January 10, 2011 (Radio, TV Vitriol)
Want to keep abreast with major developments in telecommunications but can't keep up with daily headlines. The Benton Foundation is now offering a quick (no, really, we mean it this time) recap of the week's top stories. For January 1-7, we review the stories coming out of the Consumer Electronics Show and look at the agendas of the 112th Congress and the Federal Communications Commission.
http://bit.ly/gscssH
BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, JANUARY 10, 2011
A discussion on Revisions to Americans with Disabilities Act leads this week's agenda http://bit.ly/hEdYoE
MEDIA & VIOLENCE
Arizona Shooting: Sheriff suggests radio, TV vitriol could have been factor
GOVERNMENT & COMMUNICATIONS
US worried by Tunisia riots, Internet freedoms
Twitter is subpoenaed in Wikileaks affair
1986 Privacy Law Is Outrun by the Web
RIM seeks two years to address security concerns
White House Embracing Technology Neutrality
Setting Standards: We Want to Hear From You
CYBERSECURITY/PRIVACY
A National Program Office for Enhancing Online Trust and Privacy
1986 Privacy Law Is Outrun by the Web
Military and government data breached 104 times in 2010
Cybersecurity, virtual border fence on Hill agenda
New national cybersecurity plan? Zeus trojan says bring it on
RIM seeks two years to address security concerns
INTERNET/BROADBAND
NTIA Requests FCC Broadband Data
Industry Says Net Rules Are a Work in Progress
Net Neutrality: Both Sides Are Wrong
Sec Locke Defends Broadband Stimulus Effort
Minnesota BTOP project poised for action in 2011
Hey Google: Let's Build A Digital Media Research Triangle In Louisiana
Treat Communities as Markets for Broadband
Advocates Bring USF Reform Message to FCC
WIRELESS/SPECTRUM
FCC Report Finds Number of Wireless Devices Skyrocketing
IPhone In-App Purchases Almost Equal To Download Revenue
FCC Extends Comment period for Wireless/Internet E911
RIM seeks two years to address security concerns
TAXES
Amazon won't go out of it's way to collect sales taxes
Tax-Exempt Ministries Avoid New Regulation
BROADCASTING/TELEVISION
Republicans Take Fresh Aim At Defunding Public Broadcasting
Gadgets for free TV arrive, but will buyers bite?
Don't fall for the HDTV marketing myths
Over $12B at Stake if NFL Lockout Prevents 2011 Season
A TV-Internet Marriage Awaits Blessings of All Parties
Apps Irk Cable Nets
OWNERSHIP
Sen. Merkley to FCC's Genachowski: Don't let Comcast-NBC Deal Affect NBA Programing
NATOA Praises Comcast Broadband Pledge
Edward Burns: Comcast/NBCU Good For Indies
Media Deals Up in '10, But Value Drops
CONTENT
The NFL's Content Blitz Will Now Cost ESPN $2 Billion Per Year
Why Some Free Shows On The Web Are So Heavily Pirated
TiVo’s Tom Rogers Sizes Up Cable And Competition
Could Ye Olde DVD Actually Help Digital Distribution?
Moving your DVD collection to the cloud?
POLICYMAKERS
Chairman Upton Announces Republican Membership on Commerce Subcommittees for 112th Congress
K Street to Vegas
Oversight head to release business requests for regulation rollbacks
GSA's Godwin moves to USA.gov
Ellen Weiss' first comments on her NPR resignation
See also: A Sacrifice to Appease NPR’s Gods
HEALTH
HIT Taskforce Guidance on Health IT
Oklahoma, Kentucky issue first EHR incentive payments
MORE ONLINE
Facebook? Google is the next Google
Facebook Versus Google Circa 2004
Dynamic pricing: Internet retailers are treating us like foreign tourists in Egypt
Gartner raises IT spending forecast for 2011
FCC Schedules Auction 92
Library of Congress Gets a Mile of Music
MEDIA & VIOLENCE
MEDIA VITRIOL AND VIOLENCE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In an emotional press conference, Pima County (AZ) Sheriff Clarence Dupnik suggested to a national audience that radio and TV vitriol could have been a factor in the killing spree in Arizona Saturday that left a congresswoman gravely injured, a federal judge and five others dead, and more than a dozen more wounded. He spoke of "all the vitriol we hear inflaming the American public by people who make a living off of doing that. That may be free speech," Sheriff Dupnik said, but that vitriol and political rhetoric "is not without consequence." Rep. Gabrielle Giffords (D-AZ) had her office windows broken after her vote in March in favor of healthcare reform. At press time doctors were optimistic she would survive, despite being shot in the head at close range. Sheriff Dupnik, who identified himself as a friend of the murdered judge as well as Giffords', said unbalanced people respond to such vitriol, and that Arizona had become a mecca for prejudice and bigotry. When asked by a reporter how they know that was a cause, he conceded: "You don't."
