Oct 20, 2008 (Broadcasters challenge 'white space' report)
"The McCain campaign is still playing catch-up. His campaign almost died, but if you give him another year I am sure he would catch up."
-- Andrew Rasiej, one of the founders of TechPresident
BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY OCTOBER 20, 2008
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GOVERNMENT & COMMUNICATIONS
China urged to extend media freedoms domestically
Want Palin's e-mails? That'll be $15 million
ELECTIONS & MEDIA
Safety in Numbers? Poll-Driven Press Goes Out on a Limb
The Short List for US Chief Technology Officer
Obama TV Advertising: More Spots, Longer Spots
GOP Strategists Say McCain Using Right Tactic, Wrong Ads
Obama dominating race in cyberspace
Yes, Newspaper Endorsements Matter -- Here is 'Proof'
Palin Helps SNL Soar to Best Ratings in 14 Years
FCC NEWS
Upcoming FCC Meeting Holds Huge Competitive Implications
Broadcasters challenge FCC 'white space' report
Any lawful device: 40 years after the Carterfone decision
Copps: Support Growing For Analog Extension
Adelstein Calls For Action To Ban Kid-Targeting Interactive Ads
ACA Seeks Retrans 'Balance' at FCC
BROADCASTING/CABLE
NBC Universal preps for $500 million in cuts
The Importance of Over-the-Air Television Viewers
TiVo CEO Says End Is Nigh for TV Ads
Redstone may be forced to sell Viacom/CBS
INTERNET/BROADBAND
Ignore call for net neutrality: Canadian analyst
Networked Families
Ex-Customers Sue Qwest Over Cancellation Fees
Google Learns Lessons in the Ways of Washington
Counting Clicks: Now A Mainstay
JOURNALISM
Liquidation unlikely for struggling newspaper companies
Some Papers in Financial Trouble Are Leaving the AP to Cut Costs
GOVERNMENT & COMMUNICATIONS
CHINA URGED TO EXTEND MEDIA FREEDOMS DOMESTICALLY
[SOURCE: Reuters, AUTHOR: Ben Blanchard]
China should extend media freedoms it now offers foreign reporters to domestic journalists too, rights groups said, but added that the signs were not encouraging this would happen. China on Friday made a last minute extension of media freedoms for foreign reporters, enshrining rights originally granted only for the Olympics. Foreign journalists will be allowed to travel freely across most of the country for reporting, though access to restive Tibet remains tightly controlled. But domestic Chinese media has been excluded.
http://benton.org/node/17969
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WANT PALIN'S E-MAIL? THAT'LL BE $15 MILLION
[SOURCE: msnbc, AUTHOR: Bill Dedman]
Gov Sarah Palin's office says it will cost $15 million for copies of state e-mails requested by news organizations and citizens. When the Associated Press asked for all state e-mails sent to the governor's husband, Todd Palin, her office said it would take up to six hours of a programmer's time to assemble the e-mail of just a single state employee, then another two hours for "security" checks, and finally five hours to search the e-mail for whatever word or topic the requester is seeking. At $73.87 an hour, that's $960.31 for a single e-mail account. And there are 16,000 full-time state employees. The cost quoted to the AP: $15,364,960. And that's not including the copying costs. The e-mails need to be printed so that they can black out, or "redact," private or exempted information. E-mail sent between the governor's staff and their private Yahoo e-mail accounts won't be collected until Oct. 31. Searches will take an additional two weeks, until Nov. 14. And then the legal review of each e-mail will begin. There's no telling how long that will take, because no one knows how many e-mails there are.
http://benton.org/node/17968
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ELECTIONS & MEDIA
SAFETY IN NUMBERS? POLL-DRIVEN PRESS GOES OUT ON A LIMB
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
Will polls looking like they favor Sen Barack Obama, it's hardly surprising that poll-driven journalists are suggesting, insinuating or flat-out forecasting a Democratic victory. But could they affect the outcome? And what if they turn out to be wrong about John McCain being toast? "It's obvious the media have a preferred candidate in the race," says McCain spokesman Michael Goldfarb. "It's obvious the media are eager to seal the fate of John McCain." At the same time, he says, "we know we have some ground to make up. We don't want our people to be demoralized looking at poll numbers that are rather erratic and that we don't think are reliable." Sen Obama, for his part, warned against cockiness last week when "the press starts getting carried away and we end up getting spanked."
