August 2007

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CABLE
FCC's McDowell: Video Franchise Rules Extended To Cable Soon

INTERNET/BROADBAND
FCC, Verizon: Rejoice over your broadband connection

MEDIA & ELECTIONS
Thompson faces election complaint
Why Aren't Candidates Talking More About Tech Issues?
Voting Records, Statements Reveal GOP Tech Views
Top Democratic Candidates Push Tech Policy Issues
Popping the left's Internet bubble

ADVERTISING
Googling 'Monopoly'
Investors to Web Start-Ups: Where's the Advertising?
For some Hollywood fare, radio mini-ads are a perfect fit

JOURNALISM
Tribune hit by debt downgrade
Study Tracks Viewers' News Habits

QUICKLY -- Cheney's Office Says It Has Wiretap=20
Documents; ComScore Refines Measurements to=20
Reflect Changes in How and Where People Search;=20
Two Studios to Support HD DVD Over Rival; Courts=20
Block Laws on Video Game Violence

CABLE

FCC'S MCDOWELL: VIDEO FRANCHISE RULES EXTENDED TO CABLE SOON
[SOURCE: Dow Jones, AUTHOR: Corey Boles corey.boles( at )dowjones.com]
Federal Communications Commission staffers are=20
finalizing plans to streamline the process of=20
applying for a video franchise, in a move that=20
would see the rules extended to incumbent cable=20
companies, FCC Commissioner Robert McDowell said=20
Monday. McDowell said he understood plans were=20
coming together to extend the same relief that=20
was granted to new entrants to the pay-television=20
market earlier this year to incumbent companies.=20
When the FCC voted to enact a series of rule=20
changes to make it easier for new entrants in the=20
video market last December, Commissioner McDowell=20
said he wanted the same relief extended to the=20
rest of the market. It was widely reported at the=20
time that McDowell had won a pledge from FCC=20
Chairman Kevin Martin that he would extend the=20
rules in exchange for his vote on the matter.
http://money.cnn.com/news/newsfeeds/articles/djf500/200708201415DOWJONES...
NLINE000363_FORTUNE5.htm

INTERNET/BROADBAND

FCC, VERIZON: REJOICE OVER YOUR BROADBAND CONNECTION
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
[Commentary] Unhappy with your broadband=20
connection? You're not focusing enough on the=20
positives, telecommunications companies and a=20
member of the Federal Communications Commission=20
suggested on Monday. Tom Tauke, Verizon's=20
executive vice president for public affairs,=20
policy and communications, said the United States=20
has seen a "tremendous deployment of broadband=20
and wireless" in a remarkably short time. "Just a=20
few years ago we were talking about trying to get=20
DSL services and cable modem services to 20 or 25=20
percent of the country," Tauke said during a=20
panel discussion at this year's Aspen Summit=20
organized by the Progress and Freedom Foundation.=20
"Now we have 51 percent of the households in this=20
country, who not only have access to--but have=20
purchased--broadband services." Joseph Waz, a=20
Comcast vice president and public policy counsel,=20
said that "by the end of this year, Comcast will=20
be America's fourth largest telephone=20
company"--and by the end of next year, it'll be=20
the third largest. Commissioner Robert McDowell,=20
part of the FCC's Republican majority, was=20
equally enthusiastic. "We have more competition=20
among differing platforms than any country in the=20
world," he said, with cable modem service, for=20
instance, available to something like 92 percent of Americans.
http://news.com.com/8301-10784_3-9762966-7.html?part=3Drss&tag=3Dfeed&subj=
=3DNewsBlog

