January 2007

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MEDIA REFORM
The Movement in Memphis
Bashed, Thrashed and Encouraged

INTERNET/BROADBAND
Suit To Get Broadband Data Draws Industry Interest
Your Guide to the Digital Divide
Telcos Target Google in Network Neutrality Fight
On the Electronic Campaign Trail

OWNERSHIP
Consolidation, Reorganization Reflected in Cable System Rankings
Fate of Tribune May Rest With Television Business
So Who Are These Chandlers Who Want to Reclaim 'L.A. Times'?
Judge allows music industry to sue XM Satellite
Cracking Down on Mixtape CDs
Air America Nears Sale to Group Led by the French Family

BROADCASTING
Violence: The New Indecency?
Second White Space Bill Would Shorten Timeline
Can death dent media's humiliation fad?

QUICKLY -- Showdown Looms in Congress Over Drug=20
Advertising on TV; Stevens Aide Sutherland to=20
Leave Senate; AT&T: My Community Is Bigger than Yours

MEDIA REFORM

THE MOVEMENT IN MEMPHIS
[SOURCE: Broadcasting&Cable, AUTHOR: Harold Feld, Media Access Project]
[Commentary] More than 3,000 media reformers=20
flocked to the Third National Conference on Media=20
Reform (NCMR) in Memphis, the weekend before the=20
Martin Luther King Day holiday. They left filled=20
with momentum. But the growing movement is also=20
wrestling with the internal contradictions that=20
bedevil coalitions that try to remain=20
simultaneously non-partisan while still appealing=20
to a passionate base. The media-reform movement=20
prides itself on being non-partisan. With=20
Democrats in power and influential progressive=20
organizations such as MoveOn.org in the mix, will=20
Republicans such as Senators Trent Lott (R-Miss.)=20
and Kay Bailey Hutchison (R-Texas) continue to=20
support media reform? In his remarks at the=20
conference, Bill Moyers warned that progressive=20
movements have an unfortunate history of focusing=20
on their internal divisions and ripping apart=20
just when they seem strongest. Can a movement=20
that thrived on fighting defense against powerful=20
forces successfully go on the offensive? As=20
someone who attended the NCMR in Memphis, I strongly believe it can.
http://www.broadcastingcable.com/article/CA6408864.html?display=3DOpinion

BASHED, THRASHED AND ENCOURAGED
[SOURCE: Seattle Times, AUTHOR: Ryan Blethen rblethen( at )seattletimes.com]
[Commentary] I did not go to Memphis to get=20
mugged. But that is what it felt like sitting=20
through the National Conference for Media Reform.=20
The conference might have felt like an assault=20
against a journalist like me who works at a=20
metropolitan newspaper. I heard about the evils,=20
and incompetence, of the likes of me at almost=20
every turn. Apparently, mainstream journalists=20
are to blame for the war, for not connecting the=20
Bush administration to 9/11, for the plight of=20
the middle class, and whatever other grievances=20
could be identified. I am glad I sat through the=20
thrashing. Folks are unhappy with the press. I do=20
not blame them. We are living in a divisive time,=20
and the press is partly responsible for our=20
nation's ills and the war. I left the conference=20
encouraged about the future of newspapers even=20
though most panels and speakers at the conference=20
freely bashed journalism's mainstreamers. Why the=20
optimism? The theme I kept hearing was a thirst for a substantive narrative.
http://seattletimes.nwsource.com/html/opinion/2003531090_ryan19.html

