March 2006

To view Benton's Headlines feed in your RSS=20
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For upcoming media policy events, see http://www.benton.org

FCC Open Meeting Agenda
[SOURCE: Federal Communications Commission]
The Federal Communications Commission will hold=20
an Open Meeting on Friday, March 17, 2006 at 9:30=20
a.m. in Room TW-C305, at 445 12th Street, S.W.,=20
Washington, D.C. There are three items on the=20
agenda: 1) new children's educational television=20
rules, 2) public safety communications needs in=20
the 700 MHz band, and 3) creating a Public Safety=20
and Homeland Security Bureau at the Commission.=20
If you'd like to watch at home or from your=20
office, coverage of the meeting will be broadcast=20
live with open captioning over the Internet from=20
the FCC's Audio/Video Events web page at www.fcc.gov/realaudio.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-264266A1.doc
* FCC Takes Up Kids Compromise
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC is expected to approve a compromise=20
between kids' TV advocates and the broadcast=20
industry on new rules on educational programming for children.
http://www.broadcastingcable.com/article/CA6315269?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* FCC Pokes Stations Over Pokemon
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC continues to work through its backlog of=20
license renewals, stopping along the way to=20
admonish stations for kids TV rule violations,=20
particularly program-length commercials.
http://www.broadcastingcable.com/article/CA6315013?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

OWNERSHIP
Newspaper Chain Agrees to a Sale for $4.5 Billion
Phonezilla!
AT&T to raise its rates
Let AT&T, BellSouth merge
The Eden Illusion
Those Bell Mergers Are Giving Cable Companies Even More to Worry About
Hungry Media Companies Find a Meager Menu of Web Sites to Buy
Rival calls for split-up of NTT DoCoMo

JOURNALISM
Study Finds More News Media Outlets, Covering Less News
Newspapers Had a Difficult Year in 2005
Memo to the News Networks

TELEVISION
Virginia Fast-Tracks Video Franchising
'Las Vegas' Blasted at FCC
In the Family Way=09
What Children Teach Their Parents
Kids-TV 'Upfront' Season Kicks Off Under Cloud

INTERNET
Will the House Regulate the Internet? Commerce
Committee Considers Net Neutrality
Free Internet access in S.F. not the best deal for consumers

QUICKLY -- Kids Recall Ads Over Shows; NAB=20
Agenda; Former FCC Member Abernathy To Join Law=20
Firm; Religious broadcasters fear a la carte=20
cable; Telecom Legislation and Civil Rights; How=20
the BBC is building a global online brand; Confronting Digital Age Head-On

OWNERSHIP

NEWSPAPER CHAIN AGREES TO SALE FOR $4.5 BILLION
[SOURCE: New York Times, AUTHOR: Katharine Seelye & Andrew Ross Sorkin]
Knight Ridder, the second-largest newspaper=20
company in the United States, agreed last night=20
to sell itself for about $4.5 billion in cash and=20
stock to the McClatchy Company, a publisher half=20
its size, according to people involved in the=20
negotiations. Under the terms of the deal,=20
McClatchy agreed to pay about $67 a share in cash=20
and stock for Knight Ridder. About 60 percent of=20
the payment will be in cash, while the rest will=20
be in McClatchy shares. Because Knight Ridder is=20
so much larger than McClatchy, the merger is=20
likely to create some upheaval for both=20
companies. McClatchy could sell or close some of=20
the Knight Ridder papers and could take further=20
cost-control measures in its own newsrooms to=20
help finance the deal. It was uncertain when the=20
deal would be completed. Knight Ridder has almost=20
three times as many dailies as the 12 owned by=20
McClatchy. Knight Ridder's $3 billion in revenue=20
for 2005 was more than twice McClatchy's $1.2=20
billion. While the Knight Ridder papers are=20
profitable, some are more troubled than others=20
and may be a drag on McClatchy's bottom line.=20
Analysts speculate that the company could shut=20
down The Philadelphia Daily News and possibly=20
sell The Inquirer, since the business climate in=20
Philadelphia is sluggish and the papers face=20
tough competition from a ring of suburban=20
dailies. On the other hand, they say, The=20
Inquirer generates a lot of cash, something=20
McClatchy will need as it goes into debt to pay for Knight Ridder.
http://www.nytimes.com/2006/03/13/business/media/13knight.html
(requires registration)
* Knight Ridder Nears Sale to McClatchy For $4.5 Billion in Cash, Stock
http://online.wsj.com/article/SB114220862637596100.html?mod=3Dtodays_us_...
e_one

