November 2006

** Today, the FCC will hold a Summit to focus on E9-1-1 calling and access for persons with hearing and speech disabilities. See http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-268443A1.docthe agenda. **

BROADCASTING
Little Progress Cited In Identifying VNRs
Midterm Elections Spending More Than Doubles to $2.1 Billion for Broadcast TV
Study: Radio Ad Clutter Lower Than TV

MEDIA OWNERSHIP
FCC Public Hearing on Media Ownership In Nashville 12/11
Study: Blame Minority Woes on Government
Giving Newspapers Breathing Room
Several big investors raise stakes in Tribune
Backers Of 'Audio Flag' May Make Lame-Duck Push

POLICYMAKERS
L'=E9tat, c'est moi
So How About That New Congress?

INTERNET/BROADBAND
Don't Import Bad Broadband Policies
Japan sets up panel to study Net neutrality

QUICKLY -- Advertisers Pledge To Push Healthier Foods; Bush Reappoints Tomlinson; NFL defends TV policies before Senate; NFL Network Sues Comcast Over Games; NetCoalition files complaint over data fee

BROADCASTING

LITTLE PROGRESS CITED IN IDENTIFYING VNRs
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Center for Media & Democracy (CMD) and Free Press Tuesday released a report on 46 TV stations they say are airing corporate video news releases (VNRs) without disclosure in violation of FCC rules. The stations include ones owned by News Corp., Tribune, Gannett, Disney, the Washington Post Co., Sinclair Broadcasting, Media General, and Univision. Free Press and CMD are filing a complaint with the FCC asking it to broaden its VNR inquiry, which was prompted in part by the two groups first report last April identifying 77 stations, some of whom also showed up in the second report, that were airing the undisclosed VNRs. Free Press is also asking the FCC to look at the relationship between media consolidation and the rise of VNRs. "Our new report shows that news audiences continue to be deceived by fake TV news," said Diane Farsetta, CMD senior researcher and co-author of the report, in announcing the report and complaint. "Of the 54 VNR broadcasts that we documented, only two offered clear disclosure of the client behind the segment [both from stations named in the first report]. Nearly 90 percent of the time, TV stations made no effort to disclose at all."
http://www.broadcastingcable.com/article/CA6391055.html?display=3DBreaki...
News
** See "Still Not the News" http://www.prwatch.org/fakenews2/execsummary
** NABC Refutes Latest Claim by Group Alleging Improper TV Station Disclosu=
res
http://www.broadcastcommunicators.org/
* New Report Shows Further VNR Misuse by Stations
http://www.tvweek.com/news.cms?newsId=3D11062
TV Stations Still Airing Company Pitches as News, Study Says
http://www.bloomberg.com/apps/news?pid=3D20601103&sid=3DaxOs4.lxk4SU&refer=
=3Dus
* FCC Commissioner Adelstein: "Many broadcasters are apparently ignoring the FCC and their own ethics guidelines in running VNRs without disclosure. All the warnings in the world don't help if nobody's listening. When the flock ignores the shepherd, it's time to build a fence. Since the industry is patently incapable of self-regulation, it's up to the FCC to enforce our disclosure rules."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-268464A1.doc
** * RTNDA Slams VNR Study, FCC Investigation
The Radio-Television News Directors Association says some of the allegations in a study released by the Center for Media and Democracy and Free Press citing more unidentified VNR's are "inaccurate or represent isolated incidents made in error and at variance with station policies that are consistent with RTNDA=92s guidelines." RTNDA said in a statement late Tuesday that it had not reviewed all the findings, but that even if the allegations are true, "it provides no credible basis upon which the FCC can justify the extraordinary step of inserting itself into broadcast newsrooms and questioning their exercise of editorial discretion."
http://www.broadcastingcable.com/article/CA6391211.html?display=3DBreaki...
News

