February 2007

2007 (Serious now... it's Ash Wednesday)
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PUBLIC MEDIA
Report Sees Few Funding Alternatives for PBS
Deal or No Deal: FCC Undermines Community Broadband

TELEVISION
Content Will Always be King
Nexstar Devises New Strategies For Local TV

MEDIA OWNERSHIP
Hearing seeks views on FCC rules
Antitrust issue blocked EchoStar-DirecTV deal

CHILDREN & MEDIA
Would C-SPAN count?
Jobs, Dell appraise technology, schools

ADVERTISING
Ad Avoiders
Romney to Air Presidential Campaign Ad

UNIVERSAL SERVICE
Lifeline Across America

QUICKLY -- Twelve-step program aims to cure e-mail addiction

PUBLIC MEDIA

REPORT SEES FEW FUNDING ALTERNATIVES FOR PBS
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
A new Government Accountability Office study is lending some weight
to warnings about the Bush administration's proposal to cut federal
funding of public TV. Unless Congress wants to allow stations to air
program underwriting messages far closer to traditional ads-a step
many public TV stations oppose-other revenue sources aren't likely to
make up for government cuts, the report says. Secondary revenues from
book, toy and DVD deals generate $7 million to $10 million annually,
but they come from relatively few shows and at best merely help
offset the Corporation of Public Broadcasting and PBS' limited
ability to fund upfront development costs for suppliers and stations.
The report said 30 of the 54 public TV stations interviewed said cuts
in federal funding "could lead to a reduction in staff, local
programming or services" and 11 small stations said the cuts could
lead to their shutting down.
http://www.tvweek.com/news.cms?newsId=11590
(requires free registration)
* Telecommunications: Issues Related to the Structure and Funding of
Public Television. GAO-07-150
http://www.gao.gov/cgi-bin/getrpt?GAO-07-150
Highlights - http://www.gao.gov/highlights/d07150high.pdf

DEAL OR NO DEAL: FCC UNDERMINES COMMUNITY BROADBAND
[SOURCE: Center for Digital Democracy, AUTHOR: Jennifer Harris and
Jeff Chester]
[Commentary] The FCC's decision to weaken community oversight of
video and ultimately broadband providers, approved on December 20,
2006, was overshadowed in the press by another decision to approve
the AT&T/BellSouth mega-merger. But the FCC's new " Rules to Ensure
Reasonable Franchising Process for New Video Market Entrants ", in
limiting the authority of a local government to determine how its
community places value on its right of ways in exchange for video
service, diminishes negotiating power and oversight by both local
government and citizens. If value isn't placed on building out the
public interest portions of the key digital infrastructure that
connects most American cities, then communities across the country
will suffer. Powerful corporate media and telecommunications
companies will be making decisions about a city's digital future--not
local citizens or their elected representatives. For communities
either economically challenged or geographically isolated, the loss
of meaningful community oversight over vital broadband connections
threatens their future. In order to reverse the damaging consequences
of this FCC ruling, the movement around net neutrality needs to take
a more offensive approach to enact a proactive broadband agenda that
promotes community media on national, state and local fronts. In the
broadband era, there must be protections for both neutrality and
community, without such safeguards, we can expect the same old
treatment in the new media world.
http://www.democraticmedia.org/issues/cabletv/DealorNoDeal.html

TELEVISION

CONTENT WILL ALWAYS BE KING
[SOURCE: Wall Street Journal, AUTHOR: Paul Vigna]
[Commentary] In the old days, the kind of broadside Viacom fired at
Google -- demanding it take down more than 100,000 clips being
distributed illegally on YouTube -- would have carried a
bone-crunching thud. Instead, it fizzled: Many dismissed it as a
negotiating tactic, at best. Media pundit and Web acolyte Jeff Jarvis
was succinct in his appraisal: "fools." The Internet so thoroughly
thrashed the music industry that most people assume the same unfair
fight will break out over the distribution of video. It's the "I'm a
Mac, I'm a PC" conflict on a large scale, with the media
conglomerates cast as the helpless nerd. YouTube, Don Tapscott
recently wrote on this editorial page, "has reinvented the television
ballpark." But the studios don't need to kowtow to the Internet
evangelizers, because there are significant differences between audio
and video distribution. Web sites like YouTube won't be able to
topple the networks as easily as file swappers wracked the music
moguls. And Viacom's move yesterday to license its programming
through the startup Joost.com may be a broadside that does find its target.
http://online.wsj.com/article/SB117203076381914611.html?mod=todays_us_op...
(requires subscription)

