May 2008

Murdoch won't raise bid for Newsday

Rupert Murdoch's News Corp., which had appeared close to a deal to buy Newsday, doesn't plan to raise its bid for the Long Island newspaper despite a higher offer from Cablevision Systems. Cablevision's offer of $650 million bested Murdoch's $580 million price, as well as an offer of equal value from New York Daily News owner Mortimer Zuckerman. It wasn't clear whether Zuckerman would respond to Cablevision's higher offer. The competitive bidding for Newsday is good news for its owner Tribune Co., which took on an additional $8.2 billion in debt in December when it became a privately held company. Tribune's new CEO Sam Zell had initially said he wanted to keep the company largely intact, but later decided to entertain offers for Newsday following a steep drop-off in advertising revenues at the company. Like Newsday, Cablevision is also based on Long Island and has about 3 million cable TV customers in the New York region. It also has a local cable news channel, Madison Square Garden, and several cable networks including AMC and IFC.
http://biz.yahoo.com/ap/080502/newsday_sale.html?.v=2

FCC's McDowell is Kevin Martin's Loyal Opponent

A Q&A with Republican Federal Communications Commission Commissioner Robert McDowell. He concedes he has differed from FCC Chairman Kevin Martin on a number of issues lately, but his divergent points of view on some issues don't indicate a larger rift between the two. The independent-minded commissioner cautions against a heavy regulatory hand on the Internet, and takes issue with new broadcast localism proposals that have broadcasters worried. He believes the FCC already has the authority to keep the Internet open, and says broadcasters are already programming to their communities and don't need the government to exhume old rules. Commissioner McDowell, who says he thinks DTV transition is on track for a smooth switchover, talks about the analog shut-off and other issues including Network Neutrality.
http://www.broadcastingcable.com/article/CA6557245.html?rssid=193

Making Localism Illogical

[Commentary] Two attorneys for broadcaster Broadcast Co. of America (BCA) argue again the Federal Communications Commission's proposed rules to promote localism. The most eye-catching proposal made by the FCC in the Localism Notice for Proposed Rulemaking is the proposal to require each broadcaster to construct and operate a main studio in each of its communities of license. So if, for example, the broadcaster were licensee of five stations in a market and each of those stations had a different community of license, it would be required to construct and operate five separate main studios. Coupled with the FCC's policy requiring each studio to be staffed by two full-time employees, the broadcaster could be required to expend more than a million dollars per year in operating expenses, plus the costs of construction. Given the current state of the broadcast industry and the economy, such a result would be catastrophic.
http://www.broadcastingcable.com/article/CA6557193.html

Localism Divides Religious Groups

The Federal Communications Commission's proposals for increasing public interest reporting requirements and other steps to promote broadcast localism have drawn a flood of comments from understandably worried broadcasters. But they have also revealed a potential new battleground in this issue: a schism between religious groups. On one side of the faith divide over the proposals are the Conference of Catholic Bishops and the United Church of Christ, which support some form of new licensing guidelines tied to a fast-tracked renewal process. On the other is the National Religious Broadcasters, which represents some 1,400 members, primarily radio and TV stations. Evangelical in nature but nondenominational in makeup, the NRB argues the proposals could “strangle” Christian media and create an “official orthodoxy” on what is acceptable local programming.
http://www.broadcastingcable.com/article/CA6557189.html

This Is Only a Test: Vegas Station Simulates Analog Shutoff

KVBC Las Vegas conducted a simulation of what will happen at the stroke of midnight on Feb. 17, 2009, when full-power stations across the U.S. cease broadcasting in analog. During each of the station's seven daily newscasts on May 2, the station stopped feeding its normal programming into its studio-to-transmitter link and instead ran a brief clip of simulated static. Overlaid on the fuzzy screen was a graphic instructing befuddled viewers to call 888-DTV-2009 or DTVanswers.com, the industry's official sources for information on the transition. The simulated blackouts, which included footage of an actual cable being pulled, began with Friday's 5 a.m. newscast. KVBC anchors explained to viewers that those who could still see them after they "pulled the plug" have nothing to worry about come February 2009 -- those who got only white snow, however, need to act now to make their sets DTV-ready.
http://www.broadcastingcable.com/article/CA6557252.html?rssid=193

