May 2007

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MEDIA OWNERSHIP
Experts say News Corp can get antitrust nod for Dow
Murdoch's Editors Know His Voice
The End of Dow Jones
Why newspapers are buyout targets
Jackson Takes Aim At Murdoch Stations
Tribune Petitions FCC for Waiver
Cablevision Accepts Bid from Dolan Family
Clear Channel Has Deals For 362 Radio Stations

JOURNALISM
Congressional Leaders Propose Reporter Shield Law
Dingell Backs Return of Fairness Doctrine
Police action on journalists at melee is assailed

TELECOM
Emergency USF cap draws fire

INTERNET/BROADBAND
Facing economic realities of muni Wi-Fi
Deadline for music Webcasters to start paying higher royalties is postponed

COMMUNITY MEDIA
New FCC ruling has community television representatives worried

QUICKLY -- Schools targeted in spectrum debate;=20
Prime-Time TV Sweeps: As Demeaning Images of Women Rise, So Do Ratings

MEDIA OWNERSHIP

EXPERTS SAY NEWS CORP CAN GET ANTITRUST NOD FOR DOW
[SOURCE: Reuters, AUTHOR: Peter Kaplan and Megan Davies]
News Corp.'s proposal to buy Wall Street Journal=20
publisher Dow Jones & Co. Inc. would be unlikely=20
to face much opposition from U.S. antitrust and=20
regulatory authorities. However, if the offer=20
draws a counterbid from direct rivals to Dow=20
Jones, there could be more questions asked by=20
authorities. Some media and analysts speculated=20
that a counterbid could come from organizations=20
like Bloomberg LP, a newspaper company like the=20
Washington Post Co. or New York Times Co., or=20
CNBC-owner General Electric. News Corp.'s U.S.=20
assets include the Fox television network, Fox=20
News Channel, 20th Century Fox movie studios and=20
the New York Post. Aside from the Wall Street=20
Journal, Dow Jones assets include the MarketWatch=20
Inc. financial Web site, Barron's financial=20
weekly and Dow Jones Newswires. Antitrust experts=20
said the companies' major assets are, for the=20
most part, in different markets and the=20
combination would therefore not increase=20
concentration in any particular market. A=20
combination of News Corp. and Dow Jones would not=20
be in violation of FCC cross-ownership rules as=20
the Wall Street Journal is seen as a national=20
newspaper, not regional, said Media Access=20
President Andrew Jay Schwartzman. Broadcast=20
licenses in New York, where News Corp. owns both=20
a newspaper and local stations, are up for renewal in June.
http://www.reuters.com/article/technology-media-telco-SP/idUSN0126807220...
502
* Few regulatory issues seen for DJ deal (Associated Press)
http://www.businessweek.com/ap/financialnews/D8ORR1IO3.htm
* Legal threat seen if Dow Jones rejects bid
http://today.reuters.com/news/newsArticle.aspx?type=3DindustryNews&storyID=
=3D2007-05-02T185848Z_01_N02352071_RTRIDST_0_INDUSTRY-DOWJONES-BOARD-DC.XML
* Other Bidders Could Emerge for Dow Jones (Associated Press)
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...
t_id=3D1003579937
* Dow Jones Holders Say Murdoch Bid May Trigger Auction
http://www.bloomberg.com/apps/news?pid=3D20601204&refer=3D&sid=3DaWxkmN....
pg
* First the Bid, Now the Jockeying
http://www.nytimes.com/2007/05/03/business/media/03dow.html
* At Dow Jones, Focus Is on the Bancroft Family
http://online.wsj.com/article/SB117814514778690018.html?mod=3Dtodays_us_...
ketplace

