June 2011

E-reader ownership doubles in six months

The share of adults in the United States who own an e-book reader doubled to 12% in May, 2011 from 6% in November 2010. E-readers, such as a Kindle or Nook, are portable devices designed to allow readers to download and read books and periodicals. This is the first time since the Pew Internet Project began measuring e-reader use in April 2009 that ownership of this device has reached double digits among U.S. adults.

Tablet computers -- portable devices similar to e-readers but designed for more interactive web functions -- have not seen the same level of growth in recent months. In May 2011, 8% of adults report owning a tablet computer such as an iPad, Samsung Galaxy or Motorola Xoom. This is roughly the same percentage of adults who reported owning this kind of device in January 2011 (7%), and represents just a 3 percentage-point increase in ownership since November 2010. Prior to that, tablet ownership had been climbing relatively quickly.

CDD Asks FDA to Revise Its Proposed Research on the Digital Marketing of Drugs and Health Products

The Center for Digital Democracy, in comments filed with the Food and Drug Administration (FDA), urged the agency to significantly revise its proposed studies on the “Examination of Online Direct-to-Consumer Prescription Drug Promotion.”

Citing the wide variety of techniques that pharmaceutical and health marketers use to target consumers online, CDD called for a more informed analysis that reflects how U.S. health consumers are actually marketed to on social networks, mobile phones, and via the Web. Among the marketing techniques that CDD cited that must be part of any FDA research are “the tracking and managing of the ‘patient journey’ online”; data collection; the use of social media analytics and related viral marketing; the role of eye tracking, multivariate testing and other Web page optimization techniques to influence perception and behavior; and the impact of immersive multimedia content and neuromarketing designed to stealthily foster consumer decision-making through non-conscious means. Today is the deadline for comments in FDA’s proposed new research “designed to test different ways of presenting prescription drug risk and benefit information on branded drug Web sites”

NUL, NAN Say AT&T/T-Mobile Would Foster Broadband, Create Jobs

The National Urban League and the National Action Network told the Federal Communications Commission that the two civil-rights organizations recommend approval of AT&T’s proposed purchase of T-Mobile USA.

In a joint filing with the FCC, the organizations stated that they had reviewed the proposed merger, considered its consequences and spoke with both AT&T executives and opponents of the $39 billion transaction. “Based on our due diligence, we have now reached the definitive view that the merger deserves to be approved,” wrote Marc H. Morial, president and CEO of the National Urban League, and the Rev. Al Sharpton, president of the National Action Network, in written comments to FCC members. “Information and communications technologies industries provide one of the most extensive job and entrepreneurship opportunities for black and urban communities,” Morial said Monday, in a statement announcing the joint filing. “In 2002, only 42,000 minority-owned businesses were in the information sector — one of the lowest levels of minority participation. Triggering minority participation in technology industries is critical for a robust, long-term recovery.”

Wireless Broadband & Mobile Apps are Keys to Renewed Economic Prosperity for Minorities

[Commentary] Employers are (slowly) beginning to hire new workers, but have been much more selective given the rather deep pool of talent that has formed as a result of the Great Recession. These dynamics are especially acute in minority communities, which have been hit disproportionately hard during this downturn. Indeed, the unemployment rates for African Americans (16.2 percent) and Hispanics (11.9 percent) remain at embarrassingly high levels, especially compared to the national rate (9.1 percent) and the rate for Whites (8 percent).

Access to broadband can help erase these disparities. The vast majority of employers now post job openings and other relevant employment information almost exclusively online. Communication between employers and applicants is often conducted over broadband. Yet despite these tangible benefits, minorities lag behind many others when it comes to home broadband adoption. To date, only about half of all African American and Hispanic adults have adopted broadband at home. These figures are important because, without broadband at home, minorities have extremely limited exposure to the large number of employment opportunities available online, which ultimately decreases their chances of finding a suitable job. Fortunately, mobile broadband Internet access and wireless handsets are rapidly becoming viable substitutes for in-home connections and computers.

TV Stations To Reap 2012 Election Windfall

Next year, White House and congressional candidates will flood television and other media with campaign messages as the 2012 election shapes up as the most expensive in history. Democrats and Republicans are already squeezing contributors because spending will soar as this is the first election in more than a decade without limits on corporate and union contributions. TV stations will benefit most: In 2010 about 75% of ad budgets went to broadcast TV vs. 7.9% for cable and 4.3% for Web destinations, according to PQ Media. But a lot could change this time out.

Here are some of the key questions:

  1. How much will be spent on advertising? Perhaps $4 billion or more.
  2. Will cable operators take political ads from broadcast TV? Most of the money will still probably flow to local TV stations.
  3. Which states will benefit most? Florida, Missouri, Ohio and Virginia are presidential election battleground states and probably will have competitive Senate or gubernatorial contests.
  4. What TV station owners will benefit most? EW Scripps, Entravision, CBS, Meredith, Media General, Sinclair and LIN Broadcasting have high concentrations of stations in states that will see a lot of spending. Barrington, Gray, Local TV, Nexstar and NVT Networks may also be big winners.
  5. How well will Spanish-language stations do? They should see big increases from political campaigns.
  6. When will political spending peak? Because of early voting, that's not as clear as it used to be.

As Wi-Fi Havens And E-Book Centers, Public Libraries Aren't Going Away Soon

The American Library Association has just published its newest investigation into the state of the nation's public libraries, and the news is...actually rather good.