INTERNET/BROADBAND

SUIT TO GET BROADBAND DATA DRAWS INDUSTRY INTEREST
[SOURCE: Center for Public Integrity, AUTHOR: Drew Clark]
The Center for Public Integrity is leading an=20
effort to find out more about which companies are=20
providing high-speed Internet access throughout=20
the United States so that citizens have a better=20
understanding of their service options. A Center=20
lawsuit filed under the Freedom of Information=20
Act is attracting industry-wide interest. AT&T,=20
Verizon Communications and three leading=20
telecommunications trade groups filed court=20
papers seeking to intervene or comment on the=20
Center's lawsuit last week. The top cable=20
association is also seeking to weigh in. In court=20
papers filed Jan. 8, AT&T and Verizon, together=20
with the United States Telecom Association (to=20
which both companies belong), objected to the=20
release of the broadband data. Wireless=20
Communications Association International, a trade=20
group representing a range of wireless broadband=20
service providers, said that it had also=20
objected. Separately, CTIA -- the wireless=20
association formerly known as the Cellular=20
Telecommunications and Internet Association --=20
supported the FCC in a "friend of the court"=20
brief filed Jan. 8. A fourth association, the=20
National Cable and Telecommunications=20
Association, seeks to file a similar brief. The=20
Department of Justice and the FCC filed their=20
response to the Center's complaint on Jan. 8, the=20
court-imposed deadline. The Center's reply to the=20
government and to the intervening companies is due on Feb.12.
http://www.publicintegrity.org/telecom/report.aspx?aid=3D837

YOUR GUIDE TO THE DIGITAL DIVIDE
[SOURCE: Media Shift, AUTHOR: Mark Glaser]
The digital divide is the chasm separating the=20
haves and have-nots in digital technology. On one=20
side are people who can afford or who have access=20
to computers, a high-speed broadband connection=20
and the plethora of services from online banking=20
to social networking to blogging. On the other=20
side of the equation are people who cannot afford=20
the technology, cannot get broadband access=20
because of their location, or who have learning=20
or cultural limitations to using the technology.=20
There are many digital divides: Rural and urban;=20
poor and rich, African-American and white; old=20
and young; disabled and able; developing nation=20
and developed nation. All these factors have been=20
studied and solutions have been debated for=20
years. In fact, Martin Luther King Jr. talked=20
about such a divide in one of his last speeches=20
four days before he died in 1968: "There can be=20
no gainsaying about the fact that a great=20
revolution is taking place in the world=20
today=85That is, a technological revolution with=20
the impact of automation and cybernation=85Modern=20
man through scientific genius has been able to=20
dwarf distance. Through our genius we have made=20
this world a neighborhood. And yet we =97 we have=20
not yet had the ethical commitment to make of it=20
a brotherhood. But somehow, and in some way, we=20
have got to do this." Very few people remember a=20
speech by President George W. Bush on March 26,=20
2004, in which he called for affordable broadband=20
access for everyone. =93This country needs a=20
national goal for the spread of broadband=20
technology,=94 President Bush said. =93We ought to=20
have universal affordable access for broadband=20
technology by the year 2007 and then we ought to=20
make sure, as soon as possible thereafter,=20
consumers have choices when it comes to their=20
carrier.=94 As 2007 dawns, we obviously do not have=20
universal affordable access to broadband, and=20
consumers have little choice for providers=20
outside of the duopoly of cable and telephone carriers.
http://www.pbs.org/mediashift/2007/01/digging_deeperyour_guide_to_th.html

TELECOS TARGET GOOGLE IN 'NEUTRALITY' FIGHT
[SOURCE: GigaOM, AUTHOR: Paula Kapustka]
[Commentary] The latest round in the battle over=20
Network Neutrality has started, and as usual the=20
telcos have their game plan sussed out and in=20
widespread, synchronized action. The message?=20
Google is bad, and wants to control the Internet=20
to keep its cash pile growing. Telcos, meanwhile,=20
just want to innovate, so please don't write laws keeping them from doing s=
o.
http://gigaom.com/2007/01/20/google-netneutrality/

ON THE ELECTRONIC CAMPAIGN TRAIL
[SOURCE: Washington Post, AUTHOR: Chris Cillizza and Dan Balz]
If last year was the year of the rogue=20
videographers, the already-underway 2008=20
presidential campaign is likely to be remembered=20
as the point where Web video became central to=20
the communications strategy of every serious=20
presidential candidate. Playing defense is only=20
one use of Web video. Equally important, the=20
candidates and their staffs see Web-based video=20
as an inexpensive and potentially significant=20
tool for telling their campaign story without the=20
filters of the traditional media. Call it the=20
YouTube effect, and it is only growing. The=20
video-sharing site, which less than a year after=20
its founding was bought by Google for $1.65=20
billion, has revolutionized the transfer of=20
information via video, spawned a number of=20
imitators and forced candidates to recalibrate=20
choices, from their announcement strategies to their staffing decisions.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/21/AR200701...
1074.html
(requires registration)

