March 2009

Lessons Learned from Municipal Broadband

Not all attempts to deploy municipal wireless networks across the country were failures, panelists said at a packed Monday afternoon session of the Freedom to Connect conference. Rather, the speakers said, an attempt must be made to appreciation of the nuances of the experience. Esme Vos, founder of the MuniWireless.com web site, said that public opinion had been too harsh on some of the city-sponsored networks in the United States. The failures of Philadelphia and Earthlink, she said, could still offer vital lessons for the future, and were not without value. Additionally, wireless automated meter reading in municipalities was a vital development, she said. Sascha Meinrath, research director at the New America Foundation, said that a more urgent question posed by the failures is "who will set forth a compelling alternative agenda to central mass media."

'Getting Health IT Right' in the Federal Stimulus Package

Health IT has long had support from Capitol Hill and the White House, but the recent injection of $19 billion in federal stimulus funding has heightened that interest and increased expectations for health IT to help reform the US health care system. The federal stimulus package includes about $17 million in Medicare and Medicaid incentive payments for health care providers who demonstrate meaningful use of electronic health records and $2 billion for the Office of the National Coordinator for Health IT. When you consider that ONC received $61.3 million in the fiscal year 2009 budget to pursue federal health IT efforts, it is no wonder that some experts are calling the new funding a "game changer." But not everyone's on board. Several recent opinion pieces in some of the country's top newspapers have questioned whether the government's investment in health IT was the right move.

New law helps open source

The economic stimulus law mentions health information technology dozens of times, establishing an agenda to promote electronic health records, form standards committees and work out health information privacy and security impasses. However, the $20 billion package also contains a more obscure provision that has buoyed hopes among advocates of open-source technologies projects that have struggled to gain acceptance in the health IT marketplace. Tucked away in the law is a call to explore open-source technologies in the healthcare setting. The provision directs the Health and Human Services Department to conduct a report on the "availability of open-source health information technology systems." The study will look into the availability of heath IT open source systems and compare its total cost of ownership to proprietary systems. Congress must report on the progress of the study by Oct. 1, 2010. Although a relatively minor provision, open-source advocates consider it significant.

FCC Approves Two Hardship Waivers For Early Analog Cut-offs

The Federal Communications Commission has quietly approved the requests of two TV station "hardship cases" to pull the plug on analog earlier than June 12, even though, technically, they don't meet the criteria for doing so. Since there were only four commercial station requests for waivers, that leaves only two more to decide.

Reiten Television's KXMB-TV Bismarck-Dickinson (ND) (CBS affiliate) will end analog on May 28, only two weeks early. The station said it needed to cannibalize its analog transmitter to allow it to repurpose them in the digital equipment for a pair of its satellite stations, with which it is able to reach its sparsely populated market.

Hoak Media's KAUZ-TV Wichita Falls (also CBS) will end analog broadcasts on May 21. Hoak had argued was necessary so it could move its DTV antenna to the top of its tower mast currently occupied by the analog antenna.

Boucher at NAB Conference (Updated)

House Communications, Technology & Internet Subcommittee Chairman Rick Boucher (D-VA) spoke to the National Association of Broadcasters State Leadership Conference in Washington on Tuesday. He said radio broadcasters are going to have to pay a per-performance fee, so it is in their interests to get together with not only music rights holders but cable, satellite and online distributors to figure out how much that should be. Chairman Boucher said that as part of bringing broadcasters into that performance rights scheme, the rates cable, satellite and online music distributors already pay would come down. He said would ultimately benefit broadcasters, too, because their online streams would likely be at least as valuable to them as their over-the-air signals, and maybe more so. That may have been an effort to sugar coat a biter pill for broadcasters, who face the prospect of having to add another expense to already stretched budgets. It was not what broadcasters wanted to hear, something Boucher readily acknowledged. NAB members have been pushing hard against any fee/tax, saying it could cost jobs and reduce music diversity. But it was what Boucher suggested they needed to hear.

