May 2008

Cross-Ownership Reversal: The House

Now that the Senate voted to repeal the Federal Communications Commission's loosening of the ban on newspaper-broadcast cross-ownership, Rep. Jay Inslee (D-WA) is ready to push his companion bill in the House, or alternately simply adopt the Senate resolution if it will speed it to a floor vote and passage. according to Rep Inslee's legislative director, Nick Shipley, Rep Inslee will likely talk with Speaker Nancy Pelosi (D-CA) and other House leadership next week about the fastest way to get the bill passed, which would likely be to bring the Senate version immediately to the House floor for a vote. Going straight to the floor with the Senate bill would mean bypassing a vote in the House Telecommunications Subcommittee and full Commerce Committee, but Shipley said they have been keeping the chairmen of both committees apprised of their plans. It would be an unusual move, but not as unusual with a vote on an identical Senate bill, he added.
http://www.broadcastingcable.com/article/CA6561706.html?rssid=193

Martin Not Done Yet

Though it’s late in the Bush administration, it’s still a bit too soon to discount Kevin Martin, chairman of the Federal Communications Commission and cable-industry nemesis for the past three years. Chairman Martin, who probably exits office in early 2009, can't be called a lame duck just yet. That’s because his agency still has some big issues to decide, including some worth hundreds of millions of dollars to cable. Presidential election years have a tendency to slow activity at the FCC, which is run by five White House political appointees confirmed by the Senate. But this year could be different. Chairman Martin's agenda includes the merger between XM Satellite Radio and Sirius Satellite Radio, re-auction of public-safety spectrum and the smooth execution of the digital TV transition test in Wilmington (NC) on Sept. 8. And no one in cable can ignore the possibility that Martin might try to force cable operators to make more of their video channels available to competitors, or require cable operators to carry multiple digital-programming services beamed by local TV stations. Predicting Martin’s departure date has become something of a parlor game among the telecommunications elite inside the Beltway. If Sen. Barack Obama (D-IL) or Sen. Hillary Clinton (D-NY) is elected president in November, the new Democratic president could replace Martin immediately after taking office in January. A victory by prospective GOP nominee Sen. John McCain (R-AZ) could give Martin a few extra months in the job to allow the McCain administration to line up its appointees and get them confirmed by the Senate. A McCain campaign insider — who declined to be named — said to expect a new FCC chairman in a McCain administration.
http://www.multichannel.com/article/CA6561970.html?nid=4262

Cable sees opportunities in digital television

The cable industry is in new Orleans for its annual convention and spirits are bright because cable operators believe the transition to digital television will benefit them. Though most cable operators already offer digital video to their customers, the government-mandated transition offers a chance to win new first-time or lapsed pay-TV subscribers. An SNL Kagan study conservatively estimates that 10 percent of those over-the-air U.S. households will opt for pay television after the transition, with cable receiving the majority of converts and satellite and phone companies splitting the remainder. Analysts anticipate a surge in consumers switching to digital television late in the December holiday season, with high-definition, flat-panel TV sets acting as a catalyst. According to Frank Magid Associates, 25 percent of U.S. households now have HDTV sets and growth is accelerating. Nearly four in 10 HDTV set owners plan to purchase another HDTV set in the next 12 months. Competition between cable and satellite will heat up over the coming year as they vie to offer more high-definition content to win consumers. Comcast offers hundreds of HD movies and TV shows for free and on-demand viewing.
http://www.reuters.com/article/technologyNews/idUSN1521925920080516

Court Rejects Comcast’s Appeal Of Waiver Denial

The U.S. Court of Appeals for the D.C. Circuit rejected Comcast's challenge of the Federal Communications Commission's decision not to grant it a waiver of its rule requiring the unbundling of security and surfing functions of its set-top boxes. Comcast had argued that it qualified for a waiver; that it needed a waiver to help deliver new digital services and migrate customers to digital; and that the FCC's decision to deny the waiver was arbitrary and capricious given that the commission granted similar waivers to others. The FCC said Comcast didn't need the waiver, adding that it was already offering digital services in all of its markets and was likely to do so absent a waiver. The court found the FCC's explanation "quite reasonable." It said, "With or without a waiver, Comcast has a strong incentive to make as many services available as possible, and to continue introducing new high-value (and high-cost) features."
http://www.broadcastingcable.com/article/CA6561742.html?rssid=193