PHONEZILLA!
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
Just three days after cutting a $67 billion deal=20
to buy BellSouth last week, AT&T Chairman Ed=20
Whitacre got a precious gift from Washington. Key=20
Congressional leaders agreed to allow the giant=20
phone companies a national franchise license,=20
essentially allowing AT&T and other telcos a=20
painless entry into the cable industry=92s core=20
business of video services. Cable operators=20
howled. =93This is a huge step backwards,=94 wailed=20
Kyle McSlarrow, head of the National Cable=20
Telecommunication Association. If the proposed=20
bill passes, he said, the government would be=20
=93giving the Bell monopolies a special break and a=20
deregulatory advantage over their competitors.=94=20
The two events helped frame the escalating war=20
between cable and telephone companies. As cable=92s=20
largest operators move to lure phone customers=20
away from the likes of AT&T and Verizon, they are=20
doing battle with formidable giants that are only=20
getting larger. And, as their latest gains in=20
Congress indicate, the telcos=92 agility in the=20
political arena may be pivotal in the multi-front=20
fight ahead. Whitacre is creating a Goliath like=20
no other before it. If the BellSouth deal is=20
approved, AT&T will become the world=92s largest=20
telecom company and the nation=92s seventh-largest=20
company of any kind. AT&T=92s $120 billion in=20
revenue will not be just six times more than=20
Comcast, the largest cable operator=92s, but will=20
exceed the revenue of the entire cable industry.
http://www.broadcastingcable.com/article/CA6315285?display=3DFeature&ref...
al=3DSUPP
(free access for Benton's Headlines subscribers)

AT&T TO RAISE RATES
[SOURCE: Dallas Morning News, AUTHOR: Terry Maxon]
AT&T said Friday it plans to raise Texas rates=20
for local telephone service about 4 percent on=20
May 2, affecting 30 percent of its customers=20
statewide. Consumer advocate Ed Mierzwinski of=20
the Texas Public Interest Research Group said=20
customers can expect more rate hikes as the phone=20
industry consolidates. AT&T has already swallowed=20
up regional competitors Ameritech Corp. and=20
Pacific Telesis Group and its former parent, AT&T=20
Corp., and has proposed acquiring another=20
regional Bell company, BellSouth Corp. "The=20
bigger the phone companies get as they put Ma=20
Bell back together again, the more aggressive=20
they will be in gouging the consumer," he said.=20
"I am not surprised at this, and we can only=20
expect more of the same in the future and around=20
the country," he said. AT&T is using the=20
authority granted it by the Texas Legislature=20
last year to raise its rates in areas considered=20
to be sufficiently competitive. That sweeping=20
law, which also allowed telephone companies to=20
get a state franchise to enter local video=20
markets, deregulated "incumbent local exchange=20
companies" like AT&T, formerly known as SBC=20
Communications. Those local telephone companies=20
as of Jan. 1 were free to set their own rates in=20
markets of 100,000 people or more. Areas with=20
less than 30,000 will stay regulated until Jan.=20
1, 2007. Also, the Public Utility Commission can=20
deregulate markets with 30,000 to 100,000 people=20
if those markets have at least three competitors,=20
including at least one competitor providing local=20
exchange telephone service, one providing=20
telephone service over its own facilities such as=20
a cable company and a competitor offering wireless phone service.
http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/031106...
usphonerates.df83ce5.html

LET AT&T, BELLSOUTH MERGE
[SOURCE: Boston Herald, AUTHOR: Editorial Staff]
[Commentary] The AT&T-BellSouth merger should=20
receive hands-off treatment from Congress, the=20
Justice Department and the Federal Communications=20
Commission. Already some consumer activists are=20
pushing the argument that the merger ought to be=20
conditioned on =93Internet neutrality,=94 another=20
outbreak of the activist virus that has hurt=20
telecommunications before. But it just makes=20
economic sense to charge according to demand and=20
performance. At Disney World, you can pay extra=20
to go to the head of the line. Some fancy=20
restaurants charge more at dinner than at lunch.=20
Resort hotels charge more in peak season.=20
Gasoline costs more at 93 octane than at 87. The=20
Internet poses similar issues. The network=20
companies are competing furiously and committing=20
huge sums to ever-faster data channels. There has=20
been no letup in the stream of innovations. The=20
phone companies are pushing to offer television;=20
the cable companies are offering phone service.=20
All of them should be free to enter markets and=20
charge as they see fit - the networks may find=20
that nobody is willing to pay a premium for truly=20
blinding speed after all. A combined AT&T-Bell=20
South would unite four of the seven =93Baby Bells=94=20
that emerged from the breakup of the Bell System=20
in 1984, but no one should fear a reassembly of=20
Ma Bell=92s near-monopoly. The Internet and the=20
World Wide Web, cellphones, music downloads,=20
satellite and wireless Web services, all of which=20
did not exist in 1984, have utterly reshaped competition.
http://news.bostonherald.com/opinion/view.bg?articleid=3D130075

