July 2009

'Nightline' Is Thriving in Late Night

While most of the attention, starting in June, has focused on the fight between the new host of NBC's "Tonight Show," Conan O'Brien, and his CBS rival, David Letterman, ABC's venerable news program "Nightline" has managed mostly to fly under the radar — in an upward trajectory. Viewership for the news show is up 14 percent in the last six weeks compared with the same week a year ago, and, in the most recent two weeks, the program has frequently grabbed the most viewers of the three shows. "'Nightline' is a rare example of the broadcast networks' counterprogramming; it almost never happens outside of prime time," said Brad Adgate, senior vice president for research at Horizon Media.

Lab Watches Web Surfers to See Which Ads Work

It is relatively easy for Internet companies and their advertisers to measure precisely how often Web site visitors click on advertisements, and which kinds of ads draw the most clicks. But what about those who do not click, the many millions of others whose eyes merely flit across the screen? Disney and other companies say they believe that not nearly enough is known about them — what kinds of ads in which configurations are likeliest to draw them, and hold them? A good deal is at stake. Although the recession has slowed its growth, nearly $25 billion will be spent on Web advertising this year, eMarketer, an Internet research company, estimates — a mother lode that will grow to more than $37 billion by 2013.

Lawmakers Seek to Curb Drug Commercials

In the 1980s, Nancy Reagan told Americans to "Just Say No" to recreational drugs. Now a handful of legislators are just saying no to TV commercials for prescription drugs. The politicians are taking aim at the 60-second spots that have made viewers familiar with maladies like male urinary urgency and deficient eyelashes. Rep James Moran (D-VA) is sponsoring a House bill that would ban ads for prescription sexual aids like Viagra and Levitra from prime-time television, on decency grounds. Rep Henry Waxman (D-CA) has said he favors empowering the Food and Drug Administration to bar consumer advertisements for new drugs for an initial period after the FDA approves them — until there has been more real-world experience with the medications. Meanwhile, Rep Jerrold Nadler (D-NY) has introduced a bill called the Say No to Drug Ads Act. It would amend the federal tax code to prevent pharmaceutical companies from deducting the cost of direct-to-consumer drug advertisements as a business expense.

Health-Care Debate Is Tonic for Local TV

Local television stations, suffering from steep declines in ad spending, are getting a much-needed shot in the arm from lobbying groups trying to sway the national debate over health care. Altogether, groups on various sides of the debate have spent an average of about $1 million a day in recent weeks, analysts say. Some ads from conservative groups say Democrats want to bring Canadian-style, government-run health care to the US. Supporters of health-care overhaul, meanwhile, have resurrected "Harry and Louise," the fictional couple whose on-screen fretting about government involvement in their medical decisions helped sink the Clinton administration's effort to revamp the health-care system. This time, the couple are singing a different tune, calling for legislation to guarantee coverage for Americans with pre-existing medical conditions.

Apple joins forces with record labels

Apple is working with the four largest record labels to stimulate digital sales of albums by bundling a new interactive booklet, sleeve notes and other interactive features with music downloads, in a move it hopes will change buying trends on its online iTunes store. The talks come as Apple is separately racing to offer a portable, full-featured, tablet-sized computer in time for the Christmas shopping season, in what the entertainment industry hopes will be a new revolution. The device could be launched alongside the new content deals, including those aimed at stimulating sales of CD-length music.

Ireland's largest ISP to start 'throttling' illegal downloaders

As record companies across the world continue to fight a largely losing battle to protect their copyrights, they are looking to a voluntary agreement with Eircom, Ireland's largest Internet service provider (ISP), as a possible new model. Next month, Eircom will be rolling out the trial phase of the strategy promised in the agreement, testing a new "three strikes and you're out" approach to first delay, and then deny, Internet service to people who use filesharing networks to illegally download music. First-time offenders will get a warning on their bill; a second offense will see service "throttled," which means that download speeds will be reduced to a snail's pace, and a third offense will cause disconnection.

Senate Confirms FCC Nominees

On Friday, the Senate confirmed the nominations of Mignon L. Clyburn and Meredith Attwell Baker to serve as members of the Federal Communications Commission. Senate Commerce Committee Chairman Jay Rockefeller said, "I am incredibly pleased to see the President's nominees, Ms. Mignon L. Clyburn and Ms. Meredith Attwell Baker, confirmed by the United States Senate. As a seasoned state regulator, Ms. Clyburn brings with her a strong understanding of the telecommunications challenges rural Americans face everyday. With Ms. Baker, I look forward to an insider's perspective of someone who has toiled in the trenches at the NTIA. I challenge both of these devoted public servants to show us that the FCC can put consumers first. And I challenge both to show us that the American people can have access to first class communications, no matter who they are or where they live." The Senate also confirmed former-FCC Commissioner Jonathan Adelstein to head the Rural Utilities Service at the Department of Agriculture.

BIP/BTOP Frequently Asked Questions

Thirteen pages of questions and answers on 1) applying for broadband stimulus funds, 2) infrastructure issues, 3) public computers centers and sustainable adoption, 4) eligibility and matching, 5) the review and award process and 6) award terms and conditions. Perfect for the beach!

Antitrust Chief Hits Resistance in Crackdown

President Obama's top antitrust official and some senior Democratic lawmakers are preparing to rein in a host of major industries, including airline and railroad giants, moving so aggressively that they are finding some resistance from officials within the administration. The official, Christine A. Varney, the antitrust chief at the Justice Department, has begun examining complaints by the phone companies Verizon and AT&T that their rivals — major cable operators like Cablevision and Cox Communications — improperly prevent them from buying sports shows and other programs that the cable companies produce. Varney has also challenged agreements that the Federal Trade Commission and consumer groups say discourage pharmaceutical companies from marketing more generic drugs. And she is examining a settlement between Google and book publishers and authors to make more books available online. The more aggressive antitrust policy was described in interviews with officials at the White House, the Justice Department, other agencies and Congress. It is a major policy reversal from the Bush administration, which did not prosecute cases in which some dominant companies engaged in potentially anticompetitive behavior, often because those officials maintained such behavior was not harmful to consumers. Democrats have spent years trying to gain the support of businesses, and the policy changes under way may have long-term political implications for their party. Some companies would like to see more aggressive antitrust enforcement against their rivals, while others could be hurt by it.

Media moguls rethink Web advertising in downturn

The recession-fueled advertising downturn underlines the urgency of using the Web to glean data and target consumers directly, rather than blasting them with a barrage of TV-style ads, media executives say. As advertising dollars grow ever more scarce, companies have been forced to rethink how they reach consumers and have moved away from the traditional 30-second spot to the kinds of targeted, Internet-driven marketing campaigns that have been talked about for years.

Benton

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