June 2013

Video Marketplace: Competition Is Evolving, and Government Reporting Should Be Reevaluated

Technological advances have ushered in a wave of new products and services, bringing online distribution of video to consumers. Federal laws and regulations have sought to foster competition in the video programming and distribution marketplace, but many such laws were adopted prior to the emergence of these advances.

The Government Accountability Office examined (1) how competition has changed since 2005 (when GAO last reported on video marketplace competition); (2) the increased choices that consumers have in acquiring video programming and content; and (3) stakeholders' views on how the government's regulations, reports, and other activities have kept pace with changes in the industry. GAO reviewed relevant literature and reports; interviewed agency officials, industry stakeholders, and experts; and analyzed prices and service offerings in 20 randomly sampled zip codes (the prices and services offerings reflect conditions in the 20 zip codes and are not generalizable to all zip codes).

Since GAO reported on competition in 2005, competition among video content producers is little changed, while competition among distributors has increased. According to data cited by the Federal Communications Commission (FCC), seven companies' broadcast and cable networks accounted for about 95 percent of all television viewing hours in the United States. Further, ownership of broadcast and cable networks changed little from 2005 through 2012. Alternatively, the introduction of video service provided by telephone companies, such as Verizon's FiOS service, has brought additional competition to video distribution. At year-end 2010, roughly 1 in 3 households could choose among 4 or more subscription video distributors: typically a cable company, 2 satellite companies, and a telephone company. With technological advances, companies are increasingly distributing video online. Online video distributors (OVD) are developing a variety of business models, including free and subscription-based services. However, online viewing and revenues represent a small portion of overall media viewing hours and revenue.

The GAO recommends that the FCC should study the advantages and disadvantages of different reporting frequencies for its cable industry price and video competition reports and transmit the results of its analysis to Congress.

One Speech, Many Different Approaches

On June 25, President Barack Obama delivered a big speech on the issue of climate change. The speech ended up making clear the filters through which the cable news channels approach a news item.

When the President began speaking shortly after 1:45 PM ET, CNN, MSNBC, Fox News and, yes, The Weather Channel, were carrying the speech. Bloomberg and Fox Business also carried it. Weather, FBN and Bloomberg were the only channels to carry it in full (or in the case of Bloomberg almost full), without talking over the President. The proposals are definitely a big business story, so it is not surprising that FBN and Bloomberg covered (and it is surprising that CNBC chose not to). CNN, MSNBC and Fox News tended to focus on the politics, with MSNBC noting the challenges the President faces, CNN noting that his proposals were “generating controversy” among Republicans and FNC focusing on the politics of climate change, barely touching the proposals.

FCC Technology Transitions Policy Task Force Acting Director Sean Lev Remarks at TIA Network Transition Event

To state the obvious, we are in the midst of a significant shift in the communications landscape. Simply put, these are exciting changes with enormous potential to improve lives.

Among other things, the new technologies can deliver higher quality voice and broadband services to more Americans, at higher speeds and with the increased bandwidth necessary for the essential applications of today and tomorrow. IP-based networks also make it easier to deploy feature-rich next-generation 911 systems and create significant opportunities for individuals with disabilities, for example. At the same time, we are mindful that these developments are disruptive, and there is no guarantee that all of the services consumers and businesses rely on today will continue to be available in the same form, if at all, in the future.

Simply put, these developments have important policy implications. For instance, what is the consumer’s experience when he or she is transitioned from a wireline to a wireless service? Will a consumer be able to reach a 911 call taker as readily and will the 911 system be as reliable as it has been in the past? Will consumers continue to have access to services that we tend to take for granted today, such as alarm monitoring and, especially for small businesses, credit-card confirmation? Will a consumer’s phone work when the power goes out? How will competition in serving small and mid-size businesses be affected if incumbent carriers are no longer offering TDM-based access services? These are just a few of the policy questions that regulators are facing -- and will face -- over the next several years.

Jordan Accused Of Targeting Online Dissent

Jordan's King Abdullah vowed to make the desert kingdom a "free Internet" country as he began his rule more than a decade ago. On June 2, when local Internet providers were ordered to block hundreds of news websites across the kingdom, Web publishers protested the broken promise and international media watchdog organizations charged censorship.

