April 2007

JOURNALISM
Overwhelming News, Except in Prime Time
Why ignoring our northern neighbor matters
The Crisis of Consolidation in Bay Area News Media
Yahoo Strikes Ad Deal With More Papers
Top 10 Most Powerful People in TV News 2007

BROADCASTING
Imus Mess Makes Arbiters of Advertisers
Poll: Americans Support Imus' Firing
Markey Wants to Put Kids TV On Ad Diet
Sharpton Asks FCC to Regulate Rap
PTC Pans Content Descriptors
FCC renews L.A. station's license despite rival protest
Landrieu Praises Broadcasters
NAB=92s Rehr: Cable Operators Discriminate
NBC Rejoins NAB

OWNERSHIP
Clear Channel gives Tate Talking Points Against XM-Sirius merger
Google plan raises privacy issue
Time Warner to Explore Reducing Cable Stake
Threat for Big Media: Guerrilla Video Sites
Webcasters are denied rehearing on royalties
The Media Cornucopia

TELECOM
For Telecom Firms, Wireless Strength To Offset Line Losses
AT&T Drops Offer to Invest in Italian Phone Company

INTERNET
House to Vote on Bill to Ban Web Site Names That Resemble
Those of U.S. Agencies
Days numbered for tax-free Net sales
Americans mixed about constant Net access, poll finds
Senate Broadband Hearing

JOURNALISM

OVERWHELMING NEWS, EXCEPT IN PRIME TIME
[SOURCE: Washington Post, AUTHOR: Paul Farhi]
On the night after the deadliest shooting spree=20
in American history, the nation's most popular TV=20
networks weren't covering the grim news during=20
their prime-time hours. Instead, it was escapism=20
as usual: ABC had "Dancing With the Stars" and=20
"The Bachelor," Fox carried "24," CBS stuck with=20
"Two and a Half Men," and NBC showed "Deal or No=20
Deal." Which raises a question: Just how big does=20
a story have to be these days to get the=20
broadcast networks to pay attention during their=20
most watched hours? More than a decade ago, faced=20
with declining audiences and the choices of=20
airing more profitable sitcoms and dramas, the=20
networks began to cut back on coverage of the=20
political conventions, presidential addresses and=20
election-night results. More often than not, entertainment, not news, rules.
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/16/AR200704...
1830.html
(requires registration)
-- See also --
* Channel 9 to Shut Its 'Eye on Washington'
[SOURCE: Washington Post, AUTHOR: John Maynard]
Washington (DC) TV station WUSA is pulling the=20
plug on its weekend political round-table show,=20
"Eye on Washington." The national public affairs=20
show and the Saturday half-hour local newscast=20
that followed will be replaced by "Entertainment Tonight."
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/16/AR200704...
1809.html
(requires registration)

WHY IGNORING OUR NORTHERN MATTERS
[SOURCE: Miami Herald, AUTHOR: Edward Wasserman]
[Commentary] Amid all the wailing over the=20
decline of U.S. journalism, word that The=20
Washington Post is shutting its Toronto bureau=20
was barely audible. The Post follows The New York=20
Times, Wall Street Journal, Chicago Tribune and=20
Los Angeles Times in ending full-time coverage of=20
this country's northern neighbor. By this summer,=20
The Toronto Star reports, no U.S. newspaper will=20
have a staff correspondent in Canada. So why=20
should you care? After all, if Canada were=20
brimming with news U.S. readers would naturally=20
demand to know what was happening there, and=20
metro papers here would oblige. But by=20
conventional U.S. standards of newsworthiness=20
Canada is a nullity. If it's true, as Churchill=20
remarked of the Balkans, that some places produce=20
more history than they consume, Canada would be=20
the opposite, a black hole that imports trends,=20
culture, politics, histories from elsewhere --=20
from Scotland, England, France, the United States=20
and, lately, the West Indies and South Asia --=20
and emits no perceptible light. At least that=20
would be the explanation a budget-minded U.S.=20
news executive might offer. The problem with that=20
is that it says more about the wafer-thin=20
imagination of our journalists than the realities=20
of contemporary Canada. And I think it also says=20
something about the weirdly selective way in=20
which our media deem certain parts of the world worthy of notice.
http://www.miamiherald.com/851/story/75279.html