THE EDEN ILLUSION
[SOURCE: Washington Post, AUTHOR: Editorial Staff]
[Commentary] To the extent that the proposed=20
AT&T-BellSouth merger will generate regulatory=20
questions, these hinge on an issue that didn't=20
exist 22 years ago. That issue is "net=20
neutrality," the principle that cable and phone=20
companies, which own the plumbing that connects=20
you to the Internet, should make all Web sites=20
equally accessible. It would be a mistake to=20
force AT&T to promise net neutrality as a=20
condition of its merger. Equally, legislative=20
proposals to enforce net neutrality, including=20
one introduced this month by Sen. Ron Wyden=20
(D-OR), should remain just that: proposals. The=20
proponents of net neutrality exaggerate the=20
purity of cyberspace and understate the costs of=20
regulation. If cable and phone companies are not=20
allowed to charge Internet firms for fast=20
delivery, they will be deprived of one source of=20
profits. This will make it harder to raise=20
capital to build the next generation of superfast=20
Internet pipes, capable of delivering=20
high-quality video. Moreover, any definition of=20
net neutrality is likely to be contested in the=20
courts, and legal uncertainty will further deter=20
investment. As a result, net neutrality could end=20
up meaning that all Web services get delivered at=20
a similar but relatively slow rate. If the cable=20
and phone companies start blocking out chunks of=20
the Web's content, there will be opportunities=20
for Congress to weigh in. But it's hard to see=20
how these firms can expect to win extra subscribers by doing that.
http://www.washingtonpost.com/wp-dyn/content/article/2006/03/12/AR200603...
0808.html
(requires registration)
* Ma Bell's back for better or worse
[Commentary] Over the past decade, policy-makers=20
have loosened telecom regulations in hopes of=20
innovation and competition. The result is a=20
radically altered landscape of choices and=20
technologies. But the cable and phone mergers are=20
putting the picture into a new focus. It's time=20
to watch carefully to see that customers are fairly served.
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2006...
/12/EDGU9GJ2G11.DTL
* Idea of Web express lane sparks hot debate
http://seattletimes.nwsource.com/html/businesstechnology/2002861578_btex...
ss13.html

THOSE BELL MERGERS ARE GIVING CABLE COMPANIES EVEN MORE TO WORRY ABOUT
[SOURCE: New York Times, AUTHOR: Ken Belson & Geraldine Fabrikant]
In the chess game between the cable companies and=20
their nemeses, the Bell phone companies, the=20
Bells may be gaining ground. Phone mergers =97=20
including AT&T's recent proposal to take over=20
BellSouth =97 could give the Bells more power to=20
cut prices, move faster into television and=20
expand their advantage in the wireless market.=20
The AT&T-BellSouth deal, which is likely to take=20
at least a year to be approved, will=20
significantly alter the competitive landscape for=20
the fragmented cable industry, if not immediately=20
then certainly over the next few years as the=20
Bells offer more =97 and cheaper =97 video and=20
Internet services. Sheer size also helps the=20
Bells throw their weight around in Washington.=20
Last week, lawmakers began drafting a bill to=20
make it easier for the Bell companies to acquire=20
local television franchises, a move that would=20
help speed up their push to sell TV programming=20
over high-speed lines around the country. If=20
Congress approves the proposed national franchise=20
legislation, AT&T and Verizon could offer those=20
services in hundreds of cities years ahead of=20
schedule. By 2010, the Bells are expected to add=20
six million video customers for a 5 percent share=20
of the pay-television market, according to Kagan=20
Research. While that is just one-tenth the number=20
of cable subscribers, the Bells' additions will=20
come at cable's expense, Kagan estimates showed.
http://www.nytimes.com/2006/03/13/business/13cable.html
(requires registration)

HUNGRY MEDIA COMPANIES FIND A MEAGER MENU OF WEB SITES TO BUY
[SOURCE: New York Times, AUTHOR: Matt Richtel]
Digital-era media companies like Yahoo and=20
Google, as well as traditional media companies,=20
including those with deep roots in television and=20
print, continue to scour the Internet for=20
emerging content and technology companies. But=20
the pickings of obvious acquisition candidates,=20
while hardly exhausted, are slimming, according=20
to financiers, entrepreneurs and industry=20
analysts who follow the sector. That leaves the=20
media companies trying to figure out -- as they=20
did with far less discipline during the dot-com=20
boom -- which of the emerging generation of Web=20
sites have lasting business models or, at least,=20
can continue to build traffic.
http://www.nytimes.com/2006/03/13/business/media/13net.html
(requires registration)