MURDOCH'S EDITORS KNOW HIS VOICE
[SOURCE: Wall Street Journal, AUTHOR: Martin=20
Peers martin.peers( at )wsj.com and Aaron O. Patrick aaron.patrick( at )wsj.com]
Some owners of newspapers seldom, if ever, speak=20
to their editors. Rupert Murdoch is not one of=20
them. To generations of newspaper editors, the=20
News Corp. chairman and chief executive's voice=20
is familiar: He telephones to pass on news tips=20
or story ideas, complain about the tone of the=20
paper's coverage, or just catch up on gossip. Mr.=20
Murdoch's hands-on style differs markedly from=20
the traditions of the publisher he now wants to=20
buy. The Bancroft family, the controlling=20
shareholder of Wall Street Journal parent Dow=20
Jones & Co., has long maintained a distance from=20
the company's operations. The family, which owns=20
24.7% of the equity but through supervoting stock=20
has voting control, has board representation but=20
no involvement with direct management of the=20
paper. While the editorial page has a=20
conservative political viewpoint, a strict=20
separation is enforced between the editorial page=20
and the newsroom, designed to ensure opinion and=20
news coverage don't mix. The Bancroft family is=20
steeped in that culture, and a sense of pride in=20
the company's long history and independence has=20
led them to endure an often-sluggish stock price=20
over the years. For that reason, how Mr. Murdoch=20
might change the culture of the Journal is likely=20
to be an issue as Dow Jones and the Bancrofts consider his bid.
http://online.wsj.com/article/0,,SB117815037579090204,00.html?mod=3Dtoda...
us_marketplace
(requires subscription)

THE END OF DOW JONES
[SOURCE: CJRDaily, AUTHOR: Dean Starkman]
[Commentary] Make no mistake: this is the end of=20
Dow Jones. If it=92s not the very end, it is=20
certainly the beginning of the end. There is no=20
way=97no way=97that the Bancroft family, which=20
controls the majority of voting shares, can=20
resist a $60 offer=97a 67 percent premium to the=20
recent market price of DJ shares. A 10 percent=20
premium is considered respectable. Thirty percent=20
is sky high. Sixty dollars is, well, =93absolutely,=20
insanely high,=94 says James H. Lowell II, who,=20
until last fall, served as a financial adviser to=20
the Bancroft trustees. And make no mistake:=20
Tuesday was a black day for journalism, and an=20
even blacker one for financial journalism. When=20
this is over, there will be no independent=20
publisher of the nation=92s foremost -- really only=20
-- watchdog of the capital markets, corporate=20
behavior, and regulators=92 conduct. Who=92s going to cover News Corp.?
http://www.cjrdaily.org/the_audit/the_end_of_dow_jones.php
* Wall Street Journal Weighs Life Under Rupert Murdoch
http://www.nytimes.com/2007/05/03/business/media/03murdoch.html?ref=3Dto...
spaper

WHY NEWSPAPERS ARE BUYOUT TARGETS
[SOURCE: The Christian Science Monitor, AUTHOR: Ron Scherer]
Even for America's newspaper families, the media=20
oligarchies that control many of the nation's=20
broadsheets, the economics of continuing to=20
publish a newspaper is challenging. Circulation=20
is hard to maintain when information is free on=20
the Internet. Meanwhile, there are fewer and=20
fewer department stores, which are traditional=20
advertisers in big city papers. And within the=20
newspaper families themselves, an increasing=20
number of members want to diversify their assets,=20
as they try to get a better return on their=20
investment. For some families, one solution has=20
been a sale. From a pure business standpoint, the=20
Murdoch bid of $5 billion, or $60 a share, might=20
make sense for News Corp., whose media empire=20
includes Fox Broadcasting. This fall, Fox plans=20
to roll out a business news channel to compete=20
with CNBC. Ownership of Dow Jones would thus give=20
Fox access to reporters and information. If Mr.=20
Murdoch or another media company were to take=20
over Dow Jones, some worry that it would mean yet=20
more concentration in the industry. "We're seeing=20
a decline in the commitment of resources for=20
doing journalism," says Bob McChesney, professor=20
of communications at the University of Illinois=20
at Urbana-Champaign. Mark Crispin Miller, who=20
teaches media, culture, and communications at New=20
York University, notes that some members of=20
Congress are worried about this trend. But, he adds, "No one will go near i=
t."
http://www.csmonitor.com/2007/0503/p03s02-usec.html

