feasible and effective means" of protecting=20
children. The simplest solution for consumers who don't want their kids=20
exposed to cable is to not write a check to the cable company. Those who=20
still want their MTV can use the filters that make it easy to keep unwanted=
=20
programming from their children. But, as with V-chips that let parents=20
decide what youngsters see and hear on broadcast television, the filters=20
won't work unless someone exercises the right to say no. As the Supreme=20
Court opinion clearly states, that person should be a parent, not Big=
Brother.
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
http://www.latimes.com/news/printedition/opinion/la-ed-cable3mar03,1,480...
.story?coll=3Dla-news-comment
(requires registration)

LOCALITIES WEIGHING BROADBAND FACE STRONGER OPPOSITION IN STATES
Municipalities are facing more state bills (11) this year seeking to bar or=
=20
restrict their providing cable, telecom or broadband services, and they say=
=20
the proposals contain more extensive barriers than in years past. =93We see=
=20
this every year, but this year there are more bills than there has been in=
=20
years past,=94 said attorney James Baller, who represents municipalities:=20
=93Most certainly, this a very active and volatile situation.=94
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

TELEVISION

FCC MEDIA BUREAU ISSUES REPORT TO CONGRESS ON OVER-THE-AIR VIEWERS
As Congress considers a date certain to end the transition to digital=20
television, the Federal Communications Commission's Media Bureau issued a=20
report earlier this week detailing the Bureau's analysis of comments on the=
=20
current status of over-the-air (OTA) broadcast television viewers in the=20
United States, and a range of potential options for assisting those OTA=20
viewers when analog broadcast service is terminated. Congress has already=20
declared its support for ending the transition to digital through their=20
vote on a Sense of the Senate in the 108th Congress. The report seeks to=20
further this debate by summarizing data received in response to a Public=20
Notice issued by the Media Bureau in May 2004, and providing independent=20
analysis. The report provides analysis on several aspects of the transition=
=20
to digital broadcasting including: 1) the timing and nature of a=20
switchover, 2) the cost of digital-to-analog converter boxes for OTA=20
viewers; and 3) the reasons why OTA viewers do not subscribe to pay-TV=20
services.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257075A1.doc
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257073A1.doc

'BIG FOUR' NETS ABUSING POWER, CABLE OPERATORS SAY
Cox Communications, Advance/Newhouse Communications and Insight=20
Communications are accusing the =93Big Four=94 broadcast networks (ABC, CBS,=
=20
FOX and NBC) of abusing their power to force carriage of unwanted=20
programming, swelling the size of expanded basic and driving up rates for=20
that tier of programming. The MSOs said the Big Four have used=20
retransmission consent to move from marginal to dominant players in the=20
cable-programming market through their present control of 57% of national=20
cable networks. In 1993, the Big Four controlled 18% of national networks.=
=20
The operators added that FCC data demonstrated that the Big Four are=20
responsible for higher cable rates. Expanded-basic rates rose 88% from=20
1997-2004. During that period, the license fees of Big Four-affiliated=20
cable networks rose 92%, while the license fees of non-broadcast-affiliated=
=20
networks went up 49%. The operators also stated that the Congressional goal=
=20
of bolstering local broadcasting has not been attained through=20
retransmission consent. The Big Four, the MSOs said, have used=20
retransmission consent to invest in cable networks, not in high-quality=20
primetime programming beneficial to their affiliates.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA507914.html?display=3DBreaking+New...
ferral=3DSUPP
http://www.broadcastingcable.com/article/CA507941?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