NEXSTAR DEVISES NEW STRATEGIES FOR LOCAL TV
[SOURCE: Wall Street Journal, AUTHOR: Shira Ovide shira.ovide( at )dowjones.com]
After a long period in Wall Street's dog house, Nexstar Broadcasting
Group Inc. and other local-TV companies are strutting like "Best in
Show" winners. Stocks of Nexstar, Lin TV Corp., Young Broadcasting
Inc. and Sinclair Broadcasting Group Inc. have climbed by 50% or more
since last fall, as broadcasters squeeze cash from cable companies to
carry the local stations on which Americans watch the majority of
their television. Nexstar, the operator of 49 television stations in
small markets such as Erie, Pa., and Lubbock, Texas, has gotten
credit for leading the crusade over the so-called retransmission
fees. The question for investors is whether shares have become
overheated in the enthusiasm. Nexstar bulls say the market hasn't
recognized Nexstar's other industry-leading positions: The company
has pioneered the ownership of two television stations in the same
market and has transformed its stations into TV-and-online machines.
http://online.wsj.com/article/SB117201060871314091.html?mod=todays_us_ma...
(requires subscription)

MEDIA OWNERSHIP

HEARING SEEKS VIEWS ON FCC RULES
[SOURCE: The Patriot-News 2/20, AUTHOR: Barry Fox]
All five FCC commissioners are expected to attend the Commission's
public hearing on media ownership at the Whitaker Center for Science
and the Arts in Harrisburg (PA) on Friday. About half of the session
is set aside for public comment. Joel Kelsey, a grass-roots
coordinator for Consumers Union, said these official hearings have
all been well-attended with the clear message that people want "more
local news, more diverse news, not more places to get the same news."
Critics have long said that the consolidation of the industry, which
is now dominated by large ownership groups like Clear Channel,
Cumulus and Citadel, is killing localism in broadcasting. But R.J.
Harris, the morning man on WHP 580 AM and the operations manager of
WHP and WTKT "The Ticket" 1460 AM, both Clear Channel stations,
strongly disagrees. A 39-year radio veteran, he has worked at
stations across the country. Three decades ago, many local radio
owners owned stations in several states, he said. "They were
considered chains back then," Harris said. "We still do business the
way we did back then. We're charged with serving the community, and
we do it better now then we ever have ... We never hear from Clear
Channel about the operation of the station. It's run like a local
radio station." Hannah Sassaman, program director of the Prometheus
Radio Project, calls what's happened to broadcasting "an orgy of
consolidation. ... We want to keep the FM dial as open as it can be."
http://www.pennlive.com/news/patriotnews/index.ssf?/base/news/1171940137...

