October 2009

Newspaper Circulation Falls 10%

Newspaper sales moved sharply lower this year, falling about 10 percent in the six months ended Sept. 30 compared with the same period last year, according to figures released on Monday by the Audit Bureau of Circulations. Circulation has been sliding since the early 1990s, but in the last few years, the pace of the decline has accelerated sharply. In the same six-month period a year ago, circulation fell at roughly half the rate. The decline has been attributed to the continued migration of readers to the Web, the deep recession, newspapers intentionally shedding unprofitable circulation and, in some cases, waning reader interest as budget cuts reduce the content of the papers. Among the nation's largest newspapers, the biggest decline was reported by The San Francisco Chronicle, whose weekday circulation, about 252,000, was down 25.8 percent. The Star-Ledger of Newark and The Dallas Morning News each fell more than 22 percent on weekdays, and about 19 percent on Sundays. Over all, the audit bureau said that of the hundreds of newspapers whose reports it had so far, weekday circulation was down 10.6 percent, and Sunday was down 7.5 percent. In the same period a year ago, both declines were under 5 percent, and even that was a marked acceleration from the previous years.

Carrots and Sticks: Obama's split media strategy

The same president who aggressively harnesses the power of the press to promote his agenda has taken to lacing his comments with criticisms of the media, with no bigger target than the gabby culture of cable television. President Barack Obama's critique is biting: The media prefer conflict over cooperation, encourage bad behavior and weaken the ability of leaders to help the nation. The White House's attempt to discredit Fox News as an arm of the Republican Party may have been getting the headlines, but it is only one recent window into Obama's already complex and crafty relationship with those who cover him. All of Obama's frustration comes as he not only welcomes the ratings-mad media's constant demand for his presence, but also aggressively seeks maximum exposure to serve his own agenda.

Microsoft, Google and the Bear

Major cellphone handset manufacturers are excited that the open source nature of Google's operating system, Anrdoid, will help them cut costs by drawing in a wider range of programming talent. They also appreciate how easy it is to customize Android to make handsets that are different from others in the market using the same software. But Robert J. Bach, president of Microsoft's entertainment and devices division, says, "Every Google phone works differently, and you have fragmentation." And indeed, that is a common worry among developers, who don't want their applications to be incompatible with certain phones that have unusual screen sizes or features. But then again, Windows Mobile, which has been around for nearly 10 years, already has that same problem, and one of Microsoft's chief goals in upcoming versions is to rein in the variations between Windows Mobile handsets. But even if Windows Mobile has flaws, Bach is right to wonder about Google's motives. Like PC makers, smartphone manufacturers are falling into two camps. Some—like Apple, R.I.M. and Palm—will write their own operating systems. Others—like Samsung, H.T.C. and Motorola—will get smartphone operating systems from other companies. Before taking over as chief executive of Google, Eric Schmidt battled Microsoft at Novel and Sun, and he has long put a high priority on making sure Google is never vulnerable to excess power in Redmond. In that light, Youssef H. Squali, an analyst with Jefferies, wrote recently that Google will be satisfied if Android simply prevents any company from having too much control over smartphones. "We believe Android is an insurance policy against any potential collusion from carriers, manufacturers and competitors to either block or downgrade Google services," he wrote. "Google is hoping to further fragment the OS market to avoid any concentration of power in the hands of one or two competitors." In other words, Android doesn't have to beat the iPhone. It just has to be better than Windows Mobile.

Verizon mobile growth beats but FiOS TV disappoints

Verizon's 3rd-quarter profits were $2.89 billion on revenues that were up 10.2% to $27.27 billion. Wireless subscriber gains offset slower-than-anticipated growth in its FiOS television service. Verizon Wireless added a net 1.2 million mobile customers, but is still losing market share to AT&T. Wireless brought in just under 58 percent of Verizon's total revenue for the quarter. The company, which depends on mobile, broadband and TV for growth, also appeared to lose customers to cable rivals -- Verizon reported 191,000 FiOS TV customer additions in the quarter.

Former FCC Chairman Powell to Join AOL Board

Federal Communications Commission Chairman Michael Powell and investment banker William Hambrecht are joining the board of America Online as it spins off from Time Warner. AOL has been struggling as advertising revenue has declined and as subscriptions to its dial-up Internet service have dwindled. The nine directors named Monday include current AOL Chief Executive Tim Armstrong, who will be chairman, Frederic Reynolds, the recently retired chief financial officer of CBS, Richard Dalzell, a former Amazon executive, Karen Dykstra, a partner at Plainfield Asset Management; Patricia Mitchell, president and CEO of the Paley Center for Media, a nonprofit cultural institution; management consultant James Stengel; and consultant James Wiatt, a former CEO of the William Morris Agency.

Electronic medical records not seen as a cure-all

In a health-care debate characterized by partisan bickering, most lawmakers agree on one thing: American medicine needs to go digital. But bipartisan support has obscured questions about the effectiveness of health information technology products, critics say. Interviews with more than two dozen doctors, academics, patients and computer programmers suggest that computer systems can increase errors, add hours to doctors' workloads and compromise patient care. Health IT's effectiveness is unclear.

FCC Announces Membership of the Communications Security, Reliability, and Interoperability Council

Federal Communications Commission Chairman Julius Genachowski has appointed the members of the Communications Security, Reliability, and Interoperability Council. William Smith of AT&T and Chris Fischer of the Association of Public Safety Communications Officials, International will co-chair the council that will provide recommendations to the Commission regarding best practices and actions the Commission can take to ensure optimal security, reliability, and interoperability of communications systems, including telecommunications, media and public safety communications systems.