The protests are getting louder in Amman, as websites go dark across the kingdom, more than 300 in all. Government officials say the new law protects citizens against slander and blackmail on unregulated websites. The controversial new requirements include a government license; a member of Jordan's press council on staff, a group that excludes electronic media journalists; and site owners being responsible for all content, including commentary posted in open discussions.

Europe's broadband 25 percent slower than ISPs promise

It's been long known that advertised broadband speeds rarely match up to the reality, but it turns out the disparity across Europe is in the region of 25 percent.

Consumers across the continent get on average three-quarters of the "up to" headline broadband speed advertised by their ISP, according to figures released by the European Commission. The EC survey involved more than 9,000 users in the 27 EU member states, as well as Croatia, Iceland and Norway, in March last year. It found that cable broadband offers the real-world download speeds that are closest to the advertised speeds, at 91.4 percent, while fiber users are likely to get speeds that are 84.4 percent of ISPs' headline speeds. xDSL subscribers however fare the worst, getting speeds around 63.3 percent of their provider's maximum.

June 26, 2013 (NSA; Network neutrality court date; Markey Wins)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, JUNE 26, 2013

Media ownership, Broadband, and the Wheeler FCC on today’s agenda http://benton.org/calendar/2013-06-26/


GOVERNMENT & COMMUNICATIONS
   Senators: NSA must correct inaccurate claims over privacy protections
   Why A Special Congressional Committee Must Be Created To Investigate NSA's Unconstitutional Domestic Spying - analysis [links to web]
   Why ‘I Have Nothing to Hide’ Is the Wrong Way to Think About Surveillance - op-ed [links to web]
   Investment Firms Say Corporate Role in Government Surveillance Programs Raises ‘Serious Concern’ - press release
   Privacy groups skeptical of plan to limit NSA access to data
   New privacy bill aims at reforming FISA and the Patriot Act [links to web]
   Connecting the Dots, Missing the Story - op-ed [links to web]

EMERGENCY COMMUNICATIONS
   Los Angeles is first BTOP grantee to approve FirstNet spectrum-lease pact

INTERNET/BROADBAND
   Judges named, schedule set for network neutrality case
   Google’s other plan to connect the unconnected: satellites
   The 21st Century Killer App: High-Performance Knowledge Exchange - speech
   Data Capped: I Never Thought It Could Happen To Me - editorial [links to web]
   Ruling Could Erode Local Government Control over Broadband, Wireless Rollout - analysis [links to web]
   States Put Heat on Bitcoin [links to web]

WIRELESS/SPECTRUM
   Sprint Shareholders Overwhelmingly Approve Merger Agreement with SoftBank - press release
   FCC Releases More Mobility Funding for 3G/4G Wireless Construction
   Clearwire Deal Is a Lesson in High-Stakes Bidding - analysis [links to web]
   Data Capped: I Never Thought It Could Happen To Me - editorial [links to web]
   Ruling Could Erode Local Government Control over Broadband, Wireless Rollout - analysis [links to web]
   NAB’s Kaplan: FCC Is Ignoring Consequences of Variable Plan [links to web]

UNIVERSAL SERVICE
   FCC Takes Further Steps To Ensure Compliance With Rules Protecting Lifeline Program Against Waste, Fraud and Abuse - press release
   FCC Releases More Mobility Funding for 3G/4G Wireless Construction

CONTENT
   Trade panel acts against patent trolls [links to web]
   US v Apple: A puzzle with a big piece missing - analysis [links to web]
   What Readers Want [links to web]
   States Put Heat on Bitcoin [links to web]

PRIVACY
   Video Game Group Unveils Mobile Privacy Certification Plan
   Website Operators: Be Aware, and Beware, of COPPA - analysis [links to web]
   Study Shows Many iPhone Apps Defy Apple’s Privacy Advice [links to web]

ACCESSIBILITY
   FCC Seeks Comment on Video Description in Video Programming Distributed on Television and on the Internet - public notice

HEALTH
   EHR systems pose serious concerns, groups say [links to web]