JACKSON TAKES AIM AT MURDOCH STATIONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Jesse Jackson's Rainbow/PUSH Coalition and the=20
United Church of Christ have filed petitions to=20
deny News Corp.. license renewals in New York.=20
"Fox's common ownership of The New York Post,=20
WNYW-TV and WWOR-TV harms me by sharply reducing=20
the number of independent voices available to=20
me," wrote the Rev. Sherry M. Taylor, from UCC's=20
Central Atlantic Conference in New Jersey, in the=20
petition. "Unless the licenses are denied, my=20
right to access diverse programming will continue=20
to be harmed." News Corp. has a waiver of the=20
broadcast/newspaper crossownership rule to own=20
both the stations and The New York Post. UCC and=20
Rainbow are asking the FCC to rescind the waiver,=20
which would make the stations automatically in=20
violation of the crossownership ban.
http://www.broadcastingcable.com/article/CA6438768.html

TRIBUNE PETITIONS FCC FOR WAIVER
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
The Tribune Employee Stock Ownership Plan is=20
asking the Federal Communications Commission to=20
let it keep the Chicago Tribune, Newsday and the=20
Los Angeles Times, as well as WGN-TV, WPIX-TV and=20
KTLA-TV and several of its other newspapers and=20
TV stations, pending the FCC adopting new=20
media-ownership rules. In filings Tuesday made=20
necessary by Tribune Co.'s $8.2 billion sale to=20
Sam Zell and the ESOP, the company argues that=20
its TV stations operate in competitive media=20
markets and that the FCC has already decided once=20
that newspaper-broadcast cross ownership limits=20
are "no longer in the public interest" as part of=20
media ownership rules. The cross-ownership rule=20
bars companies that own a broadcast station or=20
newspaper in a market from buying each other. The=20
ownership rules were set aside by an appellate=20
court and never took effect. However, Tribune=20
pointed to the court's suggestion that the cross=20
ownership change could be justified in its=20
request for the FCC to grant it a waiver to keep=20
the stations until it finalizes a new set of=20
media-ownership rules. In separate filings on=20
each market, Tribune argues that having joint=20
ownership benefits consumers in the markets and=20
doesn't affect advertisers. It also cites growing=20
competition, including with the Internet.
http://www.tvweek.com/news.cms?newsId=3D11985
(requires free registration)

CABLEVISION ACCEPTS BID FROM DOLAN FAMILY
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
Hours after press reports hit the streets that=20
Cablevision Systems=92 ruling Dolan family -- led=20
by chairman Charles Dolan and his son, CEO James=20
Dolan -- was in talks to take the Bethpage,=20
NY-based cable operator private in a $10.5=20
billion deal, the company announced that its=20
offer was accepted by an independent committee of=20
directors. Cablevision said the Dolans=92 offer of=20
$36.26 per share for the stock in the company it=20
did not already own had been accepted. The price,=20
including outstanding debt, values Cablevision at about $22 billion.
http://www.multichannel.com/article/CA6438471.html
* Cablevision Accepts Dolan Buyout Offer
http://www.broadcastingcable.com/article/CA6438519.html
* Other Cablevision Shareholders Balk at Dolans=92 Bid
http://www.multichannel.com/article/CA6438732.html
* Cablevision Deal Remains Very Much Up in the Air
http://www.nytimes.com/2007/05/03/business/03cable.html
* Cablevision Deal Faces Hurdles
http://online.wsj.com/article/SB117811344048489517.html?mod=3Dtodays_us_...
e_one

