Benton's Communications-related Headlines for 10/19/04

FCC Commissioner Michael Copps and Congressman Maurice Hinchey (D-NY) will=
=20
appear at a public forum on media ownership today at Ithaca College. For=20
upcoming media policy events, see http://www.benton.org/calendar.htm

TV & ELECTIONS
Sinclair Fires Journalist After Critical Comments
Pro-Kerry Vets Group Demands Equal Time
Sinclair Broadcasting Takes a Beating
Election Ad Buys Reveal A Tale of 2 (TV) Cities
Viacom Blocking Independent Political Ads

MEDIA
Bill Could Cost EchoStar $100M
Group Asks Max Fine for Earnhardt Expletive
NCTA: Cable Protected from Violence Regs

QUICKLY
Calling for a Regulatory Overhaul, Bit by Bit
Bells Play Hardball With Numbers
The Texas Broadband Follies
Cisneros Affiliate Sues News Corp., DirecTV Over Deal
Web Radio Gets $1.7 Billion Boost
Hollywood's New Director
TV: Saving One Life at a Time

TV & ELECTIONS

SINCLAIR FIRES JOURNALIST AFTER CRITICAL COMMENTS
Sinclair on Monday fired its Washington bureau chief, Jon Leiberman, after=
=20
the newsman publicly protested plans for a program about Sen. John F.=20
Kerry's anti-Vietnam War activities that is scheduled to run this week on=20
about 60 Sinclair-owned stations. Leiberman, who started at the Sinclair=20
Washington bureau more than a year ago, said he told his supervisor Sunday=
=20
that "as an objective journalist, I can't be part of this program and I=20
won't be a part of this program," adding: "We work too hard for credibility=
=20
in this business." He said that he wasn't protesting Sinclair's decision to=
=20
air the program -- just its plan to label it as news. "I would have=20
preferred that they did it in the context of an editorial or a commentary=20
or a programming special, but to call this news and to put this under the=20
guise of a news program, in my opinion, is wrong," he said. Leiberman also=
=20
said, in an interview on CNN, that "I feel that our company is trying to=20
sway this election" in favor of President Bush. Before he was fired,=20
Leiberman said he was speaking out because at Sinclair, "there is such a=20
big influence in the newsroom from editorial and higher-ups in the=20
company=85. My hope at the end of the day is that this just wakes up some=20
people in our company and we just do a better job at being fair, that what=
=20
we call news is news, what we call commentary is commentary." Leiberman=20
also indicated that a meeting at Sinclair over the weekend was the first=20
time the company's news staff was involved in the program. Sinclair=20
executives told news employees that the ad-free broadcast would probably=20
now include about 15 minutes of "Stolen Honor," as well as several news=20
pieces about the controversy, the Vietnam-era military service of Sen Kerry=
=20
and President Bush, and why voters should care the about 30-year-old=20
events. The program, which isn't scheduled to be finished until just before=
=20
some Sinclair stations begin to air it Thursday, might also include=20
portions of a sympathetic film about Kerry's Vietnam years, "Going Upriver:=
=20
The Long War of John Kerry."
[SOURCE: Los Angeles Times, AUTHOR:Elizabeth Jensen]
http://www.latimes.com/news/printedition/asection/la-na-sinclair19oct19,...
9075.story?coll=3Dla-news-a_section
(requires registration)

PRO-KERRY VETS GROUP DEMANDS EQUAL TIME
The Veterans Institute for Security and Democracy said Sinclair should not=
=20
force any of its 62 stations to air a documentary criticizing John Kerry=92s=
=20
Vietnam War protests, and it is demanding that any station that airs it=20
give equal time for a film lauding his military service in Vietnam. "Fair=20
use of the airwaves is essential to the democratic process,=94 wrote retired=
=20
Air Force Col. Richard Klass, president of the institute, =93and partisan=
use=20
by a broadcaster without presenting both sides or a contending view is=20
unfair, undemocratic and un-American.=94 Sinclair should ensure that any=20
station airing Stolen Honor should also broadcast a similar-length version=
=20
of Going up River in the same timeslot within two days. If Stolen Honor is=
=20
paid programming funded by a sponsor, then Going up River should have the=20
opportunity to pay a similar rate, as long as the price is within normal=20
commercial range. Airing of the programs should be followed by a =93balanced=
=94=20
panel discussion among Vietnam veterans, Klass insisted in a letter to=20
Sinclair CEO David Smith. Klass previously has criticized President Bush=92s=
=20
National Guard Service at press conferences sponsored by the Democratic=20
National Committee. As of deadline Monday, Sinclair had not responded to=20
the requests.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA472807.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