COMMUNITY MEDIA
   Younger Americans’ Library Habits and Expectations - research

LABOR
   Minority employment in newsrooms held steady in 2012
   Closing The Tech Industry's Gender Gap Requires Better Data - op-ed [links to web]
   Feds Still Ahead on Telework [links to web]
   Big tech and gay rights have evolved together [links to web]

ADVERTISING
   FTC Consumer Protection Staff Updates Agency's Guidance to Search Engine Industry on the Need to Distinguish Between Advertisements and Search Results - press release
   Election 2016: How Big Data + Social Data Will Determine the Next President [links to web]

POLICYMAKERS
   Rep Markey Wins Special Election for Massachusetts Senate Seat [links to web]
   Senate votes 97-1 to confirm Penny Pritzker to head Commerce [links to web]
   LA mayor-elect aims to put Hollywood center stage [links to web]

COMPANY NEWS
   WSJ, Dow Jones to 'restructure' [links to web]
   AT&T adds two internet of things innovation centers [links to web]
   Losing Ground on Nook, Barnes & Noble Ceases Its Manufacture of Color Versions [links to web]

STORIES FROM ABROAD
   Google gets backing from EU court on search results
   How the world consumes news: Depends on where you live
   The Revolutions Were Tweeted: Information Flows During the 2011 Tunisian and Egyptian Revolutions - research

MORE ONLINE
   Poll Finds Rural Voters Are Divided on Federal Role [links to web]

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GOVERNMENT & COMMUNICATIONS

NSA’S INACCURATE CLAIMS
[SOURCE: The Guardian, AUTHOR: Spencer Ackerman]
Two senators on the intelligence committee accused the National Security Agency of publicly presenting "inaccurate" information about the privacy protections on its surveillance on millions of internet communications. However, in a demonstration of the intense secrecy surrounding NSA surveillance even after Edward Snowden's revelations, the senators claimed they could not publicly identify the allegedly misleading section or sections of a factsheet without compromising classified information. Senators Ron Wyden (D-OR) and Mark Udall (D-CO) wrote to General Keith Alexander, the director of the NSA, to correct "inaccurate" portrayals about restrictions on surveillance published in a factsheet available on the NSA's homepage. The factsheet, concerning NSA's powers under Section 702 of the 2008 FISA Amendments Act, was also supplied to members of Congress. "We were disappointed to see that this factsheet contains an inaccurate statement about how the section 702 authority has been interpreted by the US government," Sens Wyden and Udall wrote to Alexander.
benton.org/node/154493 | Guardian, The
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CORPORATE ROLE IN SURVEILLANCE RAISES CONCERNS
[SOURCE: OpenMic, AUTHOR: Press release]
Citing the potential of “unprecedented and dangerous threats to the privacy of hundreds of millions of people” from government surveillance programs, a group of leading sustainable investment firms has called upon publicly-held U.S. companies to demonstrate leadership by adopting “a pro-active, principled approach to protecting the privacy and rights of their users.” In an open letter to companies, the investors said that while the surveillance programs “stem from a legitimate concern over terrorism and national security - a concern that we share deeply – we believe companies must, not only for commercial reasons, exercise independent, principled and critical judgment in protecting the privacy of their customers and clients consistent with international human rights norms and standards.” Signers of the letter included executives from Boston Common Asset Management, Trillium Asset Management, Clean Yield Asset Management, Newground Social Investment, Zevin Asset Management and Arjuna Capital.
benton.org/node/154476 | OpenMIC
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PRIVACY GROUPS SKEPTICAL
[SOURCE: The Hill, AUTHOR: Jennifer Martinez]
Privacy advocates are skeptical of proposals to restructure a National Security Agency (NSA) surveillance program so phone companies, rather than the spy agency, would retain consumers' phone records. "The acquisition of everyone's telephone call records under Section 215 is illegal and it should be abandoned. If the government tries to require the phone companies to retain the data for five years, we would oppose that strongly because it creates huge privacy risks," said Greg Nojeim, senior counsel at the Center for Democracy and Technology. "One of those risks is that the data, once retained for national security purposes, would almost certainly be made available for law enforcement and other purposes." Amie Stepanovich, director of the Domestic Surveillance Project at the Electronic Privacy Information Center, echoed a similar concern. She noted that phone companies do temporarily keep information on the phone numbers its customers call, the length of those calls and where those calls took place, but the concern rests with "how long the companies are keeping this information."
benton.org/node/154475 | Hill, The
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EMERGENCY COMMUNICATIONS

