February 2007

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MEDIA OWNERSHIP
Harrisburg, We Have a Panel
Karmazin to Testify Before House Antitrust Task Force
Radio, music mergers show digital arena crowded
Sirius-XM Merger Would Send Wrong Signal
Town Hall Meeting Planned for Columbus

EMERGENCY COMMUNICATIONS
Public Safety Interoperable Communications Grant Program
Homeland Security Grabs DTV Dollars, Says Democrat

QUICKLY -- Rural America Lags Wired Cities; Jesse Jackson seeks more
diversity in Hollywood; CBS Gets Cash In Retrans Deal; Illinois' Turn
for Franchise-Reform Bill; FCC to Examine Proposed MLB/DirecTV Deal;
Oscar ad rates push the envelope

TEN YEARS AGO...

Networks prefer promos to PSAs
[SOURCE: Broadcasting&Cable 2/24/1997, AUTHOR: Michael Katz]
Ten years ago, President Clinton was calling for a public service
announcement campaign against drug use. The President asked the
broadcast TV networks to provide free prime time spots for the PSAs.
Networks made little time for PSAs in primetime, however: ABC lead
the way with 15 seconds per prime time hour followed by NBC (:05),
UPN (:04), CBS (:02), WB (:00), and Fox (:00). Instead, networks use
non-programming time for network ads (~8 to 9 mins), local ads (~2 to
3 mins), and promos (~4 to 4 1/2 mins.).

MEDIA OWNERSHIP

HARRISBURG, WE HAVE A PANEL
[SOURCE: Federal Communications Commission]
More detail on today's FCC media ownership hearing in Harrisburg
(PA)... the 9:30am panel will consist of W. Cody Anderson, President
& CEO of ACG Associates; Bill Baldwin, Executive Vice President of
Hall Communications and General Manager of WROZ-FM and WLPA-AM,
Lancaster, PA, and WSJW-FM, York, PA ; Jim Haigh, Mid-Atlantic
Community Papers Association; Charles Layton, American Journalism
Review staff writer; Lauri Lebo, York Daily Record reporter and owner
of WWII 720 AM; H. Joseph Lewin, President of Harrisburg Television,
Inc. and General Manager of WHTM-TV, Harrisburg, PA; Beth McConnell,
Director of PennPIRG; and Paul Quinn, President and General Manager,
WGAL(TV), Lancaster, PA. A live audio cast of the hearing will be
available at the FCC's website at www.fcc.gov on a first-come,
first-served basis. The public may also file comments or other
documents with the Commission and should reference docket number
06-121 when filing by paper or submit your filing electronically by
going to http://gullfoss2.fcc.gov/prod/ecfs/upload_v2.cgi and enter
proceeding number 06-121. Filing instructions are provided at
http://www.fcc.gov/ownership/comments.html
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270732A1.doc
* NAB Wants FCC To ID Media Ownership Open Mikers
In a letter to FCC Chairman Kevin Martin Thursday, NAB President
David Rehr said that while the "NAB believes that comments from local
viewers and listeners are the most relevant and valuable to the
Commission," it also believes those comments should be verifiability
local. "One way to improve the dialog and ensure all Americans have
the opportunity to provide their viewpoints," Rehr wrote,"would be to
have all individuals wanting to provide their personal opinions to
the Commission identify the city or town where they reside. Making
this simple procedure a standard part of these hearings will enhance
the record of the Commission, and will also help ensure that the
Commissioners hear from viewers and listeners who actually receive
service from stations in the local markets where the hearings are
being conducted," Rehr wrote.
http://www.broadcastingcable.com/article/CA6418828.html?display=Breaking...

KARMAZIN TO TESTIFY BEFORE HOUSE ANTITRUST TASK FORCE
[SOURCE: MediaWeek, AUTHOR: Jeffrey Yorke]
The Antitrust Task Force, a brand new subcommittee of the House
Judiciary Committee, will examine the proposed $13 billion merger
between Sirius Satellite Radio and XM Satellite Radio. The Task Force
has already confirmed that Mel Karmazin, CEO of Sirius, will testify
on Feb. 28 when the committee makes its debut. Chaired by Rep. John
Conyers (D-Mi), the committee has been established to focus on
antitrust and competition policy issues. Next Wednesday afternoon's
hearing, billed "Competition and the future of Digital Music," will
focus on the proposed satcasters' merger. "A congressional hearing
doesn't doom the deal (we believe the merger does pass muster on
competitive grounds), but shows that the high profile nature of the
transaction could attract plenty of opposition," said Jonathan
Jacoby, an analysis with Banc of America Securities who gives the
merger a "less than 50-50 chance." If anything, the hearing could
slow the entire approval process down. "A review by Congress seems to
open the door further to politically motivated opposition," Jacoby
said. The hearing is perfect timing for the NAB which had scheduled
its annual State Leadership Conference for Feb. 27-March 1. That
means hundreds of grassroots broadcasters will be in Washington,
preparing to rush Capitol Hill to let their representatives know
about the hardships small broadcasters face daily. The NAB's schedule
gives broadcasters plenty of time to lean on representatives before
the 3 p.m. hearing begins.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=10035...

