October 2008

"Potential to Deconsolidate" Could save Media During Downturn

US media and entertainment companies have "generally healthy" liquidity and will be supported by predictable revenue and high profit margins in the current credit crunch, Fitch Ratings said in a report. Diversified companies including Walt Disney Co., News Corp., Time Warner Inc. and Viacom Inc. are best positioned to weather market conditions, Fitch analysts Jamie Rizzo and Mike Simonton said. The companies have "no significant exposure" to Lehman Brothers, which filed for bankruptcy, and the mergers of Citigroup with Wachovia and Bank of America with Merrill Lynch & Co. are unlikely to affect their credit lines, Fitch said. The industry's cash on hand and free cash flow exceed debt coming due over the next three years. "These factors make media companies attractive borrowers for banks and bondholders, even under more selective market conditions,'' the analysts wrote. "The potential to deconsolidate media portfolios to pay down debt could further support creditors in a downturn,'' Fitch said.

AT&T chairman says credit woes crimping operations

The tightening of the global credit markets is crimping the world's largest telecommunications company. AT&T Chairman and CEO Randall Stephenson said Tuesday that his company was unable to sell any commercial paper last week for terms longer than overnight. Commercial paper, which helps lubricate the flow of business operations, is a short-term IOU available to corporations that banks usually know are good for the money.

Palin Can't Name a Newspaper She's Read Regularly

Vice presidential candidate Gov Sarah Palin (R-Alaska) repeatedly failed to cite a newspaper or magazine when asked what she had read regularly before John McCain picked her as his running mate, saying only that she had read "most of them." Gov Palin also said that she doesn't believe that the media's coverage of her has been sexist. "It would be sexist if the media were to hold back and not ask me about my experience, my vision, my principles, my values," said Gov Palin. Asked Tuesday by radio host Hugh Hewitt if she agreed that interviews with ABC's Charles Gibson and CBS' Couric were designed to embarrass her, Palin replied: "Well, I have a degree in journalism also, so it surprises me that so much has changed since I received my education in journalistic ethics all those years ago." She continued: "But I'm not going to pick a fight with those who buy ink by the barrelful. I'm going to take those shots and those pop quizzes and just say that's OK, those are good testing grounds. And they can continue on in that mode. That's good. That makes somebody work even harder. It makes somebody be even clearer and more articulate in their positions. So really I don't fight it. I invite it."

Palin questioner rejects 'gotcha journalism' charge

The Philadelphia man who asked Alaska Gov. Sarah Palin about Pakistan on Saturday has told The Hill that GOP presidential nominee John McCain and Palin mischaracterized the exchange in a primetime interview. A clip of Philadelphia resident Michael Rovito's encounter with Palin quickly caused a stir. It showed Palin saying the U.S. should "absolutely" strike terrorist targets in Pakistan, a stance publicly shared by Democratic presidential nominee Sen. Barack Obama (IL) and criticized by Sen. McCain (AZ). The media also seized on the clip because it was a rare unscripted moment for Palin, who has been shielded from taking questions from reporters since being picked as McCain's running mate. Seeking to quell any notions of being at odds with the Arizona senator, Palin on Monday implied in an interview with CBS's Katie Couric that she could not hear Rovito's question completely and that criticism over the comment resulted from "gotcha journalism." However, Rovito, who supports Obama in the presidential election, told The Hill that the Alaska governor could hear him just fine, and that the label of "gotcha journalism" doesn't fit.

NBC, Obama Campaign Spar Over YouTube Video

NBC executives and lawyers sent a cease-and-desist letter to the Obama campaign, whose VoteForChange.com posted a web video featuring NBC News anchors -- Tom Brokaw, Keith Olbermann -- appearing to pronounce Sen. John McCain (R-AZ) the Nov. 4 election-night winner.