OWNERSHIP

CONSOLIDATION, REORGANIZATION REFLECTED IN CABLE SYSTEM RANKINGS
[SOURCE: Multichannel News, AUTHOR: George Winslow]
Consolidation has once again transformed=20
Multichannel News' list of the top 100 cable=20
systems. Thanks to Comcast and Time Warner=20
Cable's acquisition of Adelphia Communications,=20
system swaps between the two companies and=20
organizational changes at other operators, a slew=20
of systems either expanded their footprint or=20
were swallowed up by larger clusters. Fewer than=20
three quarters of the systems on last year's list=20
survived into 2007 with the same division name.=20
And, many of the survivors have a much expanded=20
footprint. Thanks to those changes, the 100=20
largest systems now serve 54,276,131 basic=20
subscribers, significantly up from 51,013,116 in=20
2006 and 47,644,436 in 2003. Consolidation and=20
reorganization's effect was most obvious in such=20
areas as southern California, Ohio, Texas and New=20
England, where Time Warner divisions swallowed up=20
a number of Adelphia and Comcast operations, or=20
in Washington, D.C., Boston, St. Paul.,=20
Pittsburgh, Houston and Florida where Comcast=20
expanded its clusters or gained new systems. Big=20
markets were the most affected. Last year, a=20
system with 600,000 basic subscribers would have=20
easily made it into the top 25. This year, that=20
system would rank 32nd. The impact of the deal=20
making went beyond the Adelphia deal. Cox=20
Communications and Charter Communications systems=20
also changed hands and for the first time=20
Suddenlink Communications has a system in the top 100.
http://www.multichannel.com/article/CA6408713.html

FATE OF TRIBUNE MAY REST WITH TELEVISION BUSINESS
[SOURCE: Wall Street Journal, AUTHOR: Sarah=20
Ellison sarah.ellison( at )wsj.com and Brooks Barnes]
Tribune may be best known as a newspaper=20
publisher, but its television business could hold=20
the key to its future. All of the offers=20
submitted for Tribune last week hinge on the=20
value of the company's 23 TV stations, which=20
account for about one-third of the company's=20
profits. Industry executives note that while=20
Tribune's newspapers, which include the Los=20
Angeles Times and Chicago Tribune, have=20
relatively high profit margins, the TV stations=20
lag behind some competitors. After reviewing the=20
offers in a meeting with its advisers Saturday,=20
the special committee of Tribune's board that is=20
overseeing the auction appeared to lean towards=20
taking action on its own. Tribune could borrow=20
money to pay a big dividend to shareholders and=20
then explore a spinoff or sale of its TV=20
stations. A person familiar with the process said=20
that the company also was exploring how to use=20
the McCormick Tribune Foundation, a charitable=20
foundation controlled by Tribune's management, in=20
any possible transaction. Tribune is looking at=20
how a "self-help" option stacks up to proposals=20
from bidders such as Los Angeles businesspeople=20
Ron Burkle and Eli Broad, who propose a=20
recapitalization that would give them effective=20
control. The pair, who traveled to Chicago to=20
personally pitch their proposal to the special=20
committee Saturday, suggest taking on a heavy=20
debt load to fund a $27-a-share dividend payout=20
to shareholders. The pair see the TV stations as=20
offering the most obvious opportunity for increasing profits.
http://online.wsj.com/article/SB116943529015883356.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* Tribune Co. May Reject Outside Bids
http://www.nytimes.com/2007/01/22/business/media/22tribune.html
(requires registration)