THE CRISIS OF CONSOLIDATION IN BAY AREA NEWS MEDIA
[SOURCE: Grade the News, AUTHOR: Philip J. Trounstine]
[Commentary] The core counties of the San=20
Francisco Bay Area -- Alameda, Contra Costa,=20
Marin, San Francisco, San Mateo and Santa Clara=20
and the contiguous portion of Solano County =96=20
have a population of about six million people. In=20
addition to their seven county governments, they=20
include scores of cities, towns, sheriff=92s and=20
police departments; school boards, planning=20
commissions, municipal and superior courts;=20
universities and community colleges; water, solid=20
waste and air boards; transportation commissions=20
and public utility, weed-abatement and mosquito=20
control boards, and many more government bodies.=20
In this region, one newspaper company --=20
MediaNews -- owns or controls every=20
paid-subscription daily newspaper except for the=20
San Francisco Chronicle. Should the San Francisco=20
Chronicle become a part or party to this news=20
consortium, coverage of virtually every level of=20
government, education, sports, criminal justice,=20
arts and business would be in the hands of one=20
organization with a single set of principles, perspectives and purposes.
http://www.gradethenews.org/commentaries/Trounstine.htm

YAHOO STRIKES AD DEAL WITH MORE PAPERS
[SOURCE: New York Times, AUTHOR: Miguel Helft]
After a flurry of deal making over the last few=20
days, Google and Yahoo, two giants of the online=20
advertising business, are set to encroach on each=20
other=92s turf even more aggressively than before.=20
On Monday, Yahoo announced a broad deal with=20
publishers representing 264 newspapers to sell=20
national advertising across their Web sites. It=20
may be the clearest sign to date of the company=92s=20
efforts to extend its advertising platform beyond=20
the panoply of Yahoo sites. The move follows=20
Google=92s announcement on Friday of its plans to=20
acquire DoubleClick for $3.1 billion, a bold move=20
into the market to deliver display and graphical=20
advertising to Web sites. It is a business that=20
Yahoo dominates, and one in which Google =97 the=20
leader in search-based text advertisements =97 has failed to gain much trac=
tion.
http://www.nytimes.com/2007/04/17/technology/17search.html
(requires registration)
* McClatchy Newspapers Join Yahoo's Ad-Sharing Alliance
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/16/AR200704...
0540.html

TOP 10 MOST POWERFUL PEOPLE IN TV NEWS 2007
[SOURCE: TVWeek, AUTHOR: Michele Greppi]
Who does TelevisionWeek think are the most=20
powerful people in TV news? 1. Roger Ailes,=20
Chairman and CEO of Fox News 2. Steve Capus,=20
President of NBC News 3. Charles Gibson, Anchor,=20
ABC's 'World News' 4. David Westin, President of=20
ABC News 5. Tim Russert, Managing editor and=20
moderator of 'Meet the Press' and senior VP and=20
Washington bureau chief for NBC News 6. Keith=20
Olbermann, Host of MSNBC's 'Countdown With Keith=20
Olbermann' 7. Sean McManus, President of CBS News=20
8. Jon Klein, President of CNN/U.S.; Ken Jautz,=20
Executive VP of CNN Worldwide; Jim Walton,=20
President of CNN Worldwide 9. N.S. Bienstock,=20
Talent agency 10. Jon Stewart, Anchor of Comedy Central's 'The Daily Show'
http://www.tvweek.com/article.cms?articleId=3D31796
(requires free registration)

