April 2007

ADVERTISING
U.S. court seems split over broadcast political ads
N.Y. mayor=92s gun control ad pulled from Wichita TV station
TV United to Derail Drug Ad Restrictions
CBS Rejects Commercial That Seems to Mix Daly and Alcohol

MEDIA OWNERSHIP
Deal Keeps Alive Bay Area Papers 'Headed for Graveyard'
Tribune Buying Back Up to 126M Shares
Hearst Paid for Right to Buy Rival Paper

JOURNALISM
Dean: Ban Media and Candidates Will Talk
Campus Rampage is 2007's Biggest Story By Far
Bush bad communicator: Murdoch

CONTENT
FCC Moves to Restrict TV Violence
Groups call for CBS to fire New York shock-jocks
Activists Seek Access To All Debate Footage
Study: Students Don't Understand Copyright Rules
Why MySpace Blinked
FCC Has The Easy Job -- Telling Congress To Define TV Violence

BROADBAND/INTERNET
Assessing Broadband in America
FCC seeks more comment on airwaves auction
War over "white space" continues
Central Europe closes in on digital elites: study

BROADCASTING/CABLE
FCC Adopts DTV-Related Items
Dingell Sympathizes With Cable's Concerns About FCC
Analysts Doubt XM-Sirius Merger Will Fly
=91American Idol=92 Is the Price We Pay for a Menu of So Many Channels
FCC Proposes Fining Stations For Missing Documents

QUICKLY -- Democrat says expect online gambling bill Thursday

ADVERTISING

U.S. COURT SEEMS SPLIT OVER BROADCAST POLITICAL ADS
[SOURCE: Reuters, AUTHOR: James Vicini]
The argument that a law banning some broadcast=20
ads before an election violates U.S. free-speech=20
rights won some backing from conservatives on the=20
Supreme Court on Wednesday while liberals said it=20
limited the influence of money in politics. The=20
two views of the federal law emerged during=20
arguments in a case that could determine whether=20
the ban remains in effect and how it is applied=20
for next year's presidential and congressional campaigns.
http://www.reuters.com/article/politicsNews/idUSN1621851420070425
* Justices Reconsider Campaign Finance
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/25/AR200704...
1739.html
* Justices look set to allow 'issue ads' naming candidates
http://www.usatoday.com/printedition/news/20070426/a_court26.art.htm
* Justices may ease limits on 'issue ads'
http://www.latimes.com/news/printedition/asection/la-na-scotus26apr26,1,...
7380.story?coll=3Dla-news-a_section

NY MAYOR'S GUN CONTROL AD PULLED FROM WICHITA TV STATION
[SOURCE: Associated Press, AUTHOR: Sara Kugler]
The CBS affiliate in Wichita, Kan., is refusing=20
to air an advertisement that is part of Mayor=20
Michael Bloomberg=92s gun control campaign, saying=20
the spot is misleading. Bloomberg=92s=20
administration shot back, questioning the=20
station=92s objectivity. The advertisement, which=20
debuted Sunday, urges the repeal of a piece of=20
congressional legislation preventing federal=20
authorities from sharing gun trace data with=20
cities and local law enforcement. The ad debuted=20
during Sunday=92s political talk shows on NBC, ABC=20
and CBS and later on CNN, MSNBC and Fox News=20
Channel. Wichita=92s CBS affiliate chose not to air=20
it, according to KWCH director of programming=20
Laverne E. Goering. =93This is issue advertising,=20
where the station is responsible for the truth or=20
fairness of the ad, unlike political advertising,=20
where the politicians can pretty much say what they want,=94 Goering said.
http://www2.ljworld.com/news/2007/apr/24/ny_mayors_gun_control_ad_pulled...
chita_tv_station/

TV UNITED TO DERAIL DRUG AD RESTRICTIONS
[SOURCE: tvnewsday, AUTHOR: Kim McAvoy]
Broadcasting and cable are working to defeat=20
Senate legislation that threatens the flow of=20
$2.7 billion in direct-to-consumer prescription=20
drug advertising to TV. "This is the most serious=20
challenge to advertising in a decade,=94 says Jim=20
Davidson, executive director of The Advertising=20
Coalition, which has mounted a massive grassroots=20
campaign to persuade senators to drop the ad=20
restrictions. The coalition represents media and=20
advertising interests, including the National=20
Association of Broadcasters, the National Cable &=20
Telecommunications Association, Magazine=20
Publishers of America and the Association of=20
National Advertisers, among others.
http://www.tvnewsday.com/articles/2007/04/25/daily.2/