MIDTERM ELECTIONS SPENDING MORE THAN DOUBLES TO $2.1 BILLION FOR BROADCAST =
TV
[SOURCE: MediaWeek, AUTHOR: Katy Bachman]
Political spending on broadcast TV smashed all forecasts and spending records to total more than $2.1 billion this year, an increase of $1 billion over the last midterm election in 2002, according to TNS Media Intelligence=92s Campaign Media Analysis Group. Most of the spending, (76 percent) occurred during the last 60 days leading up to election day; 52 percent of the total was spent in the last 30 days. Weekly spending jumped from $204 million to $400 million during the last three weeks. Democrats spent $370 million compared to $350 million spent by Republicans. Eight races for the House exceeded $10 million in spending, topping the former record of $6 million.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
2067

STUDY: RADIO AD CLUTTER LOWER THAN TV
[SOURCE: MediaWeek, AUTHOR: Katy Bachman]
Commercial time on radio stations is averaging less than 10 minutes per hour, lower than the average number of commercial minutes per hour (12 to 14) on television, according to a study released Tuesday by Empower MediaMarketing, which analyzed Nielsen Monitor Plus data in 15 of the nation=92s top markets. On average, radio stations air 9.42 minutes of commercials per hour, with Washington, D.C. and Los Angeles airing the most at 10.25 and 10.15, respectively. The three markets with the lowest number of average commercial minutes were Tampa-St. Petersburg, Fla., (8.43), Atlanta (8.83) and Philadelphia (8.84). The amount of commercial time varied by format. News/Talk and Sports formats devoted the most time to commercials at 11.91 minutes and 11.47 minutes, respectively. Country formats averaged 9.72 minutes per hour of commercials. Most other formats averaged just under 9 minutes per hour of commercial time with Classical and Religious having the lowest commercial spot loads at 6.81 and 7.78 respectively.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
1977

MEDIA OWNERSHIP

PUBLIC HEARING ON MEDIA OWNERSHIP IN NASHVILLE, TENNESSEE
[SOURCE: Federal Communications Commission]
The Federal Communications Commission announced that the second public hearing on media ownership issues will be held in Nashville, Tennessee on Monday, December 11, 2006. At the Commission's first public hearing in Los Angeles, the FCC heard from a large number of citizens about the current state of the media and specific issues facing that local market. Similarly, this second hearing will provide an opportunity for those in the Nashville area to broadly discuss media ownership issues as well as those of concern to their community. Further details on the public hearing will be released at a later date. Commissioner Deborah Tate said, "I am extremely pleased by the announcement that the Federal Communications Commission will hold its second media ownership hearing in Nashville, my hometown, next month. Known as "Music City, USA" because of its vibrant entertainment industry, Nashville is home to some of the greatest songwriters and musicians in the world. It is hard to think of a more appropriate location for discussing how the Commission's rules may affect these artists and their audience. I look forward to hearing from the music industry, the media, and the public."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-268469A1.doc
* Commissioner Tate
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-268465A1.doc

STUDY: BLAME MINORITY WOES ON GOVERNMENT
[SOURCE: Associated Press, AUTHOR: Hope Yen]
Flawed government policies and negative stereotyping of minority men have limited their economic opportunities, a new study says. It urges improved health care and education for minorities and less media consolidation. The study by the Joint Center for Political and Economic Studies, a research and policy group that focuses on issues that affect minorities, examined the impact of U.S. policies on men of black, Hispanic, Asian and Native American descent. It said the media and entertainment industries overrepresent minorities as criminals and whites as victims and law enforcers. Blacks are twice as likely as white defendants to be subject to negative pretrial publicity, it said. For Hispanics, three times as likely. The report was commissioned by a group led by Oakland Mayor-elect Ron Dellums. The group is opposing FCC proposals that would allow media conglomerates to own more broadcasting stations.
http://hosted.ap.org/dynamic/stories/M/MINORITY_OPPORTUNITIES?SITE=3DNCB...
SECTION=3DHOME&TEMPLATE=3DDEFAULT