BROADCASTING

IMUS MESS MAKES ARBITERS OF ADVERTISERS
[SOURCE: AdAge, AUTHOR: Andrew Hampp]
Procter & Gamble was the first to walk away from=20
Don Imus on April 6 -- yes, that was the Friday=20
before the media frenzy erupted and almost a full=20
week before the radio host's corporate bosses=20
realized they had no choice but to pull the plug=20
on the curmudgeon's show. If the whole Imus=20
debacle tells us anything, it is that today the=20
marketers are truly the reigning power in the=20
fragmented media world. The week's events=20
underscored what many pressure groups had proved=20
in similar content controversies -- that the best=20
way to effect change in media is to go after the=20
ad dollars. There are so many media options today=20
that it is easier for a marketer to pull out of a=20
media outlet than put up with the negative=20
publicity and the risk of a fall-off in sales.=20
What's more, marketers have grown accustomed to=20
those who have grievances about media content=20
clogging up their inboxes and switchboards.=20
Hence, P&G getting out of "Imus" two days after=20
he first made his "idiot comment meant to be=20
amusing" about the Rutgers women's basketball=20
team; well before Al Sharpton arrived on the=20
scene; and at a time when only a small handful of=20
media outlets had even reported the incident.
http://adage.com/mediaworks/article?article_id=3D116102
* No Love Lost: Imus Ouster Heralds End of 'Hate Media'
[Commentary] "Whenever they take out one of the=20
poster boys, it means it's a moment in time --=20
the end of an era. But forget the circus, forget=20
the core cast of characters; the two stars here=20
were the outcome and the rooting sections. Other=20
than his circle of friends, it seemed most were=20
rooting for Imus to be taken out on a stretcher,=20
not just because of the tantalizing blood-sport=20
appeal, but because this country is ready and=20
begging to be a less hateful land."
http://adage.com/article?article_id=3D116101
* Don Imus and the FCC: Should Hate Speech be Regulated?
http://www.techliberation.com/archives/042279.php
* Blame falls on us for putting up with demeaning language
http://www.wcfcourier.com/articles/2007/04/15/columnists/guest_column/48...
55b0ccf3e4b862572bc0066859b.txt
* That's not entertainment
[SOURCE: The Christian Science Monitor, AUTHOR: ]
[Commentary] Americans saw a good example last=20
week of the entertainment industry regulating=20
itself. After listening to critics, advertisers,=20
and its own employees, CBS fired radio host Don=20
Imus for his recent racist and sexist jab. Now,=20
if only more media executives could display such courage.
http://www.csmonitor.com/2007/0417/p08s01-comv.html
* Endless news cycle dumbs down America
http://www.courierpostonline.com/apps/pbcs.dll/article?AID=3D/20070416/C...
MNISTS19/704160302/1005/OPINION

POLL: AMERICANS SUPPORT IMUS' FIRING
[SOURCE: Washington Post, AUTHOR: Jon Cohen and Jennifer Agiesta]
Americans by a narrow margin agree that Don Imus=20
should have lost his nationally syndicated radio=20
show last week, but while whites are evenly=20
divided on the issue a sizeable majority of=20
African Americans support the firing, according=20
to a poll. Overall, 51 percent of respondents in=20
the new Washington Post-ABC News poll said Imus=20
should have been fired for making racially=20
insensitive comments about black women basketball=20
players from Rutgers University; 45 percent said=20
he should have kept his job. However, that rough=20
parity on the issue masks deep racial and=20
significant gender divides. Whites were evenly=20
split in the poll on Imus' firing, with 47=20
percent supporting CBS Radio's decision and 49=20
percent opposed. By contrast, more than seven in=20
10 blacks said he should have been fired over the=20
incident. And 55 percent of women thought Imus=20
should have lost his job, compared to 48 percent=20
of men who agreed with that outcome. Among black=20
women, 70 percent said Imus should have lost his show over his remarks.
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/16/AR200704...
0361.html?nav=3Drss_opinion/columns
(requires registration)

MARKEY WANTS TO PUT KIDS TV ON AD DIET
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Rep Ed Markey (D-MA), in a letter to FCC Chairman=20
Kevin Martin and Commissioners Deborah Tate and=20
Michael Copps, suggests that unless there is a=20
"dramatic and swift elimination of advertisements=20
for "junk food" during kids shows, the FCC should=20
reduce the number of commercial minutes=20
allowed--currently capped at 10.5 minutes per=20
hour on weekends and 12 on weekends, and discount=20
educational shows from counting toward a=20
station's FCC-friendly kids quotas. "If a "core"=20
educational program tells kids to eat healthy=20
foods and exercise, but the advertisements aired=20
during the program encourage them to eat Twinkies=20
and Fruit Loops, the ads have the potential to=20
undercut the educational and informative value,"=20
he argues. Rep Markey cites his Children's=20
Television Act as giving the FCC the power to=20
restrict the ads. He gave the three until May 4=20
to tell him 1) whether they had examined other=20
countries' efforts to combat childhood obesity,=20
2) whether they think the commission should limit=20
or eliminate food ads on TV watched by kids, 3)=20
whether they supported disqualifying educational=20
shows with "junk food" ads from the FCC-friendly=20
moniker, 4) and what other ideas they have for=20
flexing the FCC's muscle to ensure station=20
licensees aren't making the obesity and poor nutrition problems worse.
http://www.broadcastingcable.com/article/CA6434327.html
-- See also --
* FTC Takes Issue with Food Marketing to Kids
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
The Federal Trade Commission intends to issue=20
compulsory requests for information about food=20
marketing to kids=97 much of it on TV=97 to a broad=20
range of food, fast food and beverage marketers=20
as it tries to assess the breadth of the=20
marketing for a congressional report. Formal=20
notice of plans for the "compulsory process=20
orders" are expected to be announced in a public=20
notice this week, with individual company=20
requests likely being sent out this summer after=20
the FTC seeks public comment and its plan gets a=20
needed OK from the Office of Management and=20
Budget. FTC chairman Deborah Platt Majoras,=20
announced the plans in a little noted April 12=20
speech to the Food and Drug Law Institute saying=20
the FTC wants to gather a far more detailed view=20
of company food marketing practices to kids than has been readily available.
http://www.tvweek.com/news.cms?newsId=3D11891
(requires free registration)

