December 2009

Proposed FCC Rules Will Put Glenn Beck on the Gold Standard

Glenn Beck's gold problem may soon be moot. The Federal Communications Commission is considering rule amendments that will set a higher standard for disclosure of paid endorsements on broadcast and cable television. Beck is a poster child for the proposed amendments. The Fox News commentator bullishly endorses gold while collecting payola from Goldline International, a precious metals vendor that specializes in gold coins. Not only does he hawk gold coins on his website (in breach of Fox's standards), he paints a doomsday scenario on his television show, predicting the collapse of the U.S. dollar. What better way to drive fans to stockpile gold? In fact, he claims the price of gold rose $50 during one of his segments. Advertising within a news or current events program is a conflict of interest that erodes objective reporting and principled commentary. Short of legislating a ban, the remedy is full disclosure. Once informed, it is up to the viewer to determine the credibility of the message and the messenger. Because his show airs on cable television, Beck doesn't have to disclose his ties to Goldline. Even if he were on a broadcast network where disclosure is required, the notice would likely be buried in the credits where it would go unnoticed -- which is why the FCC, in response to petitions from consumer groups, initiated a rulemaking proceeding in June, 2008.

Social Media Is the New Mass Media

[Commentary] Social media and interactive consumers will take the lead in transforming the multi-screen media landscape in 2010. Consumers of all ages who have made it a national pastime to text, Tweet and share their lives on Facebook have become the most powerful force in digital media today. Collectively, they are the new mass media -- one interactive consumer at a time. Led by Facebook and MySpace, online video has become central to the Web experience -- particularly on mobile devices -- in ways that will have far-reaching implications for television and film. It all comes down to one fundamental value: individual consumer relevance. It will become the mantra for anyone who wants to thrive in the digital media world and the driving force behind many media deals (from mega mergers and cherry-picking start-ups, to launching new business ventures, such as TV Everywhere and e-reading services) over the next 18 months.

America's love affair with television continues

America's love affair with the TV continues. In the third quarter of 2009, cable, satellite and other video service providers added 442,000 subscribers, even amid a stubborn housing market slump. New video customers often come with home sales. The statistic, according to a report released last week by research firm Media Biz, follows a recent study that showed television viewing was at an all-time-high for the 2008-09 TV season. According to Nielsen, Americans spent an average of four hours and 49 minutes in front of the box, up about four minutes from the previous year. An entire household averaged eight hours and 21 minutes, up a few minutes as well. The biggest winners in the third quarter included Dish Network, which added subscribers at a faster clip than competitor cable and telecom video service providers, according to Media Biz. Comcast, the nation's largest cable and Internet service provider, saw its number remain basically stable as losses on its regular cable service were made up by about 500,000 new digital cable subscribers.

Viruses That Leave Victims Red in the Facebook

It used to be that computer viruses attacked only your hard drive. Now they attack your dignity. Malicious programs are rampaging through Web sites like Facebook and Twitter, spreading themselves by taking over people's accounts and sending out messages to all of their friends and followers. The result is that people are inadvertently telling their co-workers and loved ones how to raise their I.Q.'s or make money instantly, or urging them to watch an awesome new video in which they star. The humiliation sown by these attacks is just collateral damage. In most cases, the perpetrators are hoping to profit from the referral fees they get for directing people to sketchy e-commerce sites. In other words, even the crooks are on social networks now — because millions of tightly connected potential victims are just waiting for them there.

New Google Phone would challenge US carrier model

The long-rumored Google Phone appears to be coming, but with no carrier partner in the US. This is a very different strategy than most other phone makers employ, and may force the carriers to live up to their word when it comes to welcoming any and all devices to their networks.

How will the carriers react if there are suddenly large numbers of Google Phone users sucking up their network resources? (On a paid subscription, of course.) It won't be like AT&T, which dug its own grave with the data-heavy iPhone—if cell carriers begin to see serious Google Phone usage, they may be a little more willing to push for higher data prices to make up for the phone that isn't doing its part to bring in more customers on an exclusive contract. Then again, if they choose to go that route and charge more thanks to their own "open to all devices" stance, the Federal Communications Commission may not be pleased—the organization has been leaning towards heavier regulation of the mobile industry to make it more competitive and "fair" to customers.

