October 2007

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

OWNERSHIP
Rainbow/PUSH Symposium Recap
Splitting Headaches for Belo, Hearst

BROADCASTING/CABLE
Thompson's Candidacy Highlights Need to Allow Exemptions from
Equal Opportunities Rule
Rehr: Don't Do Away With LPFM Protection
Don't Kill the Nightly News. Really
Community television weakened by FCC

TELECOM
Many Miss Out on IRS Phone Tax Refund
Bell sounds in fight against Cook phone tax
FCC Seeks USAC Nominations

GOVERNMENT & COMMUNICATIONS
Shield Law Slated for House Vote

ADVERTISING
Electioneering Ads at Issue for FEC
The Google-Moveon-Collins Flap
Ad dollars flood Web, but will they go far enough?
Gore glams up global warming fight -- again

QUICKLY -- Mapping is called key to expanding=20
broadband service; FCC's Tate Touted by Kids=92=20
Media Group; Interim Heads Increasingly Run Federal Agencies

OWNERSHIP

RAINBOW/PUSH SYMPOSIUM RECAP
Federal Communications Commission Chairman Kevin=20
Martin wants to take advantage of the television=20
industry's transition to digital broadcasting to=20
make channels available to small businesses that=20
may be owned by minority programmers. He promoted=20
his long-dormant concept Friday in the face of=20
heavy criticism of his agency's record on=20
promoting minority ownership of media. The=20
chairman spoke at a media and telecommunications=20
symposium hosted by the Rainbow/PUSH Coalition=20
and its founder, the Rev. Jesse Jackson, who=20
bemoaned the state of minority media ownership in=20
America. "We have a minority-ownership crisis,"=20
said Rev Jackson. "Too few own too much at the=20
expense of too many." Rev Jackson said the lack=20
of minority owners means that people of color are=20
depicted in the media as "less intelligent than=20
we are, less hardworking than we are, less=20
patriotic than we are and more violent." He was=20
joined by FCC Commissioners Jonathan Adelstein=20
and Michael Copps calling for the creation of a=20
minority media ownership task force that would=20
make recommendations to the Commission before it=20
approves a new set of media ownership rules in the coming months.
* FCC Chief Wants More Minority Broadcasters
[SOURCE: Associated Press, AUTHOR: John Dunbar]
http://tennessean.com/apps/pbcs.dll/article?AID=3D/20071013/BUSINESS01/7...
30322/1436/BUSINESS
* Chairman Martin's remarks
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-277312A1.doc
* Commissioner Adelstein's remarks
"The fundamental issue we are here to discuss is=20
media ownership. It is not enough to simply work=20
the land. It's more important to own the=20
land. Media sharecropping is not a viable=20
alternative to ownership. A comprehensive answer=20
to the dearth of female and people of color=20
ownership cannot wait any longer. Before we act=20
on the media ownership rules, we need to=20
implement the recommendations of our independent=20
panel. It's not enough to get a report, or issue=20
a notice. We need to implement policies that=20
will address this crisis before we act on any=20
rules to further consolidate the media, which can=20
only take media outlets further out of the reach of women and people of col=
or."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-277321A1.doc
* Martin: Untying, Unbundling Cable Programming Would Help Minorities
FCC Chairman Martin pushed for program unbundling=20
at both the wholesale and subscriber level,=20
saying that he thought the FCC should prohibit=20
programmers from requiring operators to buy=20
bundles of channels that include ones viewers=20
don't want, as well as requiring operators to=20
unbundle channel offerings to allow viewers to=20
buy channels a la carte. This will lower cable=20
bills, he said, while making it easier for=20
independent voices, like minorities, to get cable=20
carriage. The cable industry argued that a la=20
carte will do the opposite. Chairman Martin also=20
proposed restoring minority tax certificates -- a proposal that got applaus=
e.
http://www.broadcastingcable.com/article/CA6490766.html?rssid=3D193
* Martin Not Opposed to Diversity Task Force
FCC Chairman Kevin Martin said Friday that he was=20
not opposed to a media diversity task force along=20
the lines proposed by fellow FCC Commissioner=20
Jonathan Adelstein, but it should not preclude=20
"moving forward on ownership issues. After his=20
speech to Rainbow/PUSH, with Rev Jackson at his=20
side, Chairman Martin was asked whether, if a=20
task force could be assembled quickly, he would=20
consider recommendations of such a task force=20
before acting on a media-ownership rewrite.=20
Chairman Martin said he would "always consider=20
any of the recommendations by any group that=20
comes forward, whether Rev. Jackson was a part of=20
it or not. But obviously, if someone of his=20
stature was involved, it gives it significant=20
additional weight." "I always support additional=20
input, but neither do I think the commission=20
shouldn't move forward depending on when the=20
input comes,=94 Chairman Martin said. =93We have had=20
a significant amount of time where people have=20
been commenting. This proceeding has been open=20
for more than one year, and I think it is time=20
for us to come to some kind of time frame that we can move forward on."
http://www.broadcastingcable.com/article/CA6490714.html?rssid=3D193
* Martin: Time To Kill Exclusive Cable-MDU Deals
Chairman Martin is supporting adoption of a rule=20
that would ban cable companies from excluding=20
other communications companies from apartment=20
buildings through the use of exclusive contracts.=20
He said his rule would disproportionately benefit=20
minorities because 40% of households headed by=20
minorities live in apartment buildings, while=20
apartment units make up 25% of the nation=92s housing stock.
http://www.multichannel.com/article/CA6490977.html?rssid=3D196
* Jackson: Imus Media Megaphone Suggested =91Corruption of Concentration=92
Rainbow/PUSH founder The Rev. Jesse Jackson said=20
it was not so much what radio/TV jock Don Imus=20
said about the Rutgers University women=92s=20
basketball players, although it was very=20
offensive, but rather the size of the media megaphone he had to say it.
http://www.broadcastingcable.com/article/CA6490795.html?rssid=3D193