SHARPTON ASKS FCC TO REGULATE RAP
[SOURCE: BET.com 3/25, AUTHOR: Tracy L. Scott]
The Rev. Al Sharpton took his message of=20
accountability for rap artists who glorify=20
violence to the Federal Communications=20
Commission. Sharpton recently launched a movement=20
to end the often violent lyrics associated with=20
hip-hop music. Sharpton asked that the FCC impose=20
fines on artists and radio stations that=20
=93encourage a pattern=94 of inciting violence. "What=20
has been absent is some kind of government move=20
to stop these actions happening on federally=20
regulated radio stations,=94 Sharpton said.=20
Sharpton has also suggested that the music of=20
artists who are involved in violent=20
confrontations =96 like those that allegedly led to=20
the deaths of Tupac Shakur and Biggie Smalls =96=20
should be banned from airplay on radio stations and TV for 90 days.
http://www.bet.com/News/tlscott_sharpton_fcc.htm?wbc_purpose=3DBasic&WBC...
E=3DPresentationUnpublished&mb=3D1

PTC PANS CONTENT DESCRIPTORS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Parents TV Council released a study to=20
coincide with the National Association of=20
Broadcasters convention Monday that takes aim at=20
the industry's v-chip/ratings system. PTC helped=20
prompt the FCC indecency crackdown with=20
complaints over broadcast programming and has an=20
ally in FCC Chairman Kevin Martin. In defending=20
its profanity rulings in court, the commission=20
has said the V-chip is in effective, in part=20
because of inconsistently applied ratings. That=20
was PTC's point Monday, arguing that the system=20
is "grossly unreliable" and pointing to a study=20
it said revealed that two-thirds of the shows=20
they had looked at didn't have the "appropriate content descriptors."
http://www.broadcastingcable.com/article/CA6434297.html

FCC RENEWS LA STATION'S LICENSE DESPITE RIVAL PROTEST
[SOURCE: Los Angeles Times, AUTHOR: Meg James]
The Federal Communications Commission has renewed=20
the license of Los Angeles Spanish-language=20
television station KAZA-TV Channel 54, denying an=20
unusual protest brought by rival broadcaster NBC=20
Universal. In November, NBC Universal, which owns=20
the Spanish-language Telemundo network, asked the=20
FCC to deny the license renewal by invoking a=20
rarely used morals clause. Among other things,=20
NBC Universal alleged that Mexico's=20
second-largest broadcaster, TV Azteca, which runs=20
the Los Angeles station, was corrupt and thus=20
lacked "the character qualifications" required by=20
federal law. But in a decision issued Friday, the=20
FCC said it would not consider issues of=20
misconduct outside the scope of its jurisdiction=20
unless the behavior was "so egregious as to shock=20
the conscious and evoke almost-universal=20
disapprobation." In this case, "we conclude that=20
none of the conduct at issue is disqualifying,"=20
the FCC said. NBC Universal, a unit of General=20
Electric Co., also charged that TV Azteca used=20
its power in Mexico to manipulate police into=20
raiding a studio where Telemundo was shooting a=20
show. However, the FCC said it was inappropriate=20
to intervene in a "private dispute" between NBC=20
Universal and TV Azteca, and extended the license=20
for the Los Angeles station to December 2014.=20
KAZA-TV is owned by Pappas Telecasting Co. of=20
Visalia, Calif., but is managed by TV Azteca.=20
Pappas is beginning to distance itself from TV=20
Azteca, announcing this month that it will=20
discontinue its relationship in major markets=20
such as Houston and San Francisco. The Pappas-TV=20
Azteca agreement in Los Angeles expires in 2008,=20
part of a complicated partnership that includes a=20
$129-million loan to Pappas from TV Azteca.
http://www.latimes.com/business/printedition/la-fi-azteca17apr17,1,68345...
story?coll=3Dla-headlines-pe-business
(requires registration)

