April 2011

"The best minds of my generation are thinking about how to make people click ads. That sucks."
-- Jeff Hammerbacher, Facebook

BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, APRIL 19, 2011

Today -- a discussion on Broadband Adoption http://benton.org/calendar

NEWS FROM SILICON VALLEY
   Technology job recovery spreads through Silicon Valley
   Chairman Issa: regulations 'hampering' technology industry
   This Tech Bubble Is Different - analysis

INTERNET/BROADBAND
   The Broadband Speed Divide - analysis
   The Broadband You Deserve - op-ed
   Google Fiber and Creating the Next Generation ISP - analysis
   Internet service providers cracking down on heavy users
   The Battle Over Net Neutrality Rages On - op-ed
   Verizon Eliminates Early Termination Fees For DSL [links to web]
   Australia 'test bed' for broadband

WIRELESS/SPECTRUM
   Rep Latta introduces spectrum bill [links to web]
   Welcome to a New Era of Spectrum Speculation - analysis
   FCC Seeks More Public Input on Tribal Issues Concerning Mobility Fund
   New America Foundation and Consumers Union Discuss Wireless Interoperability
   Houston leads way in launching 'super WiFi'
   AT&T Making Progress in Converting Former Alltel Markets
   Sprint in Talks to Share Network
   Telecoms groups team up on procurement2012 GOP presidential hopeful explore digital future, news ways to capitalize on social media

ADVERTISING
   Promise Is Great but Growth Is Slow for Targeted TV Ads
   US Advertising Sales to Grow by 1.8% This Year, MagnaGlobal Forecasts [links to web]
   Internet Users View Ads As Distraction [links to web]

TELEVISION/RADIO
   Public Inspection File Rule: FCC Asks If It's Really Necessary - analysis
   Does Minow Still Think TV Is a 'Vast Wasteland'?
   Why $#*! Our TVs Say Is No Longer Taboo - analysis
   Sirius XM Delivers on Merger Condition

PRIVACY/CYBERSECURITY
   Privacy Legislation’s Potential Impact on Online Media
   Security firm calls on Facebook to step up its game [links to web]

CONTENT
   Bipartisan legislation takes aim at online piracy
   Apple Asks Judge to Dismiss Lawsuit Alleging Music Downloading Monopoly
   They Still Won't Pay for News [links to web]
   Companies call for Netflix probe in Canada [links to web]

JOURNALISM
   2011 Pulitzer Prize Winners Announced
   At Tribune, Battle Expands
   Economy Again Top Story [links to web]
   Mirror Awards announce finalists for best media coverage - press release [links to web]

HEALTH
   Move gradually on PCAST report recommendations: ONC work group [links to web]
   Electronic Health Record reminders can help docs avoid unnecessary treatments: study [links to web]
   Doctors question benefits of electronic records [links to web]
   Barriers slow switch to electronic medical records [links to web]

NEWS FROM THE BENTON FOUNDATION
   Celebrating 30 Years with a Focus on the Future

MORE ONLINE
   FCC Seeks Public Input on Video Relay Service [links to web]
   FCC Seeks Nominees for Intergovernmental Advisory Committee [links to web]
   Kundra agrees with Obama on IT purchasing [links to web]
   Smart Grid Communications Architecture [links to web]