http://benton.org/node/17991
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THE SHORT LIST FOR US CHIEF TECHNOLOGY OFFICER
[SOURCE: BusinessWeek, AUTHOR: Tom Lowry]
Sen Barack Obama (D-IL) says that the US is not doing nearly enough to create jobs through technology. Shortly after he launched his campaign, the Illinois Senator promised that if elected, he would create the first-ever Cabinet-level post of chief technology officer. The economic crisis has since made it certain that a White House CTO would become one of Obama's most important advisers, should he triumph in November. "Obama sees greater broadband penetration as an enormous economic engine, much like the railroads were a century ago," says Andrew D. Lipman, a veteran communications lawyer in Washington. "That is why the CTO will play such a critical role in any recovery plan." The tech czar would almost certainly be deeply involved in overseeing a federally-backed $50 billion venture capital fund that Obama has proposed to develop more environmentally friendly technology. What is less clear is how a CTO would interact with the Federal Communications Commission. While the FCC chairman does not belong to the Cabinet, the person filling that role has traditionally been a leading voice on issues of media, telecommunications, and technology. It is widely expected that President Bush's appointed FCC chair, Kevin Martin, would step down if Obama were elected. Sources say Obama might then consider appointing his former Harvard Law School classmate and current campaign adviser, Julius Genachowski, to the chairman's post.
http://benton.org/node/17990
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OBAMA TV ADVERTISING: MORE SPOTS, LONGER SPOTS
[SOURCE: TVWeek, AUTHOR: Ira Teinowitz]
As Sen Barack Obama's campaign continues to expand its purchases on national network and cable TV -- including time on NFL football and MLB baseball broadcasts -- it has bought more 60-second spots on local stations and local cable. Sen Obama (D-IL) has started buying 120-second ads as well. That's in addition to the 30-minute infomercials he has purchased on CBS, NBC and Fox to air Oct. 29. As of last week, the Obama campaign had spent $154.5 million to air spots 292,463 times, versus the $94 million Sen John McCain's campaign and the Republican National Committee have spent to air spots 217,384 times. None of Sen McCain's (R-AZ) spots are for more than 30 seconds. "You don't do this if you are on public financing," said Evan Tracey, TNSMI Media Analysis Group's COO. "You don't drop this much money. They have the quantity, and now in the long form, you can say they have the quality." Jim Margolis, the executive at political advertising consultancy GMMB who manages the Obama ad team, said the longer-form ads offer some unique opportunities. "We think that every time Barack has an opportunity to talk to people and give them a sense of what he wants to do, it helps," Margolis said. "The longer format allows detail, gives him a chance to deal with issues and proposals in a deeper way." The longer format also helps the ads break through the clutter of campaign commercials, Margolis said.
http://benton.org/node/17967
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GOP STRATEGISTS SAY MCCAIN USING RIGHT TACTIC, WRONG ADS
[SOURCE: AdAge, AUTHOR: Ira Teinowitz]
With poll numbers suggesting that Sen John McCain's attack advertising on his rival Sen Barack Obama is backfiring, some Republican advertising people and strategists on and off Madison Avenue are wondering if the McCain campaign is using the right tactic but the wrong attack ads. While all defend the effectiveness of negative ads, the critics say the McCain campaign may be off target in focusing the last two weeks on one-time terrorist Bill Ayers and some other issues, instead of on whether Sen Obama has sufficient experience and knowledge to lead the country at a time when terror threats remain.
http://benton.org/node/17966
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OBAMA DOMINATING RACE IN CYBERSPACE
[SOURCE: The Hill, AUTHOR: Roxana Tiron]
Sen Barack Obama's website received 2.6 million unique visitors for the first week in October. McCain's website had a little more than 1.3 million unique visitors. And according to data compiled by Nielsen, Obama had 7.9 million unique viewers in September, an increase of 31 percent from August and 156 percent since June. Meanwhile, McCain had an even more drastic increase: His campaign website had 4.9 million unique hits in September, up 56 percent from the previous month and a 239 percent bump from June.