LOS ANGELES SPECTRUM-LEASE PACT
[SOURCE: Fierce, AUTHOR: Tammy Parker]
The board of the Los Angeles Regional Interoperable Communications System (LA-RICS) last week voted in favor of a 700 MHz spectrum-lease agreement with the First Responder Network Authority (FirstNet). The vote makes LA-RICS the first jurisdiction to approve a FirstNet spectrum-lease pact. LA-RICS was one of seven Broadband Technology Opportunities Program (BTOP) public-safety entities that received a total of $380 million in federal grant funding to build out public-safety LTE networks using 10 MHz of 700 MHz spectrum leased from the Public Safety Spectrum Trust (PSST).
benton.org/node/154465 | Fierce
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INTERNET/BROADBAND

NETWORK NEUTRALITY CASE
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
The DC Circuit Court of Appeals named the three judge panel that will hear Verizon's challenge to the Federal Communications Commission's network neutrality rules. The judges, who were selected randomly, are Clinton appointees Judith Rogers and David Tatel and Reagan appointee Laurence Silberman, a senior judge on the court. The oral argument is set for September 9. Judge Tatel wrote the 2010 opinion which struck down the FCC's previous attempt to enforce the principle of net neutrality against Comcast. In that case, Judge Tatel warned that if the court accepted the FCC's arguments, "it would virtually free the Commission from its congressional tether." "I'd say that bodes rather ill for the FCC," said Berin Szoka, president of the libertarian think tank TechFreedom and an opponent of the rules. But Andy Schwartzman, a media lawyer who favors the rules, said the panel is "pretty good" for the FCC. He admitted that Judge Tatel had some "harsh words" for the FCC in the Comcast decision, but he said the judge left room for the agency to try a different legal approach. Schwartzman argued that all three judges are likely to follow a recent Supreme Court decision in City of Arlington v. FCC, which held that courts should defer to regulatory agencies when the law is ambiguous. "All three of them are of a mindset that is likely to give deference to the government," Schwartzman said. "I could compose a number of panels that would be much less favorable to the commission." He said that Judge Silberman, while a conservative, is a "straight shooter" and a relative moderate on the court.
benton.org/node/154491 | Hill, The
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O3B
[SOURCE: GigaOm, AUTHOR: Kevin Fitchard]
There’s a lot of attention focused on Project Loon, Google’s ambitious and bureaucracy-defying plan to blanket the Earth with internet signals from high-flying balloons. But there are multiple components to its plan to connect the world’s unconnected, and part of that plan is sitting atop a Soyuz rocket on a launch pad in French Guiana. The first four satellites of O3b’s broadband constellation are ready to make their journey into medium-Earth orbit (MEO), where they will project spot beams down to some of the planet’s most poorly connected countries: from Rwanda to tiny Pacific islands. The project certainly isn’t Google’s alone. The search giant is part of a long list of investors and banks that forked over $1.18 billion to fund the startup. The others include satellite giant SES, cable operator Liberty Global, investment bank Allen & Company, North Bridge Venture Partners, Satya Capital, and the Development Bank of South Africa. But Google invested in the O3b Networks right as it was getting started in 2008, showing that its interest in finding alternative forms of broadband isn’t a new thing. You’ve heard lately a lot of references to Google connecting the billions of “others” who don’t enjoy internet privileges. Well, if you hadn’t already guessed, O3b stands for “Other 3 billion.”
benton.org/node/154470 | GigaOm
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HIGH-PERFORMANCE KNOWLEDGE EXCHANGE
[SOURCE: Gig.U, AUTHOR: Blair Levin]
Why a Gig? Why not a hundred Megs? Or 20? Many institutions, particularly in health care, education and research, have already demonstrated the need for greater capacity. Candidly, there’s no killer app. The concept of a killer app, in my opinion, has been overplayed. What makes the Internet great is not the one thing that everyone does, but everything everyone can do.
benton.org/node/154486 | Gig.U
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WIRELESS/SPECTRUM