SPLITTING HEADACHE FOR BELO, HEARST
[SOURCE: Broadcasting&Cable, AUTHOR: Jonathan Hemingway]
Is the sum of the parts greater than the whole?=20
In answering that question, big media companies=20
are drawing different conclusions about how they=20
structure their businesses. Belo Corp. and Hearst=20
Corp. are moving in different directions. Belo is=20
separating its newspaper business from its=20
television business, while Hearst was, until late=20
Friday, trying to buy back the 48% of=20
Hearst-Argyle Television (HTV) shares it doesn't=20
already own. The moves have sparked speculation=20
about how businesses are valued within companies=20
with similar blends of operations, such as=20
Gannett, E.W. Scripps and Media General, all of=20
them companies with newspapers=97a business in=20
trouble right now=97and television properties that=20
would seemingly have a steadier future.
http://www.broadcastingcable.com/article/CA6491014.html
* Hearst Doesn't Up Offer for Hearst-Argyle
At the last minute, Hearst said Friday that it=20
wouldn't improve its $23.50-per-share bid to=20
acquire the remaining 48% of Hearst-Argyle Television it doesn't already ow=
n.
http://www.broadcastingcable.com/article/CA6491000.html?rssid=3D193

BROADCASTING/CABLE

THOMPSON'S CANDIDACY HIGHLIGHTS NEED TO ALLOW=20
EXEMPTIONS FROM EQUAL OPPORTUNITIES RULE
[SOURCE: The Huffington Post, AUTHOR: Charles Firestone, Aspen Inst]
[Commentary] With the candidacy of Fred Thompson=20
comes an issue of communications policy that=20
arises with every generation of candidates. What=20
to do about the reruns of television programs in=20
which a candidate appears as an actor? With the=20
Thompson candidacy, the question is does the=20
Equal Opportunities Rule apply to cable TV=20
networks. But for today, the FCC should exempt=20
fictional characters who have no control over=20
their scripts from application of the Equal=20
Opportunities Rule. Broadcasters and cable=20
operators then should exercise restraint from=20
carrying more episodes of a candidate than they=20
previously aired on a regular basis. If not,=20
perhaps the Federal Election Commission would=20
view it as a gift to the candidate, evoking a=20
whole different set of regulations. These issues,=20
though, are minor compared to the real travesty=20
of broadcast coverage of elections -- the absence=20
of almost all candidate centered discourse on=20
local stations. As the election of 2008 unfolds,=20
will local broadcasters exercise their public=20
trust by devoting significant time to=20
candidate-centered discourse and substantive=20
coverage of a wide variety of electoral campaigns?
http://www.huffingtonpost.com/charles-m-firestone/thompsons-candidacy-hi...
b_67653.html