http://benton.org/node/17965
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YES, NEWSPAPER ENDORSEMENTS MATTER -- HERE IS 'PROOF'
[SOURCE: Editor&Publisher, AUTHOR: Gret Mitchell]
[Commentary] The common belief is that newspaper picks for president are meaningless; they influence no one, especially in an era when media approval ratings in polls rival the paltry numbers for lawyers. But Mitchell says he can predict presidential elections based solely on newspaper editorials -- in battleground states.
http://benton.org/node/17964
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PALIN HELPS SNL SOAR TO BEST RATINGS IN 14 YEARS
[SOURCE: MediaWeek, AUTHOR: Marc Berman]
Boosted by an appearance by Vice Presidential candidate Alaska Governor Sarah Palin, NBC's veteran Saturday Night Live soared to its highest metered market average since the March 12, 1994 telecast (hosted by Nancy Kerrigan).
http://benton.org/node/17963
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FCC NEWS
UPCOMING FCC MEETING HOLDS HUGE COMPETITIVE IMPLICATIONS
[SOURCE: telecompetitor, AUTHOR: ]
Decisions made at the upcoming FCC meeting on November 4th could significantly impact telecom's competitive landscape. The tentative agenda includes two huge wireless merger approvals, a vote on the "whitespace" unlicensed spectrum order, and revamping of the intercarrier compensation system used among telecom carriers. The wireless merger decisions include the Verizon - Alltell and Clearwire-Sprint sprint deals. Implications from the Verizon-Alltel deal include: 1) a combined Verizon-Alltel will create the largest wireless carrier in the U.S., surpassing the current number one carrier AT&T, and 2) as a condition of the merger, the new entity will have to shed numerous rural markets (approx 100 at last count), opening the door for potentially new competitors in those markets. Implications of the Sprint-Clearwire deal include formation of a true nationwide WiMAX operator, who could potentially offer a third broadband pipe option into the home. Implications of the "whitespace" initiative include: 1) The potential empowerment of numerous competitors who can offer yet another broadband wireless option, who some call Wi-Fi on steroids and 2) a plethora of new wireless devices and applications that are designed to take advantage of the new connectivity.
http://benton.org/node/17962
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BROADCASTERS CHALLENGE FCC 'WHITE SPACE' REPORT
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
The National Association of Broadcasters has filed an emergency petition with the Federal Communications Commission in an effort to change the agency's mind about supporting the use of "white space" spectrum. The NAB, which has opposed the use of "white space" spectrum, said in a statement that it has filed a request for the commission to take public comments on a report that the FCC issued earlier this week stating that this spectrum could be opened up for unlicensed use without interfering with licensed spectrum holders. The report said that geolocation and sensing technologies were adequate in preventing interference. The FCC is set to vote on a proposal to open up this spectrum during its November 4 open meeting. Incumbent spectrum license holders, such as TV broadcasters and cell phone operators, say wireless devices that access this unlicensed spectrum will cause interference in the neighboring spectrum bands. The NAB said that the FCC's own report contradicts claims that devices using white space spectrum do not interfere with services using adjacent spectrum channels. The Federal Communications Commission says it will consider a broadcaster plea to delay its November 4 vote on whether to authorize unlicensed white space devices (WSDs). But judging from the Commission's initial response, the agency doesn't sound crazy about the idea.
http://benton.org/node/17961
FCC lukewarm on networks' request to delay white space vote (ars technica)
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ANY LAWFUL DEVICE: 40 YEARS AFTER THE CARTERFONE DECISION
[SOURCE: ars technica, AUTHOR: Matthew Lasar]
Forty years ago the Federal Communications Commission issued one of the most important Orders in its history, a ruling that went unnoticed by most news sources at the time. It involved an application manufactured and distributed by one Mr. Thomas Carter of Texas. The "Carterfone" allowed users to attach a two-way radio transmitter/receiver to their telephone, extending its reach across sprawling Texas oil fields where managers and supervisors needed to stay in touch. Between 1955 and 1966, Carter's company sold about 3,500 of these applications around the United States and well beyond. In the end, however, Carterfone's significance extends far beyond the convenience that Thomas Carter's machine provided its users over a decade. It is no exaggeration to say that the our current telecommunications world was created, in good part, by the legal battle between Carter, AT&T, and the FCC's resolution of that fight—its Carterfone decision. The Carterfone saga starts as the appealing tale of one developer's willingness to stick to his guns. But it is really about the victory of two indispensable values: creativity and sharing.