SINCLAIR BROADCASTING TAKES A BEATING
Wall Street continues to punish Sinclair for its decision to air "Stolen=20
Honor" on the company's 62 TV stations. Shares closed Monday at $6.49, down=
=20
55 cents since Friday -- and down 12% since Oct. 11, the first day of=20
trading after the Los Angeles Times disclosed Sinclair's plans. But that's=
=20
not Sinclair's only business problem -- nor its only experience with=20
controversy. 1) Since 2002 Sinclair has produced and distributed costly=20
news and mostly conservative-opinion segments, called News Central, about=20
national and international affairs for stations' local newscasts. While=20
Sinclair describes the package as a cheaper way to offer news, analysts=20
question why its small stations need to air news at all. 2) Sinclair has=20
blamed the war in Iraq for $2.2 million in lost ad revenue. The conflict=20
prompted advertisers to cancel or forced stations to pre-empt ads for news.=
=20
3) By opposing the transition to digital TV, critics say, Sinclair put its=
=20
interests ahead of the country's, and angered regulators, by trying to put=
=20
off the expense of converting to digital TV. 4) Sinclair has an ongoing=20
battle with Jesse Jackson's Rainbow/PUSH Coalition which has asked the FCC=
=20
to rescind some Sinclair station licenses and keep it from buying more. The=
=20
group says Sinclair used a minority-run company it controls to improperly=20
create duopolies -- ownership of two TV stations in a market in cities such=
=20
as Oklahoma City and Dayton.
[SOURCE: USAToday, AUTHOR: David Lieberman and James Cox]
http://www.usatoday.com/printedition/money/20041019/sinclair19.art.htm

ELECTION AD BUYS REVEAL A TALE OF 2 (TV) CITIES
While voters in about a dozen swing states are being ardently wooed with TV=
=20
ads, the rest of America is going mostly ignored. Only 27% of the U.S.=20
electorate lives in television markets airing presidential campaign spots,=
=20
according to the joint Nielsen Monitor-Plus and University of Wisconsin=20
Advertising Project. This article looks at the difference between the=20
Hearst-owned NBC affiliates. Both have the top-rated local news programs.=20
The one in Harrisburg (PA) can hardly accommodate all the requests for=20
national political ads. The one in Baltimore has had almost no political ad=
=20
buys at all. Hearst-Argyle imposes voluntary company-wide minimums for=20
political coverage airtime: at least one segment per each day on its major=
=20
newscast, and additional issue-oriented features in the final month leading=
=20
up to the election. That policy has presented a challenge for the Baltimore=
=20
station due to the sheer lack of local presidential campaign activity. To=20
fill the gap, the station has been offering factual analysis of claims made=
=20
by the candidates in debates and has woven contentious political ads into=20
its own news segments.
[SOURCE: Wall Street Journal, AUTHOR: Jeanne Cummings=20
jeanne.cummings( at )wsj.com ]
http://online.wsj.com/article/0,,SB109813187699448373,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

VIACOM BLOCKING INDEPENDENT POLITICAL ADS
Viacom has rejected ads on its cable networks from Compare Decide Vote. The=
=20
group produced ads comparing the presidential candidates' policy positions=
=20
on issues
important to young people. "The reason behind our policy distinction=20
between issue-ads and political campaign ads is simply that across all our=
=20
properties, we talk about these issues every day," explained a Viacom=20
spokesperson. FAIR writes that Viacom's position that its own take on the=20
election issues is sufficient is arrogant and presumptuous, particularly=20
given that Viacom has a near-monopoly on media outlets that appeal=20
primarily to young voters, like MTV and Comedy Central. This censorious=20
policy is one that should be reversed. The Action Alert ends with a request=
=20
to readers to leave a polite message about the company's advertising policy=
=20
for Viacom Chairman & CEO at 800-421-0245.
[SOURCE: FAIR Action Alert]
http://www.fair.org
For background information from Compare Decide Vote, see:
www.comparedecidevote.com/viacom/issue.htm

MEDIA

BILL COULD COST ECHOSTAR $100M
Last week, the House passed legislation (HR 4518) that would require=20
EchoStar to stop forcing subscribers in 38 markets to obtain a second dish=
=20
in order to receive all their local analog TV stations. Financial analysts=
=20
are estimating the bill, if it become law, could cost the company up to=20
$100 and may mean the end local broadcasts via satellite in 12 local=20
markets. For broadcasters, the one-dish rule was a key objective. The=20
National Association of Broadcasters complained that EchoStar relegated=20
religious and minority TV stations to the second dish, believing that=20
consumers would not take the trouble to hook up a second dish when ABC,=20
NBC, CBS and Fox affiliates were available via the main one. Congress is=20
facing a deadline to complete work on the bill. The distant network and=20
superstation licenses expire on Dec. 31, 2004. If Congress fails to extend=
=20
the copyright licenses, about 2 million satellite subscribers would lose=20
access to network programming and superstations.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA472409.html?display=3DPolicy
(requires subscription)