SO WHO ARE THESE CHANDLERS WHO WANT TO RECLAIM 'LA TIMES'?
[SOURCE: Associated Press]
Seven years after selling Times Mirror Co., owner=20
of the Los Angeles Times, the Chandler family=20
might get it back as part of a shrewd bid that=20
could give it control of the entire Tribune Co.=20
for less than the selling price of one of the=20
nation's most acclaimed newspaper companies.=20
Already Tribune's largest shareholder, the family=20
has offered to buy the media titan and spin-off=20
its broadcast division in a deal valued at $7.6=20
billion. In 2000, the Chandlers sold Times Mirror=20
to Tribune for $8 billion, including debt. The=20
current bid reflects the changing strategy of the=20
family that built Times Mirror and helped shape=20
Southern California while weathering its share of internal disputes.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003535410

JUDGE ALLOWS MUSIC INDUSTRY TO SUE XM SATELLITE
[SOURCE: C-Net|News.com, AUTHOR: Greg Sandoval]
A judge has ruled that the music industry is free=20
to go ahead with a lawsuit against XM Satellite=20
Radio, the company accused of allowing customers=20
to store songs without paying for them. The=20
finding, made Friday by U.S. District Court Judge=20
Diane Batts in New York, opens the door for music=20
labels such as Atlantic Recording and Capitol=20
Records to press their case against the satellite radio operator.
http://news.com.com/Judge+allows+music+industry+to+sue+XM+Satellite/2100...
27_3-6151695.html?tag=3Dhtml.alert

CRACKING DOWN ON MIXTAPE CDs
[SOURCE: New York Times, AUTHOR: Jeff Leeds]
DJ Drama, whose real name is Tyree Simmons, is=20
arguably the nation=92s most prominent producer of=20
mixtapes, the name given to popular but largely=20
unlicensed CDs stocked with yet-to-be released=20
rap hits and free-style rhymes. Many more people=20
now know the name: last week, local authorities,=20
working with the recording industry=92s trade=20
association, stunned fans and music executives=20
alike by raiding DJ Drama=92s studio in Atlanta and=20
arresting him and a fellow D.J., Don Cannon, on=20
racketeering charges. Investigators seized more=20
than 81,000 allegedly pirated CDs and say the=20
pair were producing unlicensed recordings and=20
selling them without permission. The raid sparked=20
an outcry among many rap fans. But it also=20
threatens to throw into public view the recording=20
industry=92s awkward relationship with mixtapes,=20
long an integral element of rap culture and now=20
commonly for sale on street corners, Web sites,=20
many independent record shops and occasionally=20
big chains. Even as industry-financed antipiracy=20
squads hunt for unauthorized recordings, senior=20
executives at the major record labels privately=20
say that they have courted =97 and often paid =97 top=20
D.J.=92s to create and distribute mixtapes=20
featuring the labels=92 rappers as part of efforts to generate buzz.
http://www.nytimes.com/2007/01/22/business/22mixtape.html
(requires registration)

AIR AMERICA NEARS SALE TO GROUP LED BY THE FRENCH FAMILY
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com]
Air America radio's parent company may have found=20
a new rescuer: the French family of Westchester=20
County, N.Y., which owns New York City-area=20
television concern WRNN. A consortium of=20
investors led by the French family is on the=20
verge of signing a deal to purchase the assets of=20
Piquant LLC, which filed for Chapter 11=20
bankruptcy protection in New York in October. An=20
agreement could be announced as early as today.=20
Any agreement would need to be approved by the=20
bankruptcy court. If the deal doesn't go through,=20
it increases the likelihood that Piquant could=20
face imminent liquidation. If the acquisition=20
does go through, it could lead to several=20
programming changes at the liberal talk-radio=20
network. Richard French, son of WRNN owner Dick=20
French, will likely get his own show in prime=20
time on Air America. Richard French, formerly a=20
New York State Democratic Party official, already has a nightly show on WRN=
N.
http://online.wsj.com/article/SB116942647872883236.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