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NEWS FROM SILICON VALLEY

JOBS IN SILICON VALLEY
[SOURCE: San Jose Mercury News, AUTHOR: Pete Carey]
technology-led recovery in Silicon Valley is slowly spreading throughout the local economy, as every major industry except construction added jobs in March, according to a report from the California Employment Development Department. The valley's job growth was tops among the state's 10 largest metro areas. "This is a recovery led by tech," said Stephen Levy of the Center for Continuing Study of the California Economy, "pushed partly by social networking companies like Facebook and Internet and search giants like Google." The economic recovery is being driven by national trends that don't necessarily add up to a lot of jobs elsewhere, said Brad Kemp of Beacon Economics. "They are not investing in labor," he said. "They are investing in efficiency and automation, and Silicon Valley and San Francisco benefit from that focus. Hardware and software are going to feel that effect.'' Ballooning demand for mobile devices of greater and greater power is also pushing job growth.
benton.org/node/56096 | San Jose Mercury News
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REGULATIONS HAMPERING TECH INDUSTRY
[SOURCE: The Hill, AUTHOR: Sara Jerome]
Foreign companies are surpassing U.S. tech companies because of burdensome regulations, House Oversight and Government Reform Committee Chairman Darrell Issa (R-CA) said: "It wasn't that long ago that the nation’s research, innovation, and high tech industries were unequaled; there was no more attractive country than the United States for technology start-up capital. More recently, however, the shine has started to come off the apple, and there seems little doubt that federal policies and regulations have played a large role in hampering growth." Chairman Issa, a former technology executive who was once chairman of the Consumer Electronics Association (CEA), said he was concerned that burdensome regulations are hurting the growth of the U.S. technology sector and that foreign countries are surpassing the U.S. in terms of technological prowess. Chairman Issa attacked the government’s visa program as well as federal initiatives to provide citizens with more government data.
Google vice president for access services Milo Medin testified that the Federal Communications Commission's slow pace can cause uncertainty for businesses. "Agencies like the FCC all too often open up rulemaking dockets soliciting formal comments, receive a flood of documents from interested parties, and then fail to act for months or years — if they even act at all. The result is uncertainty, which is bad for business, bad for innovation and bad for investment," he said. Medin focused on spectrum calling on the government to move faster to clarify spectrum policies. In particular, he wants clarification on which airwaves will be available for unlicensed use in the aftermath of repacking, which will move broadcasters to a different part of the spectrum if the FCC gains auction authority from Congress. Medin also advocated for a policy loathed by some parts of the cable industry: municipal broadband. "Localities know more about what works for their communities than state governments or the federal government do. In the end, we feel that while this is probably not the right choice in many cases, it is something that should not be prohibited," he said.
benton.org/node/56094 | Hill, The | Politico | The Hill - Google
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THE TECH BUBBLE
[SOURCE: Bloomberg, AUTHOR: Ashlee Vance]
"The best minds of my generation are thinking about how to make people click ads," says Facebook research scientist Jeff Hammerbacher. "That sucks." Online ads have been around since the dawn of the Web, but only in recent years have they become the rapturous life dream of Silicon Valley. Arriving on the heels of Facebook have been blockbusters such as the game maker Zynga and coupon peddler Groupon. These companies have engaged in a frenetic, costly war to hire the best executives and engineers they can find. Investors have joined in, throwing money at the Web stars and sending valuations into the stratosphere. Inevitably, copycats have arrived, and investors are pushing and shoving to get in early on that action, too. Once again, 11 years after the dot-com-era peak of the Nasdaq, Silicon Valley is reaching the saturation point with business plans that hinge on crossed fingers as much as anything else. "We are certainly in another bubble," says Matthew Cowan, co-founder of the tech investment firm Bridgescale Partners. "And it's being driven by social media and consumer-oriented applications." There's always someone out there crying bubble, it seems; the trick is figuring out when it's easy money -- and when it's a shell game. Some bubbles actually do some good, even if they don't end happily. This time, the hype centers on more precise ways to sell. So if this tech bubble is about getting shoppers to buy, what's left if and when it pops? "My fear is that Silicon Valley has become more like Hollywood," says Glenn Kelman, chief executive officer of online real estate brokerage Redfin, who has been a software executive for 20 years. "An entertainment-oriented, hit-driven business that doesn't fundamentally increase American competitiveness."
benton.org/node/56089 | Bloomberg
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INTERNET/BROADBAND