RIVAL CALLS FOR SPLIT-UP OF NTT DOCOMO
[SOURCE: Financial Times, AUTHOR: Michiyo Nakamoto]
NTT DoCoMo, Japan=92s dominant mobile phone=20
operator, should be broken up to promote greater=20
competition, Sachio Senmoto, chief executive of=20
rival eMobile, said. His comments come as Japan=92s=20
mobile phone market faces greater competition and=20
as Heizo Takenaka, interior minister, has started=20
reviewing the state of the telecoms and media=20
sectors with a view to stimulating growth. Mr=20
Takenaka=92s roundtable of experts is discussing,=20
among other issues, the future structure of NTT,=20
including the possibility of amending the NTT=20
law, by which the telecoms group was broken up=20
into two regional operators, a long-distance and=20
international operator and a mobile phone=20
operator company under a holding company. NTT=20
wants to promote greater cooperation and=20
coordination among group companies and is=20
believed to be lobbying for a change to the law=20
to allow it to re-absorb DoCoMo, which earned 65=20
per cent of the group=92s operating profits last year.
http://news.ft.com/cms/s/8746b192-b287-11da-ab3e-0000779e2340.html
(requires subscription)

JOURNALISM

STUDY FINDS MORE NEWS MEDIA OUTLETS, COVERING LESS NEWS
[SOURCE: New York Times, AUTHOR: Katharine Seelye]
The third annual review of the state of American=20
journalism found that while there were more media=20
outlets this year than ever, they were covering=20
less news. The review was conducted by the=20
Project for Excellence in Journalism, an=20
institute affiliated with the Columbia University=20
Graduate School of Journalism and financed by the=20
Pew Charitable Trusts. As part of the review, a=20
special study looked at how a variety of outlets,=20
including newspapers, television, radio and the=20
Internet, covered a single day's worth of news=20
and concluded that there was enormous repetition=20
and amplification of just two dozen stories.=20
Moreover, it said, "the incremental and even=20
ephemeral nature of what the media define as news=20
is striking." Cable news was the "shallowest" and=20
most "ephemeral" of the media, the study said.=20
Newspapers, which are the biggest news-gathering=20
organizations, covered the most topics, provided=20
the most extensive sourcing and provided the most=20
angles on particular events, it said, "though=20
perhaps in language and sourcing tilted toward=20
elites." Many of the national broadcast reports=20
quoted the same few people. "More coverage, in=20
other words, does not always mean greater=20
diversity of voices," the study said. "Consuming=20
the news continuously does not mean being better=20
informed." Tom Rosenstiel, director of the=20
project, said that reporters seemed to be=20
increasingly shunted off to an isolated area=20
while covering events, as they were during the=20
recent mining disaster in West Virginia, giving=20
them little first-hand access. "The irony is that=20
having more reporters doesn't mean more=20
coverage," he said. "It means more reporters=20
crowded into one corner of the scene."
http://www.nytimes.com/2006/03/13/business/media/13paper.html
(requires registration)
See The State of the Media 2006:
http://www.stateofthenewsmedia.com/2006/index.asp
* The Big News: Shrinking Reportage
http://www.washingtonpost.com/wp-dyn/content/article/2006/03/12/AR200603...
1300.html
(requires registration)
* More News Outlets, Fewer Stories: New Media 'Paradox'
http://www.latimes.com/news/printedition/asection/la-na-news13mar13,1,14...
96.story?coll=3Dla-news-a_section
(requires registration)

NEWSPAPERS HAD DIFFICULT YEAR IN 2005
[SOURCE: Wall Street Journal, AUTHOR: Sarah Ellison sarah.ellison( at )wsj.com]
The newspaper business had another difficult year=20
in 2005, in advertising, circulation and stock=20
performance. But for the first time, the industry=20
has been shocked into making more serious=20
investments online to capture new readers and=20
keep existing ones, according to the Project for=20
Excellence in Journalism. The question for=20
investors and news organizations is whether the=20
online initiatives will pay off. In its annual=20
"State of the Media" report, the nonprofit=20
journalism research group said online revenue,=20
while growing more quickly than print revenue,=20
remains only a fraction of total advertising=20
revenue at newspapers, and that print advertising=20
that moves online generates only about 20 cents=20
to 33 cents for each dollar lost in print. Last=20
year's increase in online investment wasn't=20
limited to newspapers. Television network news=20
divisions are also putting more investment behind=20
their online operations, the report says, and=20
like newspapers are focusing increasingly on=20
creating original content for online readers.=20
That's a change from last year's report, which=20
found that "creativity in new technology appeared=20
to be coming mostly from non-news organizations=20
like Google." The report also found that big-city=20
metro newspapers have been losing circulation at=20
faster rates than community papers. All three big=20
national newspapers -- the New York Times, USA=20
Today and The Wall Street Journal -- reported=20
fairly steady circulation over the past two years.
http://online.wsj.com/article/SB114221849440296301.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

