January 2014

Privacy groups that have pushed for controls on commercial use of consumer data see an opening as President Barack Obama tackles government surveillance reform -- and they’re hoping to hear more in the State of the Union address.

“I do think he has the opportunity to say something proactive in support of privacy, because as he himself said, you know, it’s not just about the [National Security Agency],” said Marc Rotenberg, executive director of the Electronic Privacy Information Center, about the State of the Union speech. The president’s newly expressed interest in commercial privacy is a welcome development for groups that have pressed the administration for years to tighten rules on how companies handle sensitive consumer data.

[Commentary] When Hollywood's self-declared auteurs and artistes denounce propaganda as the enemy of art, almost invariably what they really mean is "propaganda we don't like."

In the book, "Prime Time Propaganda," author Ben Shapiro quotes many TV producers boasting about blacklisting conservative actors and shilling for liberal issues. As Shapiro notes, perhaps no figure was more upfront -- or successful -- at yoking art to political proselytizing than Norman Lear, the creator of "All in the Family," "The Jeffersons" and other shows.

Which is fitting. Last fall, the California Endowment, which is spending millions to promote the Affordable Care Act, gave $500,000 to the Norman Lear Center at USC to work on ways to get Hollywood to do its part. In February, the center will cosponsor with the Writer's Guild of America an event in New York titled "The Affordable Care Act: Comedy, Drama & Reality," about portraying Obamacare in TV and film. The Obama administration, naturally, will be sending an emissary to help. It's doubtful this will have any significant effect. The rollout has made its impression and the changes wrought by Obamacare in the individual lives of millions of Americans won't be erased by a very special episode of "The Big Bang Theory." But it's a useful reminder that Hollywood is always eager to lend its services -- for the right president.

Big profits in online news may be as scarce as buried gold but that isn't deterring journalists and investors from rushing into the sector.

In the past few months, about a dozen companies have announced new ventures related to online news, often in specialized areas such as media or technology. "It's becoming a very crowded market," said Neil Doshi, an Internet analyst at CRT Capital. "There is a bubble mentality occurring right now." The new publishers are confident in their prospects, citing increased Internet usage and marketers' desire to reach highly targeted audiences through niche content sites and new forms of digital advertising. But ad buyers and industry executives say the proliferation of new sites and automation in ad sales is driving down advertising pricing -- by as much as 70% in some cases -- making it tougher for sites to turn a profit from traditional online advertising. More news sites means more ad space is available.

AT&T hasn’t hung up on its European ambitions, but the carrier may have good reason to wait, if it bids at all for UK-based Vodafone.

AT&T was never anticipated to make a move until after the closure of Verizon Communications' deal to buy the rest of Verizon Wireless from Vodafone. That deal isn't expected to close until Feb. 21, provided Verizon shareholders approve it. In other words, AT&T seemingly had no choice but to say it wasn't interested. According to UK takeover laws, AT&T can't bid for Vodafone for six months, except under certain conditions. These include a bid backed by Vodafone's board, which could be feasible within the six-month time frame. Getting a bid done earlier would help AT&T avoid the risk of interest rates climbing before it raises debt to finance a deal. And delaying has its advantages.

Waiting six months takes AT&T beyond the European parliamentary elections in May, which is also the deadline for a package of telecom-reform measures the European Commission is considering, according to Citigroup. Holding off also likely gets AT&T past a decision by regulators over whether to allow consolidation in the German wireless market, a crucial test case for the European telecom market. If these break in AT&T's favor, it might help boost the rationale for a deal that would come with few apparent synergies.