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December 2008

Could the stars be aligning for a Google-NY Times merger?

Should Google buy the New York Times? The possibility of this dream hookup is just fantasy because the owners of the Times -- the Sulzberger family -- for now, seem emboldened to hold on to the company for as long as it can. The Sulzbergers, however, are living on borrowed time as the family is facing pressure on all fronts to save the company, which is hemorrhaging as the slow economy has decimated its advertising and subscription revenue. Already, the media company took the extreme move of borrowing $250 million from their newly built headquarters, but that seems to be a temporary band-aid on what very well could be a mortal wound.

Complex Economies & Simple Economics:
How New Research Is Challenging Conventional Economic Policy

The Information Technology and Innovation Foundation
Wednesday, December 17 - 9:00 AM - 10:30 AM
1250 Eye Street, NW, Suite 200, Room 2
Washington, DC 20005

If the tectonic economic events of the last few months have shown us anything it's that many of the core assumptions embedded in the prevailing neoclassical economic doctrine that drives much of Washington's thinking on economic policy are no longer valid. Moreover, recent theoretical and empirical work has called into question the core tenants of the neo-classical doctrine—that markets are stable, are driven by rational actors responding solely to price signals, and require little role for government in driving growth. Indeed, this new work, much of it based in the fields of behavioral economics and complexity theory, have shown that economic systems act less like well-structured systems in equilibrium and more like chaotic, complex systems whose outcomes are unstable and can vary widely based on seemingly minor changes.

Please join us for an event to discuss this new research and its implications for economic policy, including economic regulation. ITIF President Rob Atkinson will discuss his forthcoming article in The Democracy Journal which reviews two leading books on the topic: Michael Heller's The Gridlock Economy : How Too Much Ownership Wrecks Markets, Stops Innovation, and Costs Lives and Eric Beinhocker's The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics. Atkinson will be joined by two leading technology industry representatives, Rick Whitt of Google and Marc Berejka of Microsoft, both of whom have written provocative new work on the role of complexity in shaping our thinking about regulation. In addition, Robert Axtell, External Professor, Santa fe Institute and Professor and Chair, George Mason University, Krasnow Institute for Advanced Study, and one of the world's leading scholars on complexity theory, and author of new research on the role of complex networks in driving innovation, will provide comments.

Presenter:
Rob Atkinson, President, Information Technology and Innovation Foundation

Respondents:
Marc Berejka, Senior Director, Technology, Policy and Strategy, Microsoft
Rick Whitt, Washington Telecom and Media Counsel, Google
Robert Axtell, External Professor, Santa Fe Institute and Professor and Chair, George Mason University

http://www.itif.org/rsvp/event.php?id=2


House Passes DTV Transition Bill

On Wednesday the US House of representatives approved -- by unanimous consent -- the Short-term Analog Flash and Emergency Readiness Act, a bill sponsored by Rep Louis Capps in the House and Sen Jay Rockefeller (D-WV) in the Senate. The legislation allows for the short-term continued analog broadcast of essential information after the February 18, 2009 nationwide transition to digital television (DTV), including broadcasts of emergency information. The legislation now goes to the President who is expected to sign the bill. Under the SAFER Act, after February 18th households that may not have prepared their televisions to receive digital signals will see a "slide" on their screen—in both English and Spanish— informing them that the transition to digital has taken place, and providing a phone number for further information on how to arrange for their televisions to receive digital signals. More importantly, they will also receive emergency weather and public safety information that is broadcast over digital airwaves. The SAFER Act would ensure that this information was available for 30 days following the transition to all-digital broadcasting.

Update: National Association of Broadcasters President David Rehr Thursday urged President Bush to sign the legislation.