RADIO, MUSIC MERGERS SHOW DIGITAL ARENA CROWED
[SOURCE: Reuters, AUTHOR: Sue Zeidler]
The urge to merge within both the recording and satellite radio
industries this week reflects how tough it is to compete profitably
within the evolving digital media market. Struggling satellite radio
operators XM and Sirius announced a proposed $4.9 billion merger and
Warner Music Group this week said it had approached Britain's EMI
about a possible takeover bid in the latest twist in a seven-year
mating saga between the two. The deals are seen as defensive
reactions to an increasingly complicated digital entertainment
market. Both potential corporate pairings face regulatory hurdles,
but analysts and lawyers believe regulators may revise views that
such combination would throttle competition.
http://www.reuters.com/article/internetNews/idUSN2236135820070222

SIRIUS-XM MERGER WOULD SEND WRONG SIGNAL
[SOURCE: Washington Post, AUTHOR: Steven Pearlstein]
[Commenatary] Here's what to expect if the Justice Department and the
Federal Communications Commission allow Sirius and XM to merge,
creating a monopoly in the satellite radio business: Clear Channel
will start buying every radio station in America that it doesn't
already own. Comcast will begin merger talks with Time Warner Cable.
And there will be nothing standing in the way of a marriage of NBC
and CBS. All that will be possible because the government will have
declared that there is so much competition between the different
technologies in the market for digital material -- and the outcome of
that competition is so uncertain -- that there is no reason to worry
about consolidation of companies using the same technology. This is
the Powell Doctrine -- not the one about overwhelming force
enunciated by Gen. Colin Powell when he was chairman of the Joint
Chiefs of Staff, but the one promulgated by his son, Michael Powell,
while he was chairman of the FCC. The younger Powell was guided by
this doctrine in giving the green light to consolidation in almost
every corner of the telecommunications sector. In the one instance he
deviated from that position -- blocking the merger of EchoStar and
DirecTV -- it was narrowly, on the ground that there weren't enough
broadband competitors in many rural areas.
http://www.washingtonpost.com/wp-dyn/content/article/2007/02/22/AR200702...
(requires registration)
* Reject their request
[Commentary] Satellite companies don't deserve bailouts for bad
business decisions.
http://www.usatoday.com/printedition/news/20070223/oppose23.art.htm
* Sirius and XM together makes sense for listeners
http://www.usatoday.com/printedition/news/20070223/edit23.art.htm

TOWN HALL MEETING PLANNED FOR COLUMBUS
[SOURCE: tvnewsday]
Free Press, Consumers Union, Common Cause Ohio, United Church of
Christ Office of Communications, Inc., Columbus Metropolitan Area
Church Council, Ohio PIRG, Ohio Citizen Action and Media Bridges will
sponsor a March 7 town hall meeting on the future of media. FCC
Commissioners Jonathan Adelstein, Michael Copps and Robert McDowell
are slated to attend. The Columbus meeting will include an "open
mike" session, during which local citizens will be able to air their
concerns before the three commissioners. All testimony will be
recorded and submitted to the FCC and Ohio's elected officials.
http://www.tvnewsday.com/articles/2007/02/22/daily.9/
* For more info see http://www.freepress.net/future/=columbus

