December 2008

FCC Chairman's Seat Up for Grabs

Who will be the next chairman of the Federal Communications Commission? Whoever gets the seat, look for that person to put a premium on Internet access, broadband rollout and no more loosening of media ownership rules. However the chairmanship shakes out long-term, it will take a while for an Obama FCC to take shape. Deborah Taylor Tate must exit before Jan. 3, which would leave the commission at 2-2. When Chairman Martin exits, it will likely leave a 2-1 commission for a short time. The Obama administration has a lot of people to move in, and the FCC is "pretty far down the line," says someone intimately familiar with both ends of the vetting and post-filling process. "It could be four to six months." Commissioner Michael Copps is considered the lead candidate for interim chairman. His ex-boss, former Sen. Ernest (Fritz) Hollings, was said to be stumping for him earlier this year. Commissioner Jonathan Adelstein would like the chairman's job as well, and his ex-boss, former Sen. Tom Daschle, is tight with the Obama campaign. If Adelstein wants another term, he will likely get it, but there could still be three or four openings on the commission in 2009 depending on how things shake out. Commissioner Robert McDowell's term is up in June, though he could stay through the end of the year. One possible candidate for an open Republican seat is acting National Telecommunications and Information Administration chief Meredith Atwell Baker, who is well-liked on both sides of the aisle.

Obama Focusing on DTV Transition

The Obama transition team is interviewing broadcast and consumer groups to get a handle on what kind of challenge it faces with the digital television switch, which takes place less than a month after he becomes president. Gene Kimmelman, VP and director of the Washington office of Consumers Union, said he's hopeful the change of administration will aid the digital switchover. "I think it should actually help," he said. "I am most concerned that [the Department of Commerce's National Telecommunications and Information Administration] isn't doing enough to make this as simple as possible to get the most low-cost converters out to consumers who need them. Hopefully the new players preparing to come into the Commerce Department will be more open to anticipate consumers' needs." "I think the most important thing is to continue to report on the transition to keep it in front of the new administration," said Mark Lloyd, VP of strategic initiatives for the Leadership Conference on Civil Rights. The group is worried that some people could lose their TV service in the transition. "This is a serious issue. For many Americans, over-the-air TV is a lifeline. It is the most relied-upon source of news and emergency information," Mr. Lloyd said. "While the broadcasters, the FCC, the Commerce Department's coupon program have been very helpful, there are still too many Americans who are at risk."

TV Casting May Feel an Obama Effect

It may say something about the state of American television that there is one more black president-elect of the United States than there are black actors with individual lead roles in a network television drama. But after years of ensemble dramas sprinkled with nonwhite supporting actors, the excitement surrounding the election of Barack Obama could help to open doors for more minorities in leading dramatic roles, executives from television production studios said. The evidence seems to indicate that race neutrality has not produced a surge of black lead performers, at least in network dramas. While comedies with black characters have been something of a network staple — from the much vilified "Amos 'n Andy" in the early days of television, through shows like "Sanford and Son" with Redd Foxx, "The Jeffersons," and Martin Lawrence's sitcom "Martin" — historically, blacks in lead television drama roles have been rare. Tim Reid, who was the star and an executive producer of the Emmy-winning comedy series "Frank's Place" for CBS in the 1987-88 season — and who recently wrote, with the white comic Tom Dreesen, "Tim and Tom: An American Comedy in Black and White" about their days as a stand-up team — has been outspoken about the continued limited opportunities for minorities in television. "If the president-elect should have any positive influence over the so-called liberal base of Hollywood, it will be by focusing their attention on the reality of the kind of multicultural world we actually live in," Mr. Reid said in an e-mail message. "This doesn't just mean putting another person of color in front of the camera, but giving them an equal opportunity in having a say-so in what is created for the camera." "In my opinion," he continued, "we're far more likely to have a black president in my lifetime ... oh, yeah ... I can stop saying that now."

FCC's December Agenda includes Free Web Plan Pushed by Martin

Federal Communications Commission Chairman Kevin Martin is pushing for action in December on a plan to offer free, pornography-free wireless Internet service to all Americans, despite objections from the wireless industry and some consumer groups. At its December meeting, the FCC could also consider new rules designed to speed up consideration of disputes between independent cable programmers and cable providers such as Time Warner Cable and Comcast, which either refuse to carry some channels or put them on specialty tiers of service that cost subscribers more. The agency also will ask for more feedback on its proposal to require programmers to sell their channels to cable operators individually instead of in bundles. The free Internet plan is the most controversial issue the agency will tackle in December. Chairman Martin shelved plans to consider a wider variety of sticky issues pending at the agency, including a request by the Hollywood studios to hobble TVs and set-top boxes so studios can offer copy-protected theatrical releases sooner.