benton.org/node/47679 | Broadcasting&Cable | NPR
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GOVERNMENT & COMMUNICATIONS
TUNISIA AND THE INTERNET
[SOURCE: Reuters, AUTHOR: Andrew Quinn]
The United States called in Tunisia's ambassador in Washington because of its handling of anti-government riots and possible interference with the Internet, including Facebook accounts. A State Department official said the department was concerned about rising unrest in Tunisia and Algeria, both of which have seen rioting in recent weeks.
benton.org/node/47677 | Reuters
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TWITTER SUBPOENAED
[SOURCE: The Christian Science Monitor, AUTHOR: Judy Nichols Douglass]
The latest development in the WikiLeaks saga involves yet another 21st-century online phenomenon – Twitter. The Department of Justice has subpoenaed Twitter for information pertaining to certain persons and accounts linked to WikiLeaks. A Dec. 14 order by Magistrate Judge Theresa Buchanan directed Twitter to give federal prosecutors in Virginia account information for WikiLeaks founder Julian Assange and Bradley Manning, a U.S. Army intelligence analyst who is suspected of giving WikiLeaks classified information. The order, posted Saturday on WikiLeaks' website, seeks contact information, subscriber names, connection and payment records, correspondence and records of user activity for any Twitter accounts linked to the two men since November 2009. The order demands the same information for Birgitta Jonsdottir, an Icelandic parliament member and onetime WikiLeaks associate; Rop Gonggrijp, a Dutch computer hacker; and Jacob Appelbaum, a U.S. computer programmer. The information is "relevant and material to an ongoing criminal investigation," according to the order. The order provides the first public details of the investigation vowed by Attorney General Eric Holder in November after WikiLeaks' most recent disclosure posted State Department cables with sensitive and, in some cases, embarrassing information about U.S. government relations with officials of other nations.
benton.org/node/47696 | Christian Science Monitor, The | USAToday
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CYBERSECURITY/PRIVACY
ENHANCING ONLINE TRUST AND PRIVACY
[SOURCE: The White House, AUTHOR: Howard Schmidt]
The Commerce Department will host a National Program Office (NPO) in support of the National Strategy for Trusted Identities in Cyberspace (NSTIC). As I've written previously, the NSTIC fulfills one of the action items in the Cyberspace Policy Review and is a key building block in our efforts to secure cyberspace. We have a major problem in cyberspace, because when we are online we do not really know if people, businesses, and organizations are who they say they are. Moreover, we now have to remember dozens of user names and passwords. This multiplicity is so inconvenient that most people re-use their passwords for different accounts, which gives the criminal who compromises their password the “keys to the kingdom.” We need a cyber world that enables people to validate their identities securely, but with minimal disclosure of information when they’re doing sensitive transactions (like banking) - and lets them stay anonymous when they’re not (like blogging). We need a vibrant marketplace that provides people with choices among multiple accredited identity providers both private and public and choices among multiple credentials. For example, imagine that a student could get a digital credential from her cell phone provider and another one from her university and use either of them to log-in to her bank, her e-mail, her social networking site, and so on, all without having to remember dozens of passwords. Such a marketplace will ensure that no single credential or centralized database can emerge. In this world, we can cut losses from fraud and identity theft, as well as cut costs for businesses and government by reducing inefficient identification procedures. We can put in-person services online without security trade-offs, thereby providing greater convenience for everyone. This is the world envisioned in the NSTIC. We call it the Identity Ecosystem.