ACA: GIVE SMALL OPS DBS' LOCAL SIGNALS
The America Cable Association -- a trade group which represents small,=20
mainly rural cable system operators -- is asking the FCC to require=20
direct-broadcast satellite companies to give small cable operators in=20
remote markets access to their local-to-local broadcast signals. ACA=20
estimates that more than 1 million rural consumers are unable to receive=20
quality local-broadcast signals because they live in remote regions distant=
=20
from broadcast transmitters. ACA is also expected to file a separate=20
petition, most likely Wednesday, seeking retransmission-consent reform=20
related to the competitive harm of broadcast exclusivity and=20
network-nonduplication rules. ACA wants small operators to be able to carry=
=20
out-of-market =93distant=94 TV stations in cases when in-market broadcasters=
=20
are demanding cash-for-carriage in exchange for retransmission consent.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA507911.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

NAB MIGHT SKIP MULTICAST COURT BATTLE
Speaking at a debate at a forum hosted by the New America Foundation,=20
National Association of Broadcasters executive vice president Marsha=20
MacBride said Wednesday that the trade group might ask the FCC to=20
reconsider ruling that cable systems do not have to carry multiple=20
digital-TV services per station. The NAB board is meeting this week to map=
=20
strategy, she added.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA508026.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

CABLE WANTS OVERHAUL OF RETRANS RULES
In a March 1 filing at the FCC, the National Cable & Telecommunications=20
Association called for new rules on cable carriage of out-of-market TV=20
stations to eliminate a regulatory advantage held by direct-broadcast=20
satellite carriers. Cable systems that want to bring in distant stations=20
need retransmission consent and might have to block network and syndicated=
=20
programming, leaving just locally produced programming to present to=20
subscribers. DBS providers face none of those regulatory hurdles and pay=20
lower copyright-royalty fees to provide distant signals, NCTA pointed out.=
=20
On Wednesday, the American Cable Association asked the FCC to overhaul=20
retransmission-consent rules, in part to permit market forces to set the=20
=93price=94 for the carriage of TV stations.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn and Linda Moss]
http://www.multichannel.com/article/CA508000.html?display=3DBreaking+New...
ferral=3DSUPP
http://www.multichannel.com/article/CA507911.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

OWNERSHIP

FCC WEIGHS IN ON RULE CHALLENGE
The FCC didn't ask the Supreme Court to review a lower court's remand of=20
its media ownership rules, and would rather the Court not hear industry=20
appeals on the issue, either. But just in case the Court does take the=20
case, the FCC dismissed the lower court=92s finding that the agency's method=
=20
of weighting the market power of TV, radio, cable and newspaper outlets for=
=20
the purposes of setting limits on cross-platform ownership was faulty. The=
=20
FCC also said a Philadelphia court was wrong to minimize the impact of the=
=20
Internet on media diversity. Finally, the FCC challenged the notion that it=
=20
was arbitrary in drawing numerical limits on the number of broadcast=20
properties that one owner can control in a market.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA508041?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
Free Press petitioned the FCC to turn down Media General's request to avoid=
=20
FCC ownership rules. Media General is seeking a waiver that would allow it=
=20
to operate a television station and newspaper in the same market=
indefinitely.
Summary of filing: www.freepress.net/docs/wrbl_pet_to_deny_summary.pdf
Full text: www.freepress.net/docs/wrbl_GA_pet_to_deny.pdf

STOCK GAMBIT STRAINS RELATIONS BETWEEN TWO MEDIA TITANS
Much of the media and entertainment business is built on partnerships, many=
=20
of which seem opaque and tangled to outsiders. The relationship between=20
Liberty's John Malone and News Corp's Rupert Murdoch -- who have long=20
linked their vast holdings in TV programming and distribution -- is no=20
exception. But business strategy alone doesn't explain how these links are=
=20
formed and sometimes dissolved. An inside look at the ties between these=20
two men shines a light on how personal connections combine with business=20
imperatives to shape the media landscape. Liberty now owns 18% of News=20
Corp. In coming months, the two sides are expected to negotiate some sort=20
of transaction in which News Corp. will buy back at least part of Liberty's=
=20
stake, possibly for cash and a News Corp. asset. The ultimate conclusion of=
=20
the talks could be the formation of a brand new media entity built on=20
assets from each company.
[SOURCE: Wall Street Journal, AUTHOR: Martin Peers martin.peers( at )wsj.com]
http://online.wsj.com/article/0,,SB110981460652669086,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