MEMO TO THE NEWS NETWORKS
[SOURCE: Broadcasting&Cable, AUTHOR: Danny Schechter]
[Commentary] On March 15, the anti-war movement=20
will be making the media coverage of the war an=20
issue, with protests at media outlets that have=20
offered more selling than telling, more jingoism=20
than journalism. These groups are the same ones=20
that helped turn out 30 million people worldwide=20
Feb. 15, 2003, in the greatest one-day protest in=20
history to try to stop a war. You may not know=20
them because most protests are marginalized when=20
covered at all. Protesters charged the public was=20
being deceived. They were right. Perhaps it=92s=20
time for broadcast and cable networks to do what=20
The New York Times and The Washington Post have=20
done: acknowledge that you made a lot of=20
mistakes. What else can you do? Admit that=20
=93mili-tainment=94 passing for news is disgraceful.=20
Seek more-diverse sources. Challenge bogus=20
administration claims. Apologize for collusion=20
and complicity. Report casualties. The key to=20
credibility is truth. Flag-waving is not=20
journalism. Lastly, try asking yourselves: How=20
would a state-run media system cover the war differently?
http://www.broadcastingcable.com/article/CA6315287?display=3DOpinion&ref...
al=3DSUPP
(free access for Benton's Headlines subscribers)

TELEVISION

VIRGINIA FAST-TRACKS VIDEO FRANCHISING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Virginia Governor Tim Kaine has signed a bill,=20
which becomes effective July 1, that eases the=20
way for Verizon and other new multichannel video=20
entrants to compete with cable operators in the=20
state. Under the new law, Virginia franchises=20
remain under the control of the municipalities.=20
The Richmond Times Dispatch reports that TV=20
service from new providers would have to be=20
available to 65 percent of a community's=20
residents in seven years. Local governments can=20
demand 80 percent penetration in 10 years.=20
Traditionally, cable companies had to serve=20
entire localities. "Competition doesn't matter=20
unless you get" a network built to all residents,=20
said Kenneth DeGraff, policy analyst at Consumers=20
Union. "Sixty-five percent is going to leave=20
large parts of the state uncovered and without=20
competition," he said. "It remains to be seen=20
whether telephone companies will actually deliver=20
meaningful competition to all Virginians." The=20
legislation comes as Verizon Communications=20
builds a network in parts of Virginia, including=20
the Richmond area, to provide video. Verizon has=20
franchise agreements with five Northern Virginia=20
communities. The company sought to change the law=20
to avoid needing to forge franchise agreements=20
with every city or county it planned to serve, a=20
process that can take six to 18 months. The=20
legislation still requires a would-be provider of=20
TV service to strike deals with every locality,=20
but the new structure will allow a licensed=20
company to serve customers in as little as 75=20
days. In areas where a wire-based cable=20
competitor operates, prices are 15 percent lower,=20
according to a report by the Government=20
Accountability Office, an independent and=20
nonpartisan congressional watchdog group.
http://www.broadcastingcable.com/article/CA6314926?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* Cable TV rates in Va. could drop
[SOURCE: Richmond Times Dispatch, AUTHOR: Jeffery Kelly]
http://www.timesdispatch.com/servlet/Satellite?pagename=3DRTD%2FMGArticl...
FRTD_BasicArticle&c=3DMGArticle&cid=3D1137834653332&path=3D%21business&s=3D=
1045855934855

'LAS VEGAS' BLASTED AT FCC
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton and Ben Grossman]
A campaign by the American Family Association=20
against NBC's 'Las Vegas' is generating lots of=20
indecency complaints at the FCC. By the=20
Commission's count, about 134,300 complaints had=20
been filed about that program alone by the end of=20
February. In contrast, the FCC received 44,109=20
complaints against all shows for the three months=20
ended Dec. 31, which was up from the 26,185 filed=20
for the previous quarter.FCC Deputy Chief of the=20
Consumer and Governmental Affairs Bureau Jay=20
Keithley says the bureau could not determine=20
whether all the Vegas complaints were about the=20
AFA=92s target episode but =93sufficient review=94=20
confirmed that the majority concerned the Feb. 6=20
broadcast which included a scene in a strip club.=20
The FCC has not acted on any indecency complaints=20
since 2004 -- in part because it settled numerous=20
complaints through consent decrees, in part=20
because Hurricane Katrina and FCC commissioner=20
turnover helped delay release of a group of=20
complaints that FCC Chairman Kevin Martin wants=20
to issue all at once. The commissioners are=20
expected to release the actions, apparently a mix=20
of proposed fines and complaint denials. But=20
agency sources have been saying for months that their release was imminent.
http://www.broadcastingcable.com/article/CA6315191?display=3DNews&referral=
=3DSUPP
(free access for Benton's Headlines subscribers)