benton.org/node/47656 | White House, The | The Hill | nextgov | C-Net|News.com
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PRIVACY LAW UPDATE
[SOURCE: New York Times, AUTHOR: Miguel Helft, Claire Cain Miller]
As Internet services -- allowing people to store e-mails, photographs, spreadsheets and an untold number of private documents -- have surged in popularity, they have become tempting targets for law enforcement. That phenomenon became apparent over the weekend when it surfaced that the Justice Department had sought the Twitter account activity of several people linked to WikiLeaks, the antisecrecy group. Many Internet companies and consumer advocates say the main law governing communication privacy -- enacted in 1986, before cellphone and e-mail use was widespread, and before social networking was even conceived -- is outdated, affording more protection to letters in a file cabinet than e-mail on a server. They acknowledge that access to information is important for fighting crime and terrorism, but say they are dealing with a patchwork of confusing standards that have been interpreted inconsistently by the courts, creating uncertainty. “Some people think Congress did a pretty good job in 1986 seeing the future, but that was before the World Wide Web,” said Susan Freiwald, a professor at the University of San Francisco School of Law and an expert in electronic surveillance law. “The law can't be expected to keep up without amendments.” Law enforcement agencies have reacted in the aftermath of 9/11 and argue the opposite side of the coin, fearing that changing communications technology will impede their access to crucial information.
benton.org/node/47703 | New York Times
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INTERNET/BROADBAND
NTIA REQUESTS FCC BROADBAND DATA
[SOURCE: Federal Communications Commission, AUTHOR: ]
Pursuant to its administration of the State Broadband Data and Development (SBDD) Program, the National Telecommunications and Information Administration (NTIA) has requested access to data collected on the Commission's Form 477. Specifically, NTIA is seeking access to data on Internet access connections as of June 30, 2010, with a reporting deadline of September 1, 2010. This Notice initiates a pleading cycle that would allow any affected provider to oppose such disclosure of Form 477 data. Affected parties have until January 17, 2011 to oppose disclosure to NTIA of the Form 477 data that the FCC collects from broadband service providers. If the FCC receives no opposition from affected parties by that date, the FCC will disclose the information requested above to NTIA. Among the purposes of the SBDD Program is to assist state-designated eligible entities in gathering data twice a year on the availability, speed, and location of broadband services, as well as on the use of broadband services by community institutions, such as schools, libraries and hospitals. The FCC and NTIA will use data collected from state eligible entities in the SBDD Program to develop a comprehensive national inventory map of broadband service capability and availability, in fulfillment of NTIA's obligation under the ARRA. NTIA intends to use Form 477 broadband data as a baseline for comparison with the data collected by the eligible entity in each State pursuant to the SBDD Program and may include non-confidential Form 477 data in the National Broadband Map website.
benton.org/node/47675 | Federal Communications Commission
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NET NEUTRALITY A WORK IN PROGRESS
[SOURCE: Wall Street Journal, AUTHOR: Amy Schatz]
Regulators' new rules for Internet lines are likely the start of a greater effort by the government to more closely oversee such channels, broadband industry lobbyists said. The Federal Communications Commission's new rules are "an initial foray" by the agency to police Internet lines, but changes may need to be made in the future as the Internet develops said Rick Whitt, Google Inc.'s top policy lawyer, during a panel at the Consumer Electronics Show. Congress and the courts will likely weigh in on the debate soon, industry officials said during the panel discussion. Two congressional aides predicted at the show that the Republican-controlled House will vote to overturn the FCC's net neutrality rules. House Republicans are already planning a series of hearings on the net neutrality issue, said Neil Fried, the top telecommunications counsel for House Republicans on the Energy and Commerce Committee. On Wednesday, Rep. Marsha Blackburn (R-TN) filed legislation along with 60 other House Republicans to toss out the FCC's net neutrality rules. It's not clear if the Senate will follow suit. Even if the full Congress agreed to toss the rules, President Obama would also have to sign off and that's unlikely.
benton.org/node/47625 | Wall Street Journal
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LOCKE DEFENDS BTOP
[SOURCE: National Journal, AUTHOR: Juliana Gruenwald]
Commerce Secretary Gary Locke offered a spirited defense of the Obama administration's $7.2 billion broadband stimulus program amid growing accusations from Republicans in the new Congress of wasteful and duplicative spending. The initiative, which stems from the 2009 economic stimulus package, is designed to promote broadband deployment in mostly rural areas with little or no Internet access. "We had much greater demand than available dollars," Sec Locke told reporters during a press briefing at the Consumer Electronics Show. In the communities that received funding, "the governors, the local officials were very, very supportive of these projects -- we're talking about Democrats and Republican governors, and office holders and local government officials." He also emphasized that his agency and the Agriculture Department, which are running the program, have received strong support from the private sector, and have the resources to conduct their own oversight.