SPRINT SHAREHOLDERS APPROVE SOFTBANK DEAL
[SOURCE: Sprint, AUTHOR: Press release]
Sprint Nextel shareholders voted to approve and adopt the previously announced merger agreement providing for a substantial investment by SoftBank. Sprint shareholders overwhelmingly approved the deal, with approximately 98 percent of the votes cast at today’s special shareholders meeting voting in favor of the merger agreement, representing approximately 80 percent of Sprint’s outstanding common stock as of April 18, 2013, the record date for the special meeting. Consummation of the Sprint-SoftBank transaction remains subject to the receipt of the Federal Communications Commission approval. The FCC also has to look at Sprint’s own proposed acquisition of Clearwire — which Dish is also bidding for. The FCC declined comment on when it plans to vote on the deal. Clearwire shareholders are expected to vote on July 8. Sprint and SoftBank anticipate the merger will be consummated in early July 2013.
benton.org/node/154479 | Sprint | Wall Street Journal
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UNIVERSAL SERVICE

FCC TAKES FURTHER STEPS TO ENSURE COMPLIANCE WITH RULES PROTECTING LIFELINE PROGRAM AGAINST WASTE, FRAUD AND ABUSE
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission took further steps to ensure that providers participating in the Lifeline program follow rules that protect the program against waste, fraud and abuse. Lifeline provides a discount on phone service for eligible low-income consumers. In an Enforcement Advisory, the Enforcement Bureau reminded providers that they are responsible for the conduct of their agents or representatives marketing the service. The Bureau is concerned that some providers are not taking steps to make certain that their agents follow Lifeline rules, and is investigating possible misconduct on the part of these providers as well as their agents. The Advisory also reminds providers that it is unlawful to sell or transfer Lifeline service to anyone else. In addition, the Wireline Competition Bureau emphasized that providers must verify eligibility of a new
subscriber before initiating service. Despite the directives provided in the Lifeline Reform Order, some ETCs may be activating phones for consumers prior to fully verifying their eligibility.
benton.org/node/154490 | Federal Communications Commission | FCC Enforcement Advisory
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FCC RELEASES MORE MOBILITY FUNDING
[SOURCE: telecompetitor, AUTHOR: Bernie Arnason]
The Federal Communications Commission announced authorization to release additional funds from the $300 million Mobility Fund Phase I auction, which is designed to support the build out of 3G and 4G networks in rural markets. T-Mobile won approximately $23 million in funding and U.S. Cellular received approximately $34.5 million. One third of this funding was authorized for release by the FCC from the Universal Service Fund. The mobility auction, which was a reverse auction, pegged $300 million in funding for wireless network construction in both 3G and 4G variants. The reverse auction awarded funding to the carrier that offered to do the build-out with the smallest level of monetary support. This recent FCC action also awarded $1.8 million to Hardy Cellular of West Virginia and $1.4 million to Powertel/Memphis Inc. Winning bidders had to provide the FCC with a “letter of credit (LOC) and Bankruptcy Code opinion letter from [their] legal counsel,” to gain access to the funding. Construction of 3G networks must be complete within a two year window, with 4G networks gaining one additional year for a total of three to complete.
benton.org/node/154489 | telecompetitor | FCC | FCC | FCC | FCC
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PRIVACY

VIDEO GAME MOBILE PRIVACY CERTIFICATE
[SOURCE: AdWeek, AUTHOR: Katy Bachman]
Just in time for the updates of the Children's Online Privacy Protection (COPPA) law to go into effect, the group that manages privacy self-regulation for the video game industry has expanded its program to cover mobile apps and help companies comply with the Federal Trade Commission's new rules. The Entertainment Software Rating Board is comprised of about 25 participating companies covering thousands of domains. The ESRB has been working on the mobile counterpart to its self-regulatory program for the past nine months in anticipation of the updates to the children's privacy laws, which go into effect July 1. "Privacy protection is an imperative, especially when kids are involved. But achieving compliance with requirements like COPPA can be complicated, particularly for rapidly evolving platforms like mobile," said Dona Fraser, vp of ESRB Privacy Certified (the name of the program). Companies that comply with ESRB Privacy Certified are allowed to display a seal on the game's privacy policy signifying that the mobile app complies with mobile privacy standards and best practices.
benton.org/node/154471 | AdWeek
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ACCESSIBILITY

