October 2008

Copps: Support Growing For Analog Extension

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.

Adelstein Calls For Action To Ban Kid-Targeting Interactive Ads

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.

ACA Seeks Retrans 'Balance' at FCC

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.

NBC Universal preps for $500 million in cuts

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.

The Importance of Over-the-Air Television Viewers

[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.

TiVo CEO Says End Is Nigh for TV Ads

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.

Ignore call for net neutrality: Canadian analyst

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.

Networked Families

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 of 2,252 adults 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.

Ex-Customers Sue Qwest Over Cancellation Fees

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.

Liquidation unlikely for struggling newspaper companies

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.

Benton

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