benton.org/node/47619 | National Journal
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MINNESOTA BTOP PROJECT
[SOURCE: Blandin Foundation, AUTHOR: Bernadine Joselyn]
In March, 2010, the Blandin Foundation and 19 project partners were awarded $4.7 million in BTOP funding for Minnesota Intelligent Rural Communities or MIRC. The MIRC coalition brings a network of resources and support to rural Minnesota individuals and communities especially those unemployed and seeking employment, small businesses, coalitions of government entities, and local leaders. There are two types of MIRC partners. Project Partners provide services in Minnesota, such as PCs for People, a nonprofit organization that refurbishes used computers with the help of people transitioning off government assistance and passes them on to low income individuals and families who do not own computers. Through grant funding Project Partners, PCs for People will be able to extend or expand their services especially to rural areas.
benton.org/node/47611 | Blandin Foundation
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LOUISIANA RESEARCH TRIANGLE
[SOURCE: App-Rising.com, AUTHOR: Geoff Daily]
[Commentary] A plan for how south Louisiana can be transformed into a new research triangle for digital media, and in particular why Google should strongly consider focusing its Google Fiber efforts on this area. The basic thesis is simple: if Google were to wire New Orleans and Baton Rouge with fiber, when combined with Lafayette we could enable a new research triangle for digital media. The vision is that by combining Lafayette's early-mover advantage, wildcatter mentality, and the work we're doing with FiberCorps to spur innovation; along with New Orleans' creative entrepreneurial spirit, national notoriety, and clear needs for help reestablishing itself after Katrina; and roll in Baton Rouge's position as the center of government, the government's emphasis on supporting digital media as a key driver of economic development, as well as the city being the hub for higher education in the state through Louisiana, we have all the pieces needed to create a dynamic, collaborative, multifaceted effort to bring to bear on tackling the challenge of driving fiber-powered innovation.
benton.org/node/47621 | App-Rising.com
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MARKETS FOR BROADBAND
[SOURCE: Government Technology, AUTHOR: Craig Settles]
[Commentary] The broadband discussion suffers from a case of mistaken identity. The mix-up could be costing communities lost opportunities in economic development, improved health-care delivery, better education and other significant benefits. It’s time you turn this situation around. Many communities — large and small, urban and rural — have watched the industry define “market” almost exclusively as being incumbent telcos, service providers and vendors. “Market,” in the industry world, is code for “companies.” You often hear them say, “Let the free market take care of broadband. Whatever companies do to make a buck that shortchanges communities is generally a-OK because in the end, ‘free markets’ serve the public’s best interests.” Can't get any provider to deliver broadband to an area? No problem, because the free market has decided it’s not worth the effort. Only have one choice for service, and that service is overpriced and subpar? Not to worry — that’s the market at work. The giant telcos’ definition of market is smothering the national broadband goals that official Washington, D.C., says it wants. It’s time for communities to step up and embrace the market in its true form.
benton.org/node/47660 | Government Technology
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ADVOCATES BRING USF REFORM MESSAGE TO FCC
[SOURCE: Media Access Project, AUTHOR: Matthew Wood]
Earlier this week, representatives of several civil rights, media reform, and public interest organizations (collectively, the “Public Interest Representatives”) met separately with Federal Communications Commission staffers to discuss potential reforms to Universal Service Fund (“USF”) mechanisms, as contemplated in an array of ongoing and upcoming FCC proceedings. The Public Interest Representatives focused their comments on four general areas within the broad range of issues potentially to be dealt with in these expansive and comprehensive USF reform proceedings.
