March 2007

Don't forget these events on today's agenda: a discussion of wireless
Net Neutrality; Columbus (OH) gets it say in the Media Ownership
debate; and the House Telecom Committee discusses the future of radio
(http://energycommerce.house.gov/membios/schedule.shtml).
For these and other upcoming media policy events, see http://www.benton.org

TELEVISION
FCC should help make TV a more local product again
In their TV tastes, the rich are different

MEDIA OWNERSHIP
FCC Chief Questioning Radio Deal
Nonprofit Takes On Big Media
Zell gains traction in bid for Tribune

INTERNET/BROADBAND
The End Of Internet Radio As We Know It
Maryland Attorney General Warns On 'Network Neutrality' Bill
Wi-Fi Way to Shrink Digital Divide, Say Big-City CIOs

LEGISLATION
Inouye, Stevens Introduce Competitiveness Bill

ADVERTISING
Too Soon? Two-Year Prez Race Could Lead to Marketing Miscues, Burnout

EMERGENCY COMMUNICATIONS
Radio System for NYC Subways Gets a Rebuff

JOURNALISM
A Case of Bad Ink: Portrait of Media Is Not So Flattering
Most feel media set bad moral example

QUICKLY -- A look back at many years of stops along 'information
superhighway'; Thailand Shuts TV Broadcaster

TELEVISION

FCC SHOULD HELP MAKE TV A MORE LOCAL PRODUCT AGAIN
[SOURCE: Cincinnati Enquirer, AUTHOR: Chuck Fries]
[Commentary] To say that a lot has changed about television is an
obvious understatement. In addition to new technologies, there are
new rules that tilt the balance from the public interest and
independent ideas to mass consolidation and corporate control. The
independent producer, writer and director have been effectively
locked out. The focus has shifted away from local communities and
independent voices. The rules that allowed these shifts have helped
some very large corporations, but they have hurt creators and
communities. Even as technology and laws have changed, the basic
elements of television have not. The airwaves still belong to the
public, and in exchange for the privilege of using those airwaves
broadcasters have a responsibility to the public and local
communities. The best programming still comes from independent
artists and entertainers whose main concern is creating quality
entertainment. The FCC should stop the consolidation where it is,
require broadcasters to give more than lip service to public service,
and find ways to again make TV a place where a kid from Cincinnati
can grow up to create and own the product of his work in educational,
entertaining and independent television.
http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070306/EDIT02/7030...

IN THEIR TV TASTES, THE RICH ARE DIFFERENT
[SOURCE: Media Life, AUTHOR: Kevin Downey]
Let me tell you about the very rich. They are different from you and
me... according to a report from Magna Global, using analysis of
Nielsen Media Research ratings, the rich have their tastes in TV
programming, too. Programs enjoyed by the very rich include ABC's
"Saturday Night Football" and "What About Brian" as well as NBC's
"Friday Night" and "30 Rock." All four rank in the top 15 among
affluent viewers measured on median income, but none ranks higher
than 80th among the general household population. While a couple of
the shows matched with the general viewing public's favorites, like
No. 1 "Desperate Housewives," most were quite different. That skew in
preferences is also seen in the networks favored by rich viewers.
Though NBC has slid from first to fourth place in 18-49s over the
past few years, it ranks No. 2 in median household income behind only
ABC, and it has seven of the top 20 shows in median income.
http://www.medialifemagazine.com/artman/publish/article_10573.asp

