TELEVISION
Ownership and Indecency
Critics Blame Big Media for Sleaze Factor
Let's Get Ready to Rumble
More TV Hits Cutting Room Floor
Hearing: H.R. 3717, the Broadcast Decency Enforcement Act of 2004
Hearing: Protecting Children from Violent and Indecent Programming
Hearings to Probe Media Indecency (audio file)
CBS: What the FCC Is Going On With Indecency Standard?
Cable
Hearing: Cable Competition =AD Increasing Price; Increasing Value?
Wire-Based Competition Benefited Consumers in Selected Markets
GAO Wire-Based Study Not Realistic
Advertising & News
Mistake Leads to Complaints on Ads
INTERNET
Senators Try to Break Impasse on Internet Taxes
SPAM AND SCAM
Study: Spammers turning blind eye to the law
Officials Say Mob Stole $200 Million Using Phone Bills
TWO OWNERSHIP MOVES IN PLAY
Comcast Bid for Disney
Vodafone and Verizon Talk
TELEVISION
Ownership and Indecency
CRITICS BLAME BIG MEDIA FOR SLEAZE FACTOR
Media ownership and indecency are connected, some critics say -- but one=20
prominent TV station owner does, too. Jim Goodmon owns stations in North=20
Carolina and said, "If a network owns a station, they can put anything on=20
they want and there's no local input." As an example, Mr. Goodman decided=20
not to air Fox's "Who Wants to Marry a Millionaire?" in 2000 because he=20
felt it made fun of marriage and would offend his Raleigh audience.=20
Congress will be asking the FCC and television executives today why there=20
is indecent content broadcasted on television and what the FCC can do=20
better to curtail it. While in Philadelphia, the 3rd U.S. Circuit Court of=
=20
Appeals is scheduled to hear arguments concerning the FCC's decision to=20
ease the limits on media ownership. What's the connection? Indecency=20
complaints are on the rise since 1996 legislation opened the door for=20
increased media ownership concentration. And Viacom and Clear Channel=20
Communications, the nation's largest radio chain with more than 1,250=20
stations, have been fined for indecent radio broadcasts much more than=20
other chains.
[SOURCE: Washington Post, AUTHOR: Frank Ahrens]
http://www.washingtonpost.com/wp-dyn/articles/A30541-2004Feb10.html
See Also:
MEDIA CONSOLIDATION WILL LEAD ONLY TO MORE INDECENCY ON THE AIRWAVES
The more media outlets and related companies that media giants like Viacom=
=20
(which owns CBS and MTV) are allowed to own, the more likely it is that=20
Americans will be treated to the kind of tasteless breast barring that was=
=20
showcased at the Superbowl on CBS. Sure, Congress can and should pass=20
legislation stiffening the fines for broadcast indecency. But if the media=
=20
continues to merge and consolidate, we'll still be left with entertainment=
=20
that, at best, provides us with a steady stream of the coarse, the=20
juvenile, and the vulgar. That's because when a handful of media giants=20
control all of what we see and hear on the airwaves, things like concern=20
for community standards are ignored, while the focus becomes making cheap=20
programming that will appeal to an advertiser's target audience.
[SOURCE: Common Cause Press Release]
http://www.commoncause.org/news/default.cfm?ArtID=3D280
LET'S GET READY TO RUMBLE
No, Vince McMahon wouldn't be calling the action, but expect a three-way=20
smackdown as lawyers argue that the FCC's new ownership rules are too=20
lenient, not lenient enough and just right. The U.S. Court of Appeals for=20
the Third Circuit, in Philadelphia, PA, will hear oral argument regarding=20
the FCC=92s newly relaxed media ownership rules today. This challenge was=20
brought by public interest advocates who believe that the media=20
deregulation adopted by the FCC last June will substantially undermine=20
civic discourse on the nation=92s media. A significant problem with the new=
=20
rules, the Media Access Project argues, is that they will reduce the number=
=20
of reporters competing to
cover stories. The number of reporters dedicated to covering local news is=
=20
shrinking every day, just as the resources dedicated to covering=20
international events has drastically decreased. When media outlets merge,=20
fewer reporters are competing to cover a story. This is particularly=20
dramatic because in most cities, a single newspaper is often responsible=20
for virtually all of the in-depth local news coverage. With less=20
competition between the local newspaper and local television stations (they=
=20
will be allowed to merge in most markets in this country), citizens will be=
=20
poorly served. The FCC=92s order will diminish the quality of news essential=
=20
to democracy. Civic participation and democracy depend on citizens=92=
ability=20
to find out what is going on in their home towns and cities.