GIVING NEWSPAPERS BREATHING ROOM
[SOURCE: The Christian Science Monitor 11/14, AUTHOR: Editorial Staff]
[Commentary] News consumers in Los Angeles, Baltimore, Boston, and other parts of the country may have heard that local investors are interested in buying their main newspaper. They might think this is purely a business matter. Actually, it's more about them - and the future of journalism that informs their daily lives. The potential buyers, some with very deep pockets, are aiming to "rescue" these newspapers from the maw of publicly owned corporations. Several of the buyers believe Wall Street's profit interest is trumping Main Street's public interest - cutting newsroom staffs to the point that journalism's watchdog role is in danger. Private and local ownership has its advantages. The monkey of excessive profits is off the back of owners, who also have a natural stake in their community. But conversely, local owners may be more inclined to interfere with the editorial independence necessary to maintain a paper's credibility, or suddenly find their pockets for investing in the future aren't as deep as they need to be. No matter who owns newspapers, they still must find a new business model to survive an age where text, audio, and video are all converging in cyberspace. Fortunately, they're awake, and working on it. Keeping them hopeful is the knowledge that the public still needs a news organization's basic function as information diggers, sifters, and watchdogs. Private, local ownership has its risks. But if it can give newspapers breathing room to find their way, it seems worth it - for the sake of journalism and an informed public.
http://www.csmonitor.com/2006/1114/p08s02-comv.html

SEVERAL BIG INVESTORS RAISE STAKES IN TRIBUNE
[SOURCE: Los Angeles Times, AUTHOR: Tom Petruno]
Several investment companies that are among Tribune Co.'s largest shareholders bought more of the stock in the third quarter, betting on a higher share price for the beleaguered media company. Two major investors who raised their stakes in Tribune said a sale or breakup of the company now appeared inevitable. Ariel, based in Tribune's hometown of Chicago, raised its stake in the company to 15.7 million shares as of Sept. 30, from 14.9 million on June 30, an increase of more than 5%, according to the investment firm's latest financial filings with the Securities and Exchange Commission. Another big buyer in the quarter was Gamco Investors Inc., a Rye, N.Y.-based investment firm headed by Mario Gabelli, who has long been a high-profile player in media stocks. Gamco's stake in Tribune jumped to 3.3 million shares, or 1.4% of the company, as of Sept. 30, from 1.1 million at midyear. Barry Lucas, who advises Gabelli's institutional investing arm, said he believed that Tribune was worth at least $39 a share. The company, he said, has "some pretty enduring franchises" in The LA Times, Newsday, the Chicago Tribune and other properties, including 25 TV stations and the Chicago Cubs.
http://www.latimes.com/business/printedition/la-fi-tribune15nov15,1,2463...
story?coll=3Dla-headlines-pe-business
(requires registration)

BACKERS OF 'AUDIO FLAG' MAY MAKE LAME-DUCK PUSH
[SOURCE: Technology Daily 11/10, AUTHOR: Andrew Noyes]
Some policy watchers in the high-tech sector believe there might be an attempt in Congress' post-election session to pass a bill that would bar consumers from making copies of digital and satellite radio transmissions. Outgoing Senate Majority Leader Bill Frist (R-TN) supports the "audio flag" anti-piracy technology because of his ties to Nashville, the nation's country music headquarters, an aide said. Mitch Bainwol, chief executive officer of the Recording Industry Association of America, is Frist's former chief of staff. Sen Frist is retiring from Congress and is said to be contemplating a run for president in 2008. Earlier this year, the Senate Commerce Committee included the audio flag in its telecommunications bill, but a House-passed telecom measure does not have the provision. Meanwhile, Rep Mike Ferguson (R-NJ) in March introduced a bill, H.R. 4861, that would implement the audio flag. Officials at the Consumer Electronics Association and National Association of Broadcasters have heard rumors of Frist's potential plan to resurrect the push for an audio flag in the lame-duck session. NAB spokesman Dennis Wharton said his group will "vigorously oppose this effort should it surface." CEA's Michael Petricone echoed his remarks.
http://www.njtelecomupdate.com/lenya/telco/live/tb-XQCS1163531604832.html

