October 2009

There's nothing neutral in the battle between AT&T and Google over the future of the Internet. Google, the powerhouse of Silicon Valley, and AT&T, champion for the old-line phone industry, are marshaling political allies, lobbyists and—in AT&T's case—labor unions for a fight over proposed "network neutrality" rules that could affect tens of billions of dollars in investments needed to upgrade the U.S. broadband network, which lags in speed and affordability compared with some countries. On Thursday, the Federal Communications Commission made good on its promise to push new rules that would require Internet providers such as AT&T to deliver Web traffic without delay. Broadly, that means cable and phone companies couldn't block or slow access to services from Google, Netflix or others that are a drain on their networks or could compete with their businesses. But as the details of the new rules are hammered out in coming months, AT&T and Google are ramping up efforts to ensure the FCC doesn't impose rules that could hurt their profits or expansion plans. Plenty of lobbyists have made their concerns about the FCC's proposal known to their political allies over the past few weeks. But AT&T lobbyists were particularly active, swarming Capitol Hill and state houses, prompting a bipartisan mix of governors, congressmen and senators to send worried letters to the FCC.

Not so long ago, we all lived in a world in which we decided where to meet friends before leaving the house and we hiked to the nearest payphone if we got a flat tire. Then we got cellphones. Well, not everyone. For a hardy few that choose to ignore cellphones, life is a pocketful of quarters, missed connections and a smug satisfaction of marching to a different ring tone. For many people, cellphones have become indispensable appendages that make calls, deliver e-mail messages, locate restaurants and identify the song on the radio. After 20 years, 85 percent of adult Americans have cellphones, according to the Pew Internet and American Life Project. According to the Federal Communications Commission, cellphones caught on faster than cable TV and personal computers although, by some accounts, broadband Internet service was adopted faster. Those who still do not have them, according to Pew, tend to be older or less educated Americans or those unable to afford phones. "These are people who have a bunch of other struggles in their lives and the expense of maintaining technology and mastering it is also pretty significant for them," said Lee Rainie, director of the Pew project. But there is also a smaller subset of adults who resist cellphones simply because they do not want them. They resent the way that ring tones, tiny keyboards and screens disrupt face-to-face conversation. They savor their moments alone and prize the fact that no one knows how to reach them.

A new study offers reassurance for studio heads worried about runaway budgets. Films boasting production pricetags of more than $100 million actually generate higher returns than mid-range pics, averaging $247 million in net profits per release, according to the study by SNL Kagan, which analyzed all films released on 1,000 or more screens from 2004-08. Pics that cost $90 million-$100 million earned an average of $118 million. When it comes to specific genres, animated films performed most strongly, averaging $221 million in net profits per toon. Sci-fi and fantasy films follow at $125 million. The least profitable of the 10 genres listed in the study were horror pics, with an average domestic gross of $33 million and an average net profit of $17.9 million, and thrillers, with an average domestic gross of $40 million and an average net profit of $13.7 million. The study, "Economics of Motion Pictures," analyzed 764 films. Net profits were based on a typical distribution fee scenario at major studios. SNL Kagan tallied 83 films with budgets of more than $100 million during the four-year period. (The study did not factor in marketing expenditures, however.)

The Census Bureau is well-known for asking questions. Now it will answer them, too. The agency's new 2010census.gov website went up this week and, when it is officially launched Monday will give people a chance to do the questioning. The heavily interactive site, part of the government's $326 million marketing push to promote the 2010 Census, is more whimsical than most government online portals. It's colorful. It has sound, videos, blogs and even a trivia quiz. A blog by Census Director Robert Groves welcomes comments. The site will feature three top questions of the day, gleaned from discussions on the site and chatter on the agency's Twitter and YouTube accounts and Facebook page. The website, which links to the Census Bureau's main site, aims to tap the nation's diversity and segments of the population that traditionally are difficult to count accurately, including the young and single.