http://benton.org/node/17960
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COPPS: SUPPORT GROWING FOR ANALOG EXTENSION
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Federal Communications Commission member Michael Copps on Friday said support is building to allow TV stations to transmit on analog channels critical DTV education and public safety messages after the national transition to digital television on Feb 17, 2009. "I haven't met anyone who doesn't think it's a good idea. But, as you know, Washington can sometimes be the place where a good idea goes to die. We can't let that happen here. The stakes are too high," Commissioner Copps said. House and Senate bills have been introduced that would alter the current transition plan, which is to require every full power TV station to shut off its analog signal no later than Feb 17 at midnight. Rep Lois Capps (D-CA) and Sen Jay Rockefeller (D-WV) want some of the stations to remain on the air in analog, if only to broadcast information about the DTV transition, such as how to obtain digital analog converter boxes, and to ensure consumer access to emergency information for a limited period of time.
http://benton.org/node/17959
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ADELSTEIN CALLS FOR ACTION TO BAN KID-TARGETING INTERACTIVE ADS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission member Jonathan Adelstein has called on the FCC to act on a 2004 proposal by the commission that would ban interactive advertising targeted at kids. "With the growing convergence of TV and the Internet, we need to set the rules before interactive advertising becomes an established business model," said Commissioner Adelstein. He also called on the FCC to develop a nationwide education campaign about media literacy, healthy food choices and parental controls, and to do it in concert with the broadcast and cable industries. Finally, Commissioner Adelstein said the FCC should provide clearer guidelines on what qualifies as educational kids TV content. The FCC currently requires stations to essentially self-certify that they are carrying at least three hours of educational children's programming, which has led to some questionable claims of educational content, perhaps most famously the boomer prime time cartoon classic, The Flintstones.
http://benton.org/node/17958
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ACA SEEKS RETRANS 'BALANCE' AT FCC
[SOURCE: tvnewsday, AUTHOR: ]
In filings with the Federal Communications Commission, the American Cable Association renewed its call for the FCC to put an end to what it called "market abuse and abusive behavior by broadcasters." Specifically, ACA has asked the FCC to: 1) Permit cable operators to carry a broadcast station during a pending complaint. 2) Rule that a broadcaster can expressly assent to retransmission consent through silence. 3) Enforce its objective standards of good faith, and rule on behalf of operators who lodge complaints.
http://benton.org/node/17957
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BROADCASTING/CABLE
NBC UNIVERSAL PREPS FOR $500 MILLION IN CUTS
[SOURCE: Variety, AUTHOR: Michael Schneider]
NBC Universal announced Friday the conglomerate will reduce spending by half a billion dollars next year. Cuts would equal 3% of the company's budget. Zucker blamed the current economy, arguing that NBC U needed to take precautionary steps despite coming off eight consecutive quarters of growth and profit. NBC U division heads prepare to meet with Zucker to go over their 2009 plans. Each chief will be given their own discretion to decide how to make their 3% cut. In his note, Zucker suggested a variety of ways, focused on three areas: discretionary spending, such as travel and entertainment; promotion expenses; and staffing. He also stressed going through NBC U's sourcing department before making major purchases.
http://benton.org/node/17956
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THE IMPORTANCE OF OVER-THE-AIR TELEVISION VIEWERS
[SOURCE: tvnewsday, AUTHOR: Harry Jessell]
[Commentary] The advent of over-the-air digital television will also reshape the relationship between broadcasting and multichannel providers — cable and satellite operators — in ways that will not be fully understood for sometime long past the Feb. 17, 2009, analog cut-off. Millions who today receive over-the-air TV would chuck their antennas and sign up for cable or satellites. That migration could add a combined $6 billion more to their annual revenues. Jessell believes that's bad for broadcasting. When federal policymakers ask broadcasters to justify their free use of spectrum, they can answer that they — and they alone — are providing a reliable conduit into each and every home in the country — a critical capability in emergencies.