IN THE FAMILY WAY
[SOURCE: Broadcasting&Cable, AUTHOR: Kevin Downey]
The Family Friendly Programming Forum launched in=20
1998 with a fairly straightforward goal: to=20
persuade the broadcast networks to put on more=20
prime time programs that are suitable for=20
advertisers with brands geared to families. Eight=20
years later, and the FFPF is still at it but=20
without much notoriety, helping to fund pilot=20
scripts this season for ABC=92s Commander in Chief,=20
UPN=92s Everybody Hates Chris and The WB=92s Related,=20
in addition to the long- running Gilmore Girls.=20
The most recent addition is CBS=92 New Adventures=20
of Old Christine, premiering March 13. Even=20
without FFPF=92s influential hand, Kaki Hinton,=20
co-chairperson of the group and VP of advertising=20
services at Pfizer Consumer Healthcare, says the=20
prime time lineup on the broadcast networks has=20
become decidedly more family-friendly since the group was founded.
http://www.broadcastingcable.com/article/CA6315200?display=3DSpecial+Rep...
&referral=3DSUPP
(free access for Benton's Headlines subscribers)

WHAT CHILDREN TEACH THEIR PARENTS
[SOURCE: Broadcasting&Cable, AUTHOR: Kevin Downey]
Networks targeting kids and teens have been=20
whacked in recent years by a slowdown in=20
advertising from core categories such as toys and=20
certain types of food. That=92s now prompting many=20
of those cable outlets to aggressively chase=20
after brands not typically associated with the=20
prepubescent crowd. Commercials for cars,=20
full-service restaurants and travel destinations=20
are popping up on Cartoon Network, Toon Disney=20
and other kids networks. Nickelodeon, for=20
example, signed Chevrolet to a=20
multimillion-dollar deal last spring. The network=20
has also lined up sponsors like automaker Kia=20
alongside more-traditional advertisers -- as=20
General Mills, Hasbro and Burger King -- its 19th=20
Annual Kids=92 Choice Awards April 1. Media buyers=20
expect to see more such adult-targeted=20
advertisers in this year=92s kids upfront, the=20
annual ad market soon to get under way. Merrill=20
Lynch analyst Jessica Reif Cohen last year=20
estimated that the kids upfront generates about=20
$970 million in ad revenue; other media buyers=20
say the actual amount is closer to $800 million.=20
The key for networks to attract previously=20
adult-only advertisers is twofold: the influence=20
kids have but also =93co-viewing,=94 a term the cable=20
industry uses to refer to children=92s watching TV=20
the old-fashioned way: with their parents.=20
Advertisers sell to both. Several recent research=20
reports have highlighted the influence of=20
children, including an upcoming study from Disney=20
ABC Kids Networks Group. In the study, conducted=20
by Strottman International with mothers and their=20
children age 6-14, Disney found that 92% of kids=20
are influential in purchases made at discount=20
stores, while more than 80% influence purchases=20
at specialty stores, malls, and grocery and drug=20
stores. Disney also found that 38% of mothers say=20
their children are influential in deciding on=20
vacations; 33% say the same about computers; 32%,=20
cellphones; 30%, large electronics; and 28% say=20
kids are influential in purchasing automobiles.=20
Nickelodeon has conducted similar studies and=20
found in 2004, for instance, that nearly 90% of=20
parents ask for their children=92s opinions when=20
purchasing products for the kids. But two-thirds=20
also ask for input on family purchases, and=20
one-third ask for their kids=92 opinions when buying products for themselve=
s.
http://www.broadcastingcable.com/article/CA6315202?display=3DSpecial+Rep...
&referral=3DSUPP
(free access for Benton's Headlines subscribers)

KIDS-TV UPFRONT SEASON KICKS OFF UNDER CLOUD
[SOURCE: Wall Street Journal, AUTHOR: Brian Steinberg & Joe Flint]
The children's television "upfront" market, when=20
advertisers negotiate the coming year's ad buys=20
with kids' TV channels, kicks off in coming days.=20
This year, with the market facing some difficult=20
issues, it promises to be a drawn-out=20
negotiation. One of the biggest clouds over the=20
kids' upfront is, not surprisingly, the impact of=20
new-media options competing for both kids'=20
attention and marketing dollars. The same issue=20
looms over the prime-time broadcast-TV upfront=20
that kicks off in the spring. But the kids'=20
market also has to contend with continuing=20
pressures on food marketers to cut back=20
advertising to children. Kids' TV outlets have=20
some advantages over new media. For one thing,=20
the channels still draw far more viewers than=20
most individual kids' Web sites. Another dynamic=20
likely to affect the market this year is=20
sensitivity among food marketers about=20
advertising to children, one media buyer familiar=20
with the children's marketplace says. Last year,=20
bowing to public-health pressure, Kraft promised=20
to stop advertising junk food to kids under 12.=20
Kraft has cut back gradually; this upfront market=20
will show the full effect of Kraft's decision for=20
the first time. In recent months, activist groups=20
have put even more pressure on other food marketers.
http://online.wsj.com/article/SB114220580134696059.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

