August 2007

For upcoming media policy events, see http://www.benton.org

JOURNALISM
Forward Into Battle
The Internet Seen As An Opportunity for Newspapers

OWNERSHIP
Karmazin Pushes Sirius/XM Merger; Dorgan Pushes Back

BROADCASTING
TV's digital switchover has a downside
FCC Releases Final DTV Channel Assignments

CABLE
FCC Requires Cable VoIP to Pay Fees
Comcast Seeks Rate Relief in 150 Communities
Qwest playing hardball to gain cable franchise
CT Attorney General: Make AT&T Get Cable License

SPECTRUM
Clearing Emergency Radio Waves

QUICKLY -- FAQ: How far does the new wiretap law=20
go?; Senate Moves to Clear FOIA Backlog; Google=20
Maps redraw the realm of privacy; More parties=20
join Google copyright lawsuit; Two Reed Business=20
Publications Join Forces; Media spending forecast=20
to pass $1 trillion in '08 ; Public Wi-Fi use=20
raises hacking risk ; Fliers' Net-surfing days=20
inch closer; Lovin' it: McBranding hooks=20
preschoolers, study finds; 'Baby Einstein': a bright idea?

JOURNALISM

FORWARD INTO BATTLE
[SOURCE: Newsweek, AUTHOR: Johnnie L. Roberts]
With The Wall Street Journal and a new business=20
network, Rupert Murdoch and Fox News chief Roger=20
Ailes plan their next move: all-out war. When=20
combined with News Corp. properties like Fox News=20
and the soon-to-be-launched Fox Business Network,=20
Murdoch's purchase of the Journal will create a=20
juggernaut whose influence ranges far beyond the=20
world of financial news and information. With=20
plans to expand the Journal's political and=20
international coverage, Murdoch is itching for a=20
fight with the nation's presumed newspaper of=20
record, The New York Times, as well as the=20
Financial Times of London. Last week, after the=20
deal was clinched, the Journal's editorial page,=20
accusing Murdoch's critics of "commercial" and=20
"ideological" motives, blasted the two Timeses=20
for giving credence to concerns that Murdoch will=20
turn the paper into a mouthpiece for his own=20
right-wing political and business interests.
http://www.msnbc.msn.com/id/20123487/site/newsweek/
* Times, FT Face Bruising Battle (Ad Age)
http://adage.com/mediaworks/article?article_id=3D119715
* Rupert Ready: You Bet He's Got a Plan (Ad Age)
http://adage.com/mediaworks/article?article_id=3D119712
* A potential institutional conflict of interest ahead (Edward Wasserman)
[Commentary] It's not Murdoch's politics that has=20
the potential to corrupt The Journal; it's his business.
http://www.miamiherald.com/430/story/193935.html
* How Murdoch Made Times of London His
http://adage.com/mediaworks/article?article_id=3D119710
* Neuharth Predicts What's Next
USA Today Creator Says Murdoch's Reign at WSJ Will Be 'a Very Good Thing'
http://adage.com/mediaworks/article?article_id=3D119711
* The Journal, in the Family but Out of Control
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/06/AR200708...
1198.html
* What Got More (and Less) Coverage Than Murdoch
There's been no shortage of ink spilled over=20
Rupert Murdoch's conquest, but the media mogul=20
still didn't quite trump Paris Hilton, Steve Jobs=20
or Harry Potter when it came to getting journalists' attention.
http://adage.com/mediaworks/article?article_id=3D119713

THE INTERNET SEEN AS AN OPPORTUNITY FOR NEWSPAPERS
[SOURCE: Center for Media Research, AUTHOR: Jack Loechner]
A recent study of America's top 100 newspaper=20
websites, entitled "American Newspapers and the=20
Internet; Threat or Opportunity?" by Bivings=20
Research, noting that using the Internet to=20
expand a newspaper's reach is becoming more and=20
more important, reports that ninety-two percent=20
of America's top 100 papers now offer video on=20
their websites... a significant jump from 2006,=20
where just 61 percent offered video.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.showAr...
leHomePage&art_aid=3D65207
* Online ads to overtake US newspapers
The rapid growth of online advertising is=20
expected to see the sector overtake US newspaper=20
advertising in terms of size by 2011. The=20
findings are from a widely-watched annual=20
research report on the media sector by Veronis=20
Suhler Stevenson (VSS). In the 2007 study,=20
published on Tuesday, VSS forecasts that online=20
advertising will grow by more than 21 per cent=20
per year to reach $62bn in 2011, making it bigger=20
than newspaper advertising, which is expected to total $60bn in 2011.
http://www.ft.com/cms/s/6098d396-4448-11dc-90ca-0000779fd2ac.html