CBS REJECTS COMMERCIAL THAT SEEMS TO MIX DALY AND ALCOHOL
[SOURCE: New York Times 4/25, AUTHOR: Richard Sandomir]
CBS Sports is refusing to show a commercial for=20
Maxfli, the golf ball maker, in which John Daly,=20
whose fondness for alcohol is well known, drives=20
a golf cart on a municipal course while carrying=20
what appears to be beer. The 30-second ad is=20
produced as a music video set in a rowdy bar with=20
Daly singing =93Go Long or Go Home=94 while he plays=20
guitar (and dances). It is intercut with shots of=20
Daly driving off a tee, tooling around in a cart,=20
riding on the back of the cart and grabbing a cup=20
of what looks like beer =97 Maxfli says it is=20
ginger ale -- but not drinking it as he drives=20
away. Maxfli submitted the ad to CBS last Monday.=20
After several days of talks, the network rejected it as inappropriate.
http://www.nytimes.com/2007/04/25/sports/golf/25golf.html
(requires registration)

MEDIA OWNERSHIP

REILLY LAWYER: DEAL KEEPS ALIVE BAY AREA PAPERS 'HEADED FOR GRAVEYARD'
[SOURCE: Editor&Publisher, AUTHOR: Mark Fitzgerald and Jennifer Saba]
The Oakland Tribune, the Fremont Argus and other=20
smaller San Francisco Bay Area dailies will "stay=20
alive" only because of the settlement reached=20
Wednesday, said the head lawyer for Clint Reilly,=20
whose lawsuit had accused Hearst Corp. and=20
MediaNews Group of scheming to monopolize the=20
region's newspaper market. Under the settlement,=20
Hearst, which publishes the San Francisco=20
Chronicle, and MediaNews agreed not to=20
collaborate on national advertising, Internet=20
advertising, sales, distribution or production in=20
the Bay Area. The settlement also rescinds=20
Hearst's right to convert its interest in=20
MediaNews properties outside the Bay Area into a=20
direct investment in the Denver-based company.=20
The settlement does not give Reilly the thing he=20
was asking the court to do: Unwind MediaNews'=20
complex $736 million purchase of the San Jose=20
Mercury News and the Contra Costa Times. Under=20
the settlement, Reilly will also get a bully=20
pulpit in all CNP newspapers for the next three=20
years. He will get a quarter-page of paid space=20
free for "personal copy" in the local section of=20
each CNP paper once a week. The settlement calls=20
for Hearst and the other companies in CNP to pay=20
all Reilly's attorney fees and court costs.=20
Reilly himself will receive no money. Reilly will=20
be back in court soon filing a motion to unseal=20
all documents and depositions in the lawsuit.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003576618

TRIBUNE BUYING BACK UP TO 126M SHARES
[SOURCE: Associated Press]
Media conglomerate Tribune Co. said Wednesday=20
that it has begun the repurchase of up to $4.3=20
billion of common shares in an initial step=20
toward going private. The nation's second-largest=20
newspaper publisher is being acquired in an $8.2=20
billion deal by real estate tycoon Sam Zell. The=20
company will buy back up to 126 million common=20
shares $34 each in a previously announced tender=20
offer. The number of shares represents more than=20
50 percent of Tribune's shares outstanding. The=20
repurchase is being funded through bank debt and=20
a $250 million investment from Zell. The Chandler=20
Trusts, which hold about 20 percent of Tribune's=20
outstanding stock, will tender all of the=20
company's shares that it holds at the time the offer expires on May 24.
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003576054
* Tribune raises curtain on events leading to Zell deal
Tribune Co. on Wednesday raised the curtain on=20
the events leading up to its planned buyout and=20
indicated the debate around a radical corporate=20
restructuring began long before it broke into public view.
http://chicagobusiness.com/cgi-bin/news.pl?id=3D24737
* Tribune Starts $4.28 Billion Tender as Part of Buyout
http://www.bloomberg.com/apps/news?pid=3D20601204&sid=3DaJfqqGI7rJmc
* Tribune launches $4.3-billion tender offer
http://www.latimes.com/business/printedition/la-fi-tribune26apr26,1,4510...
.story?coll=3Dla-headlines-pe-business
* Chandlers Finally Get to Cash Out Tribune Stake
The tempestuous, sometimes bitter seven-year=20
relationship between the Chandlers of Los Angeles=20
and the Tribune Co. of Chicago is coming to an end.
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/25/AR200704...
2588.html