LANDRIEU PRAISES BROADCASTERS
[SOURCE: Broadcasting&Cable, AUTHOR: Glen Dickson]
"I come here not to bury you, but to praise you."=20
Sen Mary Landrieu (D-LA) was full of praise for=20
broadcasters on Monday at a policy breakfast at=20
the NAB convention in Las Vegas. As reported=20
http://www.benton.org/index.php?q=3Dnode/5476yesterday,=20
she unveiled a bill that would give broadcasters=20
first responder status during emergencies in=20
terms of access to food, fuel and water. Sen=20
Landrieu said that Senate Commerce Committee=20
ranking Republican Ted Stevens (Alaska) had=20
agreed to co-sponsor the bill, and that a House=20
version was also being introduced. Sen Landrieu=20
drew applause when she said that the XM/Sirius=20
merger should not go through. Parting company=20
with some key Senate Democrats, Sen. L. Landrieu=20
said parents with access to the right information=20
and technology were in the best position to=20
shield children from television programming=20
loaded with indecent and violent content.
http://www.broadcastingcable.com/article/CA6434129.html
* Landrieu: Parents Best to Deal with TV Violence
http://www.multichannel.com/article/CA6434294.html

NAB'S REHR: CABLE OPERATORS DISCRIMINATE
[SOURCE: Multichannel News, AUTHOR: Tom Steinert-Threlkeld]
Cable operators should be recast as=20
discriminators against television broadcasters,=20
David K. Rehr, CEO of the National Association of=20
Broadcasters, said Monday morning. Two issues --=20
multicast must-carry and downconversion -- should=20
be restated before Congress, the Federal=20
Communications Commission and other policy makers=20
as forms of prejudice against broadcasters, Rehr=20
said in his keynote address at the NAB2007=20
convention at the Las Vegas Hilton hotel here.=20
Multicast must-carry should be branded by a Las=20
Vegas-style term, he said: stripping. Cable=20
operators, he added, are planning to strip out=20
the multiple streams of video content that=20
broadcasters plan to send out in digital form in=20
the same space where they have until now sent=20
just one TV signal. Downconversion also needs=20
recasting, he said, so it doesn't =93sound like=20
something to do with duck feathers.=94 This is a=20
practice where, he added, cable operators plan to=20
downconvert broadcast signals sent in HD down to=20
standard-definition pictures. If unchecked, he=20
said, this would give cable=92s own HD signals an=20
unfair advantage over broadcast signals.
http://www.multichannel.com/article/CA6434112.html
* Rehr: NAB will Fight to End 'HD Discrimination'
http://www.tvnewsday.com/articles/2007/04/16/daily.8/
* See text of remarks online:
http://www.nab.org/AM/Template.cfm?Section=3DNews_Room&CONTENTID=3D8625&...
PLATE=3D/CM/ContentDisplay.cfm

NBC REJOINS NAB
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
NBC Universal is rejoining the National=20
Association of Broadcasters after a seven-year=20
absence. NBC and the other Big Four networks left=20
the association after a bitter divide on the=20
issue of the national station ownership cap.=20
Networks wanted the FCC to loosen the rules to=20
allow them to own more stations, while=20
non-network owned members were concerned that=20
would increase the network=92s power unduly,=20
including their bargaining position in=20
affiliation contract negotiations. The commission=20
ultimately raised the cap to 45% of TV homes,=20
though Congress cut that back to 39%. ABC=20
returned to the fold a couple of years ago, but=20
CBS and Fox are still out. NBC=92s co-owned=20
Telemundo was not part of the announcement, but=20
NAB says talks are ongoing to bring it into the=20
fold as well. NAB now claims four network=20
members: ABC, NBC, Univision and Ion. Rejoining=20
the NAB along with NBC are its 10 owned and=20
operated stations. NBC TV Stations President Jay=20
Ireland will join the NAB television board.
http://www.broadcastingcable.com/article/CA6434047.html
* NBC U Rejoins NAB Fold
http://www.multichannel.com/article/CA6434185.html
* See NAB press release:
http://www.nab.org/AM/Template.cfm?Section=3DNews_Room&CONTENTID=3D8623&...
PLATE=3D/CM/ContentDisplay.cfm