OWNERSHIP

KARMAZIN PUSHES SIRIUS/XM MERGER; DORGAN PUSHES BACK
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Sirius CEO Mel Karmazin took to the Washington=20
Times to pitch his company's merger with XM=20
Satellite radio, with an emphasis on their most=20
recent a la carte proposal. Meanwhile,=20
consolidation critic Sen. Byron Dorgan (D-ND)=20
reiterated his strong opposition. In a letter to=20
the FCC and the Justice Department, both of which=20
are vetting the deal, Sen Dorgan said that after=20
a hearing on the merger and receiving responses=20
from the companies to questions he submitted in=20
writing, he remained "deeply opposed to the=20
merger." "I cannot believe that this merger will=20
result in lower prices or increase diversity. And=20
I cannot believe that the public will be better=20
served by this merger," he said, urging both to reject it."
http://www.broadcastingcable.com/article/CA6465946.html?rssid=3D193

BROADCASTING

TV's DIGITAL SWITCHOVER HAS A DOWNSIDE
[SOURCE: USAToday, AUTHOR: Mike Snider]
Until now, millions of TV viewers who use=20
reliable rooftop antennas and rabbit ears to get=20
their signal have not been affected by the=20
nation's transition to digital TV. That's about=20
to change. By Feb. 18, 2009, the signals the sets=20
receive will be shut off. Those old analog=20
channels, which have been used for 60 years, will=20
be reclaimed by the government and auctioned for=20
billions of dollars to other communications=20
services. The nation's broadcasters will transmit=20
only digital signals. And older TV sets will stop=20
working =97 unless hooked up to cable or satellite=20
systems or an add-on digital tuner. So far, the=20
focus on the digital TV (DTV) rollout has been=20
the spread of high definition. About 30% of U.S.=20
homes have digital HDTV sets, which receive the=20
new channels. But nearly 20%, or more than 20=20
million homes, rely strictly on antennas to=20
receive free over-the-air broadcasts. The=20
National Association of Broadcasters (NAB) says=20
another 14.7 million have at least one=20
antenna-powered TV. Legislators, broadcasters,=20
manufacturers and consumer groups have known=20
about this dilemma for more than a decade. But as=20
the turn-off date approaches, all are concerned=20
about confusion and a lack of awareness; the NAB=20
estimates more than 60% don't know about the transition.
http://www.usatoday.com/printedition/life/20070807/d_topstrip07.art.htm
* Is your television ready for the digital age?
http://www.usatoday.com/printedition/life/20070807/download07.art.htm

FCC RELEASES FINAL DTV CHANNEL ASSIGNMENTS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
On Monday, the FCC released a new DTV Table which=20
provides television stations across the country=20
with their final channel assignments for=20
broadcasting following the DTV transition on=20
February 17, 2009. The FCC said its goal was both=20
to accommodate TV station's request for channel=20
assignments while also increasing the efficient=20
use of the spectrum. Not getting assignments yet=20
were a handful of stations who had asked for=20
modifications too late to be included.
http://www.broadcastingcable.com/article/CA6466009.html
* FCC Announces Final Assignment of Digital Television Channels
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-275789A1.doc
* Advanced Television Systems and their Impact=20
Upon the Existing Television Broadcast Service
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-138A1.doc
* Media Bureau Extends Deadline for Comments in=20
Third DTV Periodic NPRM to August 15, 2007
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-07-3518A1.doc

