May 2008

Today the Media Access Project hosts a discussion=20
on "The Future of Content & Control" in San Jose.=20
For upcoming media policy events, see http://www.benton.org/calendar/2008/5

GOVERNMENT & COMMUNICATIONS
Domestic spying far outpaces terrorism prosecutions

ELECTIONS & MEDIA
From Political Operative to TV Analyst

JOURNALISM
SPJ: End Embedded Analyst Program
Cablevision Closes In On Deal for Newsday
News Corp unexpectedly drops bid for Newsday

TELEVISION
Small TV stations lose appeal
Low Powers Seek $450M in DTV Aid
Bad Weather Would Postpone Wilmington Test
Localism=92s National Consequences
Who stole six million viewers?
Marketers Welcome Television=92s Shift to a 52-Week Season
Cowles Closes on Two California Duopolies
Quarterly Reports Make Sobering Reading
Pappas Telecasting files for bankruptcy

SATELLITE
XM-Sirius Still Concerns Attorneys General

GOVERNMENT & COMMUNICATIONS

DOMESTIC SPYING FAR OUTPACES TERRORISM PROSECUTIONS
[SOURCE: Los Angeles Times, AUTHOR: Richard B. Schmitt]
The number of Americans being secretly wiretapped=20
or having their financial and other records=20
reviewed by the government has continued to=20
increase as officials aggressively use powers=20
approved after the Sept. 11 attacks. But the=20
number of terrorism prosecutions ending up in=20
court -- one measure of the effectiveness of such=20
sleuthing -- has continued to decline, in some=20
cases precipitously. The trends, visible in new=20
government data and a private analysis of Justice=20
Department records, are worrisome to civil=20
liberties groups and some legal scholars. They=20
say it is further evidence that the government=20
has compromised the privacy rights of ordinary=20
citizens without much to show for it.
http://www.latimes.com/news/printedition/front/la-na-justice12-2008may12...
5742042.story
(requires registration)

ELECTIONS & MEDIA

FROM POLITICAL OPERATIVE TO TV ANALYST
[SOURCE: New York Times, AUTHOR: Jim Rutenberg, Jacques Steinberg]
One year ago, when he was still a deputy White=20
House chief of staff in the Bush administration,=20
Karl Rove was more likely than not ducking news=20
organizations. Now, he has joined them, as an=20
analyst for Fox News and a contributor to=20
Newsweek and The Wall Street Journal. At times=20
clearly partisan, at others apparently offering=20
down-the-middle analysis, Rove in his new role as=20
a media star marks another step in the evolution=20
of mainstream journalism, where opinion,=20
=93straight news=94 reporting and unmistakable spin=20
increasingly mingle, especially on television.=20
says that he maintains regular contact with his=20
progeny at the McCain campaign. =93I'm not certain=20
that I qualify as an adviser to McCain,=94 he wrote=20
this month in an online discussion with readers=20
of The Washington Post=92s Web site, which unlike=20
Fox News, Newsweek and The Journal identified him=20
as =93an informal adviser=94 to the McCain campaign.=20
=93I have friends at the campaign who occasionally=20
ask me for reactions, and the Fox network is well=20
aware of that, and similar contacts by some of=20
their Democratic analysts.=94 Rove is also=20
regularly mentioned in Republican circles as a=20
candidate to start a Republican 527 group, though=20
no plans have been announced. Jon Meacham, the=20
editor of Newsweek, said he was not worried that=20
his readers would confuse Mr. Rove=92s leanings.=20
=93No one on the planet who is reading Newsweek is=20
at all puzzled as to what Karl=92s politics are,=94=20
Meacham said. Meacham said he hired Rove as a=20
contributor last fall in part to =93responsibly=20
provoke.=94 Indeed, he said, several hundred=20
readers canceled their subscriptions in response.
http://www.nytimes.com/2008/05/12/us/politics/12rove.html
(requires registration)