National Governors Association Center for Best Practices
Monday, December 15, 2008
2:00 p.m. - 3:15 p.m. EST
Webcast

The National Governors Association Center for Best Practices (the NGA Center), in partnership with the Alliance for Public Technology (APT), is pleased to announce a web cast addressing state efforts to expand broadband access. We encourage you to pass this invitation along to your colleagues who might be interested in this event.
This webcast will provide an overview of state initiatives and ask individual states to outline their approach to expanding broadband access. This web cast will feature:

Overview of State Initiatives from the NGA Center and the Alliance for Public Technology

Michael Ramage, Executive Director, Connected Tennessee
Mr. Ramage will provide an overview of Connected Tennessee and how the program is developing strategies for broadband deployment.

Karen Jackson, Director, Telework Promotion and Broadband Assistance, Commonwealth of Virginia
Ms. Jackson will discuss Virginia's broadband deployment strategy and its use in several applications, including teleworking.

Viewers are encouraged to email in questions both prior to and during the live event, and the webcast recording will be posted for future viewing. More resources related to the webcast presentations will be posted prior to the event on the event website.


Dec 11, 2008 (We need a mobile broadband space race)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY DECEMBER 11, 2008


THE GOVERNOR AND THE TRIB
   Some Questions for Tribune (and Sam Zell)

THE TRANSITION
   Economic package to include health tech
   We need a mobile broadband space race
   Broadband as a Tool for Reinvigorating Democracy and Government
   Firms Push for a More Searchable Federal Web
   Group Wants Obama to Name Officer to Fight Online Dangers

THE ECONOMY
   Despite Growing Audiences, NPR Cutting Staff, programs
   US IT employment falls, hiring may be stalled for months
   One in four IT jobs moving offshore
   AT&T listening to customers, cutting bills?

SPECTRUM/WIRELESS
   White House Opposes FCC Free Wireless Internet Plan
   Political Favors at the FCC
   Verizon Wireless in $17 billion loan

BROADCASTING/CABLE
   House May Vote on DTV 'Nightlight' Bill
   Biggest Analog Cut-Off Test Shaping Up For Dec. 17
   Michigan Cities Turn to FCC for Answers in PEG Lawsuit
   CBS chief downplays crisis facing TV business
   Opponents Growing To Martin's Unbundling Plan
   DTV Transition Will Hurt Broadcast Ratings: Turner Exec

MEDIA OWNERSHIP
   The Road to Zell

DIGITAL CONTENT
   Sony Music illegally collected data on children, U.S. says
   How Younger Readers View News Websites
   YouTube Videos Are Pulling in Serious Money

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THE GOVERNOR AND THE TRIB


SOME QUESTIONS FOR TRIBUNE (AND SAM ZELL)
[SOURCE: Columbia Journalism Review, AUTHOR: Clint Hendler]
The federal criminal complaint against Illinois Governor Rod Blagojevich raises some questions about the conduct of the Chicago tribune and the Tribune Co. In two conversations, Gov Blagojevich makes it clear that he was upset with The Trib's John McCormick, a deputy editorial page editor, and wanted to see him fired. On November 5, gubernatorial chief of staff John Harris made the governor's case to someone the complaint identifies only as "Tribune Financial Advisor." Harris says the advisor told him it was a delicate request, but agreed to sound out "Tribune Owner" -- Sam Zell. Harris also says the advisor asked to meet Harris in person to discuss the request. Did the financial advisor make the deal that Harris implied he did? Did Zell "get the message" from the advisor, as Harris says he was told he did, and, if so, what did he do about it? Did Zell or anyone else at Tribune corporate contact law enforcement about the governor's offer? Did they contact anyone at the Tribune's newsroom? Fitzgerald says the Tribune had been prepared to run a story on the wiretaps eight weeks before the investigation went public, but agreed to hold the story. Was Zell involved in or did he know about the Tribune's decision not to publish? Did the Tribune know the investigation was coming into its backyard, and if so, was that information passed on to executives at the Tribune Company before Fitzgerald made it public? If so, when? And who's that Tribune Financial Advisor, and what does he have to say? With so many questions striking at Sam Zell and Tribune's ethical conduct, we need a full accounting to assure readers and other Tribune stakeholders that he remains fit to lead a respectable newsgathering organization, one that is unwilling to compromise the most basic principles of journalistic independence, even in the face of dire financial circumstances.
http://benton.org/node/19755
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THE TRANSITION