CABLE

FCC REQUIRES CABLE VOIP TO PAY FEES
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Cable operators will need to hand over a portion=20
of their voice-over-Internet-protocol revenue to=20
the federal government to help fund the Federal=20
Communications Commission=92s annual budget, the=20
agency ruled Monday. The National Cable &=20
Telecommunications Association didn't oppose the=20
payment of VoIP regulatory fees, especially if=20
the agency based cable VoIP contributions on a=20
per-phone-number basis. The FCC, however, opted=20
for a revenue-based formula, which doesn't easily=20
produce the per-phone-number burden of the VoIP=20
regulatory-fee mandate. That=92s because cable=20
operators in many cases package VoIP service in a=20
bundle with video and data services under a=20
single price. In a statement, FCC Commissioner=20
Michael Copps emphasized his "long-held and=20
oft-repeated belief that the Commission should=20
consider opening a formal rulemaking to address=20
the adjustment of regulatory fees." He said, "In=20
a rapidly-evolving communications marketplace, we=20
need to look for ways to ensure that our=20
regulatory fee methodologies continue to reflect=20
the industries we regulate." FCC Commissioner=20
Adelstein said he remains "troubled with the=20
Commission's inability and reluctance to consider=20
changes that occur from time to time in the costs=20
of regulatory fees for individual services."
http://www.multichannel.com/article/CA6465995.html
* Assessment and Collection of Regulatory Fees for Fiscal Year 2007
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-140A1.doc
* Commissioner Copps:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-140A2.doc
* Commissioner Adelstein:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-140A3.doc

COMCAST SEEKS RELIEF IN 150 COMMUNITIES
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Comcast, in a large request, asked the Federal=20
Communications Commission to remove the last=20
vestiges of rate regulation in nearly 150=20
communities across the country. The cable giant=20
is seeking deregulation in nearly 50 petitions=20
for effective competition, including such places=20
as Salt Lake City, the Chicago suburb of Du Page=20
County and Tuscaloosa, Ala. The request appeared=20
to be one of the largest the FCC has received=20
from a single cable company since the onset of=20
rate regulation under the 1992 Cable Act. When=20
the FCC grants a petition for effective=20
competition, the local government loses authority=20
to cap the price of the basic tier, which all=20
cable subscribers must buy. According to the=20
FCC's most recent cable price survey, the=20
national average price for basic cable is about $14 per month.
http://www.multichannel.com/article/CA6466013.html?rssid=3D196

QWEST PLAYING HARDBALL TO GAIN CABLE FRANCHISE
[SOURCE: Rocky Mountain News, AUTHOR: Jeff Smith]
Qwest Communications, rebuffed in previous=20
efforts to land cable TV franchises in Colorado,=20
is now playing hardball. The Denver telco is=20
giving the city of Arvada 90 days to decide=20
whether to accept a video franchise application.=20
The application marks the first local test of a=20
new Federal Communications Commission order=20
enabling telcos to put communities on a 90-day=20
shot clock. Qwest Colorado President Chuck Ward=20
said in a letter to Arvada officials that if the=20
two sides "are unable to negotiate an acceptable=20
agreement . . . then pursuant to FCC rules, Qwest=20
will be authorized to offer service pursuant to=20
an interim franchise." One of the main sticking=20
points has been whether Qwest should get=20
franchises without being required to provide TV=20
services throughout a community. Many=20
municipalities fear Qwest will cherry-pick=20
neighborhoods. Qwest's application to Arvada includes no buildout provision.
http://www.rockymountainnews.com/drmn/tech/article/0,2777,DRMN_23910_566...
5,00.html

CT ATTORNEY GENERAL: MAKE AT&T GET CABLE LICENSE
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
Connecticut's Attorney General filed an emergency=20
petition asking state utility regulators to make=20
AT&T get a cable license for its=20
Internet-protocol-delivered video service,=20
U-verse TV. Attorney General Richard Blumenthal=20
seeks to stop AT&T from constructing new=20
facilities and signing up customers until it has=20
a license. The petition is in reaction to the=20
July 26 ruling by U.S. District Court Judge Janet=20
Bond Arterton. That court ruling overturned a=20
2006 decision by the Connecticut Department of=20
Public Utility Control that determined that=20
U-verse TV does not meet the definition of a traditional cable service.
http://www.multichannel.com/article/CA6465974.html

SPECTRUM

CLEARING EMERGENCY RADIO WAVES
[SOURCE: Wall Street Journal, AUTHOR: Corey Boles corey.boles( at )dowjones.com]
Public-safety officials have been complaining for=20
years about static from cellphones that disrupts=20
emergency radio communications. Now the Federal=20
Communications Commission is stepping up the=20
pressure on Sprint Nextel Corp., the company=20
whose signals are causing the most interference,=20
to address the problem. With talk of a renewed=20
threat of a terrorist attack, the middle of the=20
hurricane season approaching and the Minneapolis=20
bridge collapse, some lawmakers are urging the=20
FCC to take more control of the process. "The FCC=20
needs to ensure that our police, firefighters and=20
other first responders can use the spectrum=20
without interference," says Sen. Frank Lautenberg=20
(D., NJ). "Communication on these frequencies is=20
essential for public safety." FCC Chairman Kevin=20
Martin warns that he wants to see progress soon,=20
or the FCC will dictate a remedy. Sprint Nextel=20
concedes it is taking longer than anticipated to=20
solve the problem and attributes the delay to its=20
efforts to do it as economically as possible.
http://online.wsj.com/article/SB118644768507989972.html?mod=3Dtodays_us_...
e_one
(requires subscription)

