February 2009

Lobbying War Ensues Over Digital Health Data

The Senate and House appear headed for a clash over competing visions of how to protect the privacy of patients' electronic medical records, with the House favoring strict protections advocated by consumer groups while the Senate is poised to endorse more limited safeguards urged by business interests. President Obama has called creation of a nationwide system of electronic medical records fundamental to health-care reform, and both chambers of Congress have included about $20 billion to jump-start the initiative as part of their stimulus bills. But as with much in the stimulus package, it is not just the money but the accompanying provisions that groups are trying to influence. The effort to speed adoption of health information technology has become the focus of an intense lobbying battle fueled by health-care and drug-industry interests that have spent hundreds of millions of dollars on lobbying and tens of millions more on campaign contributions over the past two years, much of it shifting to the Democrats since they took control of Congress. At the heart of the debate is how to strike a balance between protecting patient privacy and expanding the health industry's access to vast and growing databases of information on the health status and medical care of every American. Insurers and providers say the House's proposed protections would hobble efforts to improve the quality and efficiency of health care, but privacy advocates fear that the industry would use the personal data to discriminate against patients in employment and health care as well as to market the information, often through third parties, to generate profits.

L.A. ministers asked to spread the word about digital TV

Federal Communications Commission member Jonathan Adelstein visited Los Angeles on Monday. He noted that FCC staffers can't make sure that people buy and set up the converter boxes they'll need for their older TV sets that are hooked up to antennas. Who can? Ministers. "We need people to take up leadership in their community and make sure nobody gets left out in the switch," Commissioner Jonathan Adelstein said during a public forum at the Mount Moriah Baptist Church in South Los Angeles. "Churches already have the infrastructure in place to do that." Standing at the church pulpit, Adelstein asked the Baptist Ministries Conference of Los Angeles, nearly 50 African American preachers who meet once a month, to include information on the June 12 digital TV switch in their sermons. L.A. County has the largest number of over-the-air viewers in the country, Adelstein said, and those viewers are concentrated in the minority and elderly communities.

Local TV Stations Face a Fuzzy Future

Local television stations dominated the TV business for more than half a century. They inspired the term "network": a web of Channel 7s and 11s that delivered shows from ABC, CBS, NBC -- and later, Fox -- plus local news, syndicated reruns and talk shows. Because the stations owned the licenses to the airwaves that broadcast TV signals, big networks couldn't distribute content without them. In turn, local stations became the vehicles for the greatest mass-market advertising blitz in history. Now, with their viewership in decline and ad revenue on a downward spiral, many local TV stations face the prospect of being cut out of the picture. Executives at some major networks are beginning to talk about an option that once would have been unthinkable: eventually taking shows straight to cable, where networks can take in a steady stream of subscriber fees even in an advertising slump. Many local stations -- once treated like royalty by broadcast networks -- are scaling back their original programming, cutting down on weekend news shows and trimming staff. Nationwide, 2009 TV-station ad revenue is projected to fall 20% to 30%, according to Bernstein Research. Local TV stations won't vanish overnight. Networks' parent companies still own some of the largest stations, giving them a possible incentive to preserve that slice of the business. And while their profits are down, the vast majority of stations are making money: Local, regional and national businesses, like car dealers and retailers, spent more than $20 billion on local TV-station ads in 2008.

You Can't Sell News by the Slice

[Commentary] Every so often the dream of getting people to pay for online content recurs. It's recurring now because of the newspaper crisis: they have been hemorrhaging subscribers and advertisers for their paper editions, even as they give away their contents online. In the current Time, its former managing editor, Walter Isaacson, urges a solution: "micropayments." A more promising idea is the opposite: give away the content without the paper. In theory, a reader who stops paying for the physical paper but continues to read the content online is doing the publisher a favor. If the only effect of the Internet on newspapers was a drastic reduction in their distribution costs, publishers could probably keep a bit of that savings, rather than passing all of it and more on to the readers. But the Internet has also increased competition — not just from new media but among newspapers as well. Or rather, it has introduced competition into an industry legendary for its monopoly power. With even half a dozen papers, the American newspaper industry will be more competitive than it was when there were hundreds. Competition will keep the Baghdad bureaus open and the investigative units stoked with dudgeon. Competition is growing as well among Web sites that think there is money to be made performing the local paper's local functions. One or two of these will turn out to be right. And then, who will pay even a nickel for the hometown rag?