http://benton.org/node/17955
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TIVO CEO SAYS END IS NIGH FOR TV ADS
[SOURCE: AdAge, AUTHOR: Jack Neff]
TiVo CEO Tom Rogers did everything but hang an "end is near" sign around his neck as he tried to rouse a Saturday morning breakfast crowd at the Association of National Advertisers annual conference with warnings of fast-approaching doom for conventional TV ads. At issue is whether DVR penetration is about to reach the tipping point at which advertiser-supported TV goes the way of the music industry and newspapers -- a scenario Rogers warned repeatedly is coming soon unless advertisers begin investing in TiVo-proof vehicles sold by TiVo.
http://benton.org/node/17954
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REDSTONE MAY BE FORCED TO SELL VIACOM/CBS
[SOURCE: Reuters, AUTHOR: Shradhha Sharma]
Sumner Redstone, a controlling shareholder of Viacom Inc and CBS Corp, might be forced to sell either of the companies to help tide over the current financial crunch being faced by his movie theater chain, National Amusements, the New York Post said on Sunday. National Amusements Inc said last week it was in talks with bankers to renegotiate terms on a $1.6 billion debt, due to a sharp drop in the value of CBS and Viacom. The $1.6 billion debt was arranged by Bank of America and others. Half of that, $800 million, will need to be repaid by year's end. Sources close to Redstone and Viacom told the paper that Redstone's current cash situation is so bad that selling Viacom or CBS is now a real possibility.
http://benton.org/node/17986
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INTERNET/BROADBAND
IGNORE CALLS FOR NET NEUTRALITY: CANADIAN ANALYST
[SOURCE: Network World Canada, AUTHOR: Howard Solomon]
The Canadian government shouldn't give in to demands that Internet providers treat all traffic the same, says a Canadian telecommunications consultancy, which warns so-called Network Neutrality will lead to the demise of the Internet as a useful tool. "Packet equality does not make for a better Internet," says the Montreal-based SeaBoard Group in a report released Thursday, "without some form of congestion management, the Internet will become a much less useful tool." The report comes out as the industry awaits the release of a ruling by the Canadian Radio-Television and Telecommunications Commission (CRTC) on a complaint from a group of Internet service providers against Bell Canada's traffic-shaping efforts.
http://benton.org/node/17953
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NETWORKED FAMILIES
[SOURCE: Pew Internet & American Life Project, AUTHOR: Tracy Kennedy, Aaron Smith, Amy Tracy Wells, Barry Wellman]
The Internet and cell phones have become central components of modern family life. Among all household types, the traditional nuclear family has the highest rate of technology usage and ownership. A national survey by the Pew Internet & American Life Project has found that households with a married couple and minor children are more likely than other household types -- such as single adults, homes with unrelated adults, or couples without children - to have cell phones and use the Internet. 89% of married-with-children households own multiple cell phones, and nearly half own three or more mobile devices. 66% of married-with-children households have a high-speed broadband Internet connection at home, well above the national average for all households of 52%. Both spouses and at least one child go online in 65% of married-with-children households. 58% of married-with-children households contain two or more desktop or laptop computers.
http://benton.org/node/17952
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EX-CUSTOMERS SUE QWEST OVER CANCELATION FEES
[SOURCE: Wall Street Journal, AUTHOR: Andrew LaVallee]
Two former customers of Qwest Communications International Inc. have filed a lawsuit against the telecommunications provider, seeking to end early-termination fees for Internet subscribers. The suit, filed in the US District Court in Seattle, is one of the first challenges to the practice of early-termination fees as it applies to broadband services. Early-termination fees have come under scrutiny by consumer groups and lawmakers, who say they lock in customers and discourage competition. Providers say they must hold customers to long-term agreements in exchange for offering aggressively priced service plans. Qwest's termination fees are part of its "price for life" plans, which cost $30 or more a month for broadband. In recent months, customers have fought similar charges for early termination of cellphone contracts with wireless carriers including AT&T, Verizon Wireless, Sprint Nextel, T-Mobile USA and Alltel. In July, a California judge ruled that Sprint must refund about $73 million in early-termination fees, and Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group PLC, settled a set of early-termination lawsuits for $21 million. According to the Qwest complaint, Robin Vernon of Auburn (WA) and Rory Durkin of Anoka (MN) were each charged $200 when they canceled their high-speed Internet service.