QUICKLY

FAQ: HOW FAR DOES THE NEW WIRETAP LAW GO?
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh and Anne Broache]
Just before leaving town for a month's vacation,=20
a divided U.S. Congress acceded to President=20
George Bush's requests for expanded Internet and=20
telephone surveillance powers. Over strong=20
objections from civil liberties groups and many=20
Democrats, legislators voted over the weekend to=20
temporarily rewrite a 1978 wiretapping law that=20
the Bush administration claimed was hindering=20
antiterrorism investigations. To help explain=20
what the Protect America Act of 2007 means, CNET=20
News.com has prepared a list of Frequently Asked Questions.
http://news.com.com/FAQ+How+far+does+the+new+wiretap+law+go/2100-1029_3-...
1032.html?tag=3Dnefd.lede
* Same Agencies to Run, Oversee Surveillance Program
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/06/AR200708...
1303.html
* White House Challenges Critics on Spying
The White House maintained Monday that the=20
surveillance measure signed into law by President=20
Bush over the weekend did not give the government=20
any sweeping new powers to eavesdrop on Americans without court warrants.
http://www.nytimes.com/2007/08/07/washington/07nsa.html
* Bush administration defends spy law
http://www.latimes.com/news/printedition/front/la-na-intel7aug07,1,29473...
tory?coll=3Dla-headlines-frontpage

SENATE MOVES TO CLEAR FOIA BACKLOG
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Senate took a step Friday toward cleaning up=20
the backlog of Freedom of Information Act (FOIA)=20
requests, passing a bill that would try to=20
prevent the current months- and even years-long=20
delays for government responses to journalists'=20
requests for information. Government agencies are=20
supposed to respond within 20 days to FOIA=20
requests, but a George Washington University=20
study releases last month found that numerous=20
requests had been languishing for over a decade=20
and one was over 20 years old. The bill would not=20
only toughen that shot clock, but would expand=20
the definition of journalist to include requests=20
by bloggers and freelancers. A similar bill already passed the House in Mar=
ch.
http://www.broadcastingcable.com/article/CA6465944.html

GOOGLE MAPS REDRAW THE REALM OF PRIVACY
[SOURCE: Los Angeles Times, AUTHOR: Alex Pham and Joseph Menn]
On Monday, Google began incorporating=20
street-level photos from Los Angeles, San Diego=20
and some Orange County cities into its Google=20
Maps program. The additions expanded an online=20
service that thrilled some digital-map buffs and=20
freaked out privacy advocates when it launched in=20
May in the San Francisco Bay Area, New York and=20
three other cities. The photos can help people=20
scout out places they plan to visit. But when=20
Google's camera shutters click, they capture more=20
than buildings. Within hours of the first=20
release, bloggers had found and posted=20
photographs =97 which are often sharp enough to=20
identify the people in them =97 of vulnerable=20
moments: students sunbathing in bikinis at=20
Stanford University, motorists being ticketed by=20
police, a man walking into an adult bookstore in=20
Oakland, even a man picking his nose on a San=20
Jose park bench. In Los Angeles, it could create=20
a new sport: celebrity hunting on Google Maps.
http://www.latimes.com/news/printedition/front/la-fi-google7aug07,1,5526...
.story?coll=3Dla-headlines-frontpage
(requires registration)

MORE PARTIES JOIN GOOGLE COPYRIGHT LAWSUIT
[SOURCE: Reuters]
English soccer's Premier League Ltd and music=20
publisher Bourne & Co said on Monday that eight=20
more parties have joined their lawsuit charging=20
Google Inc and its YouTube online service with=20
deliberately encouraging copyright infringement.=20
The new parties include the National Music=20
Publishers' Association, which is the largest=20
U.S. music publishing trade association, the=20
Rugby Football League, the Finnish Football=20
League Association and author Daniel Quinn.
http://www.reuters.com/article/internetNews/idUSN0641084820070806