BROADBAND SPEED DIVIDE
[SOURCE: Daily Yonder, AUTHOR: Roberto Gallardo, Bill Bishop]
The federal government released an incredible amount of data about where broadband Internet is available and where it isn't. The data is confusing and hard to work with, but it does tend to show major gaps in broadband coverage. To start, the data released by the National Telecommunications and Information Administration shows that somewhere between five and ten percent of Americans lack any kind of broadband connection. Major institutions have inadequate connections. Two-thirds of schools have connections with capacities less than what they need. Only four percent of libraries report having optimum broadband connections. Our interest, however, is in rural broadband. NTIA reports that a gap remains between rural and urban residents in their adoption of broadband, but the gap is narrowing. In 2010, 66% of urban residents and 54% of rural residents had broadband connections. This year, the rates are 70% and 60% respectively. In rural areas, 9.4 percent of residents told NTIA that they didn't have broadband because it was unavailable. In urban areas, that reason was given by only 1% of those asked.
benton.org/node/56074 | Daily Yonder
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THE BROADBAND YOU DESERVE
[SOURCE: Daily Yonder, AUTHOR: Frank Povah]
[Commentary] It’s a wonder anyone in the rural U.S. bothers to have an Internet connection ­ certainly anyone living more than 10 minutes from a town of any reasonable size. Not only are the available options painfully slow ­ though the satellite ISPs tout their wares with phrases such as “blisteringly fast” ­ they are expensive and the “service providers” (their words, not mine) do everything in their power to keep you in their talons once they have you signed up.
benton.org/node/56072 | Daily Yonder
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THE NEXT GENERATION OF ISPs
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
With its plans to bring gigabit broadband to Kansas City, Kansas, Google is changing the fate of that city, but it’s also setting out to build a new generation of Internet Service Provider, one designed for the type of world where connectivity drives innovation, and is an irrefutable aspect of our lives. Milo Medin, the head of Google’s fiber efforts, explained his goal is nothing short of causing a revolution — a revolution that may spread to other towns. “As I said, we’re still having conversations with other markets, and will try to build out in other areas in [Kansas City],” Medin said. So maybe Austin, Texas — which was passed over — shouldn't lose hope yet? When he formed the company that became Excite@home Medin helped take the web from dial-up speeds to speeds of 4 Mbps to 5 Mbps, and he draws a similar parallel between his efforts there and what Google is trying to do. “It’s a little bit like first days of @home, when the web was all optimized for dial-up, and no one had always-on connections,” he said. “Back then, people asked why would we need that, but the need for bandwidth seems to be insatiable … and there are business like Netflix that exist today because of it.”
benton.org/node/56077 | GigaOm
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ISPs CRACKDOWN ON HEAVY USERS
[SOURCE: Saint Louis Post-Dispatch, AUTHOR: Jim Gallagher]
People who watch lots of movies and videos on the Internet will run into a toll booth if they get their Internet service through AT&T. Starting May 2, AT&T will set Internet usage caps for its DSL and U-verse customers. Repeatedly go over the cap, and you'll pay extra. Charter Communications, the other major Internet service provider in St. Louis, imposed a cap in November. But it has no plans to charge people extra when they go over the limit, says a company spokeswoman. It may cut their service instead. The Internet service providers say the limits will stop heavy users from clogging the system and slowing service to others. Consumer groups counter that the caps are ploys to keep customers from dropping pay-TV channels in favor of cheaper Internet video. Caps are arriving as customers turn to the Internet for more of their entertainment, streaming movies over services such as Netflix or Amazon, TV shows from Hulu or videos from YouTube. Increasingly, they watch them on TVs hooked to the Internet. Internet video watching rose 45 percent in the year ending in January, according to figures cited by Consumers Union. Such video streaming services pose competition to pay-TV channels offered through AT&T, Charter and other cable, satellite and phone companies.
benton.org/node/56069 | Saint Louis Post-Dispatch
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NETWORK NEUTRALITY
[SOURCE: The Huffington Post, AUTHOR: Eric Arnold]
[Commentary] Four months after the Federal Communications Commission (FCC) supposedly settled the issue, the battle over network neutrality is still raging. If anything, it's just beginning to heat up. On April 8, the Republican-controlled Congress resolved to repeal the FCC's recent legislation surrounding Internet protections, and conservative activists are fighting tooth and nail to push back any apparent gains before they are realized. At the same time, media reform advocates say that the FCC's December ruling on broadband policy did not go far enough in establishing consumer-friendly regulatory guidelines across both Internet and mobile platforms. Meanwhile, the impact of the announced merger between AT&T and T-Mobile is still up for debate, and federal officials are raising anti-trust concerns against Google.
benton.org/node/56047 | Huffington Post, The
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AUSTRALIA AS BROADBAND DEPLOYMENT MODEL
[SOURCE: Sydney Morning Herald, AUTHOR: Lucy Battersby]
The United Nations official overseeing telecommunications has given the national broadband network project a tick of approval. Australia's unique market conditions, geography and low population make the project viable but few other countries are likely to copy the publicly funded monopoly model. The secretary-general of the International Telecommunications Union, Dr Hamadoun Toure, met BusinessDay during a two-day fact finding trip to Australia. He said a minimum speed broadband network will increase economic capacity and creativity. ''The way I see it here, Australia has undertaken the largest infrastructure project ever,'' he said. ''Three to five years from now, Australia will be No. 1 in broadband in the world. A large size country like this can be a test bed for any scenario that could happen anywhere else in the world and I can take that model to share anywhere else in the world.''
benton.org/node/56044 | Sydney Morning Herald
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WIRELESS/SPECTRUM/TELECOM