REHR: DON'T DO AWAY WITH LPFM PROTECTION
[SOURCE: RadioInk]
In a letter addressed to Senate Commerce=20
Committee Chairman Daniel Inouye (D-Hawaii),=20
National Association of broadcasters CEO David=20
Rehr is urging lawmakers not to pass the Local=20
Community Radio Act of 2007, which would exempt=20
low-power FMs from third adjacent channel=20
protection requirements. He said the bill is=20
based on the results of a "flawed study" that=20
understated the amount of interference LPFMs=20
would cause to full-power stations.
http://www.radioink.com/HeadlineEntry.asp?hid=3D139589&pt=3Dtodaysnews

DON'T KILL THE NIGHTLY NEWS. REALLY
[SOURCE: BusinessWeek, AUTHOR: Jon Fine]
[Commentary] Why keep the nightly network TV=20
newscasts? Not for notions of quality and public=20
service -- let's not pretend the evening news is=20
rarely a whole lot more than carefully distilled=20
twaddle. What's important is that the newscasts=20
remain profitable, and, according to current and=20
former insiders, still bring in around $100=20
million -- each -- in annual ad revenue. The=20
per-viewer cost of advertising for the newscasts,=20
according to one senior media buyer, continues to=20
rise -- albeit more slowly than in, say, prime=20
time -- illustrating again a classic media=20
paradox. Broadcast audiences diminish. What advertisers pay doesn't.
http://www.businessweek.com/magazine/content/07_43/b4055097.htm

COMMUNITY TELEVISION WEAKENED BY FCC
[SOURCE: Gresham Outlook, AUTHOR: Rob Brading, MetroEast Community Media]
[Commentary] When Congress didn=92t enact=20
telecommunications legislation in late 2006,=20
local governments and advocates of media that=92s=20
less concentrated, more diverse and more local=20
breathed a sigh of relief. Less than a year=20
later, those same folks are wondering if they=20
should have paid more heed to the old adage about=20
being careful what you wish for. Commercial=20
interests turned their prowess to the Federal=20
Communications Commission, asking it to eliminate=20
the need to negotiate with local governments for=20
the use of public rights of way. This despite the=20
fact that they can get a local franchise simply=20
by agreeing to the terms of the existing cable=20
company franchise. Far from simplifying or=20
streamlining matters, the FCC will multiply the=20
potential problems and disputes that cities have=20
with land-line video providers. Here in the East=20
Metro area, the new FCC order could cripple our=20
local government=92s emergency services=20
communications, cost our local schools thousands=20
and thousands of dollars in increased costs for=20
Internet and telephone services, eliminate=20
community television channels and deprive local=20
governments of fair payment for the use of public=20
rights of way. These FCC rulings will create=20
chaos and uncertainty for our communities and=20
budget gaps that local governments will close by=20
reducing critical local services or raising fees=20
and taxes. It=92s not surprising, given its=20
bureaucratic nature, and self-imposed distance=20
from the needs of local communities, that the FCC=20
moves forward regardless of wishes of the public.=20
But it=92s unfortunate and unfair that our local=20
residents will pay the price for the blunders of an out-of-touch agency.
http://www.theoutlookonline.com/opinion/story.php?story_id=3D11916377176...
0900