COMMUNICATIONS SECURITY, RELIABILITY & INTEROPERABILITY COUNCIL
MEMBERS

  • Jeffery Goldthorp, Designated Federal Officer
  • Jean Ann Collins, Deputy Designated Federal Officer

Co-Chairs:
William Smith, AT&T, Inc.
Chris Fischer, Association of Public Safety Communications Officials, International

Members:

  • Tony Asion, El Pueblo, Inc.
  • Robert Azzi, Sprint Nextel
  • Robert G. Bailey, Jr., Harris County (MS) Emergency Communications Commission
  • James Dennis Baucom, National Association of Telecommunications Officers and Advisors
  • Becky Berger, State of Montana 911 Program
  • Scott K. Bergmann, CTIA - The Wireless Association®
  • Charles Brennan, Commonwealth of Pennsylvania Office of Public Safety Radio Services
  • Paul V. Brenner, Emmis Communications
  • Glenn Britt, Time Warner Cable
  • Marcia Brooks, Carl and Ruth Shapiro Family National Center for Accessible Media
  • John J. Brown, International Association of Fire Chiefs
  • William K. Brownlow, National Public Safety Telecommunications Council
  • Ingrid Caples, U.S. Department of Health and Human Services
  • Leonard Charles, Morgan Murphy Media, Midwest
  • Lynn Claudy, National Association of Broadcasters
  • Turner Clayton, Jr., Seminole County, FL, Branch of the NAACP
  • James Corry, Satellite Industry Association
  • Preston A. Davis, ABC Television Network
  • Doug Davis, COMPTEL
  • Garrick DeClay, Bureau of Indian Affairs
  • Craig W. Donaldson, Intrado
  • Dr. Adam T. Drobot, Telcordia
  • Pat Esser, Cox Communications
  • Chris Essid, Office of Emergency Communications, U.S. Department of Homeland Security
  • Laurie Flaherty, U.S. Department of Transportation
  • Dr. Brian Fontes, National Emergency Number Association
  • Robert Gabrielli, DIRECTV, Inc.
  • Lise Hamlin, Hearing Loss Association of America
  • Maureen F. Harris, National Association of Regulatory Utility Commissioners
  • Dennis Huber, Century Link
  • John Lawson, ION Media Networks
  • Amador Lucero, Qwest
  • Richard J. Lynch, Verizon Communications
  • James Madon, National Communications System, U.S. Department of Homeland Security
  • Stephen R. Malphrus, Federal Reserve Board of Governors
  • Kevin McGinnis, National Association of State EMS Officials
  • Kevin McGuire, National Telecommunications Cooperative Association
  • John M. Merklinger, City of Rochester/County of Monroe, Emergency Communications Dept.
  • Susan Miller, Alliance for Telecommunications Industry Solutions
  • Brian Moir, E-Commerce, Telecommunications Users Group
  • John Morris, Center for Democracy & Technology
  • Robert M. Moseley, National Fraternal Order of Police
  • Damon Penn, Federal Emergency Management Agency
  • Art Prest, Rural Telecommunications Group
  • Janice Quintana, District of Columbia Office of Unified Communications
  • Neville Ray, T-Mobile USA, Inc.
  • Daphne Rhoe, California 911 Emergency Communications Office
  • C. Patrick Roberts, Florida Association of Broadcasters
  • Robert J. Ross, CBS Broadcasting, Inc.
  • John D. Schanz, Comcast Cable
  • Carlos Solari, Telecommunications Industry Association
  • Lonna Thompson, Association of Public Television Stations
  • Scott Tollefsen, USA Mobility
  • Maurice Tosé, TeleCommunications Systems, Inc.
  • Alan Tschirner, National Cable Television Cooperative, Inc.

How the U.S. Census Is Reading Your Mind

The upcoming census count will be accompanied by one of the broadest marketing efforts imaginable -- trying not just to reach every person living in the United States with a message, but getting all of them to act on that message. "Typically when you're marketing a product ... you market it to the people who are most likely to buy that product. In this situation, we have to market to everyone, whether they are likely to participate or not," said Vita Harris, chief strategy officer at DraftFCB, who is handling the general-market leg of the census effort. To go that broad, the $300 million-plus effort has to incorporate reams of data, tapping Census 2000 information, lifestyle and media habit data banks and cultural and ethnic studies. But this year, the U.S. Census Bureau and its ad agency also decided to add an "attitudinal" layer. Although they already had the geographical and demographic data collected from previous polls, what they didn't know were the whys: Why was someone more or less likely to answer the census? And what could marketing do to improve the odds that they would? So DraftFCB interviewed more than 4,000 people by phone, mobile phone and in-person during the summer of 2008, posing questions in 30 different areas, ranging from how much interviewees knew about the census to what kind of messages would make them participate. It took two months to analyze the data. And what came out was a statistical set of five different mind-sets that are most prevalent about the census.

How to give the FCC a piece of your mind, online

The Federal Communications Commission (FCC) took a big step towards becoming more accessible on Friday, with an impressive upgrade of its Electronic Comment Filing System. The new EFCS offers far more searching capability, formatting flexibility, and bookmarking power than ever before. The system offers text searching and RSS conversion, and it makes it easier to comment on proceedings. EFCS 2.0 still doesn't go quite as far as we recommended last year, but it's another example of how the Commission is turning its website into a true public resource.

Sooner or Later, All of You Will Pay

With some business models already tumbling and others generating cause for concern, many parts of the content creation and delivery industry are accelerating plans to charge for what once was free. News Corp's Chase Carey said the time has come to make the shift, including for a certain popular online video site in which his company is a chief partner. "I think a free model is a very difficult way to capture the value of our content," Carey said. "I think what we need to do is deliver that content to consumers in a way where they will appreciate the value. Hulu concurs with that; it needs to evolve to have a meaningful subscription model as part of its business."