Broadcast TV Product Placements Up Almost 40%

The Nielsen Company reported that product placements for the first quarter of 2008 rose 6% on primetime programming for the 11 measured networks on broadcast. Broadcast television placements rose 39%, while cable television was essentially flat at -1%. There were 117,976 brand occurrences on cable and broadcast networks in the first three months of the year, according to Nielsen Product Placement Service. The most prevalent placement type on broadcast television was "foreground," which represented 35% of all product placements. On cable television, "wardrobe" placements were most common, accounting for 32% of all placements. Prime-time product placement occurrences on broadcast networks increased overall by 39% during the first quarter of 2008. The top 10 programs featured 15,404 occurrences in the first three months of this year-compared to 8,893 occurrences in the same time period in 2007.
http://blogs.mediapost.com/research_brief/?p=1707

Rules change when sales managers become TV station bosses

[Commentary] With a preponderance of sales managers becoming TV station general managers, the pressure to squeeze more money out of understaffed stations and the flood of veterans leaving the industry -- leaving younger executives with less grounding in ethics. Here's a list of rules -- old school TV news vs new school -- to illustrate how much things have changed. Old rule: news is news. New rule: news is marketing. Old rule: news is never old New rule: news has an expiration date.
Old rule: live shots compliment the story New rule: live IS the story. Old rule: weather gets the attention it deserves New rule: rain is a lead story. Old rule: Cover the issues New rule: cover the emotions. Old rule: Staff experience is valuable New rule: 1 year is experience. Old rule: Cover breaking news New rule: make up breaking news. Old rule: Build credibility and you'll gain a bigger audience New rule: Reach more people through the Internet. Old rule: Be good storytellers New rule: more stories, less telling. Old rule: Report the facts New rule: report what people say. Old rule: Follow the news director's lead New rule: Who's the news director? Old rule: Consultants suggest New rule: Consultants control. Old rule: Ratings rule New rule: Demos dominate. Old rule: Know your community New rule: know your research. Old rule: Bad staff behavior is not tolerated New rule: address your questions to our attorneys.
http://blogs.tampabay.com/media/2008/05/old-school-tv-n.html

Creditors File Bankruptcy Petitions vs. Harry Pappas

Pappas Telecasting chairman Harry Pappas said Thursday that three of the lenders in the Fortress loan group that financed some of the company's station purchases filed involuntary bankruptcy petitions (Chapter 7) against him and his wife, Stella. On May 10, 13 of Pappas' 30 stations filed for Chapter 11, a voluntary bankruptcy proceeding in which the company reorganizes and creates a schedule for paying off its creditors over time.
http://www.broadcastingcable.com/article/CA6561530.html?rssid=193

Here's Hoping Less is Better for Fox

[Commentary] In a world of almost unlimited viewing options, the broadcast networks need to reestablish themselves as the premier showcase of programming with the best viewer experience. Fox's "Remote-free TV" experiment is a good first step.
http://www.tvnewsday.com/articles/2008/05/16/daily.6/

The Public Airwaves Myth

[Commentary] Krasnow, a former National Association of Broadcasters lawyer, argues that the public does not own the airwaves. The spectrum is there, whether it is used or not. Only when it is enhanced by broadcasters filling the airwaves with information and entertainment does it have any value at all to the public. With their talent, technical knowledge and financial resources, broadcasters have increased the value of the spectrum for everyone. Without a signal, supplied by your local broadcast station, the airwaves are just so much empty space.
http://www.broadcastingcable.com/article/CA6561796.html

FCC Cranks Up White-Spaces Testing

The Federal Communications Commission is conducting testing to determine whether and how to allow spectrum-sensing unlicensed devices to operate in the digital-TV-spectrum band being used by broadcasters. If a device cannot tell when a broadcaster is already using the channel, it could mistakenly start transmitting on the channel and create interference to those beautiful new DTV signals broadcasters' future depends on. The latest unlicensed wireless device (from Motorola) to be tested by the Federal Communications Commission again failed to detect a TV signal when there was another signal nearby, according to the Association for Maximum Service Television (MSTV), while Motorola said that was not the case.
http://www.broadcastingcable.com/article/CA6561859.html?rssid=193