ECONOMIC PACKAGE TO INCLUDE HEALTH TECH
[SOURCE: Reuters, AUTHOR: Donna Smith]
Senate Finance Committee Chairman Max Baucus (D-MT) said on Wednesday a planned economic stimulus package will likely include money and tax breaks for doctors and hospitals to buy advanced technology that will make it easier for them to share patient care information. As head of the tax-writing Finance Committee, Sen Baucus will have a major say in what goes into the legislation. About half the value of the economic recovery package could be in the form of tax relief, Chairman Baucus said. Businesses and health reform advocates have said harmonizing the electronic standards needed to exchange information about patient care could go a long way toward reducing costs. Lawmakers are working to address privacy concerns with such technology. He declined to give a specific amount for the technology aid. But when asked if it would amount to the $50 billion some have suggested is needed, Baucus said that "might be a little high." Sen Baucus, who also plans to work with Obama to push for major health-care reform legislation next year, said including information technology in the economic stimulus will help get a jump start on the overall reform.
http://benton.org/node/19753
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WE NEED A MOBILE BROADBAND SPACE RACE
[SOURCE: ComputerWorld, AUTHOR: Mike Elgan]
[Commentary] An event happened this week that I consider the "Sputnik" of our own age. More than 50 years after the Russians launched the world's first orbiting satellite, HTC on Wednesday launched the HTC MAX 4G -- the world's first WiMax cell phone -- in Russia! Although US carriers are working on 4G and WiMax the nation is way behind in all aspects of mobile broadband. The Japanese, Koreans, Chinese, Europeans and now even the Russians are way ahead of the U.S. in the development of next-generation mobile broadband. The U.S. is plagued by spotty service, incompatible technologies and vast regions where no service is possible. The country that invented both the cell phone and the Internet is floundering as a third-rate cell phone Internet backwater. It's time to stop slouching toward failure. Rather than idiotically following Europe and Asia into the future, we need to leapfrog them and put the U.S. back on top. We need nothing less than a new space race-scale effort to build the next-generation mobile data system in the United States. We put a man on the moon a dozen years after Sputnik. Now we need to put fast Internet into every cell phone, no matter where that phone is. I'm not a big fan of big government or new agencies, but this new network is akin to the national highway system, or universal postal or telephone service -- except much more beneficial and important.
http://benton.org/node/19746
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BROADBAND AS A TOOL FOR REINVIGORATING DEMOCRACY AND GOVERNMENT
[SOURCE: Benton Foundation, AUTHOR: Jonathan Rintels]
The new Administration must include in its National Broadband Strategy initiatives to eliminate the digital divide through a program of "digital inclusion" - which encompasses access to broadband for all Americans and the skills and tools required to effectively use it. The NBS should foster increased transparency and empower greater participation by citizens, while at the same time implementing more efficient "e-government" practices to generate cost savings in the billions of dollars. Promoting digital inclusion and shrinking the digital divide will stimulate broadband supply and demand, as well as transform and reenergize the federal government, connect policymakers to citizens, generate substantial cost savings, and reinvigorate our democracy. The new Administration must also promote more direct citizen participation in government decision making through the use of broadband applications.
http://www.benton.org/initiatives/broadband_benefits/action_plan/reinvig...
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FIRMS PUSH FOR A MORE SEARCHABLE FEDERAL WEB
[SOURCE: Washington Post, AUTHOR: Peter Whoriskey]
A wide array of public information remains largely invisible to the search engines, and therefore to the general public, because it is held in such a way that the Web search engines of Google, Yahoo and Microsoft can't find it and index it. Not surprisingly, Yahoo and Microsoft officials agree that people would be better served if more public information became accessible to their search engines. The trouble, as the search engines see it, is that most Web users have become accustomed to finding information by typing queries into one of the engines -- and if they don't find it there, they give up. To make those databases visible to search engines would require the federal government to make each item into a Web page and then to provide a list of those Web page addresses to the search engines. Some federal officials have grumbled, however, that Google is making this push purely for financial reasons: The more that is available to search engines, the more people will use search engines, letting Google show advertising to more people.
http://benton.org/node/19739
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GROUP WANTS OBAMA TO NAME OFFICER TO FIGHT ONLINE DANGERS
[SOURCE: Washington Post, AUTHOR: Kim Hart]
Online safety advocates are urging President-elect Barack Obama to put more resources toward protecting children from crime, harassment and predators on the Web. In a report to be released today, the Family Online Safety Institute, a Washington nonprofit organization, is urging the new administration to appoint a national safety officer to serve under the chief technology officer, a position Obama has promised to create. The group is also asking for $100 million a year to fund education and research, an annual White House summit on safety issues, as well as the creation of a national council to coordinate efforts among federal agencies and advocacy and industry groups. Samuel McQuade, a professor at the Rochester Institute of Technology who has studied cybercrime, said education is the key. Many young people, from first-graders to college students, are not aware of the information security risks of the mobile devices and Web sites they use every day, he said. Parents and teachers should also be taught responsible online behavior.
http://benton.org/node/19738
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THE ECONOMY