MEDIA OWNERSHIP

FCC CHIEF QUESTIONING RADIO DEAL
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
FCC Chairman Kevin Martin has privately questioned recent
Congressional testimony by Mel Karmazin, the architect of a proposed
merger of the nation's two satellite radio companies XM and
Sirius, that subscribers would both pay the same monthly rate and
receive significantly more programming. Chairman Martin said that
subscribers may be surprised to learn they may actually have to pay
more than the current monthly rate of $12.95 if, for example, they
want to receive all the games of Major League Baseball (now available
only on XM) as well as all the professional football games (now only
on Sirius). Karmazin said his testimony was not misleading and that
he meant to say two things: subscribers wanting to keep their
existing service would not face a price increase, and listeners who
wanted the best of both services would pay less than the combined
rate of $25.90. Chairman Martin suggested that the details had not
been clear from the testimony. He emphasized that he was not
questioning the motives or candor of Karmazin but that there was "a
need for greater clarity" over what was being proposed for fees and
programming. The two people who talked to Chairman Martin -- one
working to get the deal done and the other a critic -- said they
understood his comments to reflect his skepticism about both the deal
and the way it was being sold in Washington as more beneficial to
consumers than it might actually be.
http://www.nytimes.com/2007/03/07/business/media/07radio.html
(requires registration)
See also --
* A merged satellite radio still isn't free
[SOURCE: San Francisco Chronicle 3/6, AUTHOR: William J. Drummond,
National Public Radio]
[Commentary] For the last five years, XM and Sirius have been
competing for leadership in an industry that has barely pulled
together a total audience of 13.6 million listeners. Compared to the
audience for conventional radio (estimated at 282 million listeners a
week, or 77 percent of the U.S. population), satellite radio is
anemic. Meanwhile, Apple's iPod and other MP3 players are being sold
at a rate of more than 30 million per year. Today's college
generation are impatient; they want it right now, and they want it for cheap.
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2007/0...

NONPROFIT TAKES ON BIG MEDIA
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz Amy.Schatz( at )wsj.com]
Mr Silver, we're ready for your close-up. Kevin Martin, the
Republican chairman of the Federal Communications Commission, wants
to loosen existing ownership limits on newspapers and broadcasters to
allow them to own both in most markets. But his efforts have stalled,
the result of a surprisingly energetic grass-roots opposition
campaign guided by Free Press, a nonprofit with offices in Washington
and Northampton, Mass. For a relatively low-profile organization,
Free Press is on a roll. Four years ago, it used old-fashioned
grassroots organizing, along with basic Internet tools, to help
derail the FCC's years-long effort to relax media ownership rules.
Last year, the group thwarted a multi-million dollar lobbying effort
by the Baby Bells to rewrite the nation's telecom laws over "net
neutrality," the idea that Internet providers can't discriminate
against any Internet traffic. Progressive, left-leaning grass-roots
activists have gotten more attention for their opposition against the
Iraq war, but their bigger impact may have been on national media
regulations and telecom policies. By mobilizing the progressive left
to focus on media and telecom issues, Free Press has effectively
blocked some of the most-wanted issues on corporate wish-lists. (Nice
hair, Josh.)
http://online.wsj.com/article/SB117322652114528926.html?mod=todays_us_pa...
(requires subscription)

ZELL GAINS TRACTION IN BID FOR TRIBUNE
[SOURCE: Los Angeles Times, AUTHOR: James Rainey]
Sam Zell, a Chicago real estate magnate who made a fortune by turning
around distressed properties, has emerged as a strong contender to
buy the Tribune Company. His bid is getting serious consideration
because it could buy out the disgruntled Chandler family of
California and take the company private. That scenario is attractive
to Tribune management because it would remove the company from the
pressure of Wall Street investors. The media conglomerate's financial
representatives have been negotiating with Zell in an effort to drive
up the value of his offer.
http://www.latimes.com/business/printedition/la-fi-tribune7mar07,1,79912...
(requires registration)

INTERNET/BROADBAND

THE END OF INTERNET RADIO AS WE KNOW IT
[SOURCE: ConsumerAffairs.Com, AUTHOR: Martin H. Bosworth]
The U.S. Copyright Royalty Board (CRB) has endorsed a plan by
SoundExchange, the royalty-collections division of the Recording
Industry Association of America (RIAA), to retroactively raise the
fees Internet radio broadcasters must pay to broadcast their music.
The royalty increases are so high that many Web-based radio stations
will have to go out of business or dramatically increase advertising
to cover the royalty fees. "It's the end of Internet radio as we know
it," one broadcaster fumed. "The RIAA wants to put us all out of
business." The CRB's new royalty structure begins at $.0008 per
performance, retroactive to January of 2006. While that may not seem
like a lot at first, the CRB decision defines "per performance" for
Web radio as streaming one song to one listener. Kurt Hanson, writing
for his Radio And Internet Newsletter (RAIN), calculated that an
average Web radio station that plays 16 songs per hour would owe 1.28
cents per listener per hour. And the more listeners per hour, the
more royalty fees the station would have to pay, "in the ballpark of
100% or more of total revenues," according to Hanson. The rates would
continue to increase each year. In 2007, Web broadcasters would owe
$.0011, $.0014 in 2008, $.0018 in 2009, and $.0019 in 2010. Those
royalty fees only cover the actual broadcast of the songs to
listeners -- the station owners would also have to pay royalties to
the performers as well.
http://www.consumeraffairs.com/news04/2007/03/internet_radio.html
* Royalty-Rate Hike Alarms Web Broadcasters
http://online.wsj.com/article/SB117322905572428972.html?mod=todays_us_ma...
* Internet radio stations face fee hike
http://www.latimes.com/business/printedition/la-fi-radio7mar07,1,5493891...