HOUSE SHOOTS FEW TOUGH QUESTIONS AT TELECOM EXECUTIVES
The CEOs of six major telecom firms planning 3 mergers were subjected to=20
more than 3 hours of questioning by the House Commerce Committee Wednesday.=
=20
But few Members pushed the Bells, long distance providers or wireless=20
carriers represented about how the proposed mergers would affect the=20
telecom industry. Several members asked general questions about investment=
=20
and competition, but only Rep. Solis (D-CA) asked about how the proposed=20
mergers could lead to job loss. She asked the question more than 2 hours=20
into the hearing, after several members had asked specific questions about=
=20
service in their home districts, including one member who wanted to know=20
why the text messaging on his cell phone didn't work correctly. (Who needs=
=20
fake journalists when we have Congress asking the questions?) House Telecom=
=20
Subcommittee ranking Democrat Ed Markey (MA) said SBC and Verizon beat its=
=20
competitors AT&T and MCI in the courts, in Congress and at the FCC. =93While=
=20
these were perfectly legal corporate strategies, we shouldn't confuse them=
=20
with actually winning in the marketplace with consumers." Consumer advocate=
=20
Mark Cooper complained that he warned Congress in 1996 that that year's=20
telecommunications act would eventually lead not to vibrant competition,=20
but to a reconstitution of the Bell monopoly. Now the only competitor to=20
Bells left is cable. =93This isn't competition; it=92s a crummy duopoly,=94=
=20
Cooper said.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
Also see --
* Telecom Mergers Draw Bipartisan Backing (Committee Press Release)
http://energycommerce.house.gov/108/News/03022005_1447.htm
* Links to testimony
http://energycommerce.house.gov/108/Hearings/03022005hearing1443/hearing...
* Telecom chiefs: Price hikes could follow mergers
http://news.com.com/Telecom+chiefs+Price+hikes+could+follow+mergers/2100...
7_3-5596509.html?tag=3Dnefd.top
* A Clear Path to Consolidation
http://www.washingtonpost.com/wp-dyn/articles/A2797-2005Mar2.html
* MCI and AT&T Leave Little Guys Behind
http://www.washingtonpost.com/wp-dyn/articles/A2825-2005Mar2.html
* Telecom Executives Back Mergers
http://www.latimes.com/business/printedition/la-fi-telecom3mar03,1,16388...
tory?coll=3Dla-headlines-pe-business

QUICKLY

COLUMNIST UNDER FIRE GETS SHOW ON RADIO
Armstrong Williams, the conservative commentator embroiled in controversy=20
after being paid to promote Bush administration policies, will soon be=20
heard daily on New York radio.
http://www.nytimes.com/2005/03/03/arts/television/03arm.html

TV ADS THE ONLY WAY TO REACH FAR-FLUNG LA
In a sprawling city that does not lend itself to retail politicking,=20
television ads are the best and often only way to reach Los Angeles voters.
[SOURCE: Los Angeles Times, AUTHOR: Matea Gold and Jessica Garrison]
http://www.latimes.com/news/printedition/asection/la-me-ads3mar03,1,1987...
story?coll=3Dla-news-a_section
(requires registration)

THE MEDIA MATRIX
Media Mogul Syndrome -- Willful Blindness: In Hollywood reporting willful=20
blindness can be found in the media=92s avoidance of any performance=
measures=20
for moguls that might get undercut "gotcha" personality stories.
Diversity in Media: Journalists of color reported 10 percent of the stories=
=20
on the ABC, CBS and NBC nightly newscasts last year. That's down from 13=20
percent in 2003, according to an annual study by the Center for Media and=20
Public Affairs.
[SOURCE: News Dissector]
http://www.newsdissector.org/blog/