CLEAR CHANNEL HAS DEALS FOR 362 RADIO STATIONS
[SOURCE: Wall Street Journal]
Clear Channel said it has entered definitive=20
agreements to sell 362 radio stations in 72=20
markets for a total of about $820 million since=20
beginning its efforts in the fall to sell its=20
television stations and 448 radio stations in 88=20
markets. Clear Channel said it is continuing to=20
look for buyers for the remaining 86 stations in=20
16 markets. It expects to receive about $1.88=20
billion in after-tax proceeds for TV and radio=20
stations under definitive agreements.
http://online.wsj.com/article/SB117816313126390625.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

JOURNALISM

CONGRESSIONAL LEADERS PROPOSE REPORTER SHIELD LAW
[SOURCE: MediaWeek, AUTHOR: Katy Bachman]
A bipartisan group of Congressional leaders=20
introduced Wednesday a bill to establish a=20
federal shield law to protect reporters from=20
being forced to disclose their confidential=20
sources. The Free Flow of Information Act was=20
introduced by House Reps. Rick Boucher (D-VA),=20
John Conyers (D-MI), Mike Pence (R-IN), Howard=20
Coble (R-NC), and John Yarmuth (D-KY) and by=20
Sens. Richard Lugar (R-IN) and Christopher Dodd=20
(D-CT). The bill has broad support from a working=20
alliance of more than 40 media companies and=20
journalistic organizations, including the=20
National Association of Broadcasters and the=20
Radio-Television News Directors Association.=20
Although 32 states and the District of Columbia=20
have reporter shield laws, the new legislation=20
would create a federal standard for protecting=20
journalists and their confidential sources. The=20
legislation also protects information held by=20
telephone companies, Internet services and other=20
communications providers, that would otherwise reveal confidential sources.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=3D100...
0003
* In House, New Effort to Protect Journalists From Forced Disclosure of Sou=
rces
http://www.washingtonpost.com/wp-dyn/content/article/2007/05/02/AR200705...
2429.html
* Boucher High On Shield Law Chances
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Prospects have brightened considerably for a=20
federal shield law that would protect=20
journalists, including bloggers, and their=20
sources from government overreach. Flanked by the=20
heads of the Newspaper Association of America,=20
the National Association of Broadcasters and the=20
Reporters Committee for Freedom of the Press,=20
Rep. Rick Boucher (R-VA) officially introduced=20
the Free Flow of Information Act of 2007 at a=20
Capitol Hill press conference Wednesday, saying=20
the goal was passage within the year. He also=20
surprised even a fellow legislator with the news=20
that an identical companion bill was being=20
introduced in the Senate by Senators Richard=20
Lugar (R-Ind), Christopher Dodd (D-CT), Lindsey=20
Graham (R-SC), Mary Landrieu (D-LA), and Pete=20
Domenici (R-NM). The House bill also has the=20
backing of Senate Judiciary Committee Chairman John Conyers (D-MI).
http://www.broadcastingcable.com/article/CA6438653.htm
* Toward a Federal Shield Law (NYTimes Editorial)
[Commentary] The Bush administration has opposed=20
legislative efforts to enact a shield law by=20
making the bogus argument that it would hurt=20
national security. The only thing a federal=20
shield law would threaten is the administration=92s=20
ability to make policy in secret. This measure of protection is long overdu=
e.
http://www.nytimes.com/2007/05/03/opinion/03thu3.html?_r=3D1&oref=3Dslogin