HEARST PAID FOR RIGHT TO BUY RIVAL PAPER
[SOURCE: Associated Press, AUTHOR: Gene Johnson]
Hearst Corp. has been paying The Seattle Times $1=20
million a year since 1999 for the right to buy=20
the newspaper first should it be put up for sale.=20
Hearst owns The Times' smaller rival, the Seattle=20
Post-Intelligencer, and has been feuding with The=20
Times since 2003, when The Times tried to=20
dissolve a joint operating agreement between the=20
papers. Last week, the sides announced that they=20
had settled their legal fight, with The Times=20
paying $24 million to continue the JOA until 2016=20
at least. While the 1999 agreement called for=20
Hearst to make $1 million payments over nine=20
years, the company agreed to make two more=20
payments -- next year and in 2009 -- as part of=20
this month's settlement. For that $11 million,=20
Hearst retains the right of first refusal until=20
the JOA expires in 2083, Times spokeswoman Corey=20
Digiacinto said. Under the JOA, The Times has=20
handled business functions such as advertising,=20
circulation and printing for both papers since=20
1983. In exchange, The Times keeps 60 percent of=20
their joint profits. Times Publisher Frank=20
Blethen has said, however, that the arrangement=20
is no longer financially viable in a declining=20
newspaper market. The Times gave notice in 2003=20
that it had lost money for three consecutive=20
years, triggering a JOA provision that required=20
Hearst to close the P-I or print it on its own.=20
Hearst sued to challenge The Times' right to end=20
the JOA. Under the agreement announced last week,=20
The Times is paying a net $24 million: $49=20
million to settle Hearst's legal claims and buy=20
Hearst's right to collect 32 percent of The=20
Times' profits through 2083 should the P-I close,=20
offset by the $25 million Hearst is paying for=20
The Times not to try to end the JOA before 2016.
http://biz.yahoo.com/ap/070424/seattle_newspapers.html

JOURNALISM

DEAN: BAN MEDIA AND CANDIDATES WILL TALK
[SOURCE: Associated Press, AUTHOR: ]
Howard Dean, the head of the Democratic Party,=20
said Wednesday that the best way to get=20
presidential candidates to talk frankly about=20
issues is to lock out the media. The Democratic=20
National Committee chairman criticized media=20
coverage, arguing that networks such as CBS used=20
to put content first and didn't mind losing money=20
for the prestige of delivering a quality news=20
report. Dean said the days of Walter Cronkite are=20
gone and the corporatization of the media has led=20
to a desire to boost profits. "The media has been=20
reduced to info-tainment," Dean said.=20
"Info-tainment sells, the problem is they reach=20
the lowest common denominator instead of forcing=20
a little education down our throats, which we are=20
probably in need of from time to time."
http://www.tvnewsday.com/articles/2007/04/25/daily.11/

CAMPUS RAMPAGE IS 2007'S BIGGEST STORY BY FAR
[SOURCE: Project for Excellence in Journalism,=20
AUTHOR: Mark Jurkowitz and Paul Hitlin]
Just last week the Project for Excellence in=20
Journalism reported that the downfall of talk=20
show host Don Imus was the second most-heavily=20
covered story of the year to date. Move over Don.=20
If the carnage in Blacksburg, Virginia did not=20
match the scale or breadth of the attacks of=20
9/11, it was nonetheless an almost unfathomable=20
tragedy that delivered a deep shock to the=20
nation=92s psyche. And it attracted a level of=20
media coverage -- reserved for mega-events that=20
instantly make history books -- that dwarfed any=20
other story this year. Last week=92s reporting and=20
commentary on the Virginia Tech massacre=20
accounted for more than half (51%) of all the=20
news coverage from April 15-20, according to=20
PEJ=92s News Coverage Index. By way of comparison,=20
the year=92s second second-most covered story --=20
the debate over President Bush=92s Iraq =93surge=94=20
decision from January 7-12 -- filled 34% of the=20
newshole that week. In every media sector the=20
Index examined, the campus disaster generated a=20
record level of coverage. It consumed 50% of the=20
radio airtime, 62% of the network TV newshole,=20
and a remarkable 76% of cable news programming.=20
Even the newspaper front pages and online sector=20
-- which typically tend not to focus as intensely=20
on one story as television does -- devoted 27%=20
and 37% to Virginia Tech, respectively.
http://www.journalism.org/node/5197