TELECOM

MANY MISS OUT ON IRS PHONE TAX REFUND
[SOURCE: Associated Press, AUTHOR: Jim Abrams]
What if the government tried to give American=20
taxpayers some of their money back, but the=20
taxpayers didn't seem to want it? That's what=20
happened this year, as taxpayers collected only=20
about half the $8 billion the IRS expected to pay=20
them in its phone tax refund, the most=20
far-reaching refund in the agency's history. The=20
telephone excise tax was created in 1898 to fund=20
the Spanish-American War. After losing several=20
lawsuits disputing the legitimacy of the tax, the=20
IRS created a program to refund the 3 percent tax=20
paid on long distance or bundled service from=20
March 2003 to July 2006. The tax agency=20
estimated the one-time refund would affect 145=20
million to 165 million taxpayers. But, as of=20
August, the IRS had repaid just over half of the=20
over-collected tax, according to the Treasury=20
Inspector General for Tax Administration. The=20
inspector general report cited two main reasons=20
for the lower-than-expected refunds: 1) Many=20
taxpayers, following the advice of the IRS,=20
didn't want to bother searching for old phone=20
bills to calculate exactly how much they were=20
owed, and took the standard $30 to $60 refund=20
instead, refunds that were based on the number of=20
exemptions claimed. 2) Despite what the report=20
said were generally good efforts by the IRS to=20
communicate the program to taxpayers, many=20
remained uninformed. As of June 9, about 87.6=20
million, or 71.5 percent, of the 122.6 million=20
individual income tax returns filed had made a phone tax refund claim.
http://www.chicagotribune.com/business/sns-ap-irs-phone-tax,0,2459463.st...
?track=3Drss

BELL SOUNDS IN FIGHT AGAINST COOK PHONE TAX
[SOURCE: Chicago Tribune, AUTHOR: Jon Van]
A proposal to boost the average Cook County (IL)=20
residential phone tax have stirred opposition=20
from groups across the economic spectrum hoping=20
to head off what appear to be an effort to=20
balance the county's budget with hefty hikes in=20
utility taxes. On Friday the Illinois Citizens=20
Utility Board put a call to arms on its Web site=20
asking consumers to unite in fighting the=20
proposed new local taxes. Groups ranging from the=20
Illinois Chamber of Commerce to the Ministerial=20
Alliance Against the Digital Divide also seek to=20
kill the tax hikes before they gain traction.=20
County commissioners are looking at a variety of=20
proposals intended to close the county's looming=20
budget gap, and a proposal to add a $4 monthly=20
tax on every telephone used in the county is one=20
of many now on the table. But consumer advocates=20
fear that county leadership is leaning toward the=20
new tax on phones as well as increased taxes on=20
gas and electric bills as the answer.
http://www.chicagotribune.com/business/chi-071012phone-tax,0,4655332.sto...
track=3Drss

FCC SEEKS USAC NOMINATIONS
[SOURCE: Federal Communications Commission]
The FCC is seeking nominations for members of the=20
Board of Directors of the Universal Service=20
Administrative Company. Seven slots are open to=20
represent: state consumer advocates; schools that=20
are eligible to receive discounts; libraries that=20
are eligible to receive discounts; non-rural=20
incumbent local exchange carriers; cable=20
operators; commercial radio service providers;=20
and low income consumers. All nominations must be=20
filed with the Office of the Secretary by November 1, 2007.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-07-4245A1.doc

GOVERNMENT & COMMUNICATIONS

SHIELD LAW SLATED FOR HOUSE VOTE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
House Speaker Nancy Pelosi's (D-Calif.) office=20
confirmed that there will be a floor vote next=20
Tuesday, Oct. 16, on a federal shield law, H.R.=20
2102, that would protect journalists and their=20
sources from overzealous federal prosecutors. The=20
bill, which passed in the House Judiciary=20
Committee in August, would establish a qualified=20
privilege that protects journalists from having=20
to reveal their sources to government=20
investigators, with carveouts for some categories=20
of information, including trade secrets and=20
personal health information. Those carveouts were=20
crucial in mollifying chambers of commerce and=20
other business interests. Online journalists and=20
bloggers would be included in the protection so=20
long as they were "gathering, preparing,=20
collecting, photographing, recording, writing,=20
editing, reporting, or publishing news or=20
information that concerns local, national, or=20
international events or other matters of public=20
interest for dissemination to the public."
http://www.broadcastingcable.com/article/CA6490609.html?rssid=3D193
* Measure to shield reporters' secret sources likely to pass
http://www.usatoday.com/printedition/news/20071015/a_shield15.art.htm