FCC SEEKS COMMENT ON VIDEO DESCRIPTION IN VIDEO PROGRAMMING DISTRIBUTED ON TELEVISION AND ON THE INTERNET
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
The Federal Communications Commission’s Media Bureau seeks comment on video description of video programming that is delivered via both television and the Internet. Pursuant to the Twenty-First Century Communications and Video Accessibility Act of 2010 (“CVAA”), the FCC released a Report and Order on August 25, 2011 reinstating the video description rules previously vacated by the U.S. Court of Appeals for the District of Columbia Circuit. Under the reinstated rules, certain television broadcast stations and MVPDs have an obligation to provide video description for a portion of the video programming that they offer to consumers. Video description is “[t]he insertion of audio narrated descriptions of a television program’s key visual elements into natural pauses between the program’s dialogue.” It makes video programming accessible to individuals who are blind or visually impaired. The Media Bureau seeks comment on specific inquiries related to video description in video programming that is delivered via both television and the Internet, as the CVAA requires. The comments received in response to these inquiries will inform a report to Congress required by the CVAA on the status, benefits, and costs of video description on television and Internet-provided video programming, which must be completed no later than July 1, 2014.
benton.org/node/154488 | Federal Communications Commission
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COMMUNITY MEDIA

LIBRARY HABITS
[SOURCE: Pew Internet and American Life Project, AUTHOR: Kathryn Zickuhr, Lee Rainie, Kristen Purcell]
Younger Americans—those ages 16-29—exhibit a fascinating mix of habits and preferences when it comes to reading, libraries, and technology. Almost all Americans under age 30 are online, and they are more likely than older patrons to use libraries’ computer and internet connections; however, they are also still closely bound to print, as three-quarters (75%) of younger Americans say they have read at least one book in print in the past year, compared with 64% of adults ages 30 and older. Similarly, younger Americans’ library usage reflect a blend of traditional and technological services. Americans under age 30 are just as likely as older adults to visit the library, and once there they borrow print books and browse the shelves at similar rates. Large majorities of those under age 30 say it is “very important” for libraries to have librarians as well as books for borrowing, and relatively few think that libraries should automate most library services, move most services online, or move print books out of public areas. At the same time, younger library visitors are more likely than older patrons to access the library’s internet or computers or use the library’s research resources, such as databases.
benton.org/node/154496 | Pew Internet and American Life Project
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LABOR

NEWSROOM EMPLOYMENT SURVEY
[SOURCE: Poynter Institute, AUTHOR: Andrew Beaujon]
Minority employees make up 12.37 percent of all newsroom employees in this year’s American Society of News Editors newsroom census, up ever so slightly from last year’s 12.32 percent. ASNE counted 4,700 minorities overall, compared with 5,000 last year. The reason that a decline in the number of jobs held by minorities actually counts as a small increase in their representation in newsrooms? It’s that minority employment declined at almost exactly the same rate as overall employment in newsrooms. As in previous years, while many online-only news organizations answered the survey, The Huffington Post, Politico and Patch weren’t among them. Some of the bigger digital outlets that did respond had higher percentages of minorities than the industry average: 13.3 percent at SeattlePI.com, 15.2 percent at ProPublica, 34.6 percent at California Watch, for example.
benton.org/node/154483 | Poynter Institute
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ADVERTISING