DESPITE GROWING AUDIENCES, NPR CUTTING STAFF, PROGRAMS
[SOURCE: National Public Radio, AUTHOR: Press release]
Confronted by an uncertain economy and a sharp decline in current and projected revenues from corporate underwriting, NPR today announced that it will reduce its workforce by 7 percent and cut expenses. The difficult moves come despite NPR reaching near-record audience levels on-air and online, with 26.4 million people listening to NPR programs each week and 8 million people visiting NPR.org each month. A significant number of the personnel cuts result from the upcoming cancellation of two NPR produced programs ­ Day to Day and News & Notes. Both programs, broadcast on NPR Member stations nationwide, will remain on the air through March 20, 2009. Staff and expense reductions will be made in reporting, editorial and production areas; station services; digital media; research; communications and administrative support. A total of 64 filled positions have been eliminated against NPR's current staff of 889, 21 open positions will not be filled and travel and discretionary expenses have been cut across the organization. In July, NPR projected a relatively manageable $2 million deficit for fiscal year 2009. With the rapid downturn in the U.S. economy this fall, corporate sponsorships ­ NPR's second-largest source of funding after fees paid to NPR by stations ­ have declined and projections have dropped precipitously, raising the projected deficit to $23 million, and prompting the need for significant and immediate reductions in expenses.
http://benton.org/node/19748
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US IT EMPLOYMENT FALLS, HIRING MAY BE STALLED FOR MONTHS
[SOURCE: InfoWorld, AUTHOR: Grant Gross]
IT employment in the U.S. dropped in November after months of bucking national employment trends in other industries, said the National Association of Computer Consultant Businesses (NACCB). However, IT recruiting site Dice.com, in a survey released this week, found that most tech-job recruiters and hiring managers are curtailing hiring plans for the next six months. The Dice survey, which received responses from more than 1,000 hiring managers and recruiters, found that 32 percent of respondents said they are substantially scaling back hiring plans during the next six months, and another 40 percent are slightly scaling back hiring plans.
http://benton.org/node/19741
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ONE IN FOUR IT JOBS MOVING OFFSHORE
[SOURCE: InfoWorld, AUTHOR: Patrick Thibodeau]
Large companies are accelerating their use of offshore outsourcing and as many as a quarter of IT jobs at Global 1000 firms may be moved offshore by 2010, according to consulting firm the Hackett Group. According to its research, these large firms -- companies with revenues of at least $5 billion -- will move about 350,000 corporate jobs offshore over the next two years. Over half of those jobs will be in IT, with the remainder in finance, human resources and procurement. The data "is a confirmation of a mega-trend" similar to what happened in the manufacturing sector several decades ago, said Michel Janssen, Hackett's chief research officer. And while 25 percent of the IT jobs may head overseas in the next two years, over the longer term that figure could hit 60 percent. In some firms, it could reach 80 percent.
http://benton.org/node/19744
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AT&T LISTENING TO CUSTOMERS, CUTTING BILLS?
[SOURCE: TelephonyOnline, AUTHOR: Carol Wilson]
Alan Weinkrantz was an early U-verse customer of AT&T's in San Antonio and has been blogging for some time about that experience. Now he's telling the world that AT&T is willing to dramatically cut prices in order to retain its most valuable customers. Weinkrantz called AT&T customer service and was able to cut his triple-play bill from $164 to $94. That includes a $40 reduction for the top-tier U-verse video service with high definition, a $10 reduction in voice service and a $20 reduction for mid-tier Yahoo Broadband Elite Internet access. The latter reduction reduced the cost of broadband to $10 a month.
http://benton.org/node/19743
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SPECTRUM/WIRELESS