MEDIA & ELECTIONS

THOMPSON FACES ELECTION COMPLAINT
[SOURCE: Associated Press, AUTHOR: Jim Kuhnhenn]
Lane Hudson, a blogger, has filed a federal=20
complaint against former Sen. Fred Thompson, the=20
actor and unannounced Republican candidate for=20
president, accusing him of violating election=20
laws as he ponders his entry into the race. In=20
Lane's filing with the Federal Elections=20
Commission, he argues Thompson has raised far=20
more money than he needs to explore whether to=20
run for president. Federal law allows potential=20
candidates to raise money to travel, conduct=20
polls and pay for other expenses related to=20
"testing the waters" for a political campaign.=20
During that exploratory period, a potential=20
candidate does not have to file financial reports=20
with the FEC. The law prohibits anyone who is=20
"testing the waters" from hoarding the money for=20
use during his actual campaign. Potential=20
candidates also cannot refer to themselves as=20
candidates, can't run ads that publicize their=20
intention to campaign or take steps to qualify=20
for the ballot in a primary or caucus state.=20
According to a financial report filed with the=20
Internal Revenue Service late last month,=20
Thompson had raised nearly $3.5 million and had=20
spent $625,000. Thompson must raise money within=20
federal contribution limits and must report it to=20
the FEC once he becomes an official candidate.=20
Under federal guidelines, the FEC will now give=20
Thompson 15 days to respond to the complaint.=20
Following Thompson's response, election=20
commissioners will decide whether to dismiss the=20
case or investigate further. Thompson, the "Law &=20
Order" television actor and former Republican=20
Tennessee senator, has been hiring staff, opening=20
a headquarters, holding fundraisers and promoting=20
his credentials as a potential White House=20
contender. But he has not said definitively that=20
he's a candidate for president. He is expected to=20
make an announcement around Labor Day. By not=20
filing officially as a candidate, Thompson also=20
benefits from continuing reruns of "Law & Order"=20
without broadcasters encountering demands for equal time from his rivals.
http://hosted.ap.org/dynamic/stories/T/THOMPSON_FEC?SITE=3DININS&SECTION...
HOME&TEMPLATE=3DDEFAULT
* Thompson Already in Race, Blogger Complains to FEC
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/20/AR200708...
1857.html

WHY AREN'T CANDIDATES TALKING MORE ABOUT TECH ISSUES?
[SOURCE: Technology Daily, AUTHOR: Sandra Gonzalez]
When Republican presidential candidate Mitt=20
Romney confused the YouTube video-sharing site=20
with the MySpace social network in a speech about=20
online predators this summer, techie fingers were=20
wagging and Romney found his technology awareness=20
being questioned. The episode shows how much=20
attention technology is getting in the 2008 race.=20
David All, a Republican media consultant, said=20
candidates' tech savvy is being tested and=20
critiqued more than ever. Unfortunately, he=20
added, candidates in both parties are "pretty=20
pitiful" in proving that they are knowledgeable=20
about tech-related topics. All said their failure=20
to address important technology matters is=20
largely due to the campaign staffs thinking the=20
issues do not need to be addressed. "You're not=20
going to find network neutrality on any poll," he=20
said in a reference to one hot-button Internet=20
policy topic of the past two years. "But they are=20
issues that influential people care about." If=20
the staffs aren't interested in tech issues, All=20
said, the candidates do not get the information=20
because they "principally rely on staff" for=20
briefings on specific issues. A group called=20
Obama For Technology is working to develop a=20
broad-based technology platform for Democratic=20
candidate Barack Obama. Edmund Dante Hamilton,=20
the founder of the group, said that with voters=20
caring more about candidates' views on issues=20
like the Iraq war, it is no wonder technology=20
issues are not first priority for campaigns.
http://nationaljournal.com/about/technologydaily/prespackage07.htm#3

VOTING RECORDS, STATEMENTS REVEAL GOP TECH VIEWS
[SOURCE: Technology Daily, AUTHOR: Sandra Gonzalez]
Republican presidential candidates often are=20
criticized, even by some experts in their own=20
party, for lagging Democratic hopefuls in their=20
use of technology for campaigning. But when it=20
comes to tech issues, some of the GOP candidates=20
have either talked technology or have=20
congressional voting records that talk for them.=20
Sen. Sam Brownback of Kansas has been active in=20
pushing legislation related to "decency" and=20
regulatory controls on various forms of media.=20
Sen. John McCain this year has sponsored a bill=20
aimed at making the moratorium on certain=20
Internet-related taxes permanent. And Reps.=20
Duncan Hunter of California and Tom Tancredo of=20
Colorado have voted on tech-related legislation=20
even though they have not sponsored any since=20
1998 and 2003, respectively. Voting records=20
aside, new, official positions on tech issues=20
sometimes can be hard to determine for the GOP=20
candidates. Few of the campaigns responded to=20
questions on various tech issues posed by=20
Technology Daily. David All, a Republican new=20
media consultant, said the candidates' lack of=20
online presence is in part responsible. "They're=20
not hearing from online constituents who are the=20
ones who are largely concerned with technology=20
issues," All said. The campaign staff of former=20
New York City Mayor Rudy Giuliani, the current=20
GOP frontrunner, is mum on specific tech issues.
http://nationaljournal.com/about/technologydaily/prespackage07.htm#2