http://benton.org/node/17951
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GOOGLE LEARNS LESSONS IN THE WAYS OF WASHINGTON
[SOURCE: New York Times, AUTHOR: Stephanie Clifford]
The fight over the proposed Google-Yahoo partnership shows how much Microsoft, once the piñata of Washington regulators, has learned about operating in that town since its regulatory fights during the late 1990s, and how much Google has yet to learn. Microsoft's strength in Washington combined with Google's missteps there may have jeopardized a deal that — because it is a business partnership and not a merger — did not even require Justice approval in the first place. Lobbyists said that Google, which began directly lobbying in with Washington in 2005 when it hired a representative there, has made several wrong turns. Several suggested that Google thought its California spirit alone would charm Washington.
http://benton.org/node/17988
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COUNTING CLICKS: NOW A MAINSTAY
[SOURCE: Washington Post, AUTHOR: Kim Hart]
In 1999, eyeballs were all the rage. It was the height of the frothy dot-com days, when start-up business models hinged on luring enough people to a free Web site to someday sell advertising on it. Measuring those eyeballs, no matter how much they were worth, looked like an obvious gold mine. Eyeballs matter even more now that legitimate companies' fortunes rise and fall with Internet traffic and the advertising it attracts. ComScore has become one of the most relied-upon barometers for online behavior. It analyzes which sites consumers are flocking to, how much time they spend there and which ads catch their eyes. Advertisers say such data will become even more important as marketing budgets shrink in a weakening economy. Even companies such as Google, which have disputed ComScore's figures, continue to subscribe, and Abraham is sanguine about his firm's future. But although current users of ComScore's information might not drop the service, subscriber growth may not keep up its rapid pace.
http://benton.org/node/17987
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JOURNALISM
LIQUIDATION UNLIKELY FOR STRUGGLING NEWSPAPER COMPANIES
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
Newspaper companies have been skipping loan payments, missing financial targets in debt agreements and accepting higher interest rates in exchange for more flexibility — and they're not even directly feeling the impact of the credit crisis yet. But don't expect massive sales or closures of newspapers any time soon, even though at least four newspaper companies overburdened with debt have been forced to confront their lenders over the past few weeks. With revenue at newspapers shrinking and few investors willing or able to buy them, lenders are loathe to force companies to liquidate assets that are plunging in value. They have few alternatives but to help newspapers stay on track with their payments and hang on until ad prospects improve — if they ever do.
http://benton.org/node/17950
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SOME PAPERS IN FINANCIAL TROUBLE ARE LEAVING THE AP TO CUT COSTS
[SOURCE: New York Times, AUTHOR: Richard Perez-Pena]
What had been a minor newspaper rebellion against The Associated Press suddenly grew much more serious last week, when the Tribune Company, one of the largest newspaper chains, said on Thursday that it would drop out of the association, followed by The Dispatch's announcement. A handful of papers have made the same move over the last few months, but with the exception of The Star Tribune of Minneapolis, they were relatively small. Tribune, in disclosing the plan to sever its ties with The A.P., voiced no complaints about the service, saying only that it needed to cut costs. The move raised the prospect of major Tribune papers like The Los Angeles Times and The Chicago Tribune publishing without the aid of a wire service that has been an essential part of American journalism since the cooperative was established more than a century and a half ago. But editors and publishers at some other papers have become vocal critics of the way The A.P. operates, saying that it charges more than they can afford, delivers too little of what they need and — particularly galling to them — is sometimes acting as their competitor on the Internet.
http://benton.org/node/17989
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