WHITE HOUSE OPPOSES FCC FREE WIRELESS INTERNET PLAN
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz]
Bush administration officials are trying to put the brakes on the Federal Communications Commission's plan to encourage a free, national wireless Internet plan, which the agency could approve next week. Commerce Secretary Carlos Gutierrez sent a letter to the agency's Republican chairman Wednesday afternoon expressing the administration's displeasure with the idea. "The administration believes that the (airwaves) should be auctioned without price or product mandate," Mr. Gutierrez wrote. "The history of FCC spectrum auctions has shown that the potential for problems increases in instances where licensing is overly prescriptive or designed around unproven business models." Outgoing FCC Chairman Kevin Martin hopes to win approval for his plan next week, at one of the last FCC meetings he will chair.
http://benton.org/node/19751
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POLITICAL FAVORS AT THE FCC
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
[Commentary] Most people don't think Silicon Valley billionaires need government subsidies, but Kevin Martin isn't among them. Before he exits his post next month, the Federal Communication Commission Chairman is trying to put in place rules for a wireless spectrum auction that all but guarantee the licenses go to a company backed by venture capitalist John Doerr. Chairman Martin wants to place restrictions on how the spectrum can be used, which will discourage larger, established wireless carriers from participating in the auction and bidding up the price. Yesterday even the Bush Administration whacked Martin, its own appointee, over the auction. Commerce Secretary Carlos Gutierrez worried in a letter that Martin is setting rules "favoring a particular business model," and took special exception to a requirement that the winning bidder provide free broadband services at government-regulated speeds. "This mandate would likely lead to congested and inefficiently used broadband, and it would be inconsistent with the Administration's view that spectrum should be allocated by markets rather than governments," Sec Gutierrez said. Prices for broadband are falling rapidly, geographic coverage is growing and new investment continues. Which is to say that the telecom market is highly competitive, and clean auctions for spectrum can keep it that way. The FCC's job isn't to favor the politically connected. The goal should be to ensure that airwaves go to companies with the resources and incentives to best use them. Martin's political favoritism continues the pattern of his unfortunate chairmanship and will cost taxpayers in the end.
http://benton.org/node/19740
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VERIZON WIRELESS IN $17 BILLION LOAN
[SOURCE: Financial Times, AUTHOR: Francesco Guerrera, Paul Taylor]
The moribund market for corporate finance received a boost on Wednesday when Verizon Wireless, a joint venture between Verizon Communications and Vodafone Group, closed a $17 billion syndicated loan, the largest in the US this year. The deal, arranged by Morgan Stanley, Bank of America and Citigroup, will enable Verizon Wireless to refinance the debt it took on in June when it bought Alltel, a regional telecoms group, for $28.1bn from TPG and Goldman Sachs. The completion of the syndicated loan will dispel some fears that the tough markets would force Verizon Wireless to renege on the Alltel deal and pay a $500m break-up fee. The deal was cleared by the US Federal Communications Commission last month while the Federal Trade Commission, the antitrust regulator approved it yesterday.
http://benton.org/node/19735
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BROADCASTING/CABLE