POLICYMAKERS

L'ETAT, C'EST MOI
[SOURCE: The Deal 10/11, AUTHOR: Ron Oral]
My high school and college French is a little rusty, so I'm going with "I am the state." Federal Communications Commission Chairman Kevin Martin seems to be having a tough time with the entanglements of democracy. In a recent speech, Chairman Martin mused whether the five-person panel that decides the agency's biggest issues should receive their walking papers and be replaced with a one-person administrator who could respond more nimbly to evolving technology and be free from those messy partisan and ideological disputes that can delay critical FCC decisions. "In light of the fast changes that are occurring in technology, a single administrator could be much better at keeping up and responding to technological changes," Martin told attorneys at an American Bar Association Administrative Law Conference luncheon in Washington. "There has been a lot of debate in policy circles about whether the agency's bipartisan nature actually contributes to the lack of response time to technology changes that are occurring today." Converting the FCC into an executive branch administrator, following the structure of the Food and Drug Administration, means one political appointee would ultimately make all decisions affecting U.S. communications interests. Such a "communications czar" would replace the existing FCC, which consists of commissioners of the two major parties who debate controversial issues and hash out compromises. Many communications lawyers so far have jeered Martin's notions. "There isn't anybody who wouldn't rather be the philosopher king than have to negotiate with other people," says Harold Feld, director of Washington-based public interest law firm Media Access Project. "The telecom industry is so critical to our infrastructure and national security that the idea of it being held captive to whoever is running the executive branch is extremely troubling." Chairman Martin is also unhappy with the current system of judicial oversight of the agency. He has indicated that he would prefer to have one U.S. appeals court designated to receive all appeals of agency rules, a change that would replace a complex lottery that can send a challenge of FCC rules to any of 12 different appeals courts around the country.
http://www.thedeal.com/servlet/ContentServer?cid=3D1162525544531&pagename=
=3DTheDeal/NWStArticle&c=3DTDDArticle

SO HOW ABOUT THAT NEW CONGRESS?
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] Figuring out how the new Congress will tackle telecommunications issues presents a lot of complicated guessing -- particularly without knowing who serves on what Committees. Feld looks at the voting records of the likely key committee chairs in both houses on issues like media ownership, Net neutrality, opening spectrum for unlicensed devices, and protecting local cable franchises. He also offers advise for activists.
http://www.wetmachine.com/totsf/item/635

INTERNET/BROADBAND

DON'T IMPORT BAD BROADBAND POLICIES
[SOURCE: Harold Furchtgott-Roth]
[Commentary] proponents of a new federal broadband policy have hailed the results of a United Nations study that finds America is ranked 15th or lower in the world for broadband services. Washington activists make three arguments in support of a new policy: 1) America is behind the rest of the world in broadband. 2) Other countries are ahead because their broadband policies favor competition. 3) More broadband leads to greater economic activity. Each of these arguments is wrong. The rationale for any broadband policy should not be that it causes economic growth, contrary to populist claims. Broadband penetration does not predict economic growth. Although America ranks only 12th in broadband penetration, we have a higher rate of economic growth than the vast majority of countries ranked ahead of us. This result is not surprising because broadband services still account for only a small share of economic activity in every country. Economic growth depends on many factors, and broadband deployment is not one of them. Paradoxically, although lower taxes cause economic growth, many of those calling for a broadband policy advocate higher taxes. Moreover, most other countries, with higher taxes and a greater inclination to intervene in markets, grow more slowly. Little would frighten investors, slow investment, and harm consumers more than adoption of a new federal broadband policy. Our broadband policy should be the same whether we are ranked 1st, 15th, or 115th: Willing investors should be able to offer services to willing customers all under full protection of predictable laws with prices set by supply and demand. That, in a nutshell, is current American broadband policy, and it does not need to be changed.
http://furchtgott-roth.com/news.php?id=3D115

JAPAN SETS UP PANEL TO STUDY NET NEUTRALITY
[SOURCE: Reuters]
The Japanese government on Wednesday set up a panel to discuss Internet network neutrality -- a concept that has stirred heated debate in the United States -- and study how the surging popularity of free file-sharing services such as YouTube.com is impacting the infrastructure. The Ministry of Internal Affairs and Communications said it will call for inputs from companies such as Google, Yahoo Japan Corp. and Apple Computer Inc., as well as phone operators and television networks, and aim to compile a final report on the subject by July 2007. Earlier this year, Japan's ministry put together a report on future competition policy in the industry, in which it made some recommendations on the Internet neutrality issue. The report gave suggestions such as charging extra fees to heavy Internet users to lighten the cost burden on network providers, while making sure that end-users and content providers would be able to access the network freely.
http://today.reuters.com/news/articlenews.aspx?type=3DtechnologyNews&sto...
d=3D2006-11-15T104740Z_01_T155696_RTRUKOC_0_US-JAPAN-WEB.xml