SPECTRUM SPECULATION
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
Reportedly, LightSquared, the company trying to create a wholesale, fourth-generation, wireless network, is thinking about an initial public offering. While part of me loves the idea of reading the details behind the network operator that doesn't yet have a network in the S-1 filing, there’s a huge part of me that says the company is planning to take investors for a ride using the current spectrum crisis as cover for a questionable business plan. Because, at the end of the day, what LightSquared has right now is 53 MHz of spectrum, an interference problem with GPS in some of that spectrum, and lots of plans. Yes, back in the days of the bubble, IPOs were built on less, but I think LightSquared may be milking the spectrum crisis. The rallying cry of that crisis claims the U.S. will run out of spectrum by 2013 and the demand for mobile broadband will overtake the nation’s cellular networks and grind them to a halt.
benton.org/node/56075 | GigaOm
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FURTHER INQUIRY INTO TRIBAL ISSUES RELATING TO ESTABLISHMENT OF A MOBILITY FUND
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission recently received comments on a Notice of Proposed Rulemaking to use reserves accumulated in the Universal Service Fund (USF) to create a Mobility Fund, which would employ a market-based, reverse auction mechanism to award one-time support to providers to extend mobile voice coverage over current-generation 3G or 4G networks in areas where such networks are lacking. In proposing the Mobility Fund, the FCC acknowledged the relatively low level of telecommunications deployment on and the distinct challenges in bringing connectivity to Tribal lands. The FCC further noted that, in light of the United States' unique government-to-government trust relationship with American Indian Tribes and Alaska Native Villages, and to address the particular challenges in advancing deployment on Tribal lands, a more tailored approach that provides at least some Mobility Fund support for Tribal lands on a separate track may be beneficial. The FCC sought broad comment on whether to reserve funds for developing a Mobility Fund program to target USF support separately to Tribal lands that trail national 3G coverage rates. Commenters to the proceeding generally support the adoption of a mechanism or program within the Mobility Fund focused on Tribal areas and provided input on a number of elements important to establishing a separate fund. There are particular issues related to the establishment of such a mechanism, however, for which additional comment may benefit the FCC as it considers how to proceed.
benton.org/node/56049 | Federal Communications Commission
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WIRELESS INTEROPERABILITY
[SOURCE: BroadbandBreakfast.com, AUTHOR: Rahul Gaitonde]
The New America Foundation, in cooperation with the Consumers Union, gathered representatives from the leading wireless services providers and consumers groups to discuss how requiring mobile broadband service providers to interoperate would affect consumer choice and pricing. Currently, most mobile phones work with only a single network provider. After consumers end their contracts with a network provider, they are unable to use the phone on competing networks, even if the competitor uses the same mobile technology. “As the mobile industry becomes increasingly consolidated, interoperability between technologies will allow consumers to more freely move amongst the providers,” said Parul Desai, Communications Policy Counsel at the Consumers Union. Desai cited a recent survey conducted by the Consumers Union that found more than 80 percent of respondents wanted to be able to change their networks but keep their devices. Consumer groups, along with the wireless company Sprint have urged the Federal Communications Commission to mandate fourth generation wireless devices, which use the same band of spectrum to broadcast, be interoperable with each other. This would allow consumers to use a single device across different carriers as long as they use the same transmission technology, be it Long Term Evolution (LTE) or WiMax.
benton.org/node/56082 | BroadbandBreakfast.com
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HOUSTON'S "SUPER WIFI"
[SOURCE: Houston Chronicle, AUTHOR: Eric Berger]