HOUSE MAY VOTE ON DTV 'NIGHTLIGHT' BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Short-Term Analog Flash and Emergency Readiness (SAFER) Act may see a vote in the House after all. The bill would allow broadcasters to continue to deliver analog signals for a brief period following the Feb. 17, 2009 cut-off date. Broadcasters would be allowed to air emergency information and DTV education information for any viewers still trying to watch analog TV in a digital world. A companion bill has already passed in the Senate.
http://benton.org/node/19752
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BIGGEST ANALOG CUT-OFF TEST SHAPING UP FOR DEC 17
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Television stations in Washington (DC and 29 states will conduct the largest analog shut-off test to date on December 17. Times and durations of the tests will vary, but all will be so-called soft tests. In those, stations simulate pulling the plug on analog signals with analog-only viewers getting a message about what they need to do to be ready for the real analog plug-pulling Feb. 17, 2009.
http://benton.org/node/19750
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MICHIGAN CITIES TURN TO FCC FOR ANSWERS IN PEG SUIT
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
Attorneys for four Michigan communities have asked the Federal Communications Commission for answers to seven questions requested by a federal judge there to help resolve a suit over the movement of public, educational and government channels by Comcast Corp. The judge in the case, brought by the cities of Dearborn, Meridian, Bloomfield and Warren, Michigan, decided she couldn't conclude the case without direction from the FCC on the dispute. The federal agency has jurisdiction to determine how the federal Communications Act is interpreted, the judge ruled in October. The communities want answers to questions such as whether they can still regulate PEG obligations in a market subject to an effective competition ruling; whether the discriminatory treatment of PEG is an "unlawful evasion" of federal law; and whether Comcast can charge for equipment that is used only to view PEG channels. They also want the FCC to determine if PEG channels are still considered part of a basic tier if they've been translated into digital signals.
http://benton.org/node/19747
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CBS CHIEF DOWNPLAYS CRISIS FACING TV BUSINESS
[SOURCE: Reuters, AUTHOR: Paul Gough, George Szalai]
Just about everyone is dumping on broadcast TV -- except Leslie Moonves. At the UBS media conference this week, NBC Universal's Jeff Zucker said the broadcast model simply doesn't work anymore. Walt Disney Co CFO Tom Staggs called ABC "one of the more challenged businesses we have." Cable powerhouse Turner presented research that shows the broadcast season is off "to its worst start ever." "I'm here to tell you the model ain't broken," CBS Corp. CEO Moonves countered Wednesday at the UBS gathering in New York. "You can still make a lot of money in network television. We like 10 o'clock shows." This year, only CBS has shown any kind of life in the ratings, with the lone genuine scripted hit and only modest declines in adults 18-49, viewers and adults 25-54. ABC, NBC and Fox are down sharply.
http://benton.org/node/19734
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OPPONENTS GROWING TO MARTIN'S UNBUNDLING PLAN
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Corporate and industry lobbyists are pressuring Federal Communications Commission chairman Kevin Martin to drop a plan that would bar any cable network from demanding access to a specific programming tier or to a certain percentage of subscribers. TV stations that insist on compensation could not demand access to all cable subscribers. Contracts in conflict with FCC policy would be void. The plan would empower cable operators to decide nearly all pricing and packaging options for consumers, which Martin believes would reduce pressure on cable operators to raise their rates each year. Chairman Martin wants the FCC to approve his plan Dec. 18. That would launch a notice of proposed rulemaking (NPRM), which wouldn't conclude in a vote until long after Martin has stepped down as chairman.
http://benton.org/node/19733
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DTV TRANSITION WILL HURT BROADCAST RATINGS: TURNER EXEC
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
Turner chief research officer Jack Wakshlag said the transition to all-digital signals in February will reduce broadcast TV's audience in a year in which it already lost 2 million viewers. As of November, roughly 20% of TV homes will be affected by the DTV transition, with 10.3% of homes "partially unready" -- or have some TV sets that are not digital-ready -- and 7.4% having "no-ready" sets. Right now, nearly 13% of broadcast viewing comes from homes with "unready sets," namely homes that only get broadcast stations, but viewing patterns change when households make accommodations to prepare for the DTV transition, according to Wakshlag.
http://benton.org/node/19732
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MEDIA OWNERSHIP


