OWNERSHIP
Prometheus Radio Project v. FCC
Comcast Bids to Purchase Disney
* Links to Press Releases in Response to Comcast-Disney Deal
Comcast Disney Combination Hazard to Public Interest
Proposed Comcast Cable Takeover of Disney Likely Leads to Less Consumer=20
Choice,
Higher Costs, More Media Concentration
Comcast-Disney Merger Should Be Rejected By Bush Administration/FCC
BROADCAST DECENCY ENFORCEMENT
Coverage of House/Senate Hearings
CABLE
Cable Competition =AD Increasing Price; Increasing Value?
TELEPHONY
California Regulators Advance VoIP Plans
OWNERSHIP
PROMETHEUS RADIO PROJECT V. FCC
The United States Court of Appeals Third Circuit heard oral arguments on=20
the FCC's ownership rules on Wednesday allowing the parties a good deal of=
=20
extra time to argue their cases. Challenges to the 39% national TV cap were=
=20
not allowed given new legislation signed by President Bush last month. The=
=20
court also put a hold on the controversial UHF discount rule which the FCC=
=20
said it will revisit anyway. The FCC=92s diversity index for local=20
cross-ownership was called =93inconsistent=94 by the judges. In addition to=
=20
public interest advocates' claims that the relaxing of rules went too far,=
=20
arguments against the regulations were heard from a group of newspapers,=20
television networks and other broadcasters, including Clear Channel=20
Communications, the nation's largest broadcast radio company. These=20
industry players contend that the FCC has not deregulated the industry=20
enough. They urge the court to return the rules to the commission and order=
=20
it to apply a higher standard of review in trying to justify all of its=20
media regulations.
A Consumer Union Press Release=20
(http://www.consumersunion.org/pub/core_telecom_and_utilities/000859.html...
re)=20
predicts the ownership rules will be overturned. CU helped argue against=20
the rules in court. More info at the Media Access Project's=20
http://www.mediaaccess.org/mediaownershipcase.html
[SOURCES: Communications Daily, New York Times]
Court Is Urged to Change Media Ownership Rules
http://www.nytimes.com/2004/02/12/business/media/12media.html
(requires registration)
COMCAST BIDS TO PURCHASE DISNEY
The NYTimes has a wide range of coverage of the bid by Comcast, the=20
nation's largest cable system owner, to purchase Disney and become the=20
largest media company in the world. Media reform advocates may be=20
interested in Jennifer Lee's article "Politics Could Overshadow Legal=20
Hurdles Of a Merger"=20
(http://www.nytimes.com/2004/02/12/business/media/12regs.html). "Does the=20
proposed merger violate any laws that are on the books right now?" said=20
Harold Feld, associate director of the Media Access Project, a public=20
advocacy group that has challenged media deregulation decisions. "In this=20
case, it is probably no." But media ownership consolidation has become a=20
hot political issue. "They are landing in a very inhospitable climate for a=
=20
content-distribution combination," said Rebecca Arbogast, a media analyst=20
at Legg Mason. "Plus, it's an election year, and it puts a bit more gas on=
=20
the fire." One concern of a regulatory review would be whether Comcast's=20
cable operations would have an advantage over competitors in negotiations=20
over clearance fees for its content businesses. The Washington Post's=20
Jonathan Krim wrote a similar article, "Comcast Bid Stirs Media=20
Cauldron"=20
http://www.washingtonpost.com/wp-dyn/articles/A34727-2004Feb11.html, and=20
quotes the ranking members of the Senate Judiciary Committee: the=20
Comcast-Disney deal "may well pose a risk to competition in the marketplace=
=20
of ideas and the diversity of news, information and entertainment available=
=20
to the American public." If the merger is successful, Comcast, with 22=20
million television subscribers, would, in several U.S. cities, operate the=
=20
only cable system and one or possibly two of the local over-the-air=20
broadcast stations. The deal would also raise concerns about the Internet.=
=20
"As a content company, [Disney] was a powerful force in favor of keeping=20
the net neutral -- so it could compete equally with other content companies=
=20
to sell its content," said Stanford University law professor Lawrence=20
Lessig. "But why compete when you've got control over the pipes?"
USA Today reports that the deal could beat back efforts to bundle phone,=20
and satellite TV=20
(http://www.usatoday.com/usatonline/20040212/5919432s.htm). ''There's a=20
death struggle between cable and traditional (phone companies) for the=20
consumer wallet,'' says Ford Cavallari, a broadband and media expert at=20
consultant Adventis. ''The idea that phone companies can compete against=20
cable for share of the television wallet will have a stake put in its heart=
=20
if a deal like this happens.''