OWNERSHIP

CLEAR CHANNEL GIVES TATE TALKING POINTS AGAINST XM-SIRIUS MERGER
[SOURCE: Center for Public Integrity, AUTHOR: Brendan McGarry and Ben Welsh]
Federal Communications Commissioner Deborah Tate=20
has received talking points against the proposed=20
satellite radio XM-Sirius merger from Clear=20
Channel Radio, one of the country's biggest radio=20
broadcasters and an ardent opponent of the deal.=20
Clear Channel Vice President Thomas English gave=20
Tate three possible responses =96 each written in=20
the first-person =96 in an attempt to help the=20
commissioner reconcile her previous statements in=20
favor of relaxing media ownership limits with the=20
broadcasters' position against the satellite=20
radio merger. "The responses below were composed=20
by our Government Affairs folks so they might be=20
a little skewed toward our specific goals=20
(imagine that) but I hope you find them helpful,"=20
English wrote Tate in an enclosure to an ex parte=20
notice dated April 12 and posted electronically=20
Friday morning. By law, anyone who wishes to=20
communicate with the FCC in a formal proceeding=20
must file what is called an ex parte=20
presentation, which documents outside parties'=20
communication with the agency. In his letter to=20
Tate, English poses the question: "How do you=20
reconcile your past recognition of all the=20
entertainment options like iPods, Internet radio,=20
satellite radio, etc. available to consumers as=20
one of the reasons for relaxing local radio=20
ownership rules with your present concerns with a=20
merger of XM and Sirius being a monopoly?" Then,=20
like a speechwriter, he writes three answers in=20
paragraph form in the first-person: "My position=20
opposing the XM-Sirius merger and supporting a=20
significant relaxation of local radio ownership=20
rules is completely consistent with my primary=20
guiding principal: avoid government action that=20
seriously distorts the marketplace," states the=20
opening line of the first answer. The second=20
answer begins, "My main concern is how can free=20
radio survive when a combined XM-Sirius would=20
control more spectrum in every market in the=20
country than the entire AM/FM band combined?"=20
Spectrum refers to the radio frequencies held by=20
a satellite radio company, or a broadcaster or=20
cellular carrier. The third answer reads, "It is=20
really quite simple -- I consistently oppose a=20
regulatory system that would disadvantage free,=20
terrestrial broadcasting -- the only platform=20
that is free to listeners and operates in the public interest."
http://www.publicintegrity.org/telecom/telecomwatch.aspx?eid=3D2816

GOOGLE PLAN RAISES PRIVACY ISSUES
[SOURCE: Los Angeles Times, AUTHOR: Joseph Menn]
Google's purchase of DoubleClick would create the=20
world's single largest repository of details=20
about people's behavior online, an unnerving=20
prospect for some privacy experts. The=20
$3.1-billion acquisition would combine two=20
companies with massive troves of information=20
about most people who use the Internet. "This is=20
something that is concerning," said Kurt Opsahl,=20
an attorney with the nonprofit Electronic=20
Frontier Foundation. Google's associate general=20
counsel, Nicole Wong, said Monday that Google did=20
in fact hope to integrate the two companies'=20
"non-personally identifiable data," and that=20
mixing them would be of "great benefit" to both=20
consumers and advertisers. Personally=20
identifiable data include names, physical=20
addresses and the like. An advertiser, Wong=20
said, could use the information to make sure that=20
a person wasn't bombarded with the same ad again=20
and again, cutting down on the annoyance level for surfers.
http://www.latimes.com/business/printedition/la-fi-privacy17apr17,1,6018...
.story?coll=3Dla-headlines-pe-business
(requires registration)

TIME WARNER TO EXPLORE REDUCING CABLE STAKE
[SOURCE: Wall Street Journal, AUTHOR: Matthew=20
Karnitschnig matthew.karnitschnig( at )wsj.com]
Inside Time Warner Inc., senior executives are=20
considering what was once unthinkable: whether=20
the world's biggest media company should=20
substantially reduce its cable-TV holdings over=20
time. Cable has been a core part of the company=20
and its precursors for decades and is now the=20
biggest contributor to profits. But the long-term=20
future of cable, as the Internet emerges as a=20
viable venue for watching TV, is murky. Some=20
within Time Warner wonder whether the company=20
wouldn't be better off if it were to get out of=20
cable and double down on the Web -- where it=20
already owns AOL -- by buying another major=20
Internet company, just as News Corp. acquired=20
MySpace and Google Inc. bought YouTube. To be=20
sure, a complete exit is the least likely course=20
to be adopted, people involved in the debate say.=20
More likely is that Time Warner will decide to=20
gradually reduce its 84% stake in Time Warner=20
Cable Inc., possibly through acquisitions, while=20
still maintaining a significant interest. Getting=20
rid of a big chunk of its cable holdings would=20
transform the nature of Time Warner, making it=20
more reliant on its role as a provider of filmed=20
entertainment and print and Web content.
http://online.wsj.com/article/SB117677751918872216.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