The News Narrative Turns Bearish on Obama

Two different stories combined to create one major media narrative last week—a new President off to a shaky start. For the second week in a row the economic crisis was the dominant story in the news, filling 44% of the Feb. 2- Feb. 8 newshole in the weekly News Coverage Index produced by the Pew Research Center's Project for Excellence in Journalism. The only other subject to generate significant attention was a related one, the new Obama Administration at 17% (up from 7% a week earlier). But both stories contained themes depicted as negative for Obama—problems winning Republican votes on the stimulus package and no fewer than four Presidential nominees tainted by tax problems.

PCC rejects media watchdog criticism

The Press Complaints Commission has rejected criticism that it was not "fit for purpose", condemning a report by a media watchdog group as ill informed and ill tempered. The Media Standards Trust issued a report on Monday stating that public trust in the newspaper industry was sinking fast and that the PCC needed to be reformed if it was to become relevant to the self-regulation of the UK press. Basing its contentions on public opinion surveys, the trust said the PCC's inadequacies contributed to the decline in public faith in newspapers, particularly over the correction of accuracies and invasion of privacy. The commission came out strongly in defence of its role and said the report had been a missed opportunity. Tim Toulmin, the director of the PCC, described the report as a "hatchet job".

The Federal Communications Commission's Consumer Advisory Committee will meet on Wednesday, March 4, 2009, 3:00 P.M. to 5:00 P.M., at the Commission's Headquarters Building, Room TW-C305, 445 12th Street, S.W., Washington, DC 20554.

The CAC will consider internal matters relating to its structure, operations, and future agenda, which were not addressed at its January 30, 2009 meeting because of time constraints. The Committee may also consider other matters within the jurisdiction of the Commission.

It is anticipated that a majority of Committee members will participate via teleconference. A limited amount of time on the agenda will be available for oral comments from the public attending at the meeting site. The purpose of the Committee is to make recommendations to the Commission regarding consumer issues within the jurisdiction of the Commission and to facilitate the participation of all consumers in proceedings before the Commission.

See http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-09-208A1.doc



Senate Clears Path for Vote on $838 Billion Stimulus

Senate Democrats on Monday advanced the $838 billion economic stimulus bill, clearing a major procedural hurdle by a razor thin margin with the help of just three Republicans. A vote on final passage of the bill is expected on Tuesday. Senators voted 61 to 36 to invoke cloture on the legislation, which President Obama today urged Congress to pass "immediately" to avoid the prospect of a "deepening disaster." Senate passage of the bill tomorrow would trigger a House-Senate conference to resolve differences in the versions of the two houses. Each chamber would then vote on the resulting legislative package, which Obama has said he wants to sign by the end of the week before the Presidents' Day recess. The $819 billion House package includes broader spending proposals and fewer tax cuts. This evening's vote was on a substitute bill negotiated late last week by a group of Democrats and moderate Republicans. Though early figures estimated the cost of the compromise at $827 billion, on Monday the Congressional Budget Office scored the bill's cost at $838 billion.

NTIA's Web Site Giving Mixed Message About DTV Transition Date

The National Telecommunications & Information Administration's website is still informing visitors that "at midnight on Feb. 17, all full-power TV stations in the United States will stop broadcasting in analog and switch to 100% digital broadcasting." That comes five days after Congress voted to move the DTV transition hard date and will be news to the hundreds of stations that, on the advice of the government, aren't pulling the plug on analog as they had planned. Elsewhere on the site, under the "coupon program update" section, it points out that the date is postponed to June 12.

Regulatory Commissioners Prepare To Talk Broadband

The economic stimulus package, whose broadband funding just got cut as part of the general Republican-driven paring back of spending, will be one of the top items on the agenda of the National Association of Regulatory Utility Commissioners (NARUC) when they meet in Washington next week. Also on the program are FCC reforms and universal service. NARUC represents state public service commissioners who regulate essential utility services including telecommunications. Among those scheduled to weigh in on the economic stimulus package are Blair Levin, managing partner with Stifel Nicolaus and a member of the Obama transition team who was on a short list of possible FCC chair candidates. Also discussing broadband's role in stimulating the economy will be Tom Tauke, VP, public affairs, policy and communications for Verizon.