TOP DEMOCRATIC CANDIDATES PUSH TECH POLICY ISSUES
[SOURCE: Technology Daily, AUTHOR: Sarah Myers]
The leading Democratic presidential candidates=20
are building substantial technology policy=20
platforms to match their strong support from=20
leading players in the tech sector. Though=20
low-tier candidates may be experimenting more=20
with using the Internet to campaign, the=20
frontrunners maintain more robust tech policy=20
platforms and tend to be more knowledgeable of=20
those issues. Sen. Hillary Clinton of New York=20
has incorporated technology into almost every=20
aspect of her policy platform -- from using=20
information technology to overhaul health care to=20
likening her plan to build a national, high-speed=20
Internet system to the wiring of America after=20
the development of the telephone and electricity.=20
Former Sen. John Edwards of North Carolina has=20
come out in strong support of network neutrality,=20
a term that describes efforts to ensure equal=20
treatment of broadband content. He is also the=20
only candidate to write the FCC and ask=20
commissioners to use the upcoming spectrum=20
auction to make the Internet more affordable and=20
accessible. Sen. Barack Obama of Illinois wants=20
to focus on expanding Internet access in rural=20
areas and inner cities, and he has a plan for=20
granting vouchers to low-income households for=20
converter boxes to help them transition from=20
analog to digital television broadcasts.
http://nationaljournal.com/about/technologydaily/prespackage07.htm#1

POPPING THE LEFT'S INTERNET BUBBLE
[SOURCE: Los Angeles Times, AUTHOR: Jonah Goldberg]
[Commentary] Back in the day (the late 90s),=20
when the Internet ran on a series of pneumatic=20
tubes and hemp-rope pulleys, conservatives were=20
patting themselves on the back for seizing the=20
commanding heights of the digital frontier. The=20
argument was that because the Liberal Industrial=20
Complex maintained a stranglehold on the Old=20
Media, conservatives had, with Ninja-like=20
stealth, mastered the fledgling forms:=20
direct-mail, talk radio, cable news and, now, Al=20
Gore's newfangled invention, the Internet. Today,=20
we're constantly being told that it's liberals=20
who have conquered the Internet. In fact, that=20
they are somehow uniquely suited to dominating=20
the Web. But enough with the metaphysical mumbo=20
jumbo about how the Web and liberalism were made=20
for each other. The real story is much simpler:=20
Liberalism is having a nice moment. It's because=20
the Republican president and the Iraq war are very unpopular.
http://www.latimes.com/news/printedition/asection/la-oe-goldberg21aug21,...
564868.column?coll=3Dla-news-a_section
(requires registration)

ADVERTISING

GOOGLING 'MONOPOLY'
[SOURCE: Wall Street Journal, AUTHOR: Thomas=20
Lenard & Paul Rubin, Progress and Freedom Foundation]
[Commentary] In the last few months, the three=20
most prominent players in the world of online=20
advertising have each announced major=20
acquisitions: Google-DoubleClick,=20
Microsoft-aQuantive, and Yahoo-Right Media. Yet=20
the Google deal has stirred the most controversy=20
and is currently being scrutinized by the Federal=20
Trade Commission. Merger reviews are difficult=20
when the markets are rapidly changing, as they=20
clearly are here. Internet advertising is growing=20
rapidly -- up 38% globally in the last year. As=20
TV and the Internet converge, the market will=20
expand even more dramatically. Those who complain=20
about Google's purchase of DoubleClick make two=20
claims. Both are flawed. The first argument is=20
that, since both firms have a large market share=20
of their respective spheres, a merger would be=20
monopolistic. The second argument comes from=20
privacy advocates who say the merger "could=20
impact the privacy interests of 233 million Internet users in North America=
."
http://online.wsj.com/article/SB118765934437503661.html?mod=3Dtodays_us_...
nion
(requires subscription)