THE ROAD TO ZELL
[SOURCE: The Big Money, AUTHOR: Daniel Gross]
It was plain from the beginning that Sam Zell didn't have much of a strategy for reversing the revenue decline at the Tribune Co's newspapers. And the failure to realize that a slowdown in real estate and autos -- the credit crunch had started a half year before the deal to buy Tribune closed -- would reduce revenues sharply was an act of colossal stupidity on Zell's part and on the part of the bankers who made the era of dumb money possible. Zell loaded up the company with nearly $13 billion in debt, which required interest payments of nearly $500 million in the first half of 2008. The plan, such as it was, was to pay down debt not with operating cash but with asset sales. One problem: Most of the assets were themselves dumb-money assets -- trophy properties such as the Chicago Cubs, office buildings, and big-city newspapers that couldn't support a lot of debt on their own and whose purchase would require easy credit. The hope to stay current on debt payments rested on selling the Chicago Cubs, perhaps the greatest Midwestern trophy property of all. But the credit crunch decimated the net worth of many of the potential buyers, and lenders fell by the wayside. Having failed to find any greater fools, Tribune filed for bankruptcy.
http://benton.org/node/19754
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DIGITAL CONTENT


SONY MUSIC ILLEGALLY COLLECTED DATA ON CHILDREN, US SAYS
[SOURCE: Bloomberg News, AUTHOR:]
Sony BMG Music Entertainment was sued by the Federal Trade Commission on Wednesday for collecting and disclosing personal data about 30,000 children without informing their parents. The suit, which alleges violations of the Children's Online Privacy Protection Act, seeks unspecified damages and an injunction. The FTC alleges that Sony Music, a Sony Corp. unit that operates more than 1,100 music-related websites, collected information from more than 30,000 children under age 13 since 2004, despite contending that visitors that young wouldn't be allowed to register on the sites.
http://benton.org/node/19737
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HOW YOUNGER READERS VIEW NEWS WEBSITES
[SOURCE: Online Journalism Review, AUTHOR: Nora Paul, Laura Ruel]
In January 2008 a group of interactive producers from news websites gathered at the University of Minnesota for the first Eyetracking Research Consortium, part of the Digital Story Effects Lab project run by Nora Paul and Laura Ruel. Some of the eyetracking studies conducted with the consortium members were comparisons of different design approaches or navigational schemes and their impact on user behavior. Other members just asked for feedback from users about their experience on the website. With the eyetracking we could record not just what someone said about what they did on the site, but to actually see what they did.
http://benton.org/node/19742
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YOUTUBE VIDEOS ARE PULLING IN SERIOUS MONEY
[SOURCE: New York Times, AUTHOR: Brian Stelter]
Making videos for YouTube — for three years a pastime for millions of Web surfers — is now a way to make a living. One year after YouTube, the online video powerhouse, invited members to become "partners" and added advertising to their videos, the most successful users are earning six-figure incomes from the Web site. For some, like Michael Buckley, the self-taught host of a celebrity chatter show, filming funny videos is now a full-time job.
http://benton.org/node/19736
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Some Questions for Tribune (and Sam Zell)