ADVERTISING

ELECTIONEERING ADS AT ISSUE FOR FEC
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A hearing at the Federal Election Commission on=20
Oct. 17 will help determine just how free=20
corporations and unions will be to speak around=20
election time, and how freely they can spend on=20
TV (broadcast or cable) and radio issue=20
advertising. At the session, the FEC will hear=20
from stakeholders as it tries to square rules=20
about TV and radio issue ads with the =93Wisconsin=20
Right to Life Case=94 Supreme Court decision last=20
summer. That case took some of the teeth out of=20
the McCain-Feingold Bipartisan Campaign Reform=20
Act (BCRA) and opened the door to more such ads in the run-up to elections.
http://www.broadcastingcable.com/article/CA6491022.html

THE GOOGLE-MOVEON-COLLINS FLAP, OR "THE OTHER=20
SHOE DROPS AND IT FITS QUITE NICELY."
[SOURCE: Public Knowledge, AUTHOR: Harold Feld, MAP]
[Commentary] A deeper look into the flap over=20
Google removing ads by the campaign to re-elect=20
Sen Susan Collins (R-ME) because they included=20
the MoveOn.org logo. Running so many ads per day,=20
Google's efforts to protect trademarks is=20
completely automated. No human being is actually=20
involved in the identification process, and=20
therefore you can get your free speech rights cut=20
off. But hey, as the IP Mafia always like to=20
remind us, if the First Amendment ends up as=20
collateral damage in our war to protect=20
trademarks from any sort of use we do not=20
absolutely control and monetize, well, it=92s a=20
shame, but that=92s just the price you gotta pay.=20
After all, you can=92t expect to win the war=20
against the public domain without cracking a few=20
First Amendment eggs. So no, neither Google nor=20
the folks at Moveon knew this happened before it=20
happened and got all over the press. Which, I=20
expect the defenders of Verizon point out, was=20
exactly what Verizon claimed. And therefore=20
aren't we all once again hypocrites, useful=20
idiots, base curs and scalawags, etc., etc. for=20
having jumped on poor innocent Verizon?
http://www.publicknowledge.org/node/1215

AD DOLLARS FLOOD WEB, BUT WILL THEY GO FAR ENOUGH?
[SOURCE: Reuters, AUTHOR: Paul Thomasch]
Companies will spend a record $31 billion this=20
year to advertise, social networks, video=20
exchanges and blogs. But some media veterans=20
worry that expectations for online advertising=20
may be getting out-sized. Increasingly, they say,=20
too much media depends on advertising as the only=20
source of revenue. With new players from software=20
makers to cable operators also trying to cash in,=20
the dollars simply may not stretch far enough.
http://www.reuters.com/article/internetNews/idUSN1221764120071012

GORE GLAMS UP GLOBAL WARMING FIGHT -- AGAIN
[SOURCE: CNNMoney.com, AUTHOR: Steve Hargreaves]
Al Gore is embarking on a public advertising=20
campaign estimated to cost between $100 and $200=20
million a year, one of the largest public service=20
campaigns in history. Expect to see television=20
commercials, newspaper spreads and Internet ads=20
popping up in a few months time. Funded by=20
donations and proceeds from "An Inconvenient=20
Truth," the campaign will focus on convincing=20
people that they can do something about global=20
warming. "It's a big purchase, people will see=20
it," said Matt Creamer, editor-at-large at the=20
industry journal Advertising Age, although he=20
added that even $200 million was small compared=20
to some big corporate campaigns, which can cost=20
as much as $1 billion. But can an advertising=20
campaign actually change society? Advertising=20
experts say ads can accomplish a great deal -=20
think of the anti-tobacco campaign or the=20
anti-drunk driving campaign - but it will take=20
time. The anti-smoking crusade started in the=20
late 1960s, according to Bruce Vanden Bergh, a=20
professor of advertising at Michigan State=20
University. But states didn't ban smoking in the=20
workplace, restaurants and bars until the late 1990s.
http://money.cnn.com/2007/10/11/news/economy/energy_consumption/?postver...
n=3D2007101113