INVESTORS TO WEB START-UPS: WHERE'S THE ADVERTISING?
[SOURCE: Wall Street Journal, AUTHOR: Rebecca=20
Buckman rebecca.buckman( at )wsj.com]
venture capitalists increasingly advise=20
consumer-focused tech start-ups to follow the=20
same business model: online advertising.=20
Entrepreneurs say the laser-focus on online=20
advertising may be a sign of a declining risk=20
appetite in Silicon Valley. By focusing simply on=20
advertising, venture investors are concentrating=20
on businesses that "aren't as aggressive" as=20
those that dominated the Internet in its early=20
days. Web companies that are trying to disrupt=20
brick-and-mortar industries would have a hard=20
time surviving on advertising since ads tend to=20
be linked to a Web site's business -- and "if=20
you're going to change the insurance industry,=20
you're not going to be running ads from the insurance industry."
http://online.wsj.com/article/SB118765700693403584.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

FOR SOME HOLLYWOOD FARE, RADIO MINI-SPOTS ARE A PERFECT FIT
[SOURCE: Los Angeles Times]
Miniature radio ads, spanning just a few seconds=20
in length, are a hit in Hollywood, says market=20
leader Clear Channel Communications Inc., which=20
launched the spots known as blinks and adlets=20
last year. Unlike longer ads, which run during=20
minutes-long commercial breaks, the blinks and=20
adlets are slipped in between songs.
http://www.latimes.com/business/printedition/la-fi-clear21aug21,1,716329...
tory?coll=3Dla-headlines-pe-business
(requires registration)

JOURNALISM

TRIBUNE HIT BY DEBT DOWNGRADE
[SOURCE: Financial Times, AUTHOR: Joshua Chaffin]
Tribune Company=92s debt was downgraded by Standard=20
& Poor=92s on Monday, just as the media group=92s=20
shareholders were preparing to vote on Tuesday on=20
a proposed $8.2bn sale to real estate mogul Sam=20
Zell. Standard & Poor=92s lowered Tribune=92s rating=20
one notch from BB- to B+, predicting that the=20
company=92s performance would further deteriorate=20
in the year ahead. S&P=92s said it expected to make=20
a further downgrade after the buy-out was=20
completed. The action was another reminder of the=20
problems weighing on Tribune, one of the largest=20
US newspaper publishers, as it tries to wrap up=20
the sale. Its second-quarter earnings fell 58 per=20
cent amid sharp drops in advertising at the Los=20
Angeles Times and other newspapers. That=20
performance =96 combined with the weakening in=20
credit markets =96 has caused some analysts to=20
question whether Mr Zell might push to=20
renegotiate the terms of the deal, or pull out altogether.
http://www.ft.com/cms/s/f9c4ef50-4f74-11dc-b485-0000779fd2ac.html
(requires subscription)

STUDY TRACKS VIEWERS' NEWS HABITS
[SOURCE: TVWeek, AUTHOR: Michele Greppi]
An aggressively updated -- and promoted -- Web=20
site is an increasingly important tool in the=20
arsenal of TV news outlets trying to reach,=20
engage and hold on to younger news consumers.=20
That is especially true when covering big stories=20
that develop over an extended period of time,=20
according to the latest Millennial Strategy=20
Program research conducted by Frank N. Magid=20
Associates. The new research was completed in=20
May, just weeks after the April 16 Virginia Tech=20
massacre in which one student killed 32 people=20
and himself. The online survey asked 150=20
questions of more than 3,000 people who fall into=20
the categories of Millennials; the next older=20
demo, Gen Xers; and Baby Boomers. The queries=20
focused on how respondents heard about and=20
followed news of the killings. Television=20
coverage was the primary source to which all=20
three groups turned for information on the=20
shooting spree, but nearly a quarter of the adult=20
Millennials first learned about the story, which=20
began unfolding as the school day started on the=20
campus, via the Internet. Twenty-three percent of=20
the adult Millennials cited the Internet as the=20
source from which they first learned about=20
Virginia Tech, compared with 19 percent of Gen=20
Xers and 16 percent of Baby Boomers who cited the=20
Web. Worth noting: As a group, Millennials were=20
the last to know, and 29 percent of them heard=20
about the Virginia Tech story by word of mouth, which includes text-messagi=
ng.
http://www.tvweek.com/news/2007/08/web_young_news_consumers.php
(requires free registration)