BUSH BAD COMMUNICATOR: MURDOCH
[SOURCE: Sydney Morning Herald]
Billionaire media mogul Rupert Murdoch says US=20
President George W Bush is a bad communicator.=20
I'm a supporter of President Bush, but I do=20
believe he is a bad, inadequate communicator,"=20
Murdoch told an audience of business leaders at=20
the 10th Annual Milken Institute Global=20
Conference in Los Angeles. "He seems to freeze=20
whenever a television camera appears. Whereas, he=20
is the most persuasive and strong and articulate=20
person when you meet him." The News Corp chairman=20
said that apart from his tabloid, the New York=20
Post, and the Wall Street Journal, the US media=20
launches "a monolithic attack" on Bush "every day of the year."
http://www.smh.com.au/news/world/bush-bad-communicator-murdoch/2007/04/2...
177180692774.html

CONTENT

FCC MOVES TO RESTRICT TV VIOLENCE
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
Concerned about an increase in violence on=20
television, the Federal Communications Commission=20
on Wednesday urged lawmakers to consider=20
regulations that would restrict violent programs=20
to late evening, when most children would not be=20
watching. The commission, in a long-awaited=20
report, concluded that the program ratings system=20
and technology intended to help parents block=20
offensive programs -- like the V-chip -- had=20
failed to protect children from being regularly=20
exposed to violence. As a result, the commission=20
recommended that Congress move to limit violence=20
on entertainment programs by giving the agency=20
the authority to define such content and restrict=20
it to late evening television. It also suggested=20
that Congress adopt legislation that would give=20
consumers the option to buy cable channels =93=E0 la=20
carte=94 -- individually or in smaller bundles --=20
so that they would be able to reject channels they did not want.
http://www.nytimes.com/2007/04/26/business/media/26fcc.html
(requires registration)
* Congress May Be Free To Regulate TV Violence
http://online.wsj.com/article/SB117755910212683153.html?mod=3Dtodays_us_...
e_one
* FCC Report Urges Limits On TV Violence
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/25/AR200704...
2761.html
* FCC says children still see too much violence on TV
http://www.latimes.com/business/printedition/la-fi-violence26apr26,1,720...
1.story?coll=3Dla-headlines-pe-business
* FCC Report: Action On TV Violence "Should Be Taken"
http://www.broadcastingcable.com/article/CA6436586.html
* FCC TV Violence Report Threatens Cable
http://www.multichannel.com/article/CA6436600.html
-- From the FCC --
* FCC Adopts Report on Violent Television=20
Programming and Its Impact on Children (News Release)
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-272652A1.doc
Report: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-50A1.doc
Chairman Martin: "These findings make clear, and=20
the Commission today affirms, that exposure to=20
violent programming can be harmful to children.=20
When it comes to protecting their children from=20
such harm, parents are the first and last line of=20
defense. Thus, it is critical then that they=20
have the necessary tools to protect their children."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-50A2.doc
* Commissioner Copps: "Television is perhaps the=20
most powerful force at work in the world today.=20
When used for good, it can enlighten minds,=20
convey powerful ideas, educate, and lay the=20
foundation for human development. But when it is=20
used to mislead, misrepresent and distort, it can=20
- it does - inflict lasting harm."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-50A3.doc
* Commissioner Adelstein: "The problem with this=20
Report we are presenting to Congress is that it=20
is not clear from reading it which if any=20
primetime shows are being recommended for=20
regulation. Are we saying Law and Order should=20
be banned during hours when children are=20
watching? It is anyone's guess after reading=20
this Report. The Report is not a model of clarity."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-50A4.doc
* Commissioner Tate: "[W]e, parents, must take=20
responsibility for the media that is viewed=20
inside our homes, but also must be active in=20
changing the media landscape outside our=20
homes. I encourage all parents to let your local=20
TV station know when something you find=20
inappropriate is aired, and be sure to notify=20
your representatives in Congress. If enough=20
parents speak out, perhaps we will not only=20
improve the tools that are available to parents=20
to help minimize their children's exposure to=20
violent content, but we will actually see an=20
increase in the amount of family-friendly,=20
uplifting and nonviolent programming being produced."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-50A5.doc
* Commissioner McDowell: "In my view, the next=20
step should be to review fully the screening and=20
content selection tools parents currently have=20
and find ways that industry and government can=20
help educate parents regarding those=20
options. Parents should be the first and last=20
line of defense in protecting their children from=20
excessively violent content, or any other content=20
that may cause harm to children. Unfortunately,=20
today's Report does not sufficiently brief=20
Congress on the full range of tools available or=20
what can be done to mobilize parents in this pursuit."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-50A6.doc