BROADCASTING

VIOLENCE: THE NEW INDECENCY?
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In recent years, as lawmakers have focused on=20
flashes of skin and profanity, TV violence has=20
become not only more pervasive but more graphic=20
-- even cartoonish in its gore. While the TV=20
industry perennially tests regulators=92 elusive=20
definitions of indecency, critics and creators=20
alike say the forces are now aligning for a=20
crackdown on TV carnage. The FCC is readying a=20
report, two years in the making, prompted by,=20
among others, the current chairmen of the House=20
Commerce Committee and the Telecommunications=20
subcommittee. Among the issues the report=20
addresses are the negative effects on kids of=20
cumulative viewing, the limits on the FCC=92s power=20
to regulate violence, and the definition of=20
=93harmful=94 TV violence. FCC Chairman Kevin Martin=20
may be looking to distribute the report before a=20
Feb. 1 FCC oversight hearing by the Senate=20
Commerce Committee. The House will probably hold=20
a similar hearing soon after. While there are=20
constitutional hurdles to regulating violence,=20
they=92re not insurmountable if Congress wants to give the FCC the authorit=
y.
http://www.broadcastingcable.com/article/CA6408809.html?display=3DFeatures
* FCC Commissioners Review TV Violence Report
http://www.broadcastingcable.com/article/CA6408818.html?display=3DBreaki...
News
* The Chilling Field
[B&C editorial staff] "Hear us clearly. We're=20
unalterably opposed to any legislation or=20
regulation that would let the government tell=20
networks what we should be watching. We are quite=20
sure there has never been a more effective censor=20
than the On-Off switch. There are no better=20
regulators than viewers themselves when they=20
choose to act on their judgment, armed with new=20
tools provided by the industry. The V-chip, which=20
once appeared to be a threat to edgy programming,=20
could be its salvation. But the FCC and Congress=20
may again gang up on the networks over violence.=20
Even if no laws are passed, the potential to=20
chill content is a clear and present danger."....=20
"Where violence is gratuitous or unnecessarily=20
graphic, programmers better fix it. But neither=20
Congress nor the FCC should take that job away from them."
http://www.broadcastingcable.com/article/CA6408863.html?display=3DOpinion
* Washington may take up TV violence
http://www.latimes.com/business/printedition/la-fi-violence22jan22,1,359...
3.story?coll=3Dla-headlines-pe-business

SECOND WHITE SPACE BILL WOULD SHORTEN TIMELINE
[SOURCE: TV Technology]
Another white spaces bill is being rolled out in=20
the Senate, this one with a shorter=20
implementation timeframe than the first. The=20
White Spaces Act of 2007 from Sen. John Sununu=20
(R-N.H.) would allow unlicensed devices into=20
fallow broadcast channels within 90 days of=20
enactment or Oct. 1 of this year, whichever comes=20
first. Last week, Sen. John Kerry re-introduced=20
his Wireless Innovation Act, a rerun of one of=20
the items in the erstwhile telecom package that=20
stalled in the Senate. The resurrected WIN Act,=20
as it came to be referenced, had a 180-day time window.
http://www.tvtechnology.com/pages/s.0015/t.795.html

CAN DEATH DENT MEDIA'S HUMILIATION FAD?
[SOURCE: San Francisco Chronicle, AUTHOR: CW Nevius]
When a Sacramento mother died Jan. 12 of water=20
intoxication after a morning radio stunt on=20
Sacramento station KDND went wrong, it sent a=20
jolt through the industry. And this may not get=20
resolved with a radio network issuing an apology=20
and offering cash to make everything go away.=20
"There isn't going to be a settlement," says=20
Roger Dreyer, the Sacramento attorney who is=20
handling a wrongful death lawsuit for Strange's=20
husband and three children. "There's going to be=20
a venting in a public forum. That's what we want,=20
and that's what the family wants." One must=20
assume, however, that it is not what the large=20
corporations that own most of the radio stations=20
in this country want. The water-drinking stunt=20
isn't out of the ordinary. In fact, local station=20
KSAN 107.7 has done it more than once -- although=20
with supervision and planning. "There have to be=20
network executives who are thinking, there but=20
for the grace of God go I," says Michael=20
Harrison, editor and publisher of the influential=20
Talkers magazine, a trade publication covering=20
the talk radio industry. "This is one of the most=20
important stories to come along. This is big."=20
"This is a story that is going to be=20
reverberating for a long time," says Tom Taylor,=20
editor of Inside Radio, an industry newsletter.=20
"Everybody's paying attention to this. And it's=20
clear from talking to station managers that=20
they've already pulled back on the stunt-boy stuff."
http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2007/01/21/MNG2ONMB4E...
TL