QUICKLY

CHENEY'S OFFICE SAYS IT HAS WIRETAP DOCUMENTS
[SOURCE: Washington Post, AUTHOR: Dan Eggen]
Vice President Cheney's office acknowledged for=20
the first time yesterday that it has dozens of=20
documents related to the administration's=20
warrantless surveillance program, but it signaled=20
that it will resist efforts by congressional Democrats to obtain them.
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/20/AR200708...
1622.html
(requires registration)

COMSCORE REFINES MEASUREMENT TO REFLECT CHANGES IN HOW AND WHERE PEOPLE SEA=
RCH
[SOURCE: Associated Press, AUTHOR: Anik Jesdanun]
Online measurement company comScore Inc. is=20
refining how it presents data on search market=20
share to reflect changes in user behavior.=20
Generally, search market share statistics have=20
been accumulated by counting the entries in the=20
boxes at sites run by Google Inc., Yahoo Inc. and=20
other engines. Now comScore wants to capture=20
searches done in other ways and on other sites --=20
for information on Wikipedia, for instance, and=20
product listings at eBay Inc.'s auction site and=20
the Amazon.com Inc. retail store.
http://sandiego.cox.net/cci/newsnational/national?_mode=3Dview&_state=3D...
imized&view=3Darticle&id=3DD8R4T7KG0&_action=3Dvalidatearticle
* Google searches are up, data show
http://www.latimes.com/business/printedition/la-fi-search21aug21,1,11328...
story?coll=3Dla-headlines-pe-business

TWO STUDIOS TO SUPPORT HD DVD OVER RIVAL
[SOURCE: New York Times, AUTHOR: Brooks Barnes]
Hollywood=92s squabble over which of two=20
technologies will replace standard DVDs reignited=20
Monday with two studios throwing their weight=20
behind one format and several rivals ramping up=20
support for the other. Paramount, part of Viacom,=20
and the publicly held DreamWorks Animation said=20
they would exclusively back the HD DVD format for=20
the release of high-definition movies on disc.=20
The battle over the competing high-definition DVD=20
technologies has sputtered in recent months as=20
Blu-ray discs have emerged as the front-runner.=20
Blu-ray titles are sharply outselling HD=20
offerings, major retailers like Target are=20
stocking only Blu-ray players, and Blockbuster=20
recently said it would carry Blu-ray exclusively.=20
Paramount and DreamWorks Animation together will=20
receive about $150 million in financial=20
incentives for their commitment to HD DVD.
http://www.nytimes.com/2007/08/21/technology/21disney.html?ref=3Dtodaysp...
(requires registration)
* 2 studios bet HD DVD will be a hit
http://www.latimes.com/business/printedition/la-fi-hddvd21aug21,1,171920...
tory?coll=3Dla-headlines-pe-business

COURTS BLOCK LAWS ON VIDEO GAME VIOLENCE
[SOURCE: New York Times, AUTHOR: Seth Schiesel]
As video games have surged in popularity in=20
recent years, politicians around the country have=20
tried to outlaw the sale of some violent games to=20
children. So far all such efforts have failed.=20
Citing the Constitution=92s protection of free=20
speech, federal judges have rejected attempts to=20
regulate video games in eight cities and states=20
since 2001. The judge in a ninth place, Oklahoma,=20
has temporarily blocked a law pending a final=20
decision. No such laws have been upheld. The=20
latest state to have its tentative game=20
regulations stymied by a judge=92s interpretation=20
of the First Amendment is California. This month=20
a federal judge in San Jose, Ronald M. Whyte,=20
declared unconstitutional a 2005 bill that would=20
have made it a crime to sell or rent certain=20
violent games to minors in that state. Put=20
simply, the United States Supreme Court has=20
interpreted the Constitution as allowing states=20
broad leeway in regulating minors=92 access to=20
sexually explicit material. That is why it is=20
illegal around the country to sell pornography to=20
children. Courts have not, however, said that=20
states have a similar right to regulate media=20
based on violence. Most of the city and state=20
video game laws that have been struck down in=20
recent years have tried to ban the sale or rental=20
of certain violent games to minors. In many of=20
those cases, states and cities have tried to=20
translate the legal rules for pornography into a=20
new system for regulating violent media.
http://www.nytimes.com/2007/08/21/arts/television/21vide.html?ref=3Dtoda...
aper
(requires registration)
--------------------------------------------------------------
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.
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