Benton's Communications-related Headlines for 1/13/05

For upcoming media policy events, see http://www.benton.org/calendar.htm

MEDIA & POLITICS
Apologize
What's Ailing CBS News? Let's Make a Not-So-Little List
The 'Media Party' is Over

ADVERTISING
Kraft Limits on Kids' Ads May Cheese Off Rivals
Clear Channel Ad Cutback Has Little Impact - Analysts
Advertisers on Google Are Told to Keep It Proper

WIRELESS
Cellphone Users Sue, Saying Carrier Cut Phone's Features
Child-Cellphone Warning Stirs Debate
For Wireless, the Beginnings of a Breakout
Most Travelers Want to Keep In-flight Cellphone Ban

QUICKLY -- Media Companies Focus On Deals; Commerce Chief in China; Cable
Keeps Fighting New Box Rules; Brian Dietz Promoted at NCTA; DC Radio
Station Changes Format to Spanish; Broadband in Rural America; Power Line
Broadband Puts Radio Hams at Risk; Shelton Named House Commerce Counsel;
FCC's Consumer Advisory Committee Deadline Approaching; Hispanic
Information and Telecommunications Network Application Dismissed

MEDIA & POLITICS

APOLOGIZE
[Editorial] Since the USA Today revealed that the Education Department paid
a television pundit to give favorable coverage to the Bush administration's
education policy, the pundit, Armstrong Williams, has had his credibility
damaged and his newspaper column canceled. He's unlikely to even begin
regaining any credibility unless he returns the $241,000 of taxpayers'
money that the department, through a consulting firm, paid him to promote
the No Child Left Behind law. But the Department of Education has yet to
acknowledge anything wrong with government payments to journalists, let
alone apologize. It is refusing to comment and still appears to be under
the impression that paying journalists is a "straightforward distribution
of information."
[SOURCE: Washington Post, AUTHOR: WP Editorial Staff]
http://www.washingtonpost.com/wp-dyn/articles/A5297-2005Jan12.html
(requires registration)
George Will wrote a column, No Ad Left Behind, for the Post criticizing the
Dept of Ed:
http://www.washingtonpost.com/wp-dyn/articles/A5313-2005Jan12.html
(requires registration)

WHAT'S AILING CBS NEWS? LET'S MAKE A NOT-SO-SHORT LIST
[Commentary] The problems with CBS News? No audience, no morale, no
long-term emblematic anchorperson and no cohesive management structure. But
Sauter is struck by how the network had become representative of a far
larger, far more troubling problem: A large swath of the society doesn't
trust the news media. And for many, it's even stronger than that: They
abhor the media and perceive it as an escalating threat to the society. An
English-style partisanship is burgeoning on the tube. Don't like those libs
on CBS News? Go to the conservatives on Fox. Find NBC News too "centrist"?
Click to ABC News or CNN. Can't stand Rush Limbaugh and his bombastic
conservatism? Head for the liberal alternative. Find them all heavy-handed
oafs? Go to the "news" with Jon Stewart and his merrymakers. At this stage,
local television news, the most heavily researched news product in the
nation, clings to the center, trusting that banality will trump opinion.
Ultimately, if the networks can't reform themselves, this country will end
up with just that: a lot of scrupulously impartial (which is not
necessarily to say good) news sources, managed by research-driven
executives who find it a good marketing approach.
[SOURCE: Los Angeles Times, AUTHOR: Van Gordon Sauter, former president of
CBS News]
http://www.latimes.com/news/printedition/opinion/la-oe-sauter13jan13,1,1...
(requires registration)
FAIR looks at the fallout of Memogate
http://www.fair.org/press-releases/cbs-memogate.html

THE 'MEDIA PARTY' IS OVER
[Commentary] At the height of its power, the American Mainstream Media
Party (AMMP) helped validate the civil rights movement, end a war and oust
a power-mad president. But all that is ancient history. The "party" is
being destroyed by the opposition (or worse, the casual disdain) of George
Bush's Republican Party; by competition from other news outlets; and by its
own fraying journalistic standards.
[SOURCE: MSNBC, AUTHOR: Howard Fineman]
http://www.msnbc.msn.com/id/6813945/