He also addressed the Satellite Home Viewer Extension and Reauthorization Act before Congress this year saying broadcasters and multichannel video providers need to come up with a negotiated solution to the problem of delivering TV signals to so-called "split markets," or one will likely be imposed. Chairman Boucher said he would try to pass the most narrow version possible of the SHVERA act, without "collateral issues" like retransmission consent reform. But he said a couple of issues would inevitably come before the committee. One was allowing the importation of signals from adjacent markets to markets that lack that particular network affiliate signal, which is not controversial and which he supports. Another, he said, was making sure that satellite operators carry TV stations in all 210 local markets. "I frankly have a feeling that unless we have a statutory mandate, the time may never come," saying that statutory requirement is "the best thing we can do."

Update: Chairman Boucher also said, "Let me tell you this morning that our subcommittee has no plans to reinstate the fairness doctrine."

TV content owners resist less lucrative online ad model

An annual look at North American couch potatoes shows more people are watching video online, but very few are cutting off paid TV services. Given the $66 billion in traditional TV advertising revenue and $32 billion in programming fees that would be at risk if TV shows are offered for free online, content providers are not likely to let that happen, according to the The Battle for the American Couch Potato: New Challenges & Opportunities in the Content Market from Convergence Consulting Group. Certainly TV viewing habits are changing, as consumers expect to see more content on demand, but video service providers and content owners need to find ways to accommodate that change while protecting existing revenues, said Brahm Eiley, Convergence Consulting Group analyst and an author of the report.

The Man Who Ate the GOP

In an ailing radio industry, with a graying audience and a pro-government landscape, Rush Limbaugh should be shuffling off into irrelevancy. Instead, his ever more outrageous attacks have everyone debating whether he's the GOP's de facto leader, while the party shapes its ideology to fit his needs.

Sun-Times Media files for bankruptcy

The Sun-Times Media Group, owner of the Chicago Sun-Times and dozens of suburban newspapers, filed for Chapter 11 bankruptcy Tuesday, making it the fifth newspaper publisher to seek protection from creditors in recent months. The step, brought on by a precipitous decline in advertising revenue, means both of Chicago's major daily newspapers are operating under bankruptcy protection. Tribune Co., the parent company of the Chicago Tribune, Los Angeles Times and other newspapers, filed for Chapter 11 in December. The Sun-Times Media Group, which filed in a Delaware court, said it will continue to operate its print and online properties. The company listed $479 million in assets and $801 million in debt. The largest unsecured creditors are newsprint vendors. Three are owed more than $1 million each. The Sun-Times, unlike Tribune and some U.S. newspaper publishers, is not facing an overwhelming debt load.

Minneapolis Star Tribune Withholds Select Print Content From Web

In an effort to protect its print franchise, the Star Tribune in Minneapolis has begun withholding certain content from its Web site. In a note to readers published on March 28, editor Nancy Barnes explains that the Star Tribune had great success breaking news online and building up its audience. Indeed, the Star Tribune regularly ranks as one of the top 30 newspaper Web sites. In February, the paper's online home reported a 16% increase in unique users to 2.4 million year over year, according to Nielsen Online. The site also has a high average time spent per person, at a little more than 30 minutes in February, Nielsen reported. But Barnes wrote to readers that she has increasingly questioned the notion of free online content: "I also believe that we as an industry, have to drive more value into our printed papers so long as we continue to deliver more news that way."

Financial Sector Rescue Plan Drives the Narrative

With Treasury Secretary Tim Geithner unveiling a financial sector rescue package and calling for stricter regulation, the economic crisis was once again overwhelmingly the top story last week. It filled 41% of the newshole from March 23-29 as measured by the Pew Research Center's Project in Excellence. While that represented a drop from the previous week's coverage (53%), it is in line with the overall level of attention to the crisis (43%) in the two months since Barack Obama was inaugurated. The No. 2 story last week, concerns over Mexican drug smuggling, was about one-seventh as big as the economy.