INTERNET

WILL THE HOUSE REGULATE THE INTERNET? COMMERCE=20
COMMITTEE CONSIDERS ET NEUTRALITY
[SOURCE: Technology Liberation Front, AUTHOR: James Gattuso]
[Commentary] All eyes have been on the House=20
Commerce Committee the past few days, as reports=20
have floated about regarding a draft telecom=20
reform bill being hammered out by the members.=20
Committee chairman Joe Barton mooted two earlier=20
proposals last year, both of which attempted to=20
comprehensively reform telecom laws. Both --=20
especially the first -- were stillborn -- because=20
of complaints that they imposed new regulation,=20
rather than just free up this now-competitive=20
market. This time around, Barton has tried a more=20
targeted approach -- instead of all-inclusive=20
reform, the legislation would be focused on=20
eliminating local cable television franchise=20
regulations, which have been slowing the advent=20
of competition in cable TV. A smart move -- a=20
rifleshot reform, and one that that would=20
significantly help consumers. But a new version=20
of the legislation would turn Barton=92s original=20
deregulatory intent on its head. Rather than=20
eliminating obsolete and unneeded regulations of=20
telecommunications, the bill would introduce new=20
and equally unneeded regulations on the Internet.=20
Lawmaking may be like sausage-making, but such a=20
result would be particularly hard to digest.
http://www.techliberation.com/archives/037268.php
* Network neutrality important
[SOURCE: London Free Press (Canada), AUTHOR: David Canton]
[Commentary] We should pay the ISP for the data=20
pipe coming into our homes as a service on its own, as we do now.
http://lfpress.ca/newsstand/Opinion/Columnists/Canton_David/2006/03/11/1...
426.html

FREE INTERNET ACCESS IN SF NOT THE BEST DEAL FOR CONSUMERS
[SOURCE: San Jose Mercury News, AUTHOR: Gregory=20
L. Rosston, Stanford Institute for Economic Policy Research]
[Commentary] Google and Earthlink's proposal to=20
provide free Internet access in San Francisco is=20
great for consumers -- but not for competition.=20
While Google has been a great company and helped=20
millions of people use the Internet more=20
efficiently, why does it have to be the only one=20
able to use city facilities? Furthermore, why=20
does Google need to go through the city to do=20
this? Instead of picking a single provider, San=20
Francisco and all other cities contemplating a=20
similar process should make their infrastructure=20
available to multiple firms who might provide=20
different types of Internet access -- some free,=20
others paid, some super-high-quality and others=20
suitable for e-mail and Web surfing at slower=20
speeds. Multiple firms can use and pay for use of=20
a city's infrastructure, and consumers could=20
benefit from the city making these services=20
available at cost. All of these firms would then=20
compete with one another as well as licensed=20
wireless services and wire-based solutions to get=20
customers. This way, consumers would pick the=20
service they want rather than having it dictated=20
by city hall. And the companies would be at risk=20
rather than the city. Finally, and perhaps most=20
important, in the future the companies would be=20
forced by the market to upgrade and change their=20
services as consumer preferences change rather=20
than having to go through a bureaucratic City=20
Hall process to change the system in a way that=20
might not meet citizen desires. Innovation will=20
be the key to future services, and cities are=20
unlikely to be the best judge of what innovative=20
services should be offered. Kudos to the mayor,=20
the city and Google for showing that Internet=20
access can be cheap. The entire South Bay should=20
adopt this pro-competition, pro-consumer attitude=20
in working with Joint Venture Silicon Valley on=20
their proposal for wireless access instead of=20
picking a single firm to ``win'' the project.=20
Cities need to get out of the way and simply=20
facilitate the potential competition for Internet=20
access so we can all say ``Yahoo'' to the new=20
services from Google and its competitors.
http://www.mercurynews.com/mld/mercurynews/news/opinion/14081100.htm

QUICKLY

STUDY: KIDS RECALL ADS OVER SHOWS
[SOURCE: MediaWeek,]
A public affairs program that airs daily in more=20
than 350,000 U.S. schools apparently is not=20
reaching its intended audience. According to a=20
study in the new issue of Pediatrics magazine,=20
the Channel One program airs 10 minutes of news=20
and public affairs and two minutes of commercials=20
or public service announcements daily. Students=20
surveyed by the publication had a stronger recall=20
of the ads than the programming itself, researchers found.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
6883