QUICKLY

MAPPING IS CALLED KEY TO EXPANDING SERVICE
[SOURCE: St Louis Post-Dispatch, AUTHOR: Tim Logan]
Public mapping of Internet availability is=20
scarce, experts in the field say, even as=20
high-speed connections become increasingly=20
important to both business and home users. The=20
most comprehensive effort is a list, published=20
every six months by the Federal Communications=20
Commission, of how many companies provide=20
broadband in each ZIP code. But it doesn't name=20
the companies or specify if they serve business=20
or residential customers. Nor does it say how=20
much of the ZIP code they cover: A company that=20
serves two households counts the same as one that=20
serves the whole area. But bills moving in=20
Congress would mandate more detailed information,=20
with lawmakers arguing that mapping broadband is=20
the first step towards supplying more of it.=20
"It's a really valuable thing for consumers,"=20
said Drew Clark, a senior fellow with the Center=20
for Public Integrity, an investigative group that=20
has worked on the issue. "I think that there's=20
pressure building for real, live information about broadband."
http://www.stltoday.com/stltoday/business/stories.nsf/story/77F9A9B61B84...
986257374000D391C?OpenDocument
-- More from Drew Clark --
http://www.drewclark.com/2007/10/mashing-media-and-watching-fcc.shtmlhttp=
://www.drewclark.com/2007/10/mashing-media-and-watching-fcc.shtml

FCC'S TATE TOUTED BY KIDS' MEDIA GROUP
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Common Sense Media gave FCC Commissioner Deborah=20
Taylor Tate the =93Outstanding Leadership Award=94=20
and praised her as the "kids=92 commissioner" who=20
"looks at every issue that comes before the FCC=20
through the prism of whether or not something is=20
good for our nation's children."
http://www.broadcastingcable.com/article/CA6490632.html?rssid=3D193

INTERIM HEADS INCREASINGLY RUN FEDERAL AGENCIES
[SOURCE: New York Times, AUTHOR: Philip Shenon]
Scholars and other researchers who study the=20
federal bureaucracy say the Bush Administration's=20
reliance on interim heads of government agencies=20
is becoming increasingly common. With only 15=20
months left in office, President Bush has left=20
whole agencies of the executive branch to be run=20
largely by acting or interim appointees =97 jobs=20
that would normally be filled by people whose=20
nominations would have been reviewed and=20
confirmed by the Senate. In many cases, there is=20
no obvious sign of movement at the White House to=20
find permanent nominees, suggesting that many=20
important jobs will not be filled by=20
Senate-confirmed officials for the remainder of=20
the Bush administration. That would effectively=20
circumvent the Senate=92s right to review and=20
approve the appointments. It also means that the=20
jobs are filled by people who do not have the=20
clout to make decisions that comes with a=20
permanent appointment endorsed by the Senate,=20
scholars say. While exact comparisons are=20
difficult to come by, researchers say the vacancy=20
rate for senior jobs in the executive branch is=20
far higher at the end of the Bush administration=20
than it was at the same point in the terms of Mr.=20
Bush=92s recent predecessors in the White=20
House. The White House insists that when=20
vacancies have occurred in executive branch=20
agencies, it has filled them with talented acting=20
replacements, often with the same officials who=20
have been nominated =97 but not yet confirmed =97 for=20
those jobs by the Democratic-controlled Senate.
http://www.nytimes.com/2007/10/15/washington/15interim.html?ref=3Dtodays...
er
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Communications-related Headlines is a free online=20
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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
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