JOURNALISM

SPJ: END EMBEDDED ANALYST PROGRAM
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
An "outraged" Society of Professional Journalists=20
called on the Pentagon to stop the practice of=20
using military analysts on TV and other media as=20
a "Trojan Horse" to carry the White House's=20
message about the war in Iraq -- a story first=20
reported by The New York Times. The SPJ also=20
called on news outlets to hold those analysts to=20
the same kinds of ethical standards on financial=20
ties and conflicts of interest that they would=20
any of their reporters. =93The Pentagon=92s practices=20
to co-opt military analysts should end and be=20
replaced by an honest, open dialogue with=20
representatives of the media about the facts of=20
the war,=94 SPJ president Clint Brewer said in a=20
statement Friday. =93In addition, the country=92s=20
news organizations should disclose the ties of=20
their analysts both past and present. Moving=20
forward, America=92s news media should hold these=20
analysts to the same ethical tests they would any journalist.=94
http://www.broadcastingcable.com/article/CA6559400.html?rssid=3D193

CABLEVISION CLOSES IN ON DEAL FOR NEWSDAY
[SOURCE: Wall Street Journal, AUTHOR: Vishesh Kumar]
Tribune Company is at the brink of a deal to sell=20
its Long Island newspaper Newsday to Cablevision=20
Systems Corp. for $650 million in a deal to that=20
will help relieve Tribune's debt. If successful,=20
the bid from the Long Island-based cable operator=20
will have bested matching $580 million offers=20
from News Corp., which owns the New York Post and=20
The Wall Street Journal, and New York Daily News=20
owner Mortimer Zuckerman. News Corp. had had an=20
informal agreement for Newsday, but was unwilling=20
to match Cablevision's offer and revoked its bid=20
on Saturday. Clinching the deal would put the=20
Long Island cable operator in control of Newsday=20
and related assets, including the free New York=20
City newspaper amNew York. The deal, which is=20
expected to be structured as a joint venture for=20
tax reasons, would leave Tribune with a small stake in Newsday.
http://online.wsj.com/article/SB121053212558883383.html?mod=3Dtodays_us_...
ketplace
(requires subscription)
* Cablevision Offer Baffles Wall Street (Again) (NYTimes)
http://www.nytimes.com/2008/05/12/business/media/12cablevision.html?ref=...
odayspaper

NEWS CORP UNEXPECTEDLY DROPS BID FOR NEWSDAY
[SOURCE: Reuters, AUTHOR: Kenneth Li, Robert MacMillan]
Rupert Murdoch's News Corp on Saturday dropped=20
its $580 million bid for Tribune Co's Newsday=20
newspaper, just days after Murdoch said a deal=20
was imminent, leaving cable television operator=20
Cablevision as the likely winner of the Long=20
Island daily. News Corp was unable to justify=20
outbidding Cablevision's $650 million offer from=20
an economic perspective. A News Corp spokesman=20
said the deal was "uneconomical." The decision=20
leaves two known contenders for Newsday. Besides=20
Cablevision, Mortimer Zuckerman, owner of the New=20
York Daily News, a rival city tabloid to=20
Murdoch's New York Post, also bid $580 million for the paper.
http://www.reuters.com/article/industryNews/idUSN1053997820080510

TELEVISION

SMALL TV STATIONS LOSE APPEAL
[SOURCE: Associated Press, AUTHOR: John Dunbar]
The U.S. Court of Appeals for the District of=20
Columbia has denied a request from owners of=20
thousands of low-power television stations to=20
force a ban on government-subsidized converter=20
boxes that can't display their signals. The=20
Community Broadcasters Association contends it is=20
facing a "death sentence" because of a flaw in=20
the government's plan to force broadcasters to=20
shift to digital broadcasting. The CBA in March=20
asked the court to order the Federal=20
Communications Commission to ban all digital=20
set-top converter boxes that are not equipped to=20
receive an analog signal, a request that had the=20
potential to derail the biggest broadcasting=20
transition since color television. As of Feb. 18,=20
2009, all full-power television stations in the=20
U.S. are required to stop broadcasting an analog=20
signal. Anyone who gets programming through an=20
antenna and does not have a newer-model digital=20
TV set will need to buy a box that converts the=20
digital signal to analog. The government is=20
providing two $40 coupons per household that can=20
be used to buy these boxes. The problem facing=20
the 2,600 low-power television stations=20
represented by the association is that they are=20
not subject to the deadline. Most of the=20
converter boxes now on sale will actually block=20
the low-power analog signal from those stations,=20
while the full-power digital signals will display=20
normally. The appeals court's decision said the=20
association failed to adequately make its case=20
that the order, known as a "writ of mandamus," was necessary.
http://www.sanluisobispo.com/news/politics/story/355590.html