RIDING OUT THE STORM: THE VITAL ROLE OF RADIO IN TIMES IN CRISIS
According to a study released by Arbitron, in an era of many media options,=
=20
more than half of respondents choose radio as the one source of information=
=20
during the 2004 Florida hurricanes. Radio also got high marks from the=20
residents with nearly two thirds saying they were =93very satisfied=94 with=
=20
radio=92s programming during the storms.
[SOURCE: RadioInk]
http://www.radioink.com/HeadlineEntry.asp?hid=3D127495&pt=3Dtodaysnews

WORKING ON THE RADIO ROAD
Educators at the Bluffview Montessori School in Minnesota are using an old=
=20
medium =AD radio =AD to teach modern day lessons about working and thinking=
=20
creatively. Audio-focused programs are gaining steam across the country.
[SOURCE: Connect for Kids, AUTHOR: Robert Capriccioso]
http://www.connectforkids.org/articles/working_on_radio_road

VERIZON "ADMONISHED"
The FCC's Enforcement Bureau admonished Verizon Communications -- and sent=
=20
it to bed without dessert -- for failure to publicize the availability of=20
Lifeline and Link-up universal service discounts in a manner reasonably=20
designed to reach low-income residents on tribal lands. (DA No. 05-525).
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-525A1.doc

GOOGLE AUTOLINK PITS CONVENIENCE, OWNERSHIP ISSUES
[Commentary] Google's new AutoLink adds hyperlinks Google deems useful to=20
the Web pages you visit. The idea is to automate the process of jumping=20
from a street address to, say, a map, sparing users having to retype or=20
copy the address. But does Google have a right to add links to pages=20
authored by others? Apart from prickly legal issues -- Is Google modifying=
=20
content owned by others? Who owns hyperlinks, anyway? -- auto-linking=20
raises basic questions about the essence of the Web and how to improve our=
=20
experience with it.
[SOURCE: Washington Post, AUTHOR: Leslie Walker walkerl( at )washpost.com]
http://www.washingtonpost.com/wp-dyn/articles/A660-2005Mar2.html
(requires registration)

WEB MARKETERS FEARFUL OF FRAUD IN PAY-PER-CLICK
Businesses that pay Google and Overture to steer customers to their Web=20
sites are questioning how much fraud lurks in the blossoming pay-per-click=
=20
model of advertising.
http://tech.nytimes.com/2005/03/03/business/media/03adco.html

AN INTRODUCTION TO ACTIVISM ON THE INTERNET
A brief introduction to a number of different techniques of electronic=20
advocacy including email, the Web, and other tools to bring about social=20
change, including some up-to-date analysis on online trends and activism.
http://www.backspace.com/action/all.php

LIBRARY TO LAUNCH DIGITAL GALLERY TODAY
The New York Public Library is putting hundreds of thousands of its images=
=20
online, allowing free downloads of material including maps, Civil War=20
photos and illuminated medieval manuscripts.
http://www.nytimes.com/2005/03/03/books/03libr.html

COURT OVERTURNS $521 MILLION RULING AGAINST MICROSOFT
A federal appeals court on Wednesday overturned a $521 million patent=20
infringement ruling against Microsoft and ordered a lower court to retry=20
the case against the world's largest software maker.
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DX3WKJSVDO0HDMCRBAE...
Y?type=3DtechnologyNews&storyID=3D7790180
WashPost: http://www.washingtonpost.com/wp-dyn/articles/A2828-2005Mar2.html
News.com:=20
http://news.com.com/Appeals+court+revisits+Eolas+decision/2100-1032_3-55...
0.html?tag=3Dnefd.lede

Adam Thierer is leaving the Cato Institute to become Senior Fellow and=20
Director, Center for Digital Media Freedom, at the Progress & Freedom=20
Foundation
--------------------------------------------------------------
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.
--------------------------------------------------------------