THREAT FOR BIG MEDIA: GUERRILLA VIDEO SITES
[SOURCE: Wall Street Journal, AUTHOR: Kevin J.=20
Delaney kevin.delaney( at )wsj.com]
You might guess that Free Press is the biggest=20
threat to Big Media... As media companies fight=20
to keep control over distribution of their shows,=20
they have focused their guns on big sites like=20
the YouTube unit of Google Inc. But little sites=20
like this one in New Mexico collectively=20
represent an equally thorny challenge. They are=20
like guerrilla squadrons that are constantly=20
shifting tactics to defy big media and keep=20
offering consumers free programs. Unlike YouTube,=20
which stores videos on its own servers in the=20
U.S., the guerrilla sites offer menus of shows=20
that are often stored on servers in places like=20
France and China. The sites act as gateways to=20
pirated material offered on other sites and say=20
they don't break copyright laws because they=20
don't have the material on their own computers.=20
Content owners say the sites are abetting=20
copyright infringement, which is illegal.=20
Whatever the legality, it's tough to clamp down=20
on sites that just about anyone can set up with=20
links to video stored on computers around the world.
http://online.wsj.com/article/SB117677446088572146.html?mod=3Dtodays_us_...
e_one
(requires subscription)
* Online video and the death of Hollywood
http://www.ft.com/cms/s/3fb8100e-ec34-11db-a12e-000b5df10621.html
(requires subscription)

WEBCASTERS ARE DENIED REHEARING ON ROYALTIES
[SOURCE: Associated Press]
Internet radio broadcasters were dealt a setback=20
Monday when a panel of copyright judges threw out=20
requests to reconsider a ruling that hiked the=20
royalties they must pay to record companies and=20
artists. A broad group of public and private=20
broadcasters, including radio stations, small=20
start-up companies, National Public Radio and=20
major online sites like Yahoo Inc. and Time=20
Warner's AOL, had objected to the new royalties=20
set March 2, saying they would force a drastic=20
cutback in services that are now enjoyed by 50=20
million people. In the latest ruling, the=20
Copyright Royalty Board judges denied all motions=20
for a rehearing and also declined to postpone a=20
May 15 deadline by which the new royalties will=20
have to be collected. However, they did grant=20
leniency on one point, allowing the webcasters to=20
calculate fees by average listening hours, as=20
they had been, as opposed to the new system of=20
charging a royalty each time every song is heard=20
by an online listener. That exemption counts for=20
last year and this year. After that, the new=20
per-song, per-listener fee structure goes into effect.
http://www.latimes.com/business/printedition/la-fi-radio17apr17,1,534978...
ory?coll=3Dla-headlines-pe-business
(requires registration)

THE MEDIA CORNUCOPIA
[SOURCE: FrontPageMagazine.com, AUTHOR: Adam Thierer]
[Commentary] We can increasingly obtain and=20
consume whatever media we want, wherever and=20
whenever we want: television, radio, newspapers,=20
magazines, and the bewildering variety of=20
material available on the Internet. This media=20
cornucopia is a wonderful development for a free=20
society -- or so you'd think. But today=92s media=20
universe has fierce detractors, and nowhere more=20
vehemently than on the left. Their criticisms=20
seem contradictory. Some, such as Democratic=20
congressman Dennis Kucinich, contend that real=20
media choices, information sources included,=20
remain scarce, hindering citizens from fully=20
participating in a deliberative democracy. Others=20
argue that we have too many media choices, making=20
it hard to share common thoughts or feelings;=20
democracy, community itself, again loses out.=20
Both liberal views get the story disastrously=20
wrong. If either prevails, what=92s shaping up to=20
be America=92s Golden Age of media could be over soon.
http://frontpagemag.com/Articles/ReadArticle.asp?ID=3D27864

TELECOM

FOR TELECOM FIRMS, WIRELESS STRENGTH TO OFFSET LINE LOSSES
[SOURCE: Wall Street Journal, AUTHOR: Roger Cheng roger.cheng( at )dowjones.com]
Wireless strength and the strategy of bundling=20
multiple services together helped U.S.=20
telecommunications-service providers moderate the=20
erosion of their customer base in the first=20
quarter. The industry's core business -- fixed=20
telephone service -- continues to erode as=20
consumers cancel their lines in favor of=20
cellphones or cheaper Web-based service. For the=20
two biggest players -- AT&T and Verizon -- the=20
loss is partially offset by their control of the=20
top two wireless carriers. The remaining Baby=20
Bell, Qwest, lacks a wireless arm, but has become=20
partners with Sprint Nextel to offer the service=20
in its bundle. Qwest looks to continue its=20
momentum after last year posting its first full=20
year of profitability since 2003. Further=20
pressuring the phone companies are the cable=20
providers, which offer Internet-phone service=20
bundled with their television and high-speed=20
Internet offerings. While the losses have=20
moderated in the past few quarters, they may get worse throughout the year.
http://online.wsj.com/article/SB117677668374072200.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