You may think that odd in an era of ubiquitous alternative distractions to reading a real book--from iPads to Kindles--but it's really these new high-tech devices, along with the Internet that's keeping libraries flourishing. The one fly in the ointment is that funding cuts seem to be threatening many services. While just a few years ago public libraries were all about borrowing books to read, or finding somewhere to study alongside handy text resources, the Net has changed much of this. Now 99.3% of the U.S.'s libraries offer Net access, via a public PC or open Wi-Fi, and 64% of libraries say they're the only free access point in their communities. With that figure stepping up to 73% for rural libraries, and 70% of libraries reporting that public use of their Net facilities increased in 2010, it's easy to see that the public library is still hugely relevant in a digital era.

But what are people doing in libraries nowadays? It seems that Internet nexus is extremely handy for people seeking jobs, via vacancy listings and other resources: 88% of libraries offer this, and 72% say their staff are helping clients fill in application forms. Meanwhile, 25% of libraries are in partnerships with government agencies and other groups to build e-government services--almost double the 13% figure from just two years ago. Though we live in a digital era that obviates many reasons to travel, it seems the library still is the social hub for data sharing. Meanwhile, the percentage of libraries offering e-books has lurched upward over recent years, and now more than two thirds (67.2%) of all libraries offer e-book access in some form. That figure is up from 65.9% last year, and a measly 38.3% in 2007. We can maybe see where Amazon's selling all its Kindles from the next statistic though: 87% of urban libraries have e-books, compared to just 52% of rural ones.

Is backing AT&T a civil right? GLAAD should know better

[Commentary] Wireless phone service has about as much to do with gay rights as zebras have to do with waterskiing. So gay bloggers were justified in hounding Jarrett Barrios, who until this past weekend was president of the Gay & Lesbian Alliance Against Defamation, after he wrote the federal government on behalf of AT&T, a corporation that had donated $50,000 to Barrios’s watchdog group.

Clearly, some activist groups have grown a little too fond of their corporate backers, at a cost to their credibility. A lawmaker who receives a letter from GLAAD or the NAACP on a mundane piece of business like a corporate merger might understandably give less credence to their letters on civil rights. Shilling for AT&T makes them seem more like paid lobbyists than clarions of justice; it carries more than a whiff of hackery.

The FCC Should Put a Stop to the AT&T Merger With T-Mobile

[Commentary] The duopoly that will result is bad for Americans from coast to coast and border to border.

As the guardian of our nation’s airwaves, it is the intended role of the Federal Communications Commission to regulate interstate and international use of our nation’s broadcast and telecommunications resources. Increasingly that is becoming mobile devices as Americans drop landline phones altogether. Whether it is your smart phone, your GPS device, your Apple iPad or iPhone, your connection is increasingly a wireless one, in your home and outside it. Beyond the FCC, the last line of defense for the American consumer is the Dept. of Justice and its anti-trust review of this deal. We can hope for the best but probably should expect the worst. You can always write to your Congressperson and maybe it will help. Congress was obsessed with the merger between Sirius and XM satellite radio a couple of years ago. There were hearings, hearings and more hearings. That merger mattered little to anyone beyond the now 20 million Sirius XM subscribers and, after extensive review, was finally allowed to proceed with the promise of no price increases for a couple of years. A merger of T-Mobile and AT&T matters to everyone. There are far more people with cell phones than satellite radio receivers. If the FCC wanted something to be proud of in its record, it ought to stop this proposed merger between AT&T and T-Mobile dead in its tracks.

[Lappin is with Gramercy Capital]

The FCC Should Put a Stop to the AT&T Merger With T-Mobile

[Commentary] The duopoly that will result is bad for Americans from coast to coast and border to border.

As the guardian of our nation’s airwaves, it is the intended role of the Federal Communications Commission to regulate interstate and international use of our nation’s broadcast and telecommunications resources. Increasingly that is becoming mobile devices as Americans drop landline phones altogether. Whether it is your smart phone, your GPS device, your Apple iPad or iPhone, your connection is increasingly a wireless one, in your home and outside it. Beyond the FCC, the last line of defense for the American consumer is the Dept. of Justice and its anti-trust review of this deal. We can hope for the best but probably should expect the worst. You can always write to your Congressperson and maybe it will help. Congress was obsessed with the merger between Sirius and XM satellite radio a couple of years ago. There were hearings, hearings and more hearings. That merger mattered little to anyone beyond the now 20 million Sirius XM subscribers and, after extensive review, was finally allowed to proceed with the promise of no price increases for a couple of years. A merger of T-Mobile and AT&T matters to everyone. There are far more people with cell phones than satellite radio receivers. If the FCC wanted something to be proud of in its record, it ought to stop this proposed merger between AT&T and T-Mobile dead in its tracks.

[Lappin is with Gramercy Capital]

Connected Nation’s Methodology for Broadband Provider Outreach and Relationship Management

Connected Nation is a not-for-profit working across states and with the federal government to implement the State Broadband Data and Development (SBDD) program created by the Broadband Data Improvement Act of 2008 and funded by the American Recovery and Reinvestment Act of 2009, and is managed by the National Telecommunications and Information Administration (NTIA) within the Department of Commerce.

One of the main components of the SBDD program is the creation of a detailed, nationwide map of broadband coverage in order to accurately pinpoint remaining gaps in broadband availability across the nation. Connected Nation is the largest mapping agent across the nation supporting the SBDD program, working in Alaska, Florida, Iowa, Kansas, Michigan, Minnesota, Nevada, Ohio, Puerto Rico, South Carolina, Tennessee, and Texas to collect, process, integrate, and validate provider data, and map the broadband inventory across these jurisdictions.

This white paper provides an overview of Connected Nation’s methodology for provider outreach and relationship management, consumer data collection, and analysis to leverage crowdsourcing data stemming from broadband inquiries, and field validation of data volunteered by thousands of participating broadband providers. The memorandum also describes Connected Nation’s methodology for estimating the broadband coverage of providers who do not chose to participate in the SBDD program and volunteer estimates of their service territory.