ADVERTISING

KRAFT LIMITS ON KIDS' ADS MAY CHEESE UP RIVALS
Kraft's decision to stop advertising junk food to kids under 12 could help
the company's image among parents and public-health advocates worried about
childhood obesity. But its decision could increase pressure on the rest of
the food industry to alter its marketing ways, and it could challenge
television networks that are competing hard for advertisers against the
robust kid appeal of videogames and the Internet. But despite the retreat
from shows targeted at kids, the company still will get its messages out
through a host of prime-time TV shows, licensing deals, Web sites and other
outlets that increasingly are attracting the attention of children and
marketers alike. "You can't avoid 2- to 5-year-olds on television, much
less 6- to 11-year-olds," says Jon Mandel, chief global buying officer of
Mediacom, the media-buying firm owned by Grey Global Group. "At any point
there are half a million kids watching Letterman every week." More children
watch prime-time television than shows directed specifically at kids, he
adds. Kraft is the third-largest food marketer to children, behind General
Mills and Kellogg, which dominate because of their children's cereal
advertising. Kraft spends roughly $90 million a year marketing to children,
while General Mills spends about $167 million and Kellogg spends about $120
million, according to industry estimates. The announcement came just months
before the kids upfront market, the time of the year when about $700
million to $800 million in national kids-TV advertising is sold to
deep-pocketed marketers.
[SOURCE: Wall Street Journal, AUTHOR: Sarah Ellison sarah.ellison( at )wsj.com ]
http://online.wsj.com/article/0,,SB110553837925023985,00.html?mod=todays...
See a related story about vending machine and sugar companies:
http://www.washingtonpost.com/wp-dyn/articles/A5369-2005Jan12.html
(requires subscription)
Also coverage in --
LA Times:
http://www.latimes.com/business/printedition/la-fi-kraft13jan13,1,256658...

CLEAR CHANNEL AD CUTBACK HAS LITTLE IMPACT -- ANALYSTS
This month, Clear Channel began to cut the number of ads and their length
to stabilize pricing and draw new listeners. The move created tight supply
at some Clear Channel stations in key markets where advertising space was
sold out in the early part of the first quarter, industry officials said.
But some advertisers, mostly local businesses. responded to the scarcity on
Clear Channel by placing ads with competing radio companies, industry
officials and analysts said.
[SOURCE: Reuters, AUTHOR: Sue Zeidler]
http://www.reuters.com/newsArticle.jhtml?type=industryNews&storyID=7298590

ADVERTISERS ON GOOGLE ARE TOLD TO KEEP IT PROPER
Google's AdWords division, which is responsible for the contextual ads that
appear alongside search results, insists on standard English and
punctilious punctuation saying that unorthodox usage and punctuation and
slang create a less straightforward searching experience. David Fischer,
director for AdWords, said: "We really focus on creating ads that at the
most basic level have proper spelling and grammar so that they're clear to
users. We really encourage clear, effective, to-the-point communication to
searchers."
[SOURCE: New York Times, AUTHOR: Sarah Lefton]
http://tech.nytimes.com/2005/01/13/technology/circuits/13goog.html
(requires registration)

WIRELESS

CELLPHONE USERS SUE, SAYING CARRIER CUT PHONE'S FEATURES
A recent lawsuit filed by a group of cellphone users cuts to the heart of
an emerging and thorny issue in the burgeoning global cellphone industry:
the fight for control among phone makers, carriers and consumers as
handsets become more like computers and not just calling devices. At stake
is billions of dollars of revenue companies hope to generate as cellphones
become capable of a growing array of tasks, from sending e-mail and photos
to showing videos and displaying lists of nearby restaurants and stores.
Consumers and tech enthusiasts fear these capabilities could become
increasingly fee-based. More broadly, some observers fear that charging for
such features could crimp the spread of new and better cellphone
technology. The carriers retort that directing subscribers to use their
networks for new features is a matter of security -- and the fees are a
normal cost of doing business and recouping their investments. In the
lawsuit in question, cellphone users are suing Verizon Wireless with deceit
for disabling Bluetooth technology features of a new high-end Motorola
phone called the V710, forcing subscribers to pay to use the company's
network to send things such as e-mail, photos and calendar entries to other
devices.
[SOURCE: Wall Street Journal, AUTHOR: Christopher Rhoads
christopher.rhoads( at )wsj.com]
http://online.wsj.com/article/0,,SB110557581692624772,00.html?mod=todays...
(requires subscription)