DINGELL BACKS RETURN OF FAIRNESS DOCTRINE
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
House Commerce Committee Chairman John Dingell=20
(D-MI) offered a new call to revive the Federal=20
Communication Commission's fairness doctrine,=20
which required broadcasters to offer competing=20
viewpoints in a balanced manner when presenting=20
controversial issues. He also suggested any=20
congressional action to regulate violent TV this=20
year is unlikely. "I don't see much happening=20
this year [on violence]. It could change in 5=20
minutes if somebody does something dumb," the=20
powerful congressman told the annual government=20
affairs conference of the three main advertising=20
groups, the American Advertising Federation, the=20
Association of National Advertisers and the=20
American Association of Advertising Agencies. The=20
FCC in a report delivered last week recommended=20
Congress act to regulate violent content. Rep=20
Dingell didn't say exactly what he would do to=20
reimpose the fairness doctrine. He also said he=20
believes broadcasters should have no trouble with=20
any action on the issue. "Can you explain to me=20
why a broadcaster ought not to have to be fair or=20
would not be fair?" he said. He also hinted an=20
initiative would be forthcoming, saying, "If you=20
are concerned about it, keep your eye on me,=20
because I intend to address this one very soon."
http://www.tvweek.com/news.cms?newsId=3D11988
(requires free registration)

POLICE ACTION ON JOURNALISTS AT MELEE IS ASSAILED
[SOURCE: Los Angeles Times, AUTHOR: Anna Gorman and Stuart Silverstein]
One day after several reporters and camera=20
operators were injured while covering an=20
altercation at an immigrant rights rally in=20
MacArthur Park, news organizations condemned the=20
Los Angeles Police Department for its use of=20
batons and riot guns against members of the=20
media, and some said they were considering legal=20
options. "We are sorry for what happened to our=20
employees and find it unacceptable that they=20
would be abused in that way when they were doing=20
their job," said Alfredo Richard, spokesman for=20
the Spanish-language network Telemundo, of the=20
anchor and the reporter who were hurt during the evening rally.
http://www.latimes.com/news/printedition/asection/la-me-media3may03,1,20...
46.story?coll=3Dla-news-a_section
(requires registration)

TELECOM

EMERGENCY USF CAP DRAWS FIRE
[SOURCE: RCRWireless News, AUTHOR: Jeffrey Silva]
The cellphone industry blasted a federal-state=20
panel=92s recommendation to enact an emergency cap=20
on universal service fund support for carriers in=20
rural areas. The proposed temporary fix for the=20
ballooning high-cost fund -- which provides about=20
$4 billion in subsidies to wireline and wireless=20
carriers in rural locales -- would hit wireless=20
carriers the hardest because most eligible=20
telecommunications carriers receiving support are=20
wireless operators. =93Almost three years after=20
being assigned the task of developing=20
recommendations to reform the high-cost universal=20
service system, the Joint Board has missed the=20
mark,=94 said Steve Largent, president of cellphone=20
association CTIA. =93The Joint Board=92s bias toward=20
legacy wireline networks will undoubtedly=20
disadvantage rural consumers, the majority of=20
which now view wireless as their primary mode of=20
telecommunication. In neglecting to propose a=20
comprehensive set of technology-neutral,=20
market-oriented reforms to the high-cost=20
universal service system, the Joint Board has=20
effectively told rural consumers that they don't=20
deserve high-quality wireless services."
http://www.rcrnews.com/apps/pbcs.dll/article?AID=3D/20070502/FREE/705020...
1005/rss01
* CTIA =AD The Wireless Association=AE Criticizes=20
Anti-Consumer Universal Service Cap Proposal
http://www.ctia.org/media/press/body.cfm/prid/1689

INTERNET/BROADBAND
Facing economic realities of muni Wi-Fi
FACING ECONOMIC REALITIES OF MUNI WI-FI
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
In the movement to blanket cities with Wi-Fi,=20
economic realities are setting in as service=20
providers look to tweak their business models to=20
turn a profit. Since the municipal Wi-Fi movement=20
started taking shape a couple of years ago,=20
politicians, community organizers and the=20
companies building the networks have touted Wi-Fi=20
as a cheap solution to a myriad social and=20
economic problems plaguing cities today. Some=20
cities see it as a way to bridge the digital=20
divide, while others see Wi-Fi as providing a=20
third alternative to a broadband market dominated=20
by the cable and phone companies. Up to this=20
point, the financial risk has mostly fallen on=20
the service providers that have put up the=20
capital to build the wireless mesh networks.=20
These companies are spending millions of dollars=20
on their initiatives with mostly no guarantee=20
that they will ever turn a profit. Now as=20
operators move beyond proof-of-concept networks,=20
they are re-evaluating their business models to=20
ensure they can make money. This means carefully=20
selecting the cities where they want to build=20
networks and demanding more assurances from=20
cities that they can get enough subscribers to=20
make building the network worthwhile.
http://news.com.com/Facing+economic+realities+of+muni+Wi-Fi/2100-7351_3-...
1058.html?tag=3Dnefd.lede