ASIAN AMERICAN GROUPS CALL FOR CBS TO FIRE NEW YORK SHOCK-JOCKS
[SOURCE: San Francisco Chronicle, AUTHOR: Vanessa Hua]
Prominent Asian American civil rights groups in=20
the Bay Area are demanding that CBS Radio fire=20
New York shock-jocks Jeff Vandergrift and Dan=20
Lay, who were suspended earlier this week for=20
making a prank phone call to a Chinese restaurant=20
seen as racist and sexist. The coalition of=20
groups submitted a letter to CBS Radio, calling=20
for the network to improve its guidelines on=20
offensive terms, to communicate periodically with=20
civil rights and community groups and to fire the=20
duo -- who had broadcast on Bay Area airwaves for=20
more than a decade before they went to New York=20
in 2005 -- and their producer at WFNY-FM. The=20
coalition includes the Asian Law Caucus, Chinese=20
for Affirmative Action of San Francisco and Equal=20
Rights Advocates -- all in San Francisco -- along=20
with Oakland's Organization for Justice &=20
Equality and, in New York, the 80-20 Initiative,=20
Asian American Legal Defense and Education Fund,=20
and the Organization of Chinese Americans. The=20
station's general manager, Tom Chiusano, has=20
agreed to meet with the coalition, but no date has been set.
http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2007/04/25/BAGG7PFKAJ...
TL

ACTIVISTS SEEK ACCESS TO ALL DEBATE FOOTAGE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Media activists want to loosen the TV industry's=20
hold on presidential debate footage. An eclectic=20
group has sent letters to the heads of the=20
Republican and Democratic National Committees=20
asking for assurances that video from the=20
presidential debates they are sponsoring can be=20
shared on social networking sites like YouTube,=20
blogged about and re-used "without fear of legal=20
repercussion." The signatories to the letters --=20
which include MoveOn, Craigslist founder Craig=20
Newmark, the heads of the National Organization=20
for Women, and dozens of bloggers, journalists=20
and academics -- argue that rather than allowing=20
TV stations or networks to retain the rights to=20
footage of debates they broadcast, the footage=20
should be made part of the public domain or=20
shared under a "creative commons" license , which=20
allows content generators to modify their rights.
http://www.broadcastingcable.com/article/CA6436307.html
* A call for broad distribution of presidential debate video
http://news.com.com/A+call+for+broad+distribution+of+presidential+debate...
deo/2100-1028_3-6179153.html?tag=3Dhtml.alert.hed
* A call on the RNC & DNC to eliminate=20
unnecessary regulation of political speech
http://www.lessig.org/blog/archives/003755.shtml

STUDY: STUDENTS DON'T UNDERSTAND COPYRIGHT RULES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The majority of students (87%) who upload=20
copyrighted material to user-generated video=20
sites like YouTube, Facebook or MySpace don't get=20
permission from copyright owners, even though=20
most (74%) believe it is fair to pay people for=20
their use. That's according to a new, albeit=20
limited, study of college students who upload=20
video to Web sites conducted by a pair of=20
professors at American University and the Washington College of Law.
http://www.broadcastingcable.com/article/CA6432259.html

WHY MYSPACE BLINKED
[SOURCE: Forbes, AUTHOR: Rachel Rosmarin]
[Commntary] Now that MySpace and Photobucket have=20
beaten their swords in plowshares, the people who=20
pay attention to these kind of things are=20
wondering what kind of backroom deals were made=20
to broker the peace. I've got no idea. But I do=20
know who won this fight--and it isn't the world's=20
biggest social networking site. MySpace attempted=20
to push Photobucket around, and then gave up. And=20
it didn't even try that hard: It blocked=20
Photobucket's videos, which are a non-factor=20
right now. If it really wanted to push it would=20
have stopped Photobucket users from putting their=20
still images on MySpace. But that would have=20
riled up its own users. More important, it's not=20
clear how much blocking photos would have=20
actually hurt Photobucket at this point. The site=20
is steadily becoming its own destination, and=20
relies less and less on sites like MySpace. Its=20
40 million users send links pointing back to=20
Photobucket from 300,000 sites besides MySpace,=20
and more and more users are coming to Photobucket=20
to edit, design and share their creations instead of leaving.
http://www.forbes.com/business/media/2007/04/24/photobucket-myspace-murd...
-tech-cx_rr_0424photobucket.html