The federal criminal complaint against Illinois Governor Rod Blagojevich raises some questions about the conduct of the Chicago tribune and the Tribune Co. In two conversations, Gov Blagojevich makes it clear that he was upset with The Trib's John McCormick, a deputy editorial page editor, and wanted to see him fired. On November 5, gubernatorial chief of staff John Harris made the governor's case to someone the complaint identifies only as "Tribune Financial Advisor." Harris says the advisor told him it was a delicate request, but agreed to sound out "Tribune Owner" -- Sam Zell. Harris also says the advisor asked to meet Harris in person to discuss the request. Did the financial advisor make the deal that Harris implied he did? Did Zell "get the message" from the advisor, as Harris says he was told he did, and, if so, what did he do about it? Did Zell or anyone else at Tribune corporate contact law enforcement about the governor's offer? Did they contact anyone at the Tribune's newsroom? Fitzgerald says the Tribune had been prepared to run a story on the wiretaps eight weeks before the investigation went public, but agreed to hold the story. Was Zell involved in or did he know about the Tribune's decision not to publish? Did the Tribune know the investigation was coming into its backyard, and if so, was that information passed on to executives at the Tribune Company before Fitzgerald made it public? If so, when? And who's that Tribune Financial Advisor, and what does he have to say? With so many questions striking at Sam Zell and Tribune's ethical conduct, we need a full accounting to assure readers and other Tribune stakeholders that he remains fit to lead a respectable newsgathering organization, one that is unwilling to compromise the most basic principles of journalistic independence, even in the face of dire financial circumstances.

The Road to Zell

It was plain from the beginning that Sam Zell didn't have much of a strategy for reversing the revenue decline at the Tribune Co's newspapers. And the failure to realize that a slowdown in real estate and autos -- the credit crunch had started a half year before the deal to buy Tribune closed -- would reduce revenues sharply was an act of colossal stupidity on Zell's part and on the part of the bankers who made the era of dumb money possible. Zell loaded up the company with nearly $13 billion in debt, which required interest payments of nearly $500 million in the first half of 2008. The plan, such as it was, was to pay down debt not with operating cash but with asset sales. One problem: Most of the assets were themselves dumb-money assets -- trophy properties such as the Chicago Cubs, office buildings, and big-city newspapers that couldn't support a lot of debt on their own and whose purchase would require easy credit. The hope to stay current on debt payments rested on selling the Chicago Cubs, perhaps the greatest Midwestern trophy property of all. But the credit crunch decimated the net worth of many of the potential buyers, and lenders fell by the wayside. Having failed to find any greater fools, Tribune filed for bankruptcy.

Economic package to include health tech

Senate Finance Committee Chairman Max Baucus (D-MT) said on Wednesday a planned economic stimulus package will likely include money and tax breaks for doctors and hospitals to buy advanced technology that will make it easier for them to share patient care information. As head of the tax-writing Finance Committee, Sen Baucus will have a major say in what goes into the legislation. About half the value of the economic recovery package could be in the form of tax relief, Chairman Baucus said. Businesses and health reform advocates have said harmonizing the electronic standards needed to exchange information about patient care could go a long way toward reducing costs. Lawmakers are working to address privacy concerns with such technology. He declined to give a specific amount for the technology aid. But when asked if it would amount to the $50 billion some have suggested is needed, Baucus said that "might be a little high." Sen Baucus, who also plans to work with Obama to push for major health-care reform legislation next year, said including information technology in the economic stimulus will help get a jump start on the overall reform.

House May Vote on DTV 'Nightlight' Bill

The Short-Term Analog Flash and Emergency Readiness (SAFER) Act may see a vote in the House after all. The bill would allow broadcasters to continue to deliver analog signals for a brief period following the Feb. 17, 2009 cut-off date. Broadcasters would be allowed to air emergency information and DTV education information for any viewers still trying to watch analog TV in a digital world. A companion bill has already passed in the Senate.

White House Opposes FCC Free Wireless Internet Plan

Bush administration officials are trying to put the brakes on the Federal Communications Commission's plan to encourage a free, national wireless Internet plan, which the agency could approve next week. Commerce Secretary Carlos Gutierrez sent a letter to the agency's Republican chairman Wednesday afternoon expressing the administration's displeasure with the idea. "The administration believes that the (airwaves) should be auctioned without price or product mandate," Mr. Gutierrez wrote. "The history of FCC spectrum auctions has shown that the potential for problems increases in instances where licensing is overly prescriptive or designed around unproven business models." Outgoing FCC Chairman Kevin Martin hopes to win approval for his plan next week, at one of the last FCC meetings he will chair.

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