MD ATTORNEY GENERAL WARNS ON 'NETWORK NEUTRALITY' BILL
[SOURCE: Technology Daily, AUTHOR: Michael Martinez]
Legislation in Maryland aimed at keeping Internet operators from
prioritizing high-speed traffic may raise significant constitutional
issues, according to the state's top law enforcer. In a letter to
Maryland Delegate Mary Ann Love, state Attorney General Douglas
Gansler said that a network neutrality proposal introduced earlier
this month could violate the Commerce Clause of the U.S. Constitution
if it is read as a regulatory measure. Delegate Love contacted AG
Gansler seeking advice on a bill, H.B. 1069, authored by state
Delegate Herman Taylor that would require broadband providers to
submit regular reports to the state's Public Utilities Commission on
the price and accessibility of their services. The measure is
designed to ensure that network operators do not charge content
providers premium rates for high-speed access. FCC regulations and
statements "have not expressly pre-empted state regulations of
broadband providers," Gansler wrote. He added, "However, it seems
likely that the FCC would conclude that imposition of
common-carrier-like requirements such as those in the first portion
of [H.B. 1069] would stand as full purposes and objections of the
FCC, arguably those of Congress as well."
http://www.njtelecomupdate.com/lenya/telco/live/tb-ECCT1173211355989.html

WI-FI WAY TO SHRINK DIGITAL DIVIDE, SAY BIG-CITY CIOS
[SOURCE: SearchCIO.com, AUTHOR: Shamus McGillicuddy]
When it comes to deploying wireless infrastructure, city CIOs have
more than difficult technology puzzles and political battles to
solve. They also have to find a way to make their mayors' idealistic
policies a reality.
http://searchcio.techtarget.com/originalContent/0,289142,sid19_gci124538...

LEGISLATION

INOUYE, STEVENS INTRODUCE COMPETITIVENESS BILL
[SOURCE: US Senate Commerce Committee]
Commerce Committee Chairman Daniel K. Inouye (D-Hawaii) and Vice
Chairman Ted Stevens (R-Alaska) introduced legislation Monday with
Leadership and Committee Members that would increase science research
investment; strengthen educational opportunities in science,
technology, engineering and mathematics; and develop an innovation
infrastructure. The bill would double funding to the National Science
Foundation and Department of Energy's Office of Science. It would
also direct the National Aeronautic and Space Administration to
increase basic research and the National Oceanic and Atmospheric
Administration to promote leadership in the ocean and atmospheric
research fields. The America COMPETES ACT authorizes grants for the
expansion and promotion of math and science education programs from
elementary through graduate school. Recent reports have shown a
decline in U.S. student participation in the math and science fields,
and as a result a decline in the U.S.'s competitive edge. The bill
would combat this trend by expanding math and science opportunities
in schools, encouraging scholarship programs for math, science and
engineering students, and facilitating education partnerships with
the National Science Foundation and the National Laboratories. The
original cosponsors of the bill include: Majority Leader Harry Reid
(D-Nev.), Minority Leader Mitch McConnell (R-Ky.), and Senators Jeff
Bingaman (D-N.M.), Pete V. Dominici (R-N.M.), Edward M. Kennedy
(D-Mass.), Michael B. Enzi (R-Wyo.), Joseph I. Lieberman (ID-Conn.),
John Ensign (R-Nev.), Barbara A. Mikulski (D-Md.), Bill Nelson
(D-Fla.), and Kay Bailey Hutchison (R-Texas).
http://commerce.senate.gov/public/index.cfm?FuseAction=PressReleases.Det...