ANTITRUST ISSUE BLOCKED ECHOSTAR-DIRECTV DEAL
[SOURCE: Rocky Mountain News, AUTHOR: Joyzelle Davis]
The last time two satellite giants tried to merge, the same antitrust
concerns that analysts raise with the proposed XM Satellite Radio and
Sirius marriage ultimately doomed the deal. In 2001, EchoStar made a
$26 billion bid to buy larger satellite-TV rival DirecTV from owner
General Motors. At the time, analysts put the odds of success at less
than 50 percent, saying that regulators likely would balk at the idea
of giving one company control of 91 percent of the U.S. satellite-TV
market. Turned out they were right. The Federal Communications
Commission ruled against it, then the U.S. Justice Department and 23
states filed suit to block the merger. Rupert Murdoch's News Corp.,
which ardently lobbied against the EchoStar-DirecTV union on
antitrust grounds, ultimately swooped in to buy DirecTV in 2003.
http://www.rockymountainnews.com/drmn/tech/article/0,2777,DRMN_23910_536...
* Shift on Antitrust Issues May Aid Sirius-XM Deal
http://www.nytimes.com/2007/02/21/business/media/21radio.html
* Satellite Radio in Canada Faces Its Own Uncertainties
[SOURCE: New York Times, AUTHOR: Ian Austen]
While many questions surround the planned merger of the XM and Sirius
satellite radio systems in the United States, the situation for the
two companies' Canadian affiliates may be, if anything, more
uncertain. Because Canadian rules ban foreign ownership of
broadcasters, two Canadian-owned companies began offering the XM and
Sirius services, with some additional Canadian content, in late 2005.
The companies, Sirius Canada and Canadian Satellite Radio Holdings,
have not discussed a merger of their own, but technology and
programming changes resulting from any deal in the United States
would probably force them to combine. As in the United States, any
such merger would face intense regulatory scrutiny.
http://www.nytimes.com/2007/02/21/business/worldbusiness/21canada.html
(requires registration)
* Making Radio Waves
The Sirius-XM merger and the ghost of satellite TV.
http://online.wsj.com/article/SB117203002192914568.html?mod=todays_us_op...
* Sirius-XM's Fate Hinges on Definitions
http://online.wsj.com/article/SB117199641424913829.html?mod=todays_us_ma...
* XM-Sirius Merger Hinges on FCC Ownership Rule
http://www.washingtonpost.com/wp-dyn/content/article/2007/02/20/AR200702...
* What would a satellite radio merger mean?
Answers to consumers' questions
http://www.usatoday.com/printedition/money/20070221/satradio21.art.htm
* How Sirius-XM Deal Would Affect Listeners
http://online.wsj.com/article/SB117202490243714421.html?mod=todays_us_pe...
(requires subscription)

CHILDREN & MEDIA

WOULD C-SPAN COUNT?
[SOURCE: Los Angeles Times 2/19, AUTHOR: Editorial Staff]
[Commentary] Responding to a request from lawmakers, the Federal
Communications Commission has drafted a report outlining what
Congress might do to curb excessively violent programs. Objectionably
violent shows, it says, could be banned during the hours that
children are most likely to be watching TV (6 a.m. to 10 p.m.), just
as indecent programming is. Congress could force cable operators to
sell channels on an a la carte basis, rather than bundling them into
packages that can't be customized. And the difficult task of defining
excessive violence could be done by the federal government without
violating the 1st Amendment. There's plenty of evidence that
television shows are more graphically violent than ever, both on
cable networks and on free over-the-air TV. Simply noting this
problem, however, doesn't prove that government censorship can solve
it. Requiring programs such as "24" to be aired after 10 p.m.
wouldn't stop kids from watching a recorded version the next
afternoon. Nor would it have much effect on the Internet, where
networks are posting a growing number of reruns for viewers to watch
on demand. And it's hard to imagine Congress barring news programs
before 10 p.m., and there's no shortage of violence on the news. The
government shouldn't be making these calls; parents should. Online,
there's plenty of help for parents trying to identify inappropriate
shows for their kids, and there's technology in every TV set, cable
converter box and satellite receiver to help screen out violent
programming. If they still don't like how much violence their TV is
bringing into their home, they should just turn it off.
http://www.latimes.com/news/opinion/editorials/la-ed-fcc19feb19,0,309078...
(requires registration)
* As TV indecency issue drags on, violence debate brews
http://www.courier-journal.com/apps/pbcs.dll/article?AID=/20070216/COLUM...
** For more see http://www.benton.org/index.php?q=node/4866 **

JOBS, DELL APPRAISE TECHNOLOGY, SCHOOL
[SOURCE: eSchool News]
In a joint appearance in front of executives and educational
technology advocates at a statewide summit in Texas Feb. 16, Apple
CEO Steve Jobs and Dell CEO Michael Dell shared their views on the
role of educational technology in preparing students for the
challenges of the 21st century. Jobs, who says schools should operate
more like businesses, criticized teacher unions for exerting too much
control over the personnel process. Dell talked about the importance
of 21st century skills and highlighted a new web site where Dell
customers, including educators, can make suggestions for improving
the company's products and services.
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=6875