CHILD-CELLPHONE WARNING STIRS DEBATE
A British health official's warning against use of cellphones by children
under age 9 has sparked renewed debate about safety of mobile-communication
devices. The concern among some scientists is that exposure to radio waves
that carry calls potentially could cause harm. Yesterday, Rep. Edward
Markey of Massachusetts, the ranking Democrat on the House
Telecommunications Subcommittee, called on the Food and Drug Administration
and Federal Communications Commission to determine whether further action
is needed.
[SOURCE: Wall Street Journal, AUTHOR: David Pringle david.pringle( at )wsj.com
and Peter Grant peter.grant( at )wsj.com ]
http://online.wsj.com/article/0,,SB110557324667124658,00.html?mod=todays...
(requires subscription)

FOR WIRELESS, THE BEGINNINGS OF A BREAKOUT
The promise of 3G wireless services is not next year -- it is next month.
For consumers, that means video clips on demand, television, streaming
music, satellite navigation and high-quality games, as well as the ability
to record and send short movies. For business users, that means high-speed
Internet access from a phone or a laptop without looking around for a Wi-Fi
hot spot.
[SOURCE: New York Times, AUTHOR: Seth Schiesel]
http://tech.nytimes.com/2005/01/13/technology/circuits/13cell.html
(requires registration)

MOST TRAVELERS WANT TO KEEP IN-FLIGHT CELLPHONE BAN
People who fly at least occasionally, including Peter Eckart, are strongly
opposed to lifting the ban on cellphone use during flights, according to a
new USA TODAY/CNN/Gallup Poll. Almost seven in 10 frequent or occasional
fliers want the federal government to keep the ban. Women and fliers 50 or
older are the most strongly inclined to keep airliner cabins free of
cellphone chatter.
[SOURCE: USAToday, AUTHOR: Barbara De Lollis]
http://www.usatoday.com/printedition/news/20050113/1a_bottomstrip13.art.htm

QUICKLY

MEDIA COMPANIES FOCUS ON DEALS
This year should be full of media mergers, acquisitions and partnerships.
News Corp. is bidding $6 billion to buy up outstanding Fox Entertainment
Group shares. Time Warner has expressed interest in owning more cable
systems and content. The company could try to purchase Lions Gate
Entertainment, the only independent-film library left, which could help the
cable outfit boost its Video On Demand services. Another possible Lions
Gate suitor is NBC Universal which could also try to buy Cablevision
Systems' Rainbow Media or Discovery Networks. Cablevision's flagging Voom
satellite outfit may also end up on the block this year, with EchoStar
Communications as its most likely suitor.
[SOURCE: Forbes, AUTHOR: Penelope Patsuris]
http://www.forbes.com/services/2005/01/11/cx_pp_0110media.html

COMMERCE CHIEF CALLS ON CHINA FOR PIRACY CRACKDOWN
US Commerce Secretary Donald Evans is in China asking officials there to
eliminate counterfeit goods from its markets. The way to do that, he said,
is for commercial pirates to start serving prison time. Illegal copycat
products, including exports to the USA, cost American businesses $24
billion annually, according to the Commerce Department.
[SOURCE: USAToday, AUTHOR:David J. Lynch]
http://www.usatoday.com/printedition/money/20050113/evans13.art.htm