ADVERTISING

TOO SOON? TWO-YEAR PREZ RACE COULD LEAD TO MARKETING MISCUES, BURNOUT
[SOURCE: AdAge, AUTHOR: Ira Teinowitz]
It's only the third month of 2007, but the race is well under way to
see who'll get the keys to the White House come January 2009. At a
point in previous election cycles when the forerunners were just
getting ready to declare, the major candidates this time around will
already have raised $20 million -- each -- and suffered through any
number of ups and downs in the media. Is it too much, too soon? Is it
illogical and unhealthy for democracy, something that will lead to
public burnout and raise new financial bars for future candidates? Or
is it simply a function of new media and the ultimate vindication for
the strategy pioneered by Howard Dean in 2004?
http://adage.com/article?article_id=115359

EMERGENCY COMMUNICATIONS

RADIO SYSTEM FOR NYC SUBWAYS GETS REBUFF
[SOURCE: New York Times, AUTHOR: William Neuman]
First, the Police Department refused to use a $140 million system
built by the Metropolitan Transportation Authority to carry its radio
signals underground in the subway. Now, the Fire Department has also
given the system a failing grade, saying it is permeated with "dead
spots" where radio signals do not reach. It is a setback for the
authority, which built the system and had defended its work by saying
that despite the rejection of police officials, the Fire Department
was using the system and was pleased with its performance. That is no
longer the case. The Fire Department is preparing to circulate a memo
to fire units this week which, in a draft provided by the department,
says that "after many months of testing" it has concluded that the
subway radio system does not "uphold the communications and safety
standards of the F.D.N.Y."
http://www.nytimes.com/2007/03/07/nyregion/07mta.html
(requires registration)

JOURNALISM

A CASE OF BAD INK: PORTRAIT OF MEDIA IS NOT SO FLATTERING
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
The parade of high-profile Washington journalists who took the stand
in the Lewis "Scooter" Libby perjury case were not on trial. But few
would dispute that the proceedings, which ended with Libby's
conviction on four of five counts yesterday, gave their profession a
black eye. When Vice President Cheney's chief of staff and other top
administration officials wanted to neutralize a critic by disclosing
his wife's role at the CIA, they turned to some of the capital's most
prominent chroniclers, who -- under longstanding local custom --
promised the leakers anonymity. Said Jim Warren, a Chicago Tribune
managing editor, "This was a nice little window into the mutual
obsession with one another. There's the infatuation with power which
we all have and which was vividly underscored, especially those of us
at elite institutions."
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/06/AR200703...
(requires registration)

MOST FEEL MEDIA SET BAD MORAL EXAMPLE
[SOURCE: USAToday]
A new survey examining America's values and the influence of the
media finds that 68%, including majorities of virtually every
demographic group, say the media -- entertainment and news alike --
are having a detrimental effect on moral values in America. It's a
finding that fits with the sponsor's mission: The Culture and Media
Institute, based in Alexandria, Va., says its aim is to "preserve and
help restore America's culture, character, traditional values, and
morals against the assault of the liberal media elite." The National
Cultural Values Survey is based on a survey of 2,000 adults. It finds
the nation divided among: The "Orthodox" (31%), who are the most
religiously observant people and overwhelmingly want government
policies to reflect religious values; "Independents" (46%), who judge
by situations rather than seeing moral issues in black and white; and
"Progressives" (17%), who have a secular value system.
http://www.usatoday.com/printedition/life/20070307/bl_line07.art.htm
* For more see http://www.cultureandmediainstitute.org/

QUICKLY

A LOOK BACK AT MANY YEARS OF STOPS ALONG THE 'INFORMATION SUPERHIGHWAY'
[SOURCE: USAToday, AUTHOR: Kevin Maney]
[Commentary] A reflection on changes in information technology since 1991.
http://www.usatoday.com/printedition/money/20070307/maney_07.art.htm

THAILAND SHUTS TV BROADCASTER
[SOURCE: Associated Press]
Thailand's government shuttered the country's only privately owned
television broadcaster. ITV PCL's license to broadcast was suspended
after the company failed to pay fines and penalties. ITV is part of a
conglomerate that former Premier Thaksin Shinawatra's family sold
last year to an investor group led by Singapore's Temasek Holdings.
http://online.wsj.com/article/SB117323863682929225.html?mod=todays_us_pa...
(requires subscription)
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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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