LOW POWERS SEEK $450 MILLION IN DTV AID
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Community Broadcasters Association is asking=20
Congress for $450 million to make the conversion=20
to digital as soon as possible, saying that many=20
in the industry face bankruptcy and potential=20
ruin due to government policies. "Now that the=20
court has slapped us down without explanation,"=20
CBA vice president of technology Greg Herman=20
said, "completely taking a pass on their=20
responsibility to interpret or enforce the laws=20
correctly, our effort is to find a solution to=20
this tremendously difficult problem." Herman said=20
the money would not come out of taxpayers=92=20
pockets, but could instead come from the $9.6=20
billion in additional funds the FCC raised in its=20
recent spectrum auction above what was earmarked=20
for other programs -- such as the=20
converter-box-coupon subsidies -- and the federal=20
treasury. And if Congress doesn't? "They have=20
been squeezing low-power stations for decades,=94=20
Herman added. =93It is time to make a decision=20
about whether they want to keep or kill us. It=20
they want to kill us, to crush us out of=20
existence or legislate us out of existence or=20
ignore us out of existence, then take=20
responsibility for it. That is the ugly truth. We=20
are tired of government just assuming everything=20
is going to be OK. We are going to scream and yell.=94
http://www.broadcastingcable.com/article/CA6559392.html?rssid=3D193

BAD WETHER WOULD POSTPONE WILMINGTON TEST
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
William Saffo, mayor of Wilmington (NC), told=20
C-SPAN Friday that he has assurances from Federal=20
Communications Commission chairman Kevin Martin=20
that if a hurricane or serious storm threatens=20
his city, the commission will postpone the=20
planned Sept. 8 test in which the Big Four=20
network affiliates and one other station will=20
pull the plug early on analog broadcasts.
http://www.broadcastingcable.com/article/CA6559552.html?rssid=3D193
* Weathering The Digital Storm In Wilmington
http://www.multichannel.com/article/CA6559661.html?nid=3D4262
* Wilmington: NAB Seeks Answers
http://www.broadcastingcable.com/article/CA6559425.html?rssid=3D193

LOCALISM'S NATIONAL CONSEQUENCES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
[Commentary] A TV industry trying its best to=20
keep up with nimble new-media competitors may=20
have an expensive new albatross to deal with: the=20
Federal Communications Commission=92s series of=20
proposals to promote localism. Among the=20
proposals the commission offered up last December=20
was one requiring TV stations to locate their=20
main studios in their cities of license. But=20
network executives fear that the industry already=20
spent billions of dollars on new facilities that=20
are now in jeopardy if the FCC forces stations to=20
move those facilities back to their home markets.=20
The moves could lead to a hefty tab for those=20
stations. National Association of Broadcasters=20
spokesman Dennis Wharton called derailing the=20
studio proposal a =93huge priority=94 for the=20
association. He pointed out that more than 120=20
House members and 28 senators sent letters to the=20
FCC expressing their concern, which he called=20
=93reflective of the broad, bipartisan concern of members of Congress.=94
http://www.broadcastingcable.com/article/CA6559549.html?rssid=3D193

WHO STOLE SIX MILLION VIEWERS
[SOURCE: New York Times, AUTHOR: Brian Stelter]
This week, the television upfronts =97 in which the=20
broadcast networks present their schedules to=20
advertisers =97 will open with a mystery. Who stole=20
six million viewers? That=92s the number who were=20
watching prime time television last May, a month=20
affectionately known as =93sweeps,=94 but have=20
disappeared this year, according to the overnight=20
Nielsen ratings. Some of these viewers are now=20
watching cable programming. Others are still=20
watching broadcast TV, but on their own terms --=20
using TiVos and other digital video recorders,=20
streaming video on the Internet, and cable video=20
on demand offerings. So while overall usage of=20
television is steady, the linear broadcasts=20
favored by advertisers are in decline. The=20
mystery, then, is what the networks should do now.
http://www.nytimes.com/2008/05/12/business/media/12ratings.html?ref=3Dto...
spaper
(requires registration)