SEARCH ENGINE GUIDANCE
[SOURCE: Federal Trade Commission, AUTHOR: Press release]
In an ongoing effort to ensure that its guidance for online advertisers stays current with changes in digital media, the Federal Trade Commission’s consumer protection staff sent letters to search engine companies to update guidance published in 2002 on distinguishing paid search results and other forms of advertising from natural search results. The letters note that in recent years, paid search results have become less distinguishable as advertising, and the FTC is urging the search industry to make sure the distinction is clear. The letters are the latest example of the FTC’s work to update its guidance for digital advertisers, which also includes recent updates to the Dot Com Disclosures and Endorsements and Testimonials Guides. The letters also respond to requests from industry and consumer organizations to update the 2002 guidance. According to both the FTC staff’s original search engine guidance and the updated guidance, failing to clearly and prominently distinguish advertising from natural search results could be a deceptive practice. The updated guidance emphasizes the need for visual cues, labels, or other techniques to effectively distinguish advertisements, in order to avoid misleading consumers, and it makes recommendations for ensuring that disclosures commonly used to identify advertising are noticeable and understandable to consumers. The letters note that the principles of the original guidance still apply, even as search and the business of search continue to evolve. The letters observe that social media, mobile apps, voice assistants on mobile devices, and specialized search results that are integrated into general search results offer consumers new ways of getting information. The guidance advises that regardless of the precise form that search takes now or in the future, paid search results and other forms of advertising should be clearly distinguishable from natural search results. The updated guidance has been sent to the general-purpose search engines AOL, Ask.com, Bing, Blekko, DuckDuckGo, Google, and Yahoo!, as well as 17 of the most heavily trafficked search engines that specialize in the areas of shopping, travel, and local business, and that display advertisements to consumers.
benton.org/node/154487 | Federal Trade Commission | FTC blog | The Hill | AdWeek
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STORIES FROM ABROAD

GOOGLE DECISION
[SOURCE: Financial Times, AUTHOR: James Fontanella-Khan]
Google will not have to remove personal data appearing on its search engine, an adviser to the European Union’s top court said in a decision that could save the US group from a wave of lawsuits demanding the removal of harmful content. The decision is set to play a key role in the court’s final ruling later this year. Google’s case is seen as a test for whether online search engines are merely content hosts, or whether they are publishers responsible for the information contained in the search results they present to users. This case is closely watched by leading US tech companies such as Microsoft and Yahoo, whose search businesses could potentially be heavily affected by an unfavorable court ruling.
benton.org/node/154494 | Financial Times
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HOW THE WORLD CONSUMES THE NEWS
[SOURCE: American Public Media, AUTHOR: Chau Tu]
Digital consumption of news is increasing all over the world, thanks to a rising usage of tablets and social media. People are still getting news through TV and newspapers, but mobile devices are expanding where and when people can access media. A survey conducted online earlier this year by Oxford's Reuters Institute for the Study of Journalism asked people in countries including the U.S., Germany, Spain, Japan, Brazil and Denmark about their news consuming habits. Here are some key findings:
News consumption on tablets increased by nearly doubled over the course of 10 months from 2012-2013.
Denmark has the largest percentage of news usage on smartphones, at 43 percent.
Close to 33 percent of all users around the world now get their news on at least two digital devices.
Still, technology is not erasing other ways of getting news: 81 percent of tablet users around the world still watch TV news; 49 percent read the newspaper; and 43 percent listen to radio news.
Out of all the countries, Brazil has the highest percentage of online consumers -- 90 percent -- and 53 percent choose the Internet as their preferred way of getting news. Meanwhile, more than half of the French consumers still prefer TV, as opposed to 23 percent who choose online.
Half of the world still pays for a newspaper every week -- but only 5 percent pay for digital news weekly.
Sixty percent in Brazil say their main source of finding news online is through social media, like Facebook posts. That is 30 percent in the U.S.
The top three online brands consumed in the U.S. (in order): Yahoo, Fox News, Huffington Post.
Overall, Germans and the Japanese are the least likely to share and participate in news online.
benton.org/node/154501 | American Public Media | Reuters Institute for the Study of Journalism
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THE REVOLUTIONS WERE TWEETED
[SOURCE: International Journal of Communication, AUTHOR: Mike Ananny, danah boyd, Devin Gaffney, Erhardt Graeff , Gilad Lotan, Ian Pearce]
This article examines how information spreads from various actors’ Tweets during the revolutions in Egypt and Tunisia by following the information flows (tracing each step in how the story is shared) of similar stories.
Hashtags (using ‘#’ before a string of text) are used on Twitter as shorthand for specific news events, and the events can be cataloged by following the hashtags.
Examining how often various types of actors (news organizations, bloggers, companies, activists, and individuals) post content, and how often their posts are re-posted by other actors helps us to understand how news spreads.
Mainstream news media relate to, rely upon, and distinguish themselves from individuals posting on Twitter during fast-breaking events.
Individuals can influence and co-construct the news traditionally produced by mainstream broadcasters using social media such as Twitter.
Roughly 70% of the actors Tweeting about the Tunisian and Egyptian revolutions were individuals.
Organized Twitter accounts such as mainstream media’s and web news organizations’ stories were shared more frequently than individual’s stories.
People directly connected to an incident want to know about dangerous conditions and the safety of friends and loved ones.
Mainstream media want to learn about events on the ground in order to provide up-to-date coverage.
General interest readers want to know about events as they happen.
benton.org/node/154484 | International Journal of Communication
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Rep Markey Wins Special Election for Massachusetts Senate Seat