ADVERTISING

AD AVOIDERS
[SOURCE: MediaWeek, AUTHOR: Mike Shields]
Lifestyles of the Ad Averse, a new study conducted jointly by
Microsoft and Starcom, finds that between 10 percent and 15 percent
of adults 17-35 fall into the category of "ad avoiders" i.e. folks
that don't like advertising, and generally find it "annoying."
Apparently there are two types of ad avoiders: passive avoiders who
simply can't be bothered with ads, and active avoiders, whose message
to advertisers is "be good or be gone." The active group is more
likely to be young, tech-savvy men who deliberately consume media
that has no ads, like DVDs and satellite radio. The passive group is
comprised of women, often parents, who gravitate to leisure
activities that are untouched by ads, such as books or board games.
Avoiders of all stripes represent a scary prospect for marketers.
"This is the kind of stuff that keeps us up at night," said Beth
Uyenco Shatto, research director at Microsoft. Both groups' habits
make them hard to reach by conventional means. Twelve percent of
avoiders surveyed said they watch less than one hour of TV per week
versus just 3 percent among non-avoiders. Both index low for
listening to the radio and reading magazines. And technology like
DVRs and the iPod is only making it easier for these avoiders to shun ads.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=10035...

ROMNEY TO AIR PRESIDENTIAL CAMPAIGN AD
[SOURCE: Associated Press 2/20, AUTHOR: Glen Johnson]
Republican Mitt Romney, flush with cash from early fundraising, this
week will air his first presidential campaign ad to introduce himself
to voters in several early voting states. The ad is set to air
starting Wednesday. It will rotate between Iowa, New Hampshire, South
Carolina, Michigan and Florida. It is the first ad by a top-tier
contender in a campaign experts believe will cost more than $1
billion by the time it ends in November 2008. Fellow Republican
Duncan Hunter, a California congressman staging a long-shot bid for
the presidency, aired the first ad of either major party in December
with a limited buy in South Carolina, North Carolina and South Dakota.
http://abcnews.go.com/Politics/wireStory?id=2888520&CMP=OTC-RSSFeeds0312
* Romney Mounting an Early Presidential Ad Campaign
http://www.nytimes.com/2007/02/21/us/politics/21romney.html

UNIVERSAL SERVICE

LIFELINE ACROSS AMERICA
[SOURCE: Federal Communications Commission]
The joint Federal Communications Commission, the National Association
of Regulatory Utility Commissioners (NARUC), and the National
Association of State Utility Consumer Advocates (NASUCA) "Lifeline
Across America" Working Group announced enhancements to outreach on
the Lifeline and Link-Up programs for income eligible
consumers. Based on input received in 2006 from sources across the
country, the Working Group has initiated several new outreach
projects: 1) To assist social service and other consumer-related
agencies in reaching out within their communities, the Working Group
has developed and posted on its Web site (www.lifeline.gov) an
"outreach tool kit" for Lifeline and Link-Up. 2) The Working Group
has begun coordination with several key national organizations, e.g.,
the National Association of Social Workers, that serve low-income
consumers to ensure the broadest possible distribution of current and
accurate information. 3) The Working Group has begun coordination on
Lifeline and Link-Up with key Regional Economic Development
Organizations. 4) All ninety FCC Consumer Advocacy and Mediation
Specialists who answer consumer calls have been provided updated
training on federal and state Lifeline and Link-Up programs with
the assistance of the Universal Service Administrative Company. 5) A
plan for greater outreach on tribal lands has been developed in
conjunction with the FCC's Tribal Liaison.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270687A1.doc
* Report of the FCC/NARUC/NASUCA Working Group on Lifeline and Link-Up
http://www.lifeline.gov/LLLUReport.pdf

QUICKLY

TWELVE-STEP PROGRAM AIMS TO CURE E-MAIL ADDICTION
[SOURCE: Reuters, AUTHOR: Jon Hurdle]
An executive coach in Pennsylvania has devised a plan to teach people
how to manage e-mail, which some users say can be as much an
intrusive waste of time as it is fast-paced and efficient. Step 1:
"admit that e-mail is managing you. Let go of your need to check
e-mail every 10 minutes." Other steps include "commit to keeping your
inbox empty," "establish regular times to review your e-mail" and
"deal immediately with any e-mail that can be handled in two minutes
or less but create a file for mails that will take longer."
http://www.reuters.com/article/internetNews/idUSN1943527720070220
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While the summaries are factually accurate, their often informal tone
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Headlines are compiled by Kevin Taglang headlines( at )benton.org -- we
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