QUICKLY

SHOWDOWN LOOMS IN CONGRESS OVER DRUG ADVERTISING ON TV
[SOURCE: New York Times, AUTHOR: Milt Freudenheim]
Drug advertising aimed at consumers, a=20
fast-growing category that reached $4.5 billion=20
last year, will face hard scrutiny in the new=20
Congress. The consumer ads will be on the griddle=20
early in this session at hearings on the user=20
fees that manufacturers pay to speed the=20
reviewing of new drugs by the Food and Drug=20
Administration. The user fee law will die in the=20
fall unless Congress acts to renew it. The=20
pharmaceutical industry, which often gets what it=20
asks for from Congress and the executive branch,=20
seeks to renew the law and add a new set of user=20
fees that would be pay salaries for additional=20
F.D.A. employees to evaluate all consumer drug=20
ads, before they are shown on television. Both=20
the industry and its critics agree that there=20
should be a pause before the advertising starts =97=20
to allow time for doctors to learn about a new=20
drug. The companies want the delay to be left up=20
to them, but critics say the F.D.A. should=20
require a wait of up to two years. Criticism of=20
direct-to-consumer advertising has intensified=20
since 2004, after Merck withdrew Vioxx, a heavily=20
advertised painkiller, after a clinical trial=20
showed that it sharply increased the risk of heart attacks and strokes.
http://www.nytimes.com/2007/01/22/business/media/22drug.html
(requires registration)

STEVENS AIDE SUTHERLAND TO LEAVE SENATE
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Lisa Sutherland said Friday that she will step=20
down in several weeks as minority staff director=20
of the Senate Commerce Committee, ending a direct=20
working relationship with Sen. Ted Stevens=20
(R-Alaska) that began with an internship in 1977.=20
Sutherland said that after she leaves in early=20
March, she will continue as an outside adviser to=20
Stevens while pursuing private business interests=20
that are still taking shape. She had a key role=20
in drafting last year=92s major telecommunications=20
bill, which never reached the Senate floor=20
because Democrats complained that it lacked=20
strong Internet-nondiscrimination language.=20
Sutherland said she isn't leaving the Senate=20
because Democrats took control as a result of the=20
2006 elections. =93This is something that doesn=92t=20
have anything to do with us Republicans losing=20
the majority. This is something I=92ve been=20
actually thinking about for a while, and it is=20
completely unrelated to the election,=94 she added.
http://www.multichannel.com/article/CA6408758.html?display=3DBreaking+News

AT&T: MY COMMUNITY IS BIGGER THAN YOURS
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
AT&T plans to send a new message. A number of TV=20
ads starting this weekend will show people=20
placing calls to friends across the country=97for=20
no charge. The tagline: "Call 100 million AT&T=20
customers for free." The AT&T Unity plan, which=20
provides for unlimited calling among AT&T's=20
wireless and landline customers, is=20
unprecedented, analysts say. "This is the first=20
time in the U.S. that we have a community across=20
both fixed and mobile phone service," says Mark=20
Winther, an analyst with consultancy IDC. It's=20
also AT&T's way of thumbing its nose at smaller=20
rivals that are slimming down even as AT&T=20
becomes the biggest U.S. phone company through the acquisition of BellSouth.
http://www.businessweek.com/technology/content/jan2007/tc20070119_910354...
m?chan=3Dtop+news_top+news+index_technology
--------------------------------------------------------------
Communications-related Headlines is a free online=20
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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
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