ACA Keeps Pressure on FCC Regarding News Corp. Conditions

The American Cable Association, the lobbying organization for small and mid-sized cable operators, again asked the Federal Communications Commission to deny News Corp.'s effort to get out from under conditions the FCC put on the company when it bought DirecTV. This time, the ACA argued that the company "manipulated Commission processes to suppress scrutiny of a key issue in the Liberty [Media]/DirecTV transaction." The FCC Feb. 25 approved the sale of DirecTV to Liberty. News Corp. petitioned the FCC March 11 to lift the conditions. The company said its sale of DirecTV to Liberty justified lifting the conditions that required it to submit to commercial arbitration in cable-operator program-access complaints about negotiations for regional sports networks or retransmission-consent talks.
http://www.broadcastingcable.com/article/CA6556914.html?rssid=193

Cable Operators Seek To Broaden Martin Plan

Charter Communications, Mediacom Communications, and Cequel Communications want Federal Communications Commission Chairman Kevin Martin to broaden his proposal designed to give small cable operators relief from rules mandating the duplicative carriage of some local TV signals. Martin’s plan, announced in early April at the American Cable Association’s annual DC summit, included relief for cable systems with 552 MHz of capacity or less. Last week, the three cable companies said relief should also include systems with up to 5,000 subscribers or “some other threshold deemed suitable.” The scope of Martin’s proposal should expand, the MSOs said, because they and other cable operators have systems with 750 MHz of capacity that have not been upgraded to digital and do not have the subscriber base to justify doing so.
http://www.multichannel.com/article/CA6556996.html?nid=4262

Sezmi may be on to something, sez me

[Commentary] Sezmi, the latest wireless cable scheme involving broadcast spectrum, cable networks, Internet access and a big, honkin' DVR could just work if stations don't decide to keep all their digital space for diginets or mobile. Backed with $17.5 million in venture capital, the company is now trying to put together the pieces that it needs to begin trials in three markets later this year. It needs spectrum from broadcasting, distribution deals from cable networks and marketing help from ISPs. That represents a lot of work. But the proposed Sezmi service possesses a few elements that its ill-fated predecessors did not and they could make all the difference. First, the Sezmi box not only connects to a smart antenna to receive the local TV stations and cable networks off air, but also to the Internet so that subscribers can tap into the VOD movies and TV shows that the studios and networks are making available as well as the blizzard of videos on YouTube and elsewhere. Second, the Sezmi box will contain a super DVR with one terabyte of storage. That means that it can record much of what it receives off the air or finds on the Web and have it ready when you are. Finally, Sezmi is promising a smart interface that will help subscribers sort through it all and organize it so they will always have their favorites right at their fingertips.
http://www.tvnewsday.com/articles/2008/05/02/daily.6/

Amazon.com sues N.Y. over new online sales tax

As expected, Amazon.com is hitting back at New York over a new law requiring online retailers to collect sales taxes from customers residing in that state. In a complaint filed on April 25, Amazon asked the New York State Supreme Court to declare the recently passed law "invalid, illegal, and unconstitutional."
http://www.news.com/8301-10784_3-9934188-7.html?part=rss&subj=news&tag=2...

Internet Says: 'Me Want Cookie'

[Commentary] Today's controversial cookies are the small text files that track where people go online. Web sites do a poor job of explaining how and why this information is used, even as details about our lives are increasingly knowable online. Risks to privacy make this a race between smarter self-regulation on the Web and threatened new regulation by the Federal Trade Commission. People involved in building the Web are rightly proud of the openness of the digital culture. Most consider that cookies cause no harm and are key to the growth of the Internet, but many Web users feel left in the dark about how information about them is used and not used. Unless people can be reassured, there is a real risk that some day soon we'll find the untested hands of regulators in the cookie jar.
http://online.wsj.com/article/SB120994540824466285.html?mod=todays_us_op...
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