DEADLINE FOR MUSIC WEBCASTERS TO START PAYING HIGHER ROYALTIES IS POSTPONED
[SOURCE: Associated Press]
Internet radio broadcasters caught a break in=20
their struggle against higher music royalties as=20
a deadline for paying fees under the new system=20
was postponed by two months, to July 15.=20
According to the final ruling of the Copyright=20
Royalty Board, a panel of three judges that=20
determined the new rates, the first fees are no=20
longer due on May 15, something that many smaller=20
Internet radio companies said would force them=20
out of business. The delay was disclosed on=20
Tuesday when the board's decision was officially=20
published in the Federal Register, according to=20
David Oxenford, a lawyer representing many of the=20
Webcasters. That also started a 30-day clock=20
within which Webcasters can file a notice to=20
appeal the decision in federal court, something they have said they plan to=
do.
http://www.siliconvalley.com/latestheadlines/ci_5802357

COMMUNITY MEDIA

NEW FCC RULING HAS COMMUNITY TELEVISION REPRESENTATIVES WORRIED
[SOURCE: Sun Newspapers, AUTHOR: Grant Boelter]
When you pay your cable bill each month, a=20
portion of what you pay goes toward televising=20
local government programming, as well as building=20
and maintaining the technology infrastructure=20
used by your city's government buildings. However=20
a recent rule change adopted by the Federal=20
Communications Commission aimed at fostering more=20
competition in the cable market has local cable=20
authorities worried that the money will no longer=20
be there to provide the same level of government=20
programming as we see now. "We're all for=20
competition. We want competition because we feel=20
it would be in the best interest of our=20
residents," said Lakeville Cable Coordinator Jeff=20
Leuders, who also is the president of the=20
Minnesota Association of Community=20
Telecommunications Administrators. However,=20
Leuders said the FCC ruling could be problematic=20
because cities may not be able to require cable=20
providers to extend services to all residents, as=20
well as to provide enough money for government=20
programming and technology infrastructure. Also,=20
it could set up two different regulatory systems,=20
one for those already in the market and one for those entering the market.
http://mnsun.com/articles/2007/05/03/news/cw03cable.txt

QUICKLY

SCHOOLS TARGETED IN SPECTRUM DEBATE
[SOURCE: eSchool News, AUTHOR: Corey Murray]
In a dispute over a coveted band of wireless=20
spectrum known as Educational Broadband Service,=20
Sprint Nextel has petitioned the FCC to stop=20
granting license renewals to schools and other=20
nonprofits whose licenses have expired. Sprint=20
says the practice sets a dangerous precedent, but=20
many educators argue it's hard for rural schools=20
to keep up with the required paperwork--and they=20
say Sprint's heavy-handed approach threatens=20
their ability to maintain their portion of the spectrum.
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D7070

PRIME-TIME TV SWEEPS: AS DEMEANING IMAGES OF WOMEN RISE, SO DO RATINGS
[SOURCE: AlterNet, AUTHOR: Sandra Kobrin, Women's eNews]
[Commentary] As TV networks head into their big=20
sweeps and hotly compete for ratings and=20
advertisers, Sandra Kobrin gapes at the demeaning=20
and downright scary portrayal of women in our=20
most powerful communication medium.
http://www.alternet.org/mediaculture/51314/
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Communications-related Headlines is a free online=20
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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.
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