A Generation of Local TV Anchors Is Signing Off

Almost all of the country's television stations with network affiliations have a face, or a pair of faces, that represent their news operations better than any logo or commercial can. Many years after signing off, the larger-than-life characters are still fixtures of newscast lore. But across the country, longtime local TV anchors are a dying breed. Facing an economic slump and a severe advertising downturn, many stations have cut costs drastically in the last year, and veteran anchors, with their expensive contracts, seem to be shouldering a disproportionate share of the cutbacks. When station managers are forced to make cuts, hefty anchor salaries are a tempting target. When the anchors depart, they take decades of experience and insight with them. "Basically, you replace someone who knows City Hall with someone who can't find it," said John Beard, who lost his job at KTTV last December after 26 years as a news anchor in Los Angeles. While some anchors in top markets can still command million-dollar salaries the positions are becoming more vulnerable to the market forces that are roiling local TV, analysts say.

Redstone Sells Control of Midway to Ease Debt

In an effort to help resolve his debt problems, Sumner Redstone has sold his controlling stake in videogame company Midway Games to a private investor. Redstone's holding company, National Amusements Inc., is expected to announce Monday that it sold its 87% stake in Midway to investor Mark Thomas, a move that represents a significant loss on the media mogul's investment but secures a hefty tax benefit as he negotiates other asset sales. National Amusements is in negotiations with its banks to restructure its $1.6 billion debt pile after breaching one of its debt covenants. As part of the restructuring, the Redstone family has been discussing selling some of its assets, including some movie theaters and a holding in slot-machine company WMS Industries. The sale of the Midway stake, agreed upon Friday, wasn't conducted as part of a deal with the banks but is likely to ease the pressure on the Redstone family and potentially contribute to a final deal.

Mobile phones distract drivers more than passengers

Mobile phone calls distract drivers far more than even the chattiest passenger, causing drivers to follow too closely and miss exits. Using a hands-free device does not make things better and the researchers believe they know why -- passengers act as a second set of eyes, shutting up or sometimes even helping when they see the driver needs to make a maneuver. The research, published in the Journal of Experimental Psychology: Applied, adds to a growing body of evidence that mobile phones can make driving dangerous.

Prohibition vs. Regulation Debated As U.S. Bettors Use Foreign Sites

Even as bettors around the world gamble millions of dollars online, confusion reigns about the legal status of those bets and the companies that handle them. Critics of online gambling see the industry as murky and unregulated. "It's an underworld wrought with scams and schemes," said Kentucky Gov. Steve Beshear (D), spearheading a state effort to block online bets. But to some legal scholars and Internet gambling proponents, the government's efforts highlight a widening disconnect between 21st-century technology and the 20th-century laws used to protect Americans from gambling. "Congress shouldn't be trying to make criminals out of people who have taken the game from the kitchen table to the computer table," said John Pappas, executive director of the Poker Players Alliance, a Washington lobbying group claiming just under 1 million members.

With vintage satellites still in orbit, sales are grounded

This month, a satellite resembling a shiny spinning drum and orbiting 21,156 miles above Earth celebrated its 41st birthday, astounding engineers and scientists, some of them the children of those who built it. For years, the satellite has served as an emergency communications link for rescue operations, including the 1985 Mexico City earthquake and the 1980 Mt. St. Helens volcanic eruption. It was supposed to live for only three years when it was launched in 1967. But the spacecraft, known as ATS 3, isn't alone. Many satellites are operating well past their life expectancy, so much so that manufacturers are hurting from lack of demand for new, replacement satellites. And those who are buying are asking for guarantees that the new satellites, which can cost as much as $300 million each, will last two to three times as long as the early birds.

CNN Pitches a Cheaper Wire Service to Newspapers

CNN, in the afterglow of an election season of record ratings for cable news, is elbowing in on a new line of business: catering to financially strained newspapers looking for an alternative to The Associated Press. For nearly a month, a trial version of CNN's wire service has been on display in some newspapers. But this week editors from about 30 papers will visit Atlanta to hear CNN's plans to broaden a service to provide coverage of big national and international events — and maybe local ones — on a smaller scale and at a lower cost than The AP.