NTCA KEEPS FIGHTING NEW BOX RULES
Cable and the CEA are at war over an FCC rule that would ban cable-operator
deployment of new set-top boxes that integrate signal-security and
channel-selection functions. The NCTA wants the FCC to drop the ban on
integrated boxes, which is to take effect July 1, 2006, or to at least
postpone it for 18 months. The CEA supports the ban, which would mean that
every new digital box sold at retail or leased by cable companies would
work only with a CableCard -- a device about the size of a credit card that
slips into the boxes to authorize reception of scrambled programming. The
National Cable & Telecommunications Association said Tuesday in a letter to
the FCC that complaints that the set-top box market won't flourish without
new federal mandates are "ludicrous." In a letter meant to be a
point-by-point rebuttal to advocates of federal intervention, the NCTA said
those in favor of government mandates were the ones who really opposed
providing consumers with low-cost alternatives.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA495867.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
See Press Release:
http://www.ncta.com/press/press.cfm?PRid=566&showArticles=ok

BRIAN DIETZ PROMOTED TO VICE PRESIDENT, COMMUNICATIONS FOR NCTA
Brian Dietz, Senior Director, Communications for the National Cable &
Telecommunications Association (NCTA), has been promoted to Vice President,
Communications, for the Association, NCTA said. Dietz, who joined NCTA in
2003, serves as the principal spokesperson for the Association and helps
direct its media relations strategy and staff. He serves on the NCTA
Senior Staff and reports to Rob Stoddard, Senior Vice President,
Communications & Public Affairs. Prior to joining NCTA, Dietz served as a
regional spokesman and corporate communications director for AT&T Broadband
and MediaOne in Sacramento, CA and St. Paul, MN. He also served as Press
Secretary for former Minnesota Governor Arne H. Carlson and as Director of
Communications for the Minnesota Department of Trade and Economic Development.
[SOURCE: National Cable & Telecommunications Association Press Release]
http://www.ncta.com/press/press.cfm?PRid=565&showArticles=ok

WHFS CHANGES ITS TUNE TO SPANISH
Earlier this week Headlines reported on the booming Hispanic television
market, today we see evidence of the booming Spanish-language radio market.
WHFS-FM, the Washington area radio station that was a pioneering purveyor
of alternative rock to generations of young music fans, did a programming
U-turn yesterday by ditching the genre for a Spanish-language, pop-music
format that transforms it into the largest Spanish-language station on the
local dial. Spanish-language radio is the fastest-growing format in the
country, while alternative rock radio is a withering niche.
[SOURCE: Washington Post, AUTHOR: Teresa Wiltz and Paul Farhi]
http://www.washingtonpost.com/wp-dyn/articles/A4390-2005Jan12.html
(requires registration)

PROMOTING BROADBAND DEVELOPMENT IN RURAL AMERICA
See PowerPoint presentation by NTIA Director Michael Gallagher.
[SOURCE: National Telecommunications and Information Administration]
http://www.ntia.doc.gov/ntiahome/speeches/2005/Gallagher_KY_01122005.ppt
http://www.ntia.doc.gov/ntiahome/speeches/2005/Gallagher_KY_01122005.htm

RADIO HAMS AT RISK FROM POWER LINE BROADBAND
New Scientist magazine reported on Wednesday that plans to send Internet
broadband signals down electricity cables rather than telephone lines could
hinder the radio hams whose transmissions were so vital in the aftermath of
the Asian tsunami. The FCC has ruled service providers must use filters on
their household equipment to avoid the problem.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=E41PJGBGBYCYICRBAEKS...

SHELTON NAMED HOUSE COMMERCE COUNSEL
Johanna Mikes Shelton, media advisor to FCC Commissioner Jonathan
Adelstein, was named Democratic counsel to the House Commerce Committee
Wednesday. She replaces Gregg Rothschild, who is leaving Capitol Hill to
become a lobbyist for Verizon. She starts her new job Feb. 1. Before
joining Adelstein's office, Shelton was communications and intellectual
property advisor to Rep. Rick Boucher (D-VA)
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA495846?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
See statement by Commissioner Adelstein:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-256045A1.doc

Deadline for Applications for Membership on the FCC's Consumer Advisory
Committee is January 31, 2005
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-61A1.doc

The FCC dismissed the application by Hispanic Information and
Telecommunications Network, Inc for authority to construct an Instructional
Television Fixed Service (ITFS) station in Milwaukee, Wisconsin because
its proposed facility was predicted to cause co-channel interference to
another channel.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-5A1.doc
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
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