EMERGENCY COMMUNICATIONS

PUBLIC SAFETY INTEROPERABLE COMMUNICATIONS GRANT PROGRAM
[SOURCE: National Telecommunications and Information Administration]
The U.S. Department of Commerce's National Telecommunications and
Information Administration (NTIA) and the U.S. Department of Homeland
Security (DHS) signed a Memorandum of Understanding (MOU) on Friday,
February 16, 2007, to implement the $1 billion Public Safety
Interoperable Communications (PSIC) Grant Program to help state,
local and federal first responders better communicate during a
natural or man-made disaster. The Digital Television Transition and
Public Safety Act of 2005 (the Act) provides that the Assistant
Secretary for Communications and Information of the Department of
Commerce, in consultation with the Secretary of the DHS, shall make
payments not to exceed $1 billion in the aggregate through fiscal
year 2010 to carry out the PSIC program. The Act also directed NTIA,
in consultation with DHS, to develop the grant program policies,
procedures and regulations of the grants to be awarded in 2007, and
grant projects will be completed in Fiscal Year 2010. As required in
the recently enacted Call Home Act of 2006, the grants will be
awarded by September 30, 2007. The grant program, which covers
public safety agencies in all 50 states, the District of Columbia,
Puerto Rico and four U.S. territories, will assist public safety
agencies in the acquisition of, deployment of, or training for the
use of interoperable communications systems that can utilize
reallocated public safety spectrum in the 700 MHz band for radio
communication. Under this MOU, DHS's Office of Grants and Training
will provide grants management services to NTIA for the PSIC grant
program. DHS, among other things, will: develop policies, procedures
and regulations to govern the PSIC program; (2) develop a timetable
to complete actions so that grants may be awarded by the established
dates; (3) develop and distribute program application and guidance
materials; (4) publicize the availability of grant opportunities; (5)
provide technical assistance to applicants; (6) notify recipients of
grant awards; (7) award grant funds by September 30, 2007; and (8)
conduct site visits to verify progress and completion of funded
projects. NTIA, among other things, will: (1) assist in the
development of policies, procedures, and regulations governing the
PSIC program and approve the same; (2) provide DHS with NTIA access
rights to Grants.gov to post funding opportunity announcements and
post NTIA grant award information to the Federal Assistance Award
Data Systems; (3) participate in publicizing the availability of
grant opportunities under the PSIC Grant Program; (4) approve final
grant awards; (5) review and approve an annual administrative plan to
implement the program; (6) jointly announce grant awards; and (7)
provide funding to DHS for administrative costs and the grant awards.
http://www.ntia.doc.gov/otiahome/psic/PSICMOU_Executed_2-16-2007.pdf
http://www.ntia.doc.gov/otiahome/psic/psicfaq.html

HOMELAND SECURITY GRABS DTV DOLLARS, SAYS DEMOCRATS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
House Commerce Committee member Bart Stupak (D-MI) says the National
Telecommunications & Information Administration has essentially
turned over the $1 billion in interoperablity communications grants
from the DTV transition bill to the Department of Homeland Security
to offset $1 billion in budget cuts there. "It appears that NTIA, the
agency that Congress thought was best equipped to handle public
safety communications interoperability and to manage the public
safety spectrum, is abdicating its responsibility to the Department
of Homeland Security," said Rep Stupak Thursday, "which, as we saw
during Hurricane Katrina, has a poor track record."
http://www.broadcastingcable.com/article/CA6418774.html?display=Breaking...

QUICKLY

RURAL AMERICA LAGS WIRED CITIES
[SOURCE: Associated Press]
Fifty-one percent of U.S. farms have Internet access, according to a
July 2005 report by the U.S. Department of Agriculture, up from 48
percent in 2003. More than two-thirds of them, however, still use
dial-up modems to connect. Rural America has lagged behind the cities
in Internet usage -- especially broadband -- because wiring the
population-rich cities is more profitable and wiring the countryside
more expensive due to long distances and natural barriers. Now,
farmers and existing rural businesses are becoming more reliant on
the Internet to be competitive, and rural communities are becoming
more aggressive in seeking Internet access. They see it as a way to
attract white-collar jobs, and urban dwellers who have moved to the
country are demanding it.
http://www.cnn.com/2007/TECH/internet/02/12/online.farmers.ap/index.html

JESSE JACKSON SEEKS MORE DIVERSITY IN HOLLYWOOD
[SOURCE: Reuters, AUTHOR: Carl DiOrio]
On Tuesday, Rev Jesse Jackson met with Universal Studios President
Ron Meyer about increasing diversity in the industry. Jackson's
Tuesday meeting with Meyer and his planned sessions with various
studio heads, talent agency executives and others are part of a
continuing campaign by the civil rights leader's Rainbow Coalition to
press for greater diversity in Hollywood's casting process and studio
hiring. Citing data like a recent UCLA report showing low numbers of
minority-oriented film roles, Jackson aims to convince industry elite
that increased casting and hiring of minorities will broaden the
creative scope of Hollywood entertainment and thus its revenue base.
"We must go to each of the companies and agencies and urge them to
make the industry open up and expand the market and the
opportunities," Rev Jackson said Wednesday. "After all, we once did
not know how big baseball could be until everyone could play. Right
now, with the system (in) Hollywood, we don't know how big the
entertainment market can be until everybody is able to participate."
http://today.reuters.com/news/newsArticle.aspx?type=entertainmentNews&st...