With money from the National Science Foundation, Edward Knightly, a computer engineer at Rice, was able to build prototype equipment this winter and create Houston's first super WiFi hot spot a few weeks ago. He believes it is the first such hot spot in the nation. "This is an early trial," he said. "We're still trying to determine the ideal use for the technology." Super WiFi was made possible in September when the Federal Communications Commission issued rules for the use of spare patches of the radio spectrum that opened up when broadcast TV stations switched from analog to digital signals. Normal WiFi signals use a portion of the spectrum in which wavelengths are much shorter, and therefore not good at penetrating through trees or walls. The newer chunk of the spectrum allowed WiFi signals at longer wavelengths, which are much better at penetrating natural and man-made barriers. Will Reed, president of Technology For All, said he's working with about 70 public computer sites in Texas to eventually distribute the technology, including rural areas such as Duval County in South Texas. "It's a huge opportunity," Reed said. "You can really blast the signals a long way. I think it will work really well in rural populations where it would be very expensive to run wires to."
benton.org/node/56112 | Houston Chronicle
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AT&T CONVERTING ALLTEL MARKETS
[SOURCE: Telecompetitor, AUTHOR: Andrew Burger]
AT&T is expanding its wireless business in several rural markets, including territories in Minnesota, North Dakota, South Dakota, Colorado, Iowa and Montana, among others, having completed the transition of infrastructure in these states from that of its Alltel acquisition to its own mobile broadband network. AT&T expects to complete the service transition in these states over the coming weeks, communicating with customers via text message and soundbite the specific dates and details. AT&T has also rebranded, as well as expanded the line-up, of consumer products at the former Alltel’s own retail outlets, as well as those of authorized retailers. AT&T has been offering Alltel subscribers the option of receiving free AT&T handsets of comparable quality with no additional service term commitment. They can otherwise choose to upgrade their devices by signing a 2-year contract, an AT&T rate plan and any associated data plan. Handset upgrades are necessary since AT&T is migrating the Alltel properties to a GSM platform from Alltel’s CDMA version. AT&T gained the Alltel properties as a result of divestiture requirements forced on Verizon to gain approval of Verizon’s acquisition of Alltel.
benton.org/node/56061 | telecompetitor
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SPRINT TO SHARE NETWORK
[SOURCE: Wall Street Journal, AUTHOR: Shayndi Raice, Joann Lublin]
Sprint Nextel is in advanced talks to rent space on its wireless network to start-up LightSquared and Clearwire. The deals would let the smaller companies expand their service more cheaply than if they had to build out separate networks of their own, while giving Sprint another revenue source and access to spectrum needed to support a nationwide next-generation network of its own. The prospective deal with LightSquared would give the start-up, backed by hedge fund Harbinger Capital Partners, access to Sprint's infrastructure as it tries to roll out a nationwide 4G network. Sprint would be paid in a mix of cash and use of LightSquared's spectrum. That spectrum, particularly in rural areas, could eventually let Sprint cut back on money it pays to competitors like Verizon to roam on their networks in areas where Sprint lacks coverage.
benton.org/node/56124 | Wall Street Journal
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DEUTSCHE TELEKOM AND FRANCE TELECOM DEAL
[SOURCE: Financial Times, AUTHOR: Simon Mundy]
Deutsche Telekom and France Telecom will achieve €1.3bn ($1.85bn) in annual savings by merging key procurement activities in Europe. A joint venture, to be established in the fourth quarter of this year, will combine procurement in areas such as network equipment and IT infrastructure. Deutsche Telekom expects to save an annual €400 million from 2015 onwards, while France Telecom foresees savings of €900 million. Analysts attributed the disparity between the figures to Deutsche Telekom’s greater global reach, which had allowed it to achieve greater economies of scale to date than France Telecom. The joint venture, with offices in Paris and Bonn, will employ 200 people and will cost about €35 million to set up.
benton.org/node/56119 | Financial Times
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ELECTIONS AND MEDIA