The public interest advocates scored a significant victory last September,=
=20
when the court temporarily stopped enforcement of the
rules. Given the stay last year, it is unlikely the court will uphold the=20
rules as written.
[SOURCE: Media Access Project]
http://www.mediaaccess.org/MAPFeb11PressRel.pdf
http://www.mediaaccess.org/mediaownershipcase.html
MORE TV HITS CUTTING ROOM FLOOR
In response the recent heat over broadcasted indecency, network censors are=
=20
editing TV shows. The cuts mainly affect brief nude scenes and depictions=20
of sexual behavior. The networks' newfound skittishness about nudity is in=
=20
sharp contrast to their practice of the last few years, when they all took=
=20
halting steps to match cable networks in pushing edgier, more-explicit=20
programming. "The standards-and-practices departments are being much more=20
vigilant about what's going through," one network executive said on=20
condition of anonymity. "I think everybody's been put on notice" since the=
=20
Super Bowl. There's already backlash on this new trend; shows' creators=20
fear that avoiding controversial material will lead to blander programs,=20
driving away audiences.
[SOURCE: Los Angeles Times, AUTHOR: Scott Collins and Maria Elena=
Fernandez]
http://www.latimes.com/business/printedition/la-fi-censors11feb11,1,5176...
tory?coll=3Dla-headlines-pe-business
HEARING: H.R. 3717, THE BROADCAST DECENCY ENFORCEMENT ACT OF 2004
Subcommittee on Telecommunications and the Internet
February 11, 2004 10:30AM 2123 Rayburn House Office Building
URL below offers list of witnesses and link to Web cast.
[SOURCE: House of Representatives]
http://energycommerce.house.gov/108/Hearings/02112004hearing1200/hearing...
HEARING: PROTECTING CHILDREN FROM VIOLENT AND INDECENT PROGRAMMING
Full Senate Commerce Committee Hearing
Wednesday, February 11 2004 - 9:30 AM - SR- 253
Members will hear testimony on the adequacy of current regulations=20
protecting children and parents from violent and indecent broadcasts.
URL below offers list of witnesses and link to Web cast.
[SOURCE: US Senate]
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1042
HEARINGS TO PROBE MEDIA INDECENCY
Congress holds hearings Wednesday on the FCC's role in regulating indecent=
=20
material on TV and radio. Lawmakers want to increase the fines the FCC can=
=20
impose on broadcasters. But legal precedents limit the FCC's power to=20
define what qualifies as indecent. Link to audio file can be found at:
http://www.npr.org/rundowns/rundown.php?prgDate=3D10-Feb-2004&prgId=3D3
CBS: WHAT THE FCC IS GOING ON WITH THE INDECENCY STANDARD?
Proposed changes in indecency enforcement will not cure the failing=20
regulations unless the FCC adopts a clearer standard, CBS said in a letter=
=20
to House Telecommunications Subcommittee Ranking Member John Dingell=20
(D-MI). There has been talk in Washington that CBS could face heavy fines=20
or revocation of television licenses over its Super Bowl halftime show.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA380928?display=3DBreaking+News
Cable
HEARING: CABLE COMPETITION -- INCREASING PRICE; INCREASING VALUE?