TWO REED BUSINESS PUBLICATIONS JOIN FORCES
[SOURCE: Broadcasting&Cable]
Multichannel News editor-in-chief Tom=20
Steinert-Threlkeld will become editorial director=20
of both Multichannel News and Broadcasting and=20
Cable; both publications are owned by Reed=20
Television Group. A five-person online operations=20
group is being formed. Joel Topcik, currently a=20
deputy editor at B&C, becomes online news editor=20
for that brand. David Cohen, currently a deputy=20
digital news editor at Multichannel News, becomes=20
Web editor at B&C. Mike Reynolds, news editor at=20
Multichannel, becomes its online news editor;=20
and, Steve Donohue becomes its Web editor. An=20
executive editor of online operations will be=20
named later. Max Robins, editor-in-chief of B&C,=20
is out after 3 =BD years in that role. B&C's=20
executive editor, Mark Robichaux, will head up=20
the daily operations of the 76-year-old=20
publication, which covers the business of television.
http://www.broadcastingcable.com/article/CA6465920.html

MEDIA SPENDING FORECAST TO PASS $1 TRILLION IN '08
[SOURCE: USAToday, AUTHOR: David Lieberman]
Consumers' growing interest in media will help to=20
supercharge this sector of the economy as media=20
spending from all sources in the USA passes the=20
$1 trillion mark in 2008, according to a forecast=20
out today from private-equity firm Veronis Suhler=20
Stevenson. Media spending by consumers,=20
advertisers, marketing services and institutions=20
will rise an average of 6.7% a year from $942=20
billion in 2007 to $1.2 trillion in 2011, says=20
the annual VSS Communications Industry Forecast,=20
one of the industry's most widely cited=20
resources. That will make media the=20
third-fastest-growing part of the economy =97 after=20
agriculture and the federal government =97 up from=20
the period beginning in 2002, when the industry=20
grew about 5.9% a year, good enough then for=20
fifth place. Although corporations account for=20
the lion's share of media spending, "the overall=20
change in consumer =85 usage was the biggest=20
surprise" this year, VSS Managing Director James Rutherfurd says.
http://www.usatoday.com/printedition/money/20070807/forecast07.art.htm

PUBLIC WI-FI USE RAISES HACKING RISK
[SOURCE: USAToday, AUTHOR: Byron Acohido]
Laptop road warriors beware: Wi-Fi hot spots that=20
let you hop onto the Internet anywhere you travel=20
leave you wide open to hackers. The basic=20
problem: T-Mobile and AT&T =97 the largest=20
providers of Wi-Fi hot spots in coffee shops,=20
bookstores and airports =97 don't require=20
encryption of data traveling wirelessly between=20
laptops and the Internet. Neither do hotels and=20
municipalities with free Wi-Fi hookups in public=20
areas. T-Mobile and AT&T do recommend customers=20
download and use their free encryption software.
http://www.usatoday.com/printedition/money/20070807/hotspot07.art.htm

FLIERS NET-SURFING DAYS INCH CLOSER
[SOURCE: USAToday, AUTHOR: Roger Yu]
A half-dozen technology companies are jockeying=20
to offer in-flight broadband to scores of=20
airlines that have asked for bids. But air=20
travelers are unlikely to be able to go online in=20
large numbers until 2009 or after.
http://www.usatoday.com/printedition/money/20070807/broadband07.art.htm

LOVIN' IT: MCBRANDING HOOKS PRESCHOOLERS, STUDY FINDS
[SOURCE: Reuters, AUTHOR: Julie Steenhuysen]
Preschoolers preferred the taste of burgers and=20
fries when they came in McDonald's wrappers over=20
the same food in plain wrapping, U.S. researchers=20
said, suggesting fast-food marketing reaches the very young.
http://www.reuters.com/article/domesticNews/idUSN0642878120070806

'BABY EINSTEIN': A BRIGHT IDEA?
[SOURCE: Los Angeles Times, AUTHOR: Amber Dance]
Parents hoping to raise baby Einsteins by using=20
infant educational videos are actually creating=20
baby Homer Simpsons, according to a new study=20
released today. For every hour a day that babies=20
8 to 16 months old were shown such popular series=20
as "Brainy Baby" or "Baby Einstein," they knew=20
six to eight fewer words than other children, the study found.
http://www.latimes.com/news/printedition/front/la-sci-babyeinstein7aug07...
2022859.story?coll=3Dla-headlines-frontpage
(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.
--------------------------------------------------------------