REHR'S AGENDA INCLUDES RETRANSMISSION CONSENT COMPENSATION
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
National Association of Broadcasters President=20
and CEO David Rehr said Friday that one of his=20
top goals as the association's new chief will be=20
to promote station efforts to get retransmission=20
consent compensation from cable.
http://www.tvweek.com/news.cms?newsId=3D9533
(requires free registration)

FORMER FCC MEMBER ABERNATHY TO JOIN AKIN GUMP LAW FIRM
[SOURCE: Wall Street Journal, AUTHOR: Ashby Jones ashby.jones( at )wsj.com]
Kathleen Quinn Abernathy, a former commissioner=20
at the Federal Communications Commission, is=20
joining Akin Gump Strauss Hauer & Feld LLP's=20
Washington, D.C., office as a partner in the law=20
firm's communications and information-technology=20
department. Ms. Abernathy, 49 years old, will=20
counsel the firm's media and telecommunication=20
clients on policy-related and regulatory issues.=20
She starts March 29. In December, Ms. Abernathy=20
left the FCC after her term as commissioner=20
expired. Ms. Abernathy initially anticipated=20
that, upon leaving the FCC, she would re-enter=20
the corporate world. (Before serving at the FCC,=20
Ms. Abernathy served as a vice president of=20
public policy at BroadBand Office Communications=20
Inc.) "But my meetings with Akin Gump convinced=20
me that a law firm offered a much more flexible=20
venue," she said, referring to her ability to=20
represent different clients in a variety of=20
different forums, both in the U.S. and=20
internationally. Ms. Abernathy said she chose=20
Akin Gump over other firms that courted her=20
because the firm had "tremendous lawyers on=20
board," many of whom were working on international issues.
http://online.wsj.com/article/SB114222328413796390.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

RELIGIOUS BROADCASTERS FEAR LOSING AUDIENCE WITH A LA CARTE CABLE
[SOURCE: Associated Press]
While cable television customers may applaud the=20
notion of paying for only those channels they=20
want, religious broadcasters say it will diminish=20
their reach. Pay-per-channel pricing "would have=20
a devastating effect on the inspirational=20
programming we currently provide" and "decimate=20
both the audience and financial support for=20
religious broadcasting," according to the Faith=20
and Family Broadcasting Coalition.
http://www.timesdaily.com/apps/pbcs.dll/article?AID=3D/20060311/APN/6031...
38

TELECOM LEGISLATION AND CIVIL RIGHTS
[SOURCE: Media Policy Blog, AUTHOR: Colin Rhinesmith]
[Commentary] The recent shift from local to=20
national control of video franchising, influenced=20
by the Telephone Companies=92 desires to enter into=20
the video market, not only leaves a question mark=20
on the future of Public, Educational, and=20
Goverment Access TV, it also threatens to leave=20
low-income and minority communities behind, by law.
http://mediapolicy.blogspot.com/2006/03/telecom-legislation-and-civil-ri...
s_11.html

HOW THE BBC IS BUILDING A GLOBAL ONLINE BRAND
[SOURCE: Financial Times, AUTHOR: Andrew Edgecliffe-Johnson]
Europe's biggest dotcom, the BBC, is both an=20
entrepreneurial anomaly and an illustration of=20
the importance of branding on the Internet. It=20
has received considerable financial backing =96=20
from a government- mandated licence fee rather=20
than venture capitalists. But its growth stems=20
mostly from the reputation the BBC has earned=20
through its old-media activities in radio and=20
television. The emergence of the BBC as the UK=92s=20
strongest home-grown Internet brand was not just=20
encouraged but required. Two years ago the=20
British government declared: =93If it is to remain=20
a public service of universal relevance to all=20
citizens, the BBC will have to be fully involved=20
in leading the digital revolution.=94
http://news.ft.com/cms/s/36e8c460-b200-11da-96ad-0000779e2340.html
(requires subscription)

CONFRONTING DIGITAL AGE HEAD-ON
[SOURCE: Washington Post, AUTHOR: Zachary A. Goldfarb]
For most of U.S. history, any government agency=20
that needed to print many copies of a document=20
went to the Government Printing Office. Now,=20
about half of government documents go straight=20
online, forcing the printing agency to find new=20
ways to make itself relevant in an increasingly=20
paperless world. But questions of security,=20
privacy and authenticity have confronted the GPO=20
leadership as it has sought to get up to date in=20
the digital age. "We are determined that we are=20
going to put every single [government] document=20
on the Web," said GPO chief Bruce R. James, the nation's public printer.
http://www.washingtonpost.com/wp-dyn/content/article/2006/03/12/AR200603...
0938.html
(requires registration)
--------------------------------------------------------------
Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
--------------------------------------------------------------