Broadband as a Universal Service. The Public Interest Representatives repeated the point that broadband is the essential telecommunications platform of the 21st Century, and thus should be considered a universal service. This means that broadband-capable facilities and broadband services should be not only permitted, but required of providers receiving support from the Connect America Fund, or from any other subsequent iteration of or successor to the current high-cost
mechanisms; and also that adoption support should be available for broadband service provided to low-income individuals. The Public Interest Representatives acknowledged that the Commission will need to make several choices in order to balance various priorities during the transition to a broadband-oriented fund. Nevertheless, the Commission cannot shy away from making these decisions necessary to modernize and revitalize USF.
Lifeline/Linkup Expansion and Modernization. The Public Interest Representatives indicated that the Commission generally should proceed along the lines suggested in the Joint Board’s most recent recommended decision on Lifeline and Link Up, and should do so expeditiously. While the Commission may focus also in the immediate near-term on Notices of Proposed Rulemaking in other USF dockets, revisions to these critically important adoption support programs cannot be left to linger. The Public Interest Representatives reiterated their support for expanded eligibility measures and other reforms, though modified in some respects from the Recommended Decision conclusions in the ways suggested by their organizations’ respective filed comments. They also encouraged the Commission to move ahead with pilot programs to facilitate broadband adoption by low-income individuals, and cautioned against potential pitfalls in creation of any national database noting that, if not carefully designed and safeguarded, such a database could dampen enrollment by verifiable and fully eligible beneficiaries.
Creation of the Connect America Fund and High-Cost Fund Reform. While most of the Public Interest Representatives’ organizations have reserved comment on high-cost fund reform and creation of the Connect America Fund to this point, they expressed their eagerness to continue and broaden their engagement on these issues as the Commission develops and proposes concrete rule changes. The Public Interest Representatives agreed that there are several paths the Commission could take to reform current mechanisms, in order to improve the accountability, efficiency, and usefulness of the fund. Yet, they explained that changes to distribution and contribution methodologies must neither discourage broadband adoption by unduly increasing the contribution burden on consumers, nor improperly limit the choice and quality of service available to residents of unserved and underserved areas.
Mobility Fund Issues. Finally, the Public Interest Representatives briefly presented very general views on the ongoing Mobility Fund proceeding, indicating that some number of the organizations they represent intend to file reply comments in that docket this month. During these meetings, they expressed some reservations about reverse auction mechanisms that might encourage a “race to the bottom” approach or provide no support for ongoing mobile wireless service operations.
Attendees represented American Civil Liberties Union; Benton Foundation; Consumers Union; Leadership Conference on Civil and Human Rights; Media and Democracy Coalition; Media Access Project; the Media Action Grassroots Network; New America Foundation; and Public Knowledge.
benton.org/node/47628 | Media Access Project
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WIRELESS/SPECTRUM
FCC RELEASES FIRST LABS REPORT ON WIRELESS TRENDS
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission released the first in a series of reports by the Office of Engineering & Technology Laboratory which looked at trends in cutting-edge wireless devices. The report showed the following:
The number of wireless transmitters authorized by the FCC in 2010 was nearly 12,000, an increase of almost four times the amount from a decade ago.
A 700% increase since 2008 in the number of devices with three or more transmitters, up from 7% of total devices in 2008 to more than 50% today.
Noting that new devices are becoming more useful and technologically advanced, the report found that the number of new increasingly sophisticated devices entering the marketplace with multiple transmitters, enabling access to 4G networks, Bluetooth, Wi-Fi and other types of connections, will continue to present more options for consumers.
benton.org/node/47673 | Federal Communications Commission | read the report | National Journal
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IN-APP PURCHASES
[SOURCE: GigaOm, AUTHOR: Ryan Kim]
App analytics firm Distimo shows that 2010 was the year of mobile in-app purchases, reporting that 49 percent of the revenue on iPhone apps came from in-app purchases in both free and paid apps. The news underscores the importance of in-app payments and the emergence of the freemium model as a major revenue driver for mobile app makers. In its year-end report, Distimo said in-app purchase revenue for free iPhone apps accounted for 34 percent of all revenue, while purchases in paid apps represented 15 percent. Overall, in-purchase revenue has grown to 49 percent from 36 percent in June.