[SOURCE: New York Times]
http://www.nytimes.com/business/businessspecial/
(requires registration)
The Wall Street Journal also has a number of stories; find them at
http://online.wsj.com/page/0,,2_1070,00.html
(requires subscription)
* Links to Press Releases in Response to Comcast-Disney Deal Follow
COMCAST DISNEY COMBINATION HAZARD TO PUBLIC INTEREST
=93Comcast=92s proposed merger with Disney would deal a devastating blow to=
the=20
few diverse viewpoints, voices, and sources of programming still remaining=
=20
on broadcast and cable television,=94 says Center for Creative Voices in=20
Media Executive Director Jonathan Rintels. =93This merger is worse than=20
=91Goofy=92 =AD this supersized media combo is hazardous to the health of=
our=20
democracy and culture, which depend on a diverse and vibrant=20
media. Regulators must reject it as not in the public interest. The=20
Comcast-Disney combination would own dominant cable systems in the largest=
=20
markets in the US (8 out of 10 top markets); own one of the largest=20
broadcast TV networks (ABC); own and/or be affiliated with local stations=20
across the country, which will soon be broadcasting hundreds of added new=20
digital TV channels; own cable content including all the ESPNs, ABC Family=
=20
Channel, Disney Channel, E! and many more; and own the nation=92s largest=20
broadband Internet service provider.
[SOURCE: Center for Creative Voices in Media Press Release]
http://www.creativevoices.us/php-bin/news/showArticle.php?id=3D66
PROPOSED COMCAST CABLE TAKEOVER OF DISNEY LIKELY LEADS TO LESS CONSUMER=20
CHOICE, HIGHER COSTS, MORE MEDIA CONCENTRATION
Today=92s proposed takeover of the Walt Disney Co.=96 which owns ABC News=
and=20
TV stations reaching 25 percent of the population =96 by Comcast, the=20
nation=92s largest cable provider, raises significant questions about media=
=20
concentration and the impact it will have on consumers=92 wallets as well as=
=20
what they see on TV. =93If this deal goes through it tightens the ownership=
=20
grip over some of the most important sources of news, information and=20
entertainment in our country,=94 said Gene Kimmelman, senior public policy=
=20
director for Consumers Union, publisher of Consumer Reports. =93Disney has=
an=20
enormous package of extremely popular, marquee programming and a national=20
network that would now be owned by the largest cable distributor in the=20
country which has little to no competition in most communities. The=20
potential impact is enormous.=94
[SOURCE: Consumers Union Press Release]
http://www.consumersunion.org/pub/core_telecom_and_utilities/000858.html...
e
COMCAST-DISNEY MERGER SHOULD BE REJECTED BY BUSH ADMINISTRATION/FCC
Comcast's proposed takeover of the Walt Disney Company (ABC) is a deal that=
=20
should be unacceptable to federal officials, who are entrusted with=20
protecting the public interest. A Comcast-Disney combine would permit one=20
entity to dominate cable system distribution in the largest markets in the=
=20
US (8 out of 10 top markets); control a broadcast TV network and the=20
dozens--if not hundreds--of digital channels from its owned-and-affiliated=
=20
stations; own cable content including ESPN, Toon, Disney, Golf, E, and TV=20
One; as well as remain the major broadband ISP. Given Microsoft's=20
investment in Comcast and its new relation with Disney, there are also=20
implications for every desktop and set-top. Comcast has opposed any federal=
=20
policy that would ensure that the broadband Internet operates on an open=20
and nondiscriminatory basis.
This deal is the direct legacy of Michael Powell and the Bush FCC. Powell=
=20
has supported further consolidation, signaling to Comcast that such a deal=
=20
is possible. Powell could have sought to restore the broadcast-cable=20
cross-ownership rule (something his fellow Commissioner Michael Copps=20
urged). Finally, it should come as no surprise that Comcast's Roberts is=
=20
backing President. Bush for re-election and that the company's president,=20
Stephen Burke, is a $100,000-plus "Pioneer" for Bush-Cheney. ( Broadcasting=
=20
and Cable , 2/9/04). Such support is designed to ensure that the Bush=20
Administration doesn't craft rules that prevent this kind of proposed=20
merger, or force Comcast to operate its cable and online systems under=20
public interest safeguards.