FCC HAS EASY JOB -- TELLING CONGRESS TO DEFINE TV VIOLENCE
[SOURCE: TVWatch, AUTHOR: Wayne Friedman]
[Commentary] It's expected that the FCC will=20
recommend Congress limit "excessively violent"=20
content much as it limits indecency, by curbing=20
its airing between the hours of 6 a.m. and 10=20
p.m. That's the easy part. Here comes the hard=20
part: The FCC leaves it up to Congress to define=20
"excessively violent" content. TV pressure groups=20
and civil-rights organizations have already said=20
defining "excessive violence" is difficult, if not impossible.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.showAr...
leHomePage&art_aid=3D59322

BROADBAND/INTERNET

ASSESSING BROADBAND IN AMERICA
[SOURCE: Information Technology and Innovation=20
Foundation, AUTHOR: Daniel K. Correa]
The United States continues to fall behind in=20
broadband adoption, now ranking 15th among 30=20
OECD nations, according to the organization=92s=20
latest rankings. However, while adoption rate is=20
an important metric, a more comprehensive measure=20
of broadband performance also accounts for price=20
and speed. In a new report, the Information=20
Technology and Innovation Foundation releases the=20
ITIF Broadband Rankings, which benchmark=20
broadband penetration, price and speed in OECD=20
countries. The findings show that the United=20
States, which ranks 12th overall, faces a=20
multifaceted broadband challenge. The report=20
outlines several steps policymakers should take=20
to reach a goal of high-speed ubiquitous broadband.
http://www.itif.org/files/BroadbandRankings.pdf

FCC SEEKS MORE COMMENT ON AIRWAVES AUCTION
[SOURCE: Reuters]
The Federal Communications Commission decided on=20
Wednesday to seek more public comment on how the=20
sale of valuable wireless airwaves will work, a=20
move that could delay the start of the auction. A=20
swath of television airwaves, which are being=20
returned by broadcasters as they move to digital=20
signals from analog, is expected to be auctioned=20
off by the FCC later this year. But recent=20
proposals, including one from a start-up firm=20
called Frontline and another by a coalition of=20
consumer groups, has pushed the agency to seek=20
more comment from the public. The decision was=20
approved by the five commissioners who vote on=20
agency rulings. However, commissioners expressed=20
concern and underlined the importance of the auction.
http://www.reuters.com/article/internetNews/idUSN2441759420070426
* FCC press release:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-272629A1.doc

WAR OVER "WHITE SPACE" CONTINUES
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
Two major broadcasting associations continue to=20
press the Federal Communications Commission not=20
to fast track unlicensed personal, portable=20
devices that tap into "white space" -- unused=20
analog TV channels. They argue that: 1) The White=20
Space Coalition has not demonstrated that their=20
safeguards for unlicensed devices will prevent=20
signal interference, even within a family home.=20
Thus their safeguards may be "ineffective to=20
prevent interference to nearby neighbors,"=20
MSTV/NAB claim. 2) The coalition has not=20
submitted data that refutes MSTV/NAB assertions=20
that portable devices "would pose a threat to=20
broadcasters." MSTV/NAB says that the FCC has=20
recently released studies that confirm their=20
fears "that TV receivers can have worse=20
performance when multiple interfering signals are=20
present." 3) Reliance upon spectrum sensing=20
technology alone will not prevent TV band devices=20
from intruding on occupied television channels.=20
The signal power limits that the White Space=20
Coalition recommends for its spectrum detecting=20
devices may not be sufficient to prevent such=20
intrusion. 4) NAB/AMST also charges that white=20
space device interference ranges are comparable=20
to the signal power of cell phones that=20
communicate with towers miles away, "not merely=20
the same home or next door as suggested by the Coalition and others."
http://www.lasarletter.net/drupal/node/393