benton.org/node/47662 | GigaOm | TechCrunch
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TAXES
ONLINE SALES AND TAXES
[SOURCE: ars technica, AUTHOR: Nate Anderson]
Amazon is no fan of collecting state sales taxes, and it's ready to play hardball once again in its attempt to avoid the levy. An e-mail sent from the company to all of its Illinois affiliates warns that, should Governor Pat Quinn (D-IL) sign a just-passed tax bill, Amazon is cutting off every affiliate in Illinois. Illinois wants Amazon to collect 6.25 percent sales tax and send it back to the state. Under current law, only companies with a physical presence in the state have to do this, but the new bill declares that even having affiliates in Illinois counts as "presence." The change shouldn't affect tax revenue in Illinois, since residents who purchase from Amazon and other online, out-of-state vendors are required to pay a "use tax" each year that replaces the lost "sales tax." The bill simply shifts collection from the individual Illinois buyer to companies like Amazon. But of course that's not what happens. Few Illinois residents actually pay the tax, and the state has no way of knowing how much any particular person should owe. In practice, then, buying from Amazon comes at a discount over buying from a local store.
benton.org/node/47669 | Ars Technica | Chicago Tribune | Fast Company
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BROADCASTING
LEGISLATION TO DEFUND PUBLIC MEDIA
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Rep Doug Lamborn (R-CO) has reintroduced legislation to defund public broadcasting. He introduced similar legislation in June 2010 with no luck, but after National Public Radio fired Juan Williams over comments about Muslims last fall, GOP Whip and House Majority Leader-elect Eric Cantor (R-VA) revived that effort for a vote in the lame duck session after it won an online poll for programs surfers would most want to cut. That effort also failed to gain traction again in the lame duck session still controlled by Democrats. Rep Lamborn, now in the House majority, is reintroducing the legislation. He indicated in a statement this week that he thought the funding of both NPR and PBS should be cut. "Government-funded broadcasting is now completely unnecessary in a world of 500-channel cable TV and cell phone Internet access," he said, pointing to the fact that "over 99% of Americans own a TV and over 95 percent have access to the Internet."
benton.org/node/47668 | Broadcasting&Cable | The Hill
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TV-INTERNET MARRIAGE
[SOURCE: New York Times, AUTHOR: Brian Stelter]
The blending of television and the Internet is inevitable. But will it happen in concert with the major cable and satellite distributors, or in spite of them? That question loomed large at the Consumer Electronics Show last week as manufacturers promoted Internet-connected television sets and companies like Cisco and Sony talked about “redefining television.” All involved know that connecting the Internet to television and vice versa could solidify the distributors’ place in the food chain — or greatly erode it. During the trade show, however, there was a point in every demonstration where fantasy collided with reality — and it was usually when the cable and satellite distributors came up. “The idea here is to work with cable,” said Google’s Rishi Chandra as he showed off Google TV to Julius Genachowski, the Federal Communications Commission chairman. When working together, Google TV can seamlessly find live television channels, recorded shows, on-demand options and Web streams. So far, though, it works that way only with Dish Network. “Right now,” Mr. Chandra said, “we’re limited.” After seeing television setups at the show, Mr. Genachowski said, “They’re incentivizing the cable companies to innovate.” At the show, media and technology executives largely agreed with that sentiment.
benton.org/node/47699 | New York Times
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APPS IRK CABLE NETS
[SOURCE: MediaWeek, AUTHOR: Anthony Crupi]
Comcast’s scheme to begin streaming live video content to iPads and other tablets precipitated a flurry of legal correspondence last week, as several cable network groups made it clear that they had not signed off on any such arrangement. While the initial barrage consisted of warning shots -- programmers dispatched carefully worded reminders that such distribution pathways are not authorized by existing affiliate agreements, but stopped short of threatening immediate legal action -- many observers believe that this will prove to be the first exchange in yet another long and bloody war between rights holders and operators. If the industry has been aware of Comcast’s intentions for some time (Brian Roberts first demoed a prototype of an iPad interface back in May), the Jan. 5 presentation of the new Xfinity TV app had programmers scrambling for the crisp legal bond. “It’s very simple. Distribution via any sort of third-party app is not covered in our carriage deals with Comcast,” said one affiliate chief. “We’re not going to sit on our hands if they choose to ignore that fact.”