Wireless Industry Complaints Closely Related to Competition, Say Panelists

What's the greatest source of dissatisfaction in the mobile wireless industry? Ironically, according to industry experts and government representatives attending a conference on customer complaints, it is competition itself. The size and pervasiveness of the mobile device market has exploded. In the space of just 17 years, the number of active mobile subscribers in the United States has exploded from 11 million to 276 million. An increased number of complaints have accompanied this market growth. Why does market growth and competition lead to complaints? Several factors may be at work, panelists said. As mobile hardware becomes more and more varied and creation of applications continues, consumers' expectations increase, leading to complaints. Speaking about the success of Apple's iPhone, Lois C. Greisman of the Bureau of Consumer Protection at the Federal Trade Commission commented that, "if [the iPhone] hadn't become so successful we wouldn't have this many complaints. We sort of get a leapfrogging effect with the competition of companies like Verizon."

Can TiVo Reinvent Itself?

TiVo president and CEO Tom Rogers says TiVo is a "television behavioral company at heart." Rogers is now scrambling to convince cable operators — whose own DVRs have contributed to the decline in people willing to pay for TiVo service — that he's able to offer much more than just the best DVR on the planet. Instead, his pitch is this: TiVo, with its highly intuitive and user-friendly software, is better-positioned than anyone else to help users sift through and manage "infinite choice" in the same way Google has made the Web itself searchable.

Web accessibility no longer an afterthought

Web accessibility has come a long way, but it is still a challenge, however, for the Web community to remember that as it pushes forward with exciting new technologies like HTML5 that could reinvent the Internet experience, it must keep in mind the needs of those who can't type 60 words per minute, operate a mouse like a scalpel, or see the unobtrusive pop-up windows that point to the next destination on the page. There are no explicit laws that companies design Web sites to be accessible to the disabled, but many disability experts and Web companies believe that portions of the U.S. Americans with Disabilities Act of 1990 do apply to the Internet, despite having been written several years before the Web emerged as a mainstream phenomenon. And in order to do business with the U.S. government, companies must comply with Section 508 of the Rehabilitation Act, which insists that electronic and information technology products sold to government agencies be designed with disabled employees in mind, and that government services produced by contractors consider disabled citizens in equal measure. But these are businesses, after all: Yahoo estimates that there's about $220 billion in discretionary spending available to disabled people. Making a Web site accessible to as many people as possible isn't just the right thing to do, it also makes business sense. Also, with a rapidly aging population in many parts of the world--notably the U.S.--accessibility requirements will become useful for today's crop of baby boomers as they grow older. People over 65 are increasing their use of the Internet, according to Nielsen, and features designed for accessibility could aid those who aren't technically disabled but wouldn't mind a little extra help.

For first time, quota for skilled worker visas not met

Just about every year, Silicon Valley appeals to Washington for immigration reform. High-tech firms say they need to increase the number of visas for highly skilled workers to bring much needed engineering and business talent. They also ask for reforms to the nation's green card program to keep the talent that is already here. This year is no different, except that this year for the first time high-tech and other firms did not use the allotted 65,000 H-1B visas set aside for non-immigrant skilled workers. In fiscal year 2009 ending Sept. 30, 2009, 46,000 H-1B petitions had been filed, leaving about approximately 19,000 H-1B visas unused at the beginning of FY 2010. Even so, two weeks ago, the CEOs of Microsoft, Intel, Cisco and dozens of other high-tech firms again appealed to the White House for those reforms in a letter on improving the jobs picture. Sen. Charles Schumer (D-NY), said last summer he plans to introduce a bill to reform the H-1B visa program and green card policies.

EU Signals Comfort With Oracle's Sun Bid

European Union antitrust regulators reacted positively to a proposal Monday by Oracle Corp. to safeguard the MySQL database, putting Oracle's bid for Sun Microsystems Inc. on a path to be cleared by the bloc. European approval is the last major hurdle for the $7.4 billion purchase. The EU has expressed concerns that Oracle could squelch MySQL, which as an open-source product can be downloaded for free, to protect its database franchise. Oracle is the world's largest database vendor; Sun acquired MySQL last year. In a statement Monday, Oracle said it would "continue to enhance" MySQL and release future versions under an open-source license. It also said it would make available certain programming details needed for others to work with MySQL, and would hold off on any copyright claims against third parties who use those details. The assurances fall well short of the demands of the deal's critics, some of whom had called for Oracle to spin off MySQL entirely -- something the company had adamantly refused to do.