QUICKLY

ADVERTISERS PLEDGE TO PUSH HEALTHIER FOODS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Advertisers representing two thirds of TV food and beverage ad expenditures targeted to children under 12 have agreed to commit 50% of their media budgets for those ads to spots either for foods that meet government standards for healthy products or that include messages encouraging healthier lifestyles. They also agreed to limit ads with licensed characters, better label advergaming, and limit marketing in schools, with the Council of Better Business Bureaus promising to monitor compliance. The Center for Science in the Public Interest was quick to criticize the initiative, pointing out that the companies could still market the same foods so long as they included a message about healthier foods or exercise.
http://www.broadcastingcable.com/article/CA6390880.html?title=3DArticle&...
cedesc=3Dnews
* Leading Makers Agree to Put Limits on Junk Food Advertising Directed at Children
http://www.nytimes.com/2006/11/15/business/media/15children.html
* Ads Aimed at Children Get Tighter Scrutiny
http://www.washingtonpost.com/wp-dyn/content/article/2006/11/14/AR200611...
1245.html

BUSH REAPPOINTS TOMLINSON
[SOURCE: White House]
President Bush has reappointed Kenneth Y. Tomlinson to be a Member of the Broadcasting Board of Governors for a term expiring August 13, 2007.
http://www.whitehouse.gov/news/releases/2006/11/20061114-3.html

NFL DEFENDS TV POLICIES BEFORE SENATE
[SOURCE: Hollywood Reporter, AUTHOR: Brooks Boliek]
The NFL played defense on Tuesday before a Senate committee investigating the nation's premier sports league's television policies. At issue are several deals the NFL has made or is attempting to make that either grant exclusivity to one carrier or another or dictate the tier on which cable operators can place pro football programming. NFL executive vp Jeffrey Pash told the Senate Judiciary Committee that the league's primary desire is to get its games on more viewers' TV sets by keeping a majority of its games on broadcast TV. Sen. Arlen Specter (R-PA) is concerned that new TV packages such as the one on the NFL Network and the league's Thursday-Saturday package of games will drive up cable prices. He also expressed concern over the NFL's decision to limit its Sunday Ticket package to satellite TV. Sen Specter accused the NFL of anti-competitive practices because it refused a to take a bid from Comcast for the right to carry the programming.
http://www.hollywoodreporter.com/hr/content_display/television/news/e3im...
N%2BCyz0ORtYXeSJyhUQ%3D%3D

NFL NETWORK SUES COMCAST OVER GAMES
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
When Comcast bought two million subscribers from Adelphia and Time Warner, the operator applied the terms of its existing NFL Network contract to the new systems and said it would carry the network, but only on a digital tier. The NFL disputes that, contending the old contract doesn't apply. So the NFL Network has gone to court to force Comcast to carry the channel on a wider tier. Industry executives familiar with the suit =96 filed under seal in New York State last month and only disclosed this week =96 say it centers narrowly on how Comcast is slating the network on systems it acquired from Adelphia Communications and Time Warner this summer. But it points more broadly to the NFL quest to recover its massive $2.4 billion investment in NFL Network.
http://www.broadcastingcable.com/article/CA6391180.html

NETCOALITION FILES COMPLAINT OVER NYSE DATA FEE HIKES
[SOURCE: C-Net|News.com, AUTHOR: Caroline McCarthy]
NetCoalition, a technology advocacy group, plans to file a petition to the U.S. Securities and Exchange Commission regarding fees charged by stock exchanges to provide real-time market data. The Washington-based public-policy coalition, whose trustees include Bloomberg, Google, Yahoo and News.com publisher CNET Networks, has voiced opposition to recent fee increases that the SEC has authorized for the New York Stock Exchange's Archipelago electronic market. According to NetCoalition, the October 12 change has meant that many news and finance Web sites no longer provide real-time market information.
http://news.com.com/NetCoalition+files+complaint+over+NYSE+data+fee+hike...
100-1011_3-6135313.html?tag=3Dhtml.alert
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Communications-related Headlines is a free online news summary service provided by the Benton Foundation (www.benton.org). Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their often informal tone does not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
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