NEW MEDIA AND ELECTION 2012
[SOURCE: Associated Press, AUTHOR: ]
Welcome to The Social Network, presidential campaign edition. Republican Tim Pawlenty disclosed his 2012 presidential aspirations on Facebook. Rival Mitt Romney did it with a tweet. President Barack Obama kicked off his re-election bid with a digital video emailed to the 13 million online backers who helped power his historic campaign in 2008. The candidates and contenders have embraced the Internet to far greater degrees than previous White House campaigns, communicating directly with voters on platforms where they work and play. If Obama’s online army helped define the last campaign and Howard Dean’s Internet fundraising revolutionized the Democratic primary in 2004, next year’s race will be the first to reflect the broad cultural migration to the digital world.
benton.org/node/56090 | Associated Press
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ADVERTISING

TARGETED TO\V ADS
[SOURCE: AdAge, AUTHOR: Edmund Lee]
For years, TV executives and advertisers have looked for ways to incorporate new technologies into the 30-second spot. Whether inspired or egged on by the measurability and interactivity of Internet ads, a number of formats for TV have emerged, including "addressability," where a number of different ads can target different households in the same 30-second timeframe; "requests for information," where people can request a brochure about a product advertised directly from the spot; and "telescoping," where viewers can click off a commercial onto an extended clip. Despite the promises of these new formats, they've faced a number of hurdles. Advertisers, media buyers and agencies still see them as unproven products, and it's not entirely clear if enough of them will bother getting in the game. Some think TV's success has begotten a lack of urgency to change. TV continues to dominate media, with more people watching the medium than ever before, averaging 35 hours per week in early 2010, up from 33 hours a week the year before, according to Nielsen. Despite the emergence of digital video recording and web-enabled TV, people haven't lost their appetite for good, old-fashioned TV viewing. Advertisers are estimated to spend $60.5 billion on commercials this year, according to eMarketer. The major technological hurdle to addressable advertising is the difference in underlying technologies from each cable company. Advertisers that want to reach a national footprint would have to work with each provider separately to install their commercials. DirectTV and Dish are the only operators at the moment who can reach a national audience.
benton.org/node/56058 | AdAge
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TELEVISION/RADIO

BROADCASTERS AND PUBLIC FILES
[SOURCE: CommLawBlog, AUTHOR: Harry Cole]
The Federal Communications Commission has invited comments on whether or not the local public inspection file requirement is really necessary. Since the FCC has assiduously ignored ­ for more than five years ­ a petition for rulemaking seeking the abolition of those requirements, this invitation should puzzle some and thrill others. As it turns out, the obligations imposed by the public file rules constitute “information collections” (per the Paperwork Reduction Act), and we all know what that means: periodically (like every three years) the FCC must justify such requirements to the Office of Management and Budget. The current OMB approval is set to expire on September 30, 2011, which means that, if the FCC plans to keep those rules on the books, it’s got to re-justify the rules to OMB’s satisfaction. That process entails two opportunities for public comment stretching over at least 90 days. With less than 180 days to go before expiration, the FCC has now started that process. Among the questions on which the FCC is now inviting comment are:
a) whether the public file rules are “necessary for the proper performance of the functions of the Commission, including whether the [collected] information shall have practical utility”; and
b) the accuracy of the Commission’s burden estimate.
The FCC will be accepting comments through June 17, 2011. After that, the FCC will bundle up any and all comments submitted and send them over to OMB, along with a statement in support of the rules (assuming that the FCC is not persuaded by the comments to drop the rules entirely). OMB will then provide an additional 30-day comment period. If OMB declines to approve the rules, the FCC will be unable to enforce them.
benton.org/node/56071 | CommLawBlog
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A VASTER WASTELAND WITH MORE CHOICE
[SOURCE: AdAge, AUTHOR: Rance Crain]
Fifty years after calling television "a vast wasteland", what does former Federal Communications Commission Chairman Newton Minow think of TV now? "It's vaster, certainly," but it also gives viewers a "wider range of choice. That was the main thing I tried to do. At the time I was at the FCC there were two-and-a-half commercial television networks, there was no public television, no satellite. The choice was extremely narrow. Many cities had only one television station, some had two, a few had three, New York and Los Angeles had seven. But that was it. The most constructive thing the FCC could do was to expand choice. And in that we certainly succeeded." Minow said one of the downsides of so many choices on TV today is that "we've lost the common shared experience. I think it's increased the polarization of opinion. And now you have news appealing to particular ideologies, the left and the right, whereas before it was more in the middle. So that's a downside. On the other hand, the possibility that people can find something of their particular interest on television is much greater than it was before."
benton.org/node/56056 | AdAge | AdAge - we're in era of choice
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SEX, VIOLENCE AND PROFANITY ON TV
[SOURCE: AdAge, AUTHOR: Brian Steinberg]
Sex and TV were once seen as a mismatch -- so much so that TV programs couldn't even show a husband and wife sleeping in the same bed. Now the two get along like, well, people having sex. And TV isn't so shy about meeting up with violence or profanity, either. Despite all the gutter talk, TV networks maintain the issue remains delicate. A court case surrounding the exposure of part of Janet Jackson's breast on national TV during the 2004 Super Bowl continues to wend its way through the courts more than six years later. And yet, argues one broadcast executive who declined to be identified, TV "evolves with the culture," not the other way around. "We reflect culture more than leading it," this executive said. If that's the case, TV networks -- cable and broadcast -- are showing us a world in which the harshest profanities, grisliest scenes and most private sex acts have become as much a part of our daily routine as brushing our teeth or drinking coffee.
benton.org/node/56053 | AdAge
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SIRIUS XM CHANNELS
[SOURCE: Federal Communications Commission, AUTHOR: ]
Sirius XM has implemented its merger condition to lease channels on a long term basis to entities not affiliated with the company. The leases, which represent four percent of the full-time audio channels on both the Sirius and XM platforms, help ensure consumers have programming options available to them on issues unique to their communities. The lessees and their planned programming include:
Howard University (licensee of WHUR-FM and WHUT-TV)
One channel each on Sirius and XM - Music and talk programming for the African American community
One channel each on Sirius and XM - Music and talk programming for the African American community, with programs from Historically Black Colleges and Universities
BYU Radio (licensee of KBYU-FM and KBYU-TV)
One channel each on Sirius and XM - Music and talk programming for the Mormon community
Eventus/National Latino Broadcasting
One channel each on Sirius and XM - Spanish language talk programming
One channel each on Sirius XM - Spanish language music programming
WorldBand Media
One channel each on Sirius and XM - Spanish language talk programming
KTV Radio
One channel on XM - Korean language music and talk programming
benton.org/node/56084 | Federal Communications Commission | Commissioner Clyburn | The Hill
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PRIVACY/CYBERSECURITY