GROUP ASKS MAX FINE FOR EARNHARDT EXPLETIVE
The Parents Television Council has filed a complaint with the FCC over Dale=
=20
Earnhardt Jr.=92s use of a four-letter word after winning the Oct. 3 EA=20
Sports 500 in Alabama. =93NBC knows that NASCAR has a huge family audience,=
=94=20
says PTC President L. Brent Bozell. =93After the fact, NBC announced they=20
would be putting all future NASCAR race coverage on a five-second tape=20
delay. But frankly, NBC should have taken this action long before the=20
Earnhardt incident, especially given NBC=92s past problems with indecent=20
language during live broadcasts, including Bono=92s utterance of the f-word=
=20
during the 2003 Golden Globe Awards. Because NBC failed to impose a=20
five-second delay on the broadcast, PTC is asking the FCC to impose the=20
$27,500 maximum fine permitted for a single infraction rather than the=20
standard $7,000 penalty an indecency violation garners. PTC is also calling=
=20
for Congress to pass legislation that would increase the amount of maximum=
=20
fines for airing indecent content.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA472801.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
More coverage in --
TVWeek
http://www.tvweek.com/news.cms?newsId=3D6540

NCTA: CABLE PROTECTED FROM VIOLENCE REGS
Cable TV content might be violent, but there's nothing Congress or the FCC=
=20
can do about it, the National Cable & Telecommunications Association said=20
in a filing to the FCC. Regulation of TV violence, the NCTA said, would=20
involve content-based restrictions, which the courts have said must pass=20
the highest level of scrutiny. A federal law would encounter problems=20
because it would have difficulty defining violence in the first instance=20
and even more difficulty distinguishing harmful violence from benign=20
violence, the lobbying group added.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA472702.html?display=3DBreaking+News
(requires subscription)

QUICKLY

CALLING FOR A REGULATORY OVERHAUL, BIT BY BIT
[Commentary] There is an emerging consensus among policymakers that the=20
radical changes in technology and in the marketplace mean that it is time=20
for a substantial revision of our nation's communications laws. The new=20
competitive environment demands a new deregulatory communications policy to=
=20
replace the existing paradigm with its built-in regulatory bias. The policy=
=20
framework embodied in our existing communications laws is often called=20
"stovepipe" regulation. This is because there are distinct technology-based=
=20
and functionally driven regulations that apply in a disparate fashion,=20
depending on whether different services are classified as=20
telecommunications, information services, cable, satellite or broadcast.=20
Imagine each distinct service classification as a vertical stovepipe.=20
Everybody knows the old saw: "A bit is a bit is a bit." The reality is that=
=20
we now inhabit an increasingly digital world in which it is impossible to=20
distinguish bits carrying "voice" (telecommunications) from bits carrying=20
"data" (information services) or "video" (cable or broadcasting). The=20
policy framework embodied in our existing communications laws is often=20
called "stovepipe" regulation. In an environment in which technological=20
change enables companies regulated under one "stovepipe" to invade the turf=
=20
of companies regulated under another, it's time to tear down the existing=20
regulatory paradigm and replace it with a new model attuned to today's=20
marketplace realities. When Congress turns to revising our communications=20
laws it should incorporate a strong presumption that the economic=20
regulation that characterizes today's networks is unnecessary. Before=20
imposing regulation, regulators would be required to overcome the built-in=
=20
deregulatory presumption of competitiveness by clear and convincing=
evidence.
[SOURCE: C-Net|News.com, AUTHOR: Randolph J. May]
http://news.com.com/2010-1028-5415778.html

BELLS PLAY HARDBALL WITH NUMBERS
Cable giant Time Warner is accusing the Baby Bells of frustrating phone=20
competition by refusing to transfer existing phone numbers when customers=20
want to switch local phone carriers but retain high-speed data service.=20
Time Warner has told the FCC that the problem is especially pronounced in=20
situations where customers that already subscribe to a Bell's local phone=20
service and digital-subscriber-line Internet access decide to sign up for a=
=20
new local phone provider. Time Warner told the FCC that the Bell won't=20
transfer the phone number, as normally required under FCC=20
number-portability rules, unless the consumer cancels both the phone and=20
DSL service at the same time. Time Warner=92s overarching point was that=20
forcing a customer to drop DSL reduces interest in finding another local=20
phone-service provider, especially one that has to assign the customer a=20
new phone number. Phone number retention is considered especially important=
=20
for small businesses.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA472590.html?display=3DTop+Stories
(requires subscription)