CENTRAL EUROPE CLOSES IN ON DIGITAL ELITES: STUDY
[SOURCE: Reuters, AUTHOR: Lucas van Grinsven]
Central European nations have closed in fastest=20
amongst emerging economies on the digital elites=20
in North America and western Europe, a ranking of=20
Web-savvy nations showed on Thursday. The region,=20
which includes Hungary, Czech Republic, Estonia,=20
and Slovenia, scored 6.1 out of a possible 10 in=20
the 2007 rankings, up from 5.8 in the previous=20
year, according to the annual study published by=20
U.S. computer company IBM and the intelligence=20
unit of British magazine The Economist. The=20
survey produces a scorecard from a mix of factors=20
which determine how "e-ready" countries are.=20
These include the number of broadband Internet=20
connections and the level of online access to=20
public services. The gap with North America and=20
Western Europe remains large, with these regions=20
scoring 8.6 and 8 respectively, but it is narrowing.
http://www.reuters.com/article/technologyNews/idUSL2572519420070426

BROADCASTING/CABLE

FCC ADOPTS DTV-RELATED ITEMS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a long-delayed public meeting, the FCC took a=20
number of steps late Wednesday to advance the DTV=20
transition. The commissioners voted unanimously,=20
but not without some dissent and caveat, to adopt=20
the items. No discouraging word was heard on the=20
unanimous decision to require analog TV sets to=20
carry labels letting viewers know they will=20
become useless after February 2009. There was=20
less unanimity on a proposal to define signal=20
degradation and viewability as it pertains to=20
cable's carriage of a broadcaster's TV signal=20
after the transition to digital. The FCC is=20
seeking comment on whether requiring cable to=20
carry TV station signals in both analog and=20
digital formats after the transition is necessary=20
to meet the 1992 Cable Act's requirement that=20
cable must deliver a "viewable" signal of any=20
station opting for mandatory carriage=20
(must-carry). Finally, the FCC took the first=20
steps toward guidelines for its fall auction of=20
analog TV spectrum in the UHF band being=20
reclaimed in the transition to digital. The=20
commission proposes a mix of geographic sizes for=20
the parcels of spectrum being auctioned, and sets=20
build-out requirements on winning bidders. It=20
also put out for comment a proposal by Frontline=20
Wireless to create a public-private interoperable=20
emergency communications network.
http://www.broadcastingcable.com/article/CA6436592.html
* NCTA Scorns FCC TV-Carriage Plan
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
National Cable & Telecommunications Association=20
president Kyle McSlarrow rejected a tentative=20
proposal by the Federal Communications Commission=20
to provide new cable-carriage guarantees to=20
certain local TV stations starting in early 2009.=20
The FCC plan, adopted in a 5-0 vote, would allow=20
digital-TV stations that elect mandatory cable=20
carriage to insist on cable distribution in both=20
analog and digital formats. The so-called=20
dual-carriage requirement wouldn't apply if all=20
subscribers of a cable system have=20
digital-reception equipment. =93Federally mandated=20
dual carriage as proposed in today=92s notice of=20
proposed rulemaking is a completely unnecessary=20
government intrusion into the marketplace. Worse,=20
it is unconstitutional, as the FCC itself decided=20
twice unanimously in 2001 and 2005,=94 he said.
http://www.multichannel.com/article/CA6436594.html
* FCC TV Equipment release:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-272656A1.doc
* FCC Initiates Third Review of DTV Transition
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-272655A1.doc
* Must Carry Proceeding:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-272654A1.doc

DINGELL SYMPATHIZES WITH CABLE'S CONCERNS ABOUT FCC
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
House Commerce Committee Chairman John Dingell=20
(D-MI) stopped just short of agreeing with his=20
predecessor that the FCC was picking on the cable=20
industry. In a speech to approximately 300=20
executives in Washington for NCTA's Key Contacts=20
Conference -- essentially a meet-and-greet=20
opportunity with legislators -- Chairman Dingell=20
said that while he could not say that the FCC=20
picked on any industry, he could say that=20
"sometimes their process is neither open, nor is=20
it transparent, nor is it fair." "I can=20
understand how you might feel that the FCC is=20
picking on your industry," he said. He promised=20
thorough oversight of the Commission, including=20
phone calls, letters and hearings when necessary=20
to insure that the cable industry -- and all=20
industries -- are being treated fairly.
http://www.broadcastingcable.com/article/CA6436535.html