benton.org/node/47698 | MediaWeek
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CONTENT
ESPN-NFL DEAL
[SOURCE: Fast Company, AUTHOR: Kit Eaton]
The National Football League and ESPN have reportedly finalized a deal extending their existing media rights agreement -- and ESPN has the sticky end of it, paying 65-70% more than it does now: That's up to $2 billion a year. Which is about the same figure being kicked around as Facebook's annual revenue. Higher cable fees loom. At the heart of the new deal, other than the NFL's evident hunger for raw, hard cash in large quantities, was ESPN's drive toward "TV Everywhere," which would permit broadcasting over broadband systems and streaming onto mobile devices like tablets and smartphones. ESPN will apparently hang on to the rights to broadcast key moments, including highlights and the NFL Draft. But neither ESPN nor ABC seems to have landed the rights to carry the Super Bowl -- which one could reasonably think might be part of a $2 billion-a-year deal. ESPN is forking over some 70% more per annum because the NFL is increasingly aware of how valuable its content is, particularly in the digital broadcast era where TV content is increasingly diluted across different platforms. But there may be unpleasant side effects to the NFL's price hike: Players may want a slice of the action. And the cost of cable packages that cover ESPN may also rise.
benton.org/node/47603 | Fast Company
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WHY PIRATE FREE TV?
[SOURCE: paidContent.org, AUTHOR: Joe Mullin]
Earlier this week, the popular BitTorrent news blog TorrentFreak published a list of the most pirated TV shows of 2010. The No. 1 most-pirated show—that would be ABC’s Lost, which was illegally downloaded nearly six million times—had a strange characteristic about it. It was available, for at least several months of 2010, for free via Hulu. Not just the last five episodes, but the whole darn series. So who is breaking the law to download stuff that’s available for free, and why? The available data suggests a few possible explanations:
The majority of that illicit traffic of TV shows is from outside the U.S. At the same time, the proportion of TV content that is being pirated by U.S. Internet users has gotten smaller over the last couple years. That suggests that Hulu is doing a pretty good job of limiting piracy in the U.S., and that it might be able to do the job worldwide if it got the legal rights to show content internationally.
Hard-core fans want an archive that’s easily accessible, high resolution, and they know won't disappear—features that right now, only piracy offers.
Television content still seems ephemeral and unreliable—sometimes the best way to keep it is to make your own recording.
benton.org/node/47602 | paidContent.org | TorrentFreak
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POLICYMAKERS
UPTON NAMES COMMERCE COMMITTEE SUBCOMMITTEE MEMBERS
[SOURCE: House of Representatives Commerce Committee]
House Commerce Committee Chairman Fred Upton (R-MI) announced the Republican membership of the six Commerce subcommittees for the 112th Congress. The Subcommittee on Communications and Technology will be chaired by Rep Greg Walden (R-OR) and Rep Lee Terry (R-NE) will serve as the Vice Chair. [more at the URL below]
benton.org/node/47671 | House of Representatives Commerce Committee
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K STREET TO VEGAS
[SOURCE: Politico, AUTHOR: Kim Hart]
Technology and telecom lobbyists are flocking to Las Vegas for the International Consumer Electronics Show, the biggest gathering of gadget-makers and geeks, where 2,700 companies will tout their newest products. It’s the perfect place for lobbyists and policy strategists to find new clients, especially as the tech industry is becoming increasingly interested in Washington. “The U.S. has thrived on innovation for over a hundred years, and we’re in danger of losing it because of policies in Washington that need to change,” said Gary Shapiro, president and CEO of the Consumer Electronics Association, which puts on the show. “Companies everywhere are starting to realize that.” More than 1,200 technology companies from outside the United States — a 25 percent increase over last year’s attendance — are among this year’s CES exhibitors. Shapiro said many discussions at the show are on the importance of signing new trade agreements with Colombia, Panama and South Korea — all of which have been stalled by Congress. “We've clearly fallen behind. [President Barack] Obama has this ambitious export goal and has recognized that this is a huge problem,” Shapiro said. “Nancy Pelosi has been a major blocker, but now there will be a new person sitting in the speaker’s chair.” And with a new Republican House getting started this week, CES offers an opportunity for lobbyists to schmooze with Obama administration officials and Capitol Hill staffers who make appearances on the show floor. There are also glitzy parties and dinners at which they can mingle with executives from the likes of Intel, Microsoft, Cisco, Verizon and Hewlett-Packard.
benton.org/node/47605 | Politico
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