PRIVACY LEGISLATION AND ONLINE MEDIA
[SOURCE: GigaOm, AUTHOR: David Card]
Although advertising industry groups are predictably resistant to any kind of regulation, their initial reactions to privacy legislations proposed by Sens John Kerry (D-MA) and John McCain (R-AZ) seem more muted than concerns they had prior to the bill’s introduction. Big tech companies like Facebook, Microsoft, eBay, Hewlett-Packard and Intel expressed support for the bill. The trade groups are probably relieved about the absence of Do Not Track, which they fear encourages users to block all cookies and customization indiscriminately, and requires potentially costly support from ad servers, ad networks and sites. Apple is the latest browser maker to experiment with Do Not Track support, after Mozilla and Microsoft; Google favors an alternative approach that maintains user opt-outs.
Passage of the Kerry-McCain bill or something similar will have the following effects on the online media landscape:
Online content sites: Don't call me a conspiracy theorist, but some traditional publishers like the Wall Street Journal might be perfectly happy without web-wide behavioral targeting. They could tout the value of their online/offline audience and promote contextual targeting and sponsorships. As noted, publishers would able to follow and target a user within their own site, which would benefit portals like Yahoo and AOL, which have huge audiences and broad variety of content.
Online advertising ecosystem: The bill’s restrictive approach to behavioral targeting favors search advertising over display ad formats. It also weakens industry efforts to deliver attribution, i.e., understanding and valuing the longer-term effects of seeing brand advertising. The data sharing guidelines could force data miners (Experian, Audience Science, BlueKai) and ad networks (DoubleClick, ValueClick, 24/7 Real Media) to secure more formal contractual relationships with content sites that have registered users. And the legislation seems to leave room for third parties to take user info and create anonymized groups of targetable customer “types” based on demographics and behavior.
Social targeting: Today, most third-party social targeters (Lotame, 33Across, Media6Degrees, Rapleaf) base their analysis on tracking user behavior with their own cookies, rather than getting access to API data from Facebook or Twitter. Legislation may make them pay for access, and even then, Facebook to-date has been stingy about data sharing. Likely it’s saving that targeting opportunity for itself.
benton.org/node/56079 | GigaOm
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CONTENT

PIRACY LEGISLATION
[SOURCE: Los Angeles Times, AUTHOR: David Savage]
In a little-noticed bipartisan effort, House Republicans and Senate Democrats have agreed to press for new laws to crack down on "rogue websites" that sell pirated copies of movies, TV shows, music and video games or counterfeit goods like sportswear and prescription drugs. "What these rogue websites do is theft, pure and simple," said Sen. Patrick Leahy (D-VT), chairman of the Senate Judiciary Committee. "They are no more than digital stores selling stolen property. The Internet needs to be free and open — not lawless." These days, watching a free movie can be as easy as typing the words "watch movies" or "free movies" on Google. "With just five clicks following a basic Google search, anyone can be streaming a stolen copy of almost any film," Frederick Huntsberry, chief operating officer of Paramount Pictures, told a House committee last month. Lawmakers are considering proposals that would authorize the Justice Department to quickly obtain court orders to shut down websites that sell pirated copies. Other measures would target credit card companies and advertisers that do business with the pirates. Google Inc. could be a target as well.
benton.org/node/56121 | Los Angeles Times
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APPLE ASKS JUDGE TO DISMISS LAWSUIT
[SOURCE: Bloomberg, AUTHOR: Pamela MacLean, Karen Gullo]
In San Jose (CA), Apple asked US District Judge James Ware to dismiss a consumer antitrust lawsuit claiming the company limited choice by linking iPod music downloading to its iTunes music store. Robert Mittelstaedt, an attorney for the company, told Judge Ware that blocking iPod music downloads that used competitors’ software was intended to improve downloading quality for iTunes customers. Changes that Apple made in 2004, just days after Internet music software company RealNetworks announced a technology allowing songs from its online store to be played on iPods, weren't anticompetitive, he said. “Apple’s view is that iPods work better when consumers use the iTunes jukebox rather than third party software that can cause corruption or other problems,” Mittelstaedt said at a hearing. Bonny Sweeney, a lawyer representing iTunes customers who sued, said the plaintiffs could not locate any legacy software that would allow them to conduct accurate tests, prompting Judge Ware to say that a trial may become a “battle of experts.” Judge Ware said he will rule by May on the request to dismiss the case.
benton.org/node/56117 | Bloomberg
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JOURNALISM

