March 2009

European Newspapers Find Creative Ways to Thrive in the Internet Age

As the death toll in the American newspaper industry mounted this month, the German publisher Axel Springer, which owns Bild, the biggest newspaper in Europe, reported the highest profit in its 62-year history. Mathias Döpfner, Springer's chief executive, said he was looking for opportunities to expand, scouting around for acquisitions in Germany, Eastern Europe and maybe — in what would be a first for the company — the United States. "I don't believe in the end of journalism," Mr. Döpfner said. "On the contrary, I think the crisis can have a positive impact. The number of players will diminish, but the strong players may be stabler after the crisis." In much of the world, American newspapers are seen as journalism's gold standard. But the American newspaper's business model appears to be broken. While much of Europe faces many of the same problems, a few newspaper publishers have found innovative ways not only to survive, but thrive in the face of the recession and the Internet.

Some Online Shows Could Go Subscription-Only

In the last couple of years, the television industry has made a big push onto the Web, giving viewers hope that they might one day reach nirvana: every show ever made, available online for immediate free viewing. But many in the industry are now questioning whether free is a sustainable model. And some are trying to make sure people have a reason to keep paying hefty cable bills.

Video Game Makers Challenged by the Next Wave of Media

Booming video game sales are masking a serious concern for game makers: their economic model is in peril. Game companies are taking in more money, but, in many cases, not profits. The market has expanded greatly, with more women and older gamers playing. People are playing on consoles, computers, cellphones and hand-held gadgets. But a proliferation of free or low-cost games on the Web and for phones limits how much the major game publishers can raise prices. It also diverts attention from the game consoles, like the PlayStation 3 from Sony and the Xbox 360 from Microsoft.

Efforts to limit cellphone use while driving grow

More than 250 bills prohibiting or restricting cellphone use while driving are pending in 42 state legislatures despite disagreement over the risks cellphones pose and the effectiveness of enforcement. The number is up from about 120 bills in just 18 states 10 months ago, according to an analysis by the Insurance Institute for Highway Safety, a safety research group funded by insurers. Four states — Georgia, Idaho, North Carolina and Texas — are considering banning all types of cellphone usage behind the wheel, including hands-free devices. Watching that legislation are wireless carriers and automakers, which have invested millions of dollars in hands-free technology built into vehicles. At least one insurer is also taking action: Nationwide will soon offer discounts to parents who buy technology that disables their teens' phones while their vehicles are in motion. Six states plus the District of Columbia currently ban handheld cellphone use while driving. Legislators in 23 states have introduced bills to allow only hands-free phoning.

Job seekers turning to online social networks

Websites such as LinkedIn help employers and job candidates find one another through common bonds.

Serious Threats to Sirius Radio

Since its inception, satellite radio bragged that unique content represented a key competitive weapon in the crowded digital media market. Just last year, former rivals Sirius and XM spent a combined $446.6 million on programming and content alone. Sirius XM pays $100 million a year to shock jock Howard Stern and his team, for example, and $60 million annually to Major League Baseball. But as Web radio and mobile radio applications flourish, they are beginning to erode the value of Sirius's pricey content deals.

Another Larry for NTIA (Updated)

On Friday, President Barack Obama announced his intent to nominate Lawrence E. Strickling to be Assistant Secretary for Communications and Information, Department of Commerce. As such, he would head the National Telecommunications and Information Administration (NTIA) that serves as the executive branch agency principally responsible for advising the President on telecommunications and information policies.

In this role NTIA frequently works with other Executive Branch agencies to develop and present the Administration's position on these issues. Since its creation in 1978, NTIA has been at the cutting edge of critical issues. In addition to representing the Executive Branch in both domestic and international telecommunications and information policy activities, NTIA also manages the Federal use of spectrum; performs cutting-edge telecommunications research and engineering, including resolving technical telecommunications issues for the Federal government and private sector; and administers infrastructure and public telecommunications facilities grants.

Strickling is a technology policy expert with more than two decades of experience in the public and private sectors. As Policy Coordinator for Obama for America, Strickling oversaw two dozen domestic policy committees and was responsible for technology and telecommunications issues. Prior to joining the campaign, Strickling was Chief Regulatory and Chief Compliance Officer at Broadwing Communications for three years. His private sector experience also includes serving in senior roles at Allegiance Telecom and CoreExpress, Inc. and as a member of the Board of Directors of Network Plus. In government, Strickling served at the Federal Communications Commission as Chief of the Common Carrier Bureau from 1998 to 2000. Prior to that, Strickling was Associate General Counsel and Chief of the FCC's Competition Division. During his tenure at the FCC, Strickling developed and enforced rules to foster competition and protect consumers in the telecommunications marketplace. Prior to joining the FCC, Strickling was Vice President, Public Policy at Ameritech. Before Ameritech, he was a litigation partner at the Chicago law firm of Kirkland & Ellis. Strickling earned his J.D. from Harvard Law School and is a Phi Beta Kappa graduate of the University of Maryland with a degree in economics. He serves on the Board of Visitors at the University of Maryland School of Public Policy, as Chairman of the Board of Trustees at the University of Chicago's Court Theatre, and on the Board of Directors of Music of the Baroque in Chicago.

Today's Quote 03.28.09

"He's made nerdy sexy."
-- White House chief of staff Rahm Emanuel on OMB chief Peter Orszag

Peter Orszag: Making nerdy sexy

Peter Orszag is the youngest member of President Obama's team holding cabinet rank, a 40-year-old with what colleagues call a graybeard's knowledge of how the government spends money. But he has little interest in merely keeping fiscal house. His animating passions are far grander — health care, energy policy and Social Security overhaul, for starters. Everything about the way he has interpreted his new job speaks of ambition: the policy heavyweights he has hired for the Office of Management and Budget, his efforts to persuade cabinet secretaries to let him help shape their plans, a public profile as high as that of any budget director since David A. Stockman's polarizing tenure under Ronald Reagan a quarter-century ago. But though colleagues call Mr. Orszag something of a presidential favorite, his relative power among the gigantic personalities on the Obama economic team is still uncertain. Although the budget touches everything, he has no particular subject-area portfolio, and on the topics that most draw his interest, the administration is already well stocked, maybe even overstocked, with expertise and opinions.

Obama Brings Flush Times for Black News Media

For the nation's black magazines, newspapers, and television and radio stations, the arrival of the Obama administration has ushered in an era of unprecedented access to the White House. President Obama gave Black Enterprise magazine his first print interview and gave a black talk show host one of his first radio interviews. This month, he invited 50 black newspaper publishers to meet with him at the White House. And at his news conference Tuesday, he skipped over several prominent newspapers and newsmagazines to call on Kevin Chappell, a senior editor at Ebony magazine. It was the first time an Ebony reporter had been invited to question a president at a prime-time news conference. President Obama is cultivating a new cast of media insiders in the nation's capital, the correspondents and editors of the black media outlets that are devoting more staff members and resources to covering the first African-American president.