ANALYSTS DOUBT XM-SIRIUS MERGER WILL FLY
[SOURCE: Washington Post, AUTHOR: Sam Diaz]
It is unlikely that federal regulators will give=20
a thumbs-up to a proposed merger between the XM=20
and Sirius satellite radio companies, according=20
to three analysts' reports issued this week. The=20
separate reports, issued Monday as a preview to=20
quarterly earnings announcements by XM today and=20
Sirius on Tuesday, point to the drop in value of=20
the shares of both companies -- about 30 percent=20
each -- since the merger plan was announced Feb.=20
19. In a Banc of America Securities report,=20
analyst Jonathan Jacoby put the probability of=20
approval of the merger at about 35 percent, but=20
noted that it was likely much lower. Separately,=20
Craig Moffett, a senior analyst with Sanford C.=20
Bernstein & Co., and William Kidd, a media=20
analyst with Wedbush Morgan Securities in Los=20
Angeles, put the chance of approval closer to 10=20
percent. A merger would need approval from the=20
Justice Department, the Federal Communications=20
Commission and shareholders. "The merger faces a=20
very tough road at the FCC, where the public=20
interest test applied by the commission is=20
inherently subjective," Moffett said. "In=20
Washington, 'subjective' is codeword for 'political.'"
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/25/AR200704...
2590.html
(requires registration)

'AMERICAN IDOL' IS THE PRICE WE PAY FOR A MENU OF SO MANY CHANNELS
[SOURCE: New York Times, AUTHOR: Austan Goolsbee]
How did America lose interest in scripted shows=20
and come to embrace all manner of reality=20
television? In his book =93Switching Channels=94=20
(Harvard University Press, 2005), Richard E.=20
Caves, the don of entertainment economics and=20
professor emeritus at Harvard, blames (or=20
credits, depending how old you are) cable and=20
satellite providers and the way they have changed=20
the broadcast networks=92 incentives to invest in=20
programming. He points out that such incentives=20
depend on the size of the potential market. The=20
programming is a fixed cost =97 networks pay for=20
the programs even if nobody watches. If paying an=20
extra $1 million to get a star onto a show, for=20
example, raises every customer=92s love of the show=20
by the equivalent of $1, the investment more than=20
pays off if there are 10 million potential=20
viewers. But the $1 million investment would be a=20
terrible flop if there were 10,000 potential=20
viewers. You can see the mechanism at work in a=20
comparison of the cable networks. The number of=20
subscribers for a given channel (that is, the=20
households who have that channel available on=20
their system) gives a clear indication of a=20
network=92s maximum potential market. And the=20
bigger the market, the more a cable network=20
spends on programs. So the increase in reality=20
programming is not just a matter of broadcasters=20
wanting to save money. It=92s that a shrinking=20
potential market gives the networks less=20
incentive to spend money. They can't recoup it with enough viewers.
http://www.nytimes.com/2007/04/26/business/26scene.html
(requires registration)

FCC PROPOSES FINING STATIONS FOR MISSING DOCUMENTS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC has proposed fining five TV stations a=20
total of more than $50,000 for failing to=20
properly maintain their public files. Lately, the=20
FCC has been cracking down on public filing=20
infractions and violations of its kids TV ad=20
limits. The biggest hit during this round would=20
be to KRII (TV) in Chisholm, Minn. The station=20
admitted it had not placed kids programming=20
documents and lists of its public affairs=20
issues/programs in its files from the time the=20
station had launched until 2005. Others fined for=20
omissions of public affairs program lists, kids=20
TV programming reports or information on their=20
kids TV ads were KBWB-TV San Francisco, $10,000;=20
KSEE Fresno $10,000; low-power station KFXO-LP=20
Bend, Ore. $10,000 and KUTV Salt Lake City $4,000.
http://www.broadcastingcable.com/article/CA6436585.html

QUICKLY

DEMOCRAT SAYS EXPECT ONLINE GAMBLING BILL THURSDAY
[SOURCE: Reuters]
House Financial Services Committee Chairman=20
Barney Frank (D-MA) on Wednesday said he will=20
introduce a bill this week to lift a ban on=20
online gambling. Internet gambling in the United=20
States was effectively banned last October when=20
President George W. Bush signed legislation=20
outlawing gaming financial transactions.
http://www.reuters.com/article/internetNews/idUSN2543930120070425
* Frank bill would repeal =9206 Internet gaming crackdown
http://thehill.com/leading-the-news/frank-bill-would-repeal-06-internet-...
ing-crackdown-2007-04-25.html
--------------------------------------------------------------
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.
--------------------------------------------------------------