Obama ramps up search engine marketing efforts

When it comes to online search strategy, the presidential candidates have lately changed positions, according to a new study. Leading up to their Sept. 26 debate, Democratic nominee Barack Obama ramped up search engine marketing efforts while Republican rival John McCain scaled back, marking a shift for both. Search marketing firm SendTec found the Obama campaign capitalized on the Mississippi showdown with McCain by bidding on debate and issue-related keywords including "debate winner," "presidential debate," and "economic crisis." And ads and landing pages were designed to direct viewers to watch the debate. McCain, by contrast, didn't try to build a similar search campaign around the debate. Most polls immediately following the debate gave the win to Obama while many commentators declared it a wash.

Congress Approves Internet Safety Legislation

The Senate approved the Protecting Children in the 21st Century Act as part of the Broadband Data Improvement Act. The measure will bring parents, industry, and teachers together to address comprehensive education for children online. The Protecting Children in the 21st Century Act: requires schools receiving E-Rate funds to offer education regarding online behavior, including social networking, chat rooms and cyberbullying awareness and response; creates an interagency working group to identify and encourage technologies and initiatives to help parents protect their children from unwanted content; and requires a national public awareness campaign to be conducted by the Federal Trade Commission.

Congress protects Internet radio

Internet radio operators expressed cautious optimism regarding congressional approval of a deal designed to help them survive a recent steep hike in royalty rates. "This legislation is not the final answer, but it is an essential step toward a lasting and much-needed solution," said SaveNetRadio spokesman Jake Ward in a statement Wednesday, referring to Senate approval of the Webcaster Settlement Act of 2008. Webcasters and SoundExchange, a nonprofit that collects royalty payments from digital radio companies, have been trying to negotiate an agreement since the Copyright Royalty Board in early 2007 increased rates for digital radio by at least 300%. According to SaveNetRadio, numerous Webcasters have felt an "immediate and devastating effect," with three of the most popular operators -- AOL Radio, Yahoo! Radio and Pandora - having already limited listener access, shut down or announced a likely shut down if the rates aren't dramatically lowered. But since Webcasting requires a government license - and with Congress about to recess with no rate agreement reached yet -- the Senate approved legislation that would confer congressional acceptance of any agreement Webcasters and SoundExchange might hammer out before recess ends.

Martin Gives Old College Try for Localism

As a way for TV broadcasters to meet their localism obligations, Federal Communications Commission Chairman Kevin Martin is proposing that they fund residency programs for recent journalism graduates that would cover state government news and produce investigative reports for them. Bypassing the National Association of Broadcasters, Martin has floated the proposal to the boards of the Texas Association of Broadcasters and the North Carolina Association of Broadcasters. Martin's staff also solicited the support of the California Broadcasters Association in a call to officials there early last week.

Peha Named FCC's Chief Technologist

Jon M. Peha, Ph.D., has been named Chief Technologist of the Federal Communications Commission. Dr. Peha will serve as a senior advisor on communications technology in the FCC's Office of Strategic Planning and Policy Analysis. Currently, Dr. Peha is a Professor in the Departments of Engineering and Public Policy, and Electrical & Computer Engineering at Carnegie Mellon University (CMU). He also serves as the Associate Director of the Center for Wireless and Broadband Networking at CMU. Prior to joining CMU's Department of Engineering and Public Policy, Dr. Peha served as the Chief Technical Officer of three high-tech start-ups and as a member of the technical staff at SRI International, AT&T Bell Laboratories and Microsoft. Dr. Peha's research interests include technical and policy issues related to computer and telecommunications networks. He has written extensively on these subjects and is the co-author of Science Technology Advice for Congress. He has also authored several articles in the following publications: IEEE Personal Communications; Telecommunications Policy; the International Journal of Communication; and Wireless Technology. Dr. Peha received his Ph.D. in electrical engineering from Stanford University and his undergraduate degree from Brown University. He is a Congressional Fellow of the IEEE and a Diplomacy Fellow of the American Association for the Advancement of Science.

Benton

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