MARKETERS WELCOME TELEVISION'S SHIFT TO A 52-WEEK SEASON
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
After the writers' strike was settled in=20
February, television broadcasters resolved to=20
rethink how the coming upfront week would=20
proceed. The networks are ordering far fewer=20
pilots, test episodes of new series that are=20
expensive to produce. They also intend to broaden=20
the presentations beyond what will be on TV, to=20
include programming in new media like the=20
Internet and mobile devices. And the networks=20
will expand their horizon from the usual=20
nine-month season =97 running September through=20
May, with most new series brought out en masse in=20
the fall =97 to a year-round perspective, known in=20
industry parlance as a 52-week season. The senior=20
executives at media agencies who help marketers=20
determine which shows to buy commercials in =97 and=20
which to avoid =97 welcome the changes. They say=20
they would like the revamped upfront week to=20
become normal, rather than entering the record=20
books with an asterisk: temporary changes because of a strike-battered seas=
on.
http://www.nytimes.com/2008/05/12/business/media/12adcol.html?ref=3Dtoda...
aper
(requires registration)

COWLES CLOSES ON TWO CALIFORNIA DUOPOLIES
[SOURCE: tvnewsday, AUTHOR: ]
The Cowles Publishing Co. has closed on its=20
purchase of four TV stations -- two duopolies --=20
from Newport Television. The deal includes two=20
full-power CBS affiliates -- KCOY Santa=20
Barbara-Santa Maria-San Luis Obispo, Calif. (DMA=20
122) and KION Monterey-Salinas, Calif. (DMA 124)=20
-- along with companion low-power stations in=20
each of the markets -- KKFX-CA, the Fox affiliate=20
in San Luis Obispo, and KMUV-LP, the Telemundo=20
affiliate in Monterey. Cowles, a Spokane,=20
Wash.-based company headed by Elizabeth Cowles,=20
also owns KHQ Spokane and KNDO/KNDU=20
Yakima-Pasco-Richland-Kennewick, Wash. All are=20
NBC affiliates. Cowles also owns The=20
Spokesman-Review, Spokane=92s dominant newspaper.
http://www.tvnewsday.com/articles/2008/05/09/daily.16/

QUARTERLY REPORTS MAKE SOBERING READING
[SOURCE: tvnewsday, AUTHOR: Harry A. Jessell]
[Commentary] With economic hard times, broadcast=20
groups are reporting disappointing first quarters=20
almost across the board. And while there's still=20
the expectation that the political ad bonanza=20
will arrive later this year, broadcasters need to=20
make good on their promises of new revenue=20
streams if they hope to convince investors of their future.
http://www.tvnewsday.com/articles/2008/05/09/daily.14/

PAPPAS TELECASTING FILES FOR BANKRUPTCY
[SOURCE: Reuters, AUTHOR: Aarthi Sivaraman]
Pappas Telecasting, a private broadcasting group,=20
filed for bankruptcy protection, citing a range=20
of troubles from weak advertising revenue to poor=20
network ratings that led to its current state.=20
The company said its advertising revenues were=20
hurt by the "extraordinary downturn" in the=20
housing market and higher energy costs. It also=20
blamed poor ratings at CW Network for part of its=20
financial woes. The broadcast group's troubles=20
made the sale of its stations difficult and=20
financing for any sale tough to come by.
http://www.reuters.com/article/businessNews/idUSN1218310120080512

SATELLITE

XM-SIRIUS STILL CONCERNS ATTORNEYS GENERAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
States attorneys general continued to register=20
their concerns with the proposed XM Satellite=20
Radio-Sirius Satellite Radio merger. The=20
attorneys generals met with Federal=20
Communications Commission member Jonathan=20
Adelstein this week to talk about the lack of an=20
interoperable radio that would work with both=20
services, as well as their general concern that=20
"significant harms" would result from "the loss of a direct competitor.=94
http://www.broadcastingcable.com/article/CA6559236.html?rssid=3D193
--------------------------------------------------------------
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.
--------------------------------------------------------------