CBS GETS CASH IN RETRANS DEAL
[SOURCE: Broadcasting&Cable, AUTHOR: Michael Malone]
CBS Corp. announced it has reached retransmission consent agreements
with nine cable operators, covering over a million subscribers. The
deals cover analog, digital, multicast and high-definition rights to
CBS programming. As has been previously reported, CBS has sought 50
cents a subscriber in past dealings with cable operators and Verizon
FiOS. A source familiar with the negotiations suggested that the new
CBS deals are close to that figure. Well-sourced Wall Street
speculation is that none of the deals were for less than 50 cents a
sub, and some were for more. That may explain why none of the cable
operators wanted to be identified in the press release announcing the
deals. Time Warner Cable, Comcast and Cox are not among the nine, top
25 operators included in the new deals, which are primarily midsized systems.
http://www.broadcastingcable.com/article/CA6418604?title=Article&spacede...
* CBS Signs Nine Retrans Deals
http://www.multichannel.com/article/CA6418599.html?display=Breaking+News
* CBS Reaches Deals With 9 Cable Operators for Compensation to Carry
Its Programs
http://www.nytimes.com/2007/02/23/business/media/23cable.html
* Cable Operators to Pay for CBS Programming
http://online.wsj.com/article/SB117218807654916661.html?mod=todays_us_ma...

ILLINOIS' TURN FOR FRANCHISE-REFORM BILL
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
A franchise-reform bill was introduced in Illinois that, in addition
to allowing statewide authorization for newcomers, would allow
overbuilders to drop local agreements in favor of statewide
franchises. As currently written, the bill would hold only incumbent
cable operators to current franchises until their statutory end
dates. The bill may also mark trouble for incumbent operators'
exclusivity agreements with multiple-dwelling units. The bill states
that landlords or property owners can't bar access to new service
providers, nor ask video providers to pay for access above and beyond
"just compensation" for the impact to a property for the installation
of infrastructure.
http://www.multichannel.com/article/CA6418771.html?display=Breaking+News

FCC TO EXAMINE PROPOSED MLB/DIRECTV DEAL
[SOURCE: Broadcasting&Cable, AUTHOR: Ben Grossman]
FCC Chairman Kevin Martin will look into a proposed exclusive deal
between Major League Baseball (MLB) and DirecTV for an out-of-market
baseball package, according to a letter he sent to Sen John Kerry
(D-MA), who had expressed concerns with the potential deal to the
FCC. Chairman Martin said the FCC "contacted the parties and
requested additional information about their proposed arrangement.
Once we have this information, we will report to you on the deal's
implications for consumers and any recommended changes to the law to
ameliorate any harms to consumers."
http://www.broadcastingcable.com/article/CA6418857.html
* Martin: FCC to Probe MLB-DirecTV Deal
http://www.multichannel.com/article/CA6418832.html?display=Breaking+News

OSCAR RATES PUSH THE ENVELOPE
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
The Academy of Motion Picture Arts and Sciences and ABC would like to
thank General Motors, Bank of America, J.C. Penney and many others
for shelling out $1.7 million for every 30-second spot they bought in
Sunday's Oscar telecast. These advertisers also feel as if they've
got a piece of the gold: The 79th annual Academy Awards will probably
be one of the largest and most prestigious television events of the
year, with an expected audience of more than 40 million viewers. The
show is also one of the increasingly few events with enough built-in
suspense for most viewers to watch in real time, rather than
digitally record the show so they can zip past the ads. That's one
reason advertisers are willing to pay an Oscar record price for a
30-second spot, an uptick from last year's $1.6 million, despite a
droop in the show's ratings in recent years.
http://www.latimes.com/business/printedition/la-fi-oscarads23feb23,1,163...
(requires registration)
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Communications-related Headlines is a free online news summary
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industry developments, policy issues, and other related news events.
While the summaries are factually accurate, their often informal tone
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