AT&T DROPS OFFER TO INVEST IN ITALIAN PHONE COMPANY
[SOURCE: New York Times, AUTHOR: Eric Sylvers]
AT&T on Monday withdrew its offer to buy a stake=20
in the company that controls Telecom Italia, the=20
largest Italian telecommunications company, for=20
about two billion euros, or $2.7 billion. In a=20
terse statement, AT&T did not give any reason for=20
the decision to pull back its offer to buy a=20
third of the controlling company, Olimpia. But a=20
person who had been briefed on the negotiations=20
but was not authorized to comment on them=20
publicly said AT&T had been dissuaded by the=20
intense political pressure in Italy against a sale to a foreign company.
http://www.nytimes.com/2007/04/17/business/worldbusiness/17tele.html
(requires registration)
* AT&T Exit Leaves Telecom Italia in Flux
http://online.wsj.com/article/SB117673373996671294.html?mod=3Dtodays_us_...
ketplace

INTERNET

HOUSE TO VOTE ON BILL TO BAN WEB SITE NAMES THAT RESEMBLE THOSE US AGENCIES
[SOURCE: New York Times, AUTHOR: David Clay Johnston]
Today, the House is scheduled to vote on=20
legislation that clarifies the law barring=20
for-profit companies from using names that sound=20
like official government agencies. Twice in the=20
last three weeks, the Internal Revenue Service=20
commissioner, Mark W. Everson, has warned about=20
confusion over the official Web site of his=20
agency and commercial firms playing off that=20
confusion. A Web industry trade group, the=20
Computer and Communications Industry Association,=20
issued a statement last week warning consumers=20
that Web sites like irs.com, irs.org and irs.net=20
=93make money by offering services that, in many=20
cases, taxpayers could get for free through the=20
I.R.S.=92s official Web site, irs.gov.=94=20
Intersearch.com, the firm that owns the irs.com=20
Web site, says that it is fully complying with=20
the law and that it sees no reason to inform=20
shareholders of the pending legislation.
http://www.nytimes.com/2007/04/17/technology/17web.html
(requires registration)

DAYS NUMBERED FOR TAX-FREE NET SALES
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh and Anne Broache]
A powerful alliance of politicians, including key=20
U.S. senators and the National Governors=20
Association, is arguing that out-of-state=20
retailers must be required to charge sales taxes on purchases.
http://news.com.com/Days+numbered+for+tax-free+Net+sales/2100-1028_3-617...
8.html?tag=3Dhtml.alert.hed

AMERICANS MIXED ABOUT CONSTANT NET ACCESS, POLL FINDS
[SOURCE: C-Net|News.com, AUTHOR: Caroline McCarthy]
Americans are enthusiastic about new tech like=20
mobile video and high-definition broadband but at=20
the same time express trepidation about nonstop=20
access to the Net, according to a new poll by=20
Zogby International and sponsored by Redback=20
Networks, an Internet Protocol router company=20
purchased by Ericsson late last year. Sixty-four=20
percent of respondents with children under 18,=20
for example, said they believe mobile TV in cars=20
would be a useful way to keep kids=20
entertained--but 70 percent still wouldn't=20
subscribe if given the option. Additionally, 81=20
percent think it's a bad idea for children to=20
have access to mobile TV on their cell phones and other handheld gadgets.
http://news.com.com/Americans+mixed+about+constant+Net+access%2C+poll+fi...
/2100-1026_3-6176319.html?tag=3Dnefd.top

Communications, Broadband and Competitiveness: How Does the U.S. Measure Up?
[SOURCE: US Senate Commerce Committee]
The Senate Commerce Committee announced a Full=20
Committee Hearing on Communications, Broadband=20
and Competitiveness: How Does the U.S. Measure=20
Up? for Tuesday, April 24, 2007, at 10:00 a.m.,=20
253 of the Russell Senate Office Building.
http://commerce.senate.gov/public/index.cfm?FuseAction=3DHearings.Hearin...
earing_ID=3D1853
--------------------------------------------------------------
Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
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
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
--------------------------------------------------------------