2011 PULITZER PRIZES
[SOURCE: New York Times, AUTHOR: Jeremy Peters]
Columbia University announced the 2011 Pulitzer Prizes which went to a variety of newspapers and were not concentrated in the hands of one or two publications, as has been the case in recent years. Pulitzer Prizes were awarded in 13 journalism categories and 7 arts categories. For the first time, a prize was awarded to reporting that did not appear in print: ProPublica’s online series “The Wall Street Money Machine,” which won for national reporting. The awards this year included other notable firsts. The Wall Street Journal won its only Pulitzer since Rupert Murdoch bought the paper in 2007. It was for Joseph Rago’s editorial writing on the debate over health care legislation. The Journal received the awards for international reporting and public service in 2007. Carol Guzy, a photographer from The Washington Post, became the first journalist to win four Pulitzer Prizes. Ms. Guzy shared the award for breaking news photography with two other Post photographers, Nikki Kahn and Ricky Carioti, who were cited for their depiction of the devastation from the earthquake in Haiti. For the first time, the Pulitzer board, which decides on the winners after juries in each category make their recommendations, did not award a prize for local reporting of breaking news. This was despite a number of dramatic breaking news events last year, including the oil spill in the Gulf of Mexico, which media organizations mobilized considerable resources to cover. The Pulitzer board did, however, cite four newspapers as finalists in the category: The Chicago Tribune, The Tennessean of Nashville, and The Miami Herald and El Nuevo Herald, which were considered a joint entrant for their coverage of the Haiti earthquake.
benton.org/node/56126 | New York Times
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BATTLE EXPANDS AT TRIBUNE
[SOURCE: Wall Street Journal, AUTHOR: Mike Spector, Jenny Strasburg, Shira Ovide]
Sam Zell's top-of-the-market buyout of Tribune Co. cashed out shareholders about a year before the media company tumbled into bankruptcy protection. Now, those former holders are bracing for a possible barrage of litigation aimed at clawing back more than $8 billion in payouts. If successful, any litigation would represent an unprecedented legal development, some lawyers said. It would force shareholders to give back money gained from simply selling their shares into a corporate buyout offer, based on the theory that the deal was so fundamentally flawed that it amounted to a fraud that should never have happened. Under the best-case scenario, creditors likely would get back only between $2 billion and $3 billion, the amount necessary to make unsecured creditors whole. While most lawyers said such cases are difficult to prove, former shareholders are girding for the worst, in some instances talking with lawyers and investors about plans to sock away money in anticipation of any litigation.
benton.org/node/56123 | Wall Street Journal
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NEWS FROM THE BENTON FOUNDATION

BENTON ANNUAL REPORT
[SOURCE: Benton Foundation, AUTHOR: Karen Menichelli]
Determined. Passionate. Agile. That’s the Benton Foundation, a small organization among giant foundations, global nonprofits, immense communication companies, and the behemoth that is the federal government. Our size is our strength. It enables us to tightly focus on media and their critical role in serving the public interest. For 30 years, we have championed media as the bedrock of democracy. Thirty years ago, the Benton Foundation set out to articulate what media that serve the public interest might look like. Since then we have consistently embraced this vision:
Access, equity, and diversity are paramount.
Nonprofit organizations, educators, and community-builders are equipped with communications tools and training.
Media production and content come from increasingly decentralized, inclusive, and diverse sources.
Political debate and deliberation expand and become both more participatory and more informed.
benton.org/node/56109 | Benton Foundation
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