THE TEXAS BROADBAND FOLLIES
[Commentary] Did Tom DeLay pull some strings to secure Department of=20
Agriculture loans to wire wealthy communities in his Texas district?=20
There's no evidence of that yet, but the alternative explanation for why=20
the communities got the funds isn't much better: Bush's plan for expanded=20
broadband access isn't working. According to a USDA official, the agency is=
=20
having a hard time finding people to take the $2.2 billion in funding=20
available this year. That's why a bunch of ritzy suburban developments are=
=20
getting money that was supposed to be earmarked for genuinely rural areas=20
-- they asked, and nobody else was standing ahead of them in line. If=20
that's true, it's time for some serious rethinking of federal broadband=20
policy. The program, passed as part of a farm support bill in 2002,=20
provides low-interest loans to private companies building networks in=20
communities with less than 20,000 people. It requires recipients to invest=
=20
their own money as well and to have real, potentially sustainable business=
=20
plans in place.
[SOURCE: C-Net|News.com, AUTHOR: John Borland]
http://news.com.com/The+Texas+broadband+follies/2010-1028_3-5416297.html

CISNEROS AFFILIATE SUES NEWS CORP., DIRECTV OVER DEAL
There's a growing debate on Wall Street about whether News Corp.'s strategy=
=20
for DirecTV is in the satellite firm's best interests. Since the media=20
conglomerate bought a 34% stake in DirecTV last December, acquiring=20
effective control, a new management team at DirecTV has aggressively ramped=
=20
up spending to try to boost DirecTV's subscriber count. That provides an=20
immediate benefit to News Corp., analysts say, which is planning to launch=
=20
new TV channels on DirecTV. But it has hurt DirecTV's bottom-line=20
performance, although analysts acknowledge it will benefit DirecTV=20
eventually. An affiliate of Venezuela's Cisneros Group filed suit against=20
News Corp. and its partly owned U.S. satellite arm, DirecTV Group, seeking=
=20
to block consolidation of Latin American satellite interests owned by News=
=20
Corp. and DirecTV. The Cisneros affiliate, which owns a 14% stake in=20
DirecTV's Latin American arm, alleged in the suit that a deal announced=20
last week grossly undervalued DirecTV's Latin American assets on terms that=
=20
benefited News Corp. and its partners in a competing Latin American=20
satellite service. Cisneros alleged in the suit that a J.P. Morgan=20
valuation used by DirecTV in discussions with its board put a $217 million=
=20
value on DirecTV Latin America, drastically below other valuations -- that=
=20
ranged from $1 billion to $1.9 billion -- on the same assets. According to=
=20
the suit, J.P. Morgan was "instructed to assume that DirecTV Latin=20
America's Mexico and Brazil operations had no value."
[SOURCE: Wall Street Journal, AUTHOR: Martin Peers martin.peers( at )wsj.com]
http://online.wsj.com/article/0,,SB109813705950348547,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

WEB RADIO GETS $1.7 BILLION BOOST
The American Society of Composers, Authors and Publishers announced=20
Monday that it has reached a $1.7 billion deal with the Radio Music License=
=20
Committee to let stations legally stream their on-air content over the=20
Internet. The deal covers 12,000 radio stations, over 7.5 million=20
copyrighted titles and runs through 2009.
[SOURCE: C-Net|News.com, AUTHOR: Matt Hines ]
http://news.com.com/Web+radio+gets+1.7+billion+boost/2100-1026_3-5414725...
l?tag=3Dnefd.top

HOLLYWOOD'S NEW DIRECTOR
An interview with Dan Glickman, the new head of the Motion Picture=20
Association of America. He's a former Member of Congress and served for six=
=20
years as the Secretary of Agriculture in the Clinton Administration.
[SOURCE: C-Net|News.com, AUTHOR: Ina Fried]
http://news.com.com/Hollywoods+new+director/2008-1026_3-5415149.html

TV: SAVING ONE LIFE AT A TIME
On Oct. 2, a contingent of police, civil air patrol and search-and-rescue=20
personnel responded to an international distress signal picked up by=20
satellite and routed to the Air Force Rescue Center at Langley Air Force=20
Base in Virginia. They expected to find a boat or small plane with a=20
malfunctioning transponder. Instead they found a college student watching=20
his new Toshiba flat-screen television. "They'd never seen a signal come=20
that strong from a home appliance," said the student quite surprised. I=20
think we all were." The situation grew serious when the student was told to=
=20
keep his TV off to avoid paying a $10,000 fine for "willingly broadcasting=
=20
a false distress signal." Luckily, Toshiba contacted van Rossmann and=20
offered to provide him with a free replacement set.
http://www.washingtonpost.com/wp-dyn/articles/A43211-2004Oct18.html
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------