The Senate Committee on the Judiciary Subcommittee on Antitrust,=20
Competition Policy and Consumer Rights has scheduled a hearing on =93Cable=
=20
Competition =AD Increasing Price; Increasing Value?=94 for Wednesday,=
February=20
11, 2004, at 10:00 a.m., in Dirksen Senate Office Room 226. Senator Mike=20
DeWine (R-OH) will preside. The hearing is to include testimony from=20
Insight Communications CEO Michael Willner, National Cable and=20
Telecommunications Association President Robert Sachs, Consumer Federation=
=20
of America's Mark Cooper, The Precursor Group CEO Scott Cleland and Knology=
=20
CEO Rodger Johnson.
[SOURCE: US Senate]
http://judiciary.senate.gov/hearing.cfm?id=3D1041
WIRE-BASED COMPETITION BENEFITED CONSUMERS IN SELECTED MARKETS
The General Accounting Office is sharing a new report with the Senate=20
Judiciary Committee concerning competition and cable services. One of the=20
primary purposes of the Telecommunications Act of 1996 was to promote=20
competition in telecommunication markets, but wire-based competition has=20
not developed as fully as expected. However, a new kind of entrant, called=
=20
broadband service providers (BSP - also know as overbuilders), offers an=20
alternative wirebased option for local telephone, subscription television,=
=20
and highspeed Internet services to consumers in the markets they have=20
chosen to enter. This report provides information on (1) BSPs' business=20
strategy (to build a fiber-optic network to provide consumers with a bundle=
=20
of services, including subscription television, highspeed Internet access,=
=20
and local telephone), (2) the impact of BSPs' market entry on incumbent=20
companies' behavior and consumer prices for telecommunications services=20
(rates for telecommunications services were generally lower in the study=20
cities with BSPs), (3) the key factors that BSPs consider when making=20
decisions about which local markets to enter (city size, income, and=20
computer use), and (4) the success of BSPs in attaining subscribership and=
=20
any key factors that may limit their success.
[SOURCE: General Accounting Office]
http://www.gao.gov/highlights/d04241high.pdf
http://www.gao.gov/new.items/d04241.pdf
GAO WIRE-BASED STUDY NOT REALISTIC
Progress & Freedom Foundation Senior Fellow and Director of Communications=
=20
Policy Studies Randolph J. May responded quickly to the GAO report=20
summarized above saying there may be problems with the agency's methodology=
=20
and failure to include competition from satellite operators in its findings.
[SOURCE: Progress and Freedom Foundation Press release]
The Progress & Freedom Foundation is a market-oriented think tank that=20
studies the digital revolution and its implications for public policy.
http://www.pff.org/news/news/2004/021004gaoreport.html
Advertising & News
MISTAKE LEADS TO COMPLAINTS ON ADS
In a segment on healthy eating sponsored by General Mills, CNN briefly=20
aired the image of one of the company's products. To many viewers, the=20
placement of the product seemed intentional. "The news should not be for=20
sale to the highest bidder," said Gary Ruskin, executive director for=20
Commercial Alert in Portland, Ore., an organization that fights what its=20
members consider to be the creeping commercialization of American culture.=
=20
"The influence of General Mills upon a major news outlet like CNN is so=20
worrisome," Mr. Ruskin said, because of the increasing coverage by CNN and=
=20
other news media of issues like the role that food marketing plays in the=20
growing obesity of the general public. CNN claims the placement was=20
accidental and not part of the sponsorship agreement with General Mills.
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
http://www.nytimes.com/2004/02/11/business/media/11adco.html?pagewanted=...
l
(requires registration)
INTERNET
SENATORS TRY TO BREAK IMPASSE ON INTERNET TAXES
Sens. Lamar Alexander (R-TN), Thomas R. Carper (D-DE), Ernest F. Hollings=20
(D-SC) and Kay Bailey Hutchison (R-TX) are introducing a bill that would=20
extend a ban on Internet access taxes for two years. They want the tax ban=
=20
to apply only to the fees consumers pay to their Internet service=20
providers, not to the various businesses that run the telecommunications=20
network that enables both telephone and Internet service. The bill would=20
allow the roughly 25 states that tax DSL Internet access, which is=20
delivered via phone lines, to continue to do so. The bill will be competing=
=20
with legislation sponsored by Sens. George Allen (R-VA) and Ron Wyden=20
(D-OR). Sens Alexander and Carper say their proposal will save states as=20
much as $9 billion by 2006 when compared to the Allen-Wyden bill. A bill=20
similar to the Allen-Wyden prop0sal has already passed the House.