[SOURCE: Center for Digital Democracy]
http://www.democraticmedia.org/news/ComcastDisney.html
BROADCAST DECENCY ENFORCEMENT
COVERAGE OF HOUSE/SENATE HEARINGS
The House hearing on decency enforcement centered on the Super Bowl=20
halftime incident. Opening statements from Members of Congress took two=20
hours. Viacom's Mel Karmazin and NFL Commissioner Paul Tagliabue said they=
=20
had no prior knowledge of Janet Jackson's plan to expose herself. Ranking=20
member John Dingell criticized both the halftime show and the number of=20
violent commercials during the game. Mr. Karmazin said the problem is the=20
vagueness of the FCC=92s indecency standard....=93The precedent constantly=
=20
changes and the standard is not clearly articulated to broadcasters.=94
FCC Chairman Michael Powell told Congress that the Commission will act=20
swiftly to protect children and respond to the public's concerns about the=
=20
Super Bowl halftime show. In addition, he said the FCC is stepping up=20
enforcement of indecency, especially on TV. He said he fully supports=20
legislation introduced in the House and Senate aimed at substantially=20
increasing the fines for infractions by broadcasters. He also suggested=20
that enforcement could be expanded to include other types of coarse or=20
inappropriate programming not suitable for our children, such as excessive=
=20
violence. Read the Chairman's remarks at
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-243802A2.pdf and=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-243802A3.pdf
FCC Commissioner Copps told Congress that the Commission is failing to do=20
its job. "At the same time that we are not adequately enforcing indecency=20
laws, the Commission is dismantling media concentration rules without=20
considering whether there is a link between increasing media consolidation=
=20
and increasing indecency. It makes intuitive sense that as media=20
conglomerates grow ever bigger and control moves further away from the=20
local community, community standards go by the boards." He offered a=20
five-point plan for the Commission to do a job: 1) Use the FCC's Full=20
Authority to Punish Transgressors - License Revocation, License Non-Renewal=
=20
and Higher Fines, 2) Reform the Complaint Process, 3) Tackle Graphic=20
Violence, 4) Convene an Industry Summit that includes Cable and DBS and 5)=
=20
Affirm the Rights of Local Broadcasters to Control Their Programming. See=20
Commissioner Copps remarks at
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-243790A2.pdf and=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-243790A3.pdf
Cable TV was not spared from the Senate discussion with many Members of=20
Congress and FCC Commissioners agreeing that a la carte pricing for cable=20
or DBS services would help parents control the content coming into the home=
=20
and save money.
[SOURCES: House of Representatives, Senate, Communications Daily]
http://energycommerce.house.gov/108/Hearings/02112004hearing1200/hearing...
Find links to additional testimony at the Senate Commerce Committee=20
hearing, Protecting Children from Violent and Indecent Programming, at
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1042
Also see:
Indecency Laws Examined in Wake of Halftime Show
http://www.nytimes.com/2004/02/12/national/12DECE.html?pagewanted=3Dall
Get Tough on TV Indecency, Lawmakers Urge
http://www.washingtonpost.com/wp-dyn/articles/A35276-2004Feb12.html
In a related story, the National Association of Broadcasters announced an=20
All-Industry Summit to address topics related to responsible programming to=
=20
be held in early Spring. A broad cross section of local broadcasters,=20
network representatives and other stakeholders from across the country will=
=20
be invited to the private event.
http://www.nab.org/Newsroom/PressRel/Releases/responsible.htm
CABLE
CABLE COMPETITION -- INCREASING PRICE; INCREASING VALUE?
Senators tongue-lashed cable television executives for escalating rates.=20
The ranking members of the committee announced three plans: 1) Requiring=20
cable companies to make all of their programming available to pay TV=20
competitors, 2) Urging the Justice Department to investigate allegations of=
=20
predatory pricing, which would violate antitrust laws, and 3) Asking the=20
General Accounting Office (GAO) to study whether satellites were truly=20
competitive with cable in all areas. Technical difficulties may prevent=20
satellite from being a strong competitor in urban areas and cable does not=
=20
serve rural areas well.Senators also criticized some cable TV content as=20
indecent.
For links to testimony, see
http://judiciary.senate.gov/hearing.cfm?id=3D1041
[SOURCE: US Senate, Communications Daily, Multichannel News]
http://www.multichannel.com/article/CA381034?display=3DBreaking+News
TELEPHONY
CALIFORNIA REGULATORS ADVANCE VoIP PLANS
The day before the FCC is expected o begin a rulemaking process concerning=
=20
Internet phone service (VoIP), the California Public Utilities Commission=20
tentatively assumed jurisdiction over any Internet phone call that connects=
=20
with traditional phone networks. The CA PUC also began an 18-month long=20
process to write Net phone regulations. VoIP providers are not thrilled.=20
But California is just one of 25 states beginning to weigh in on VoIP in=20
part because they see there will be some role for state regulators to play=
=20
and they fear that as more telephony traffic moves to the Internet there=20
will be less funds available for state public services
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/2100-7352_3-5157628.html?tag=3Dnefd_top
See also:
PUC to Look Into Regulating Net Telephony
http://www.latimes.com/business/printedition/la-fi-voip12feb12,1,5175353...
ry?coll=3Dla-headlines-pe-business
(requires registration)
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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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