Representative Edward J. Markey (D-MA), a Democrat who has toiled for almost 40 years in the House in both the majority and minority, won a promotion to the Senate in a victory over Gabriel Gomez, a Republican who has never served in elective office.

With almost all precincts reporting, Rep Markey had won 55 percent of the vote to Gomez’s 45 percent. Markey’s win came as a surprise to no one. Every poll in the state showed him leading Gomez, though by varying margins, since the primaries ended two months ago. Markey’s biggest advantage was that his views were in line with those of most voters in deep blue Massachusetts. With a much bigger war chest, which he used to flood the airwaves with ads, he campaigned consistently on his support for abortion rights and a ban on assault weapons and reminded voters constantly that Gomez opposed both. Rep Markey, 66, succeeds John Kerry, who stepped down this year to become secretary of state, and he will provide a reliable vote for President Obama’s agenda, which seemed to be just what voters wanted.

Election 2016: How Big Data + Social Data Will Determine the Next President

[Commentary] As our nation ramps up for 2016, the role of big data + social data in influencing election decisions cannot be ignored.

Social data drove the 2008 presidential elections and big data drove the 2012 election. In 2016 it will be the marriage of the two that will determine the next President of the United States. Big data algorithms allow advertisers and political managers to better target consumers online based on their social interactions across the Web and on Facebook. It uses this important social data, along with mobile geolocation data and CRM data, to fuel display ad campaigns delivered online, via mobile, video and Facebook. Social data is fundamentally changing how advertisers approach the art of marketing. Now, we can track pretty much anything online — our campaign decisions are influenced by factors that extend far beyond the impression and conversion metrics that permeated the ad industry just five years ago.

This data-centric shift in advertising has enabled political parties to hone campaign approaches toward predicting outcomes and undeniably, it is this elegant blend of social data, big data, and targeting that will determine the 2016 Commander-In-Chief.

[Chahal is CEO of RadiumOne]

States Put Heat on Bitcoin

State regulators are warning virtual-currency exchanges and other companies that deal with bitcoin that they could be closed down if their activities run afoul of state money-transmission laws, according to people familiar with the matter.

Banking regulators in California, New York and Virginia in recent weeks have issued letters telling the companies that they need to follow the state rules or prove that the rules don't apply to them. The warnings fall short of formal "cease and desist" orders, which would demand that the companies immediately stop engaging in their business, these people said. Still, the moves show that state regulators have moved beyond merely scrutinizing virtual currencies and now are taking steps to prevent people and companies from using them for illegal activities. Federal regulators already are cracking down on virtual currencies.

Kaplan: FCC Is Ignoring Consequences of Variable Plan

Rick Kaplan, EVP of strategic planning for the National Association of Broadcasters, said that the Federal Communications Commission staff is ignoring the interference consequences of their proposed variable band plan.

"The staff steadfastly refuses to study the issue with any rigor, model it or even ask a single question about it," he said in a blog posting. FCC Wireless Bureau Chief Ruth Milkman blogged last week that broadcasters are misrepresenting their own proposal as a consensus plan, and that variability is key to a successful auction. But Kaplan, himself a former FCC Wireless Bureau chief, suggests that the FCC is confusing unanimity with consensus. "Have we found unanimity? Of course not. To be clear; reaching consensus is not the same thing as unanimity," he says. "Certainly everyone doesn't have to agree for a general consensus to emerge. Our work has moved the ball far down the field on typically contentious issues. And we believe strongly that the Commission staff should have adopted, and should be adopting, a get in the room together’ approach so we can achieve an expeditious and successful conclusion to the pre-auction process." He says industry players have been filling the void left by the FCC's failure to drive consensus.