[SOURCE: Washington Post, AUTHOR: Jonathan Krim]
http://www.washingtonpost.com/wp-dyn/articles/A30201-2004Feb10.html
SPAM AND SCAM
STUDY: SPAMMERS TURNING BLIND EYE TO THE LAW
The most frequent visitors to our mailboxes, spammers, are not complying=20
with a new federal law, a new study finds. Just 3% of unsolicited=20
commercial bulk email includes a valid US postal address and a link that=20
provides a valid opt-out option. What's more, the percentage of email that=
=20
is spam grew in January to 60%, up 2% since December. While enforcement of=
=20
the new legislation is being worked out, some spammers have started to=20
comply with the law. "It's a little bit early to see huge amounts of=20
compliance, but we are seeing people start to comply," said Ken Schneider,=
=20
chief technology officer at Brightmail, one of the largest spam-filtering=20
companies.
[SOURCE: Reuters, AUTHOR: Stefanie Olsen]
http://news.com.com/2100-1032-5156629.html?tag=3Dcd_top
OFFICIALS SAY MOB STOLE $200 MILLION USING PHONE BILLS
A nationwide scheme had telephone subscribers paying up to $40/month for=20
services they never requested or used. "Cramming" is nothing new, but=20
federal authorities say that New York organized crime has been involved and=
=20
collected over $200 million over five years piggybacking bogus charges on=20
phone bills. "These defendants conspired to defraud consumers by using a=20
sophisticated web of shell companies to generate one of the largest=20
consumer frauds schemes in United States history, : said Roslynn R.=20
Mauskopf, the United States attorney in Brooklyn, in a prepared statement.=
=20
Investigators believe that cramming may be the most profitable enterprise=20
in organized crime today. Tony Soprano was unavailable for comment.
[SOURCE: New York Times, AUTHOR: William Rashbaum]
http://www.nytimes.com/2004/02/11/nyregion/11MOB.html
(requires registration)
TWO OWNERSHIP MOVES IN PLAY
Comcast is making a bid to purchase Disney in a deal that values the Big=20
Mouse at ~$54 billion. "The combination would create one of the world's=20
leading entertainment and communications companies with an unparalleled=20
distribution platform and an extraordinary portfolio of content assets,"=20
Comcast said in a prepared statement.
http://online.wsj.com/article/0,,SB107650105603626825,00.html?mod=3Dtech...
gy_main_whats_news
Comcast's Letter to Eisner
http://online.wsj.com/article/0,,SB107650146687026828,00.html?mod=3Dtech...
gy_main_whats_news
Vodafone Group PLC and Verizon Communications Inc are in talks to end=20
their partnership in Verizon Wireless. Vodafone is Europe's largest=20
wireless carrier and wants to make a bid for AT&T Wireless. But the last=20
thing Verizon wants is for Vodafone to buy AT&T Wireless and emerge as an=20
independent, formidable competitor.
Cingular Wireless still considers itself the front-runner to purchase AT&T=
=20
Wireless.
http://online.wsj.com/article/0,,SB107645812713426256,00.html?mod=3Dtech...
gy_main_whats_news
[SOURCE: Wall Street Journal, AUTHOR: Robin Sidel at robin.sidel( at )wsj.com,=20
Almar Latour at almar.latour( at )wsj.com and Ken Brown at ken.brown( at )wsj.com ]
(requires subscription)
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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. Headlines are compiled by=20
Kevin Taglang (ktaglang( at )etpost.net) -- we welcome your comments.
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