Benton's Communications-related Headlines for 2/23/05

MEDIA & SOCIETY/CONTENT
The Unreality of War
Just $7.95 a Month and You're Free to Turn Movies Into Pablum
Hinchey Wants Media-Manipulation Hearing
Court Questions FCC's Broadcast Flag Rules

TELECOM/CABLE
SBC, AT&T Say Bell Breakup Doesn't Work
Time Warner's Phone Service Shows Cable's Growing Clout
Study: New Services Boosting Revenue
Verizon Pushes Calif. Entry Bill
Cablevision, News Shuffle Sports Holdings
ISPs Urge Court to Open Cable Lines
Broad Coalition Supports Community Internet and Municipal Broadband

FROM THE BLOG-O-SPHERE

MEDIA & SOCIETY/CONTENT

THE UNREALITY OF WAR
[Editorial] For some PBS viewers last night, war is heck. Fearful of being
hit with stiff Federal Communications Commission indecency fines, PBS
distributed a censored copy of a report chronicling US soldiers charged
with keeping Iraq's main highway open. This country is awash in reality TV,
except from the war front, where real-life portrayals are most needed. It's
a shame that "Frontline" has become the latest casualty in an increasingly
ugly culture war waged by conservative zealots eager to hijack the
airwaves. They are succeeding in large measure because the government
enforces an overly vague definition of "indecency." When indecency is in
the eye of the beholder, the FCC can be easily cowed by a campaign of
intimidation from the outside. FCC rules should not only be clarified but
loosened. At a time when viewers can watch racier fare on hundreds of cable
channels, courts should revisit the old rationale for limiting
broadcasters' 1st Amendment rights in the first place -- the notion that
the airwaves are a scarce public resource.
[SOURCE: Los Angeles Times, AUTHOR: Staff]
http://www.latimes.com/news/printedition/opinion/la-ed-fcc23feb23,1,6658...
(requires registration)

JUST $7.95 A MONTH AND YOU'RE FREE TO TURN MOVIES INTO PABLUM
[Commentary] Congress has mixed up a poison pill of a bill, and Hollywood
could wind up having to swallow it. For some time now, the movie business
has demanded protection against the bootleg DVDs that pick its pockets for
millions. The bill the Senate sent to the House this month would imprison
pirates who furtively Camcorder new films and sell the copies. Yet the same
bill protects screener software that can steal not just a crummy copy of a
movie but the essence of the movie itself. The software comes in many
varieties; ClearPlay, out of Utah, the best known, is prepared to Lysol out
the icky bits in more than 1,000 films. This is a techno-version of
storming into a library and tearing out pages you don't approve of, or
rewriting them to your liking. American parents and pols are infantilizing
the culture, turning every movie into day care for their kids.
[SOURCE: Los Angeles Times, AUTHOR: Patt Morrison]
http://www.latimes.com/news/printedition/opinion/la-oe-morrison23feb23,1...
(requires registration)

HINCHEY WANTS MEDIA-MANIPULATION HEARING
Rep. Maurice Hinchey (D-NY) is calling for a Congressional investigation
into the Administration's manipulation of the media citing Armstrong
Williams and online "journalist" Jeff Gannon as examples. Over the weekend,
Rep. Hinchey went as far as speculating that Karl Rove was the source of
bogus National Guard documents that blew up a CBS 60 Minutes story on
President Bush's service in the guard.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA505846?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

COURT QUESTIONS FCC'S BROADCAST FLAG RULES
A federal appeals court on Tuesday sharply questioned whether the Federal
Communications Commission has the authority to ban certain types of digital
TV receivers, including peripheral cards, starting in July. Two of the
three judges on the District of Columbia Circuit panel said the FCC never
received permission from Congress to undertake such a sweeping regulation,
which is intended to encourage the purchase of digital TV receivers that
curb Internet distribution of over-the-air broadcasts of programming such
as movies and sports. "You're out there in the whole world, regulating. Are
washing machines next?" asked Judge Harry Edwards. Quipped Judge David
Sentelle, "You can't regulate washing machines. You can't rule the world."
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Court+questions+FCCs+broadcast+flag+rules/2100-1030_...
Additional coverage --
B&C:
http://www.broadcastingcable.com/article/CA505848?display=Breaking+News&...
Multichannel:
http://www.multichannel.com/article/CA505738.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
See also --
Court Hears Challenge to DTV Content Protection Rule
A Federal court today hears a challenge to the "broadcast flag" rules
designed to deter widespread copying of digital TV broadcasts. The rules
require that after July 2005 all devices handling broadcast digital
programs must obey certain content protection standards. The lawsuit by a
range of public interest groups argues the FCC did not have the authority
to create such broad rules, which impact computers and the Internet as well
as TVs.
[SOURCE: Center for Democracy and Technology]
http://www.cdt.org
CDT Flag Primer, December 16, 2003:
http://www.cdt.org/copyright/031216broadcastflag.pdf

TELECOM/CABLE

SBC, AT&T SAY BELL BREAKUP DOESN'T WORK
SBC and AT&T filed their merger applications today with the Federal
Communications Commission and the Department of Justice. Facing competition
from cable's Internet-based phone service, the two companies say they won't
be able to compete because neither can "assemble a true nationwide
end-to-end broadband network." With companies increasingly bundling
services to provide "triple plays" of voice, TV and Internet broadband,
customers no longer want individual offerings, the applicants
maintain. The two companies are seeking approval from regulators for a $16
billion deal in which SBC would acquire AT&T. The Justice Department's
antitrust division would have to agree with the companies that the deal
wouldn't reduce competition in the telecommunications market, and the FCC
would have to weigh the more broadly defined "public interest." The two
telcos also claim national security may be at stake if the sale doesn't go
through. That might lead to a foreign company buying AT&T, which the
application states "the (U.S.) government heavily depends (on) for national
security and other needs."
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/SBC%2C+AT38T+say+Bell+breakup+doesnt+work/2100-1037_...

TIME WARNER'S PHONE SERVICE SHOWS CABLE'S GROWING CLOUT
The speed with which Time Warner has moved with new Internet technology to
provide phone service underscores why traditional phone companies are
rushing these days to add services such as TV -- and to bulk up by merging.
That's because local-phone providers are starting to face their most
serious competitors yet for local service. While consumers notice little
difference between traditional phone setups and Internet calling, to cable
companies the new technology means the difference between taking months,
rather than years, to complete a rollout. And the lower cost allows them to
establish a new revenue stream for a relatively small investment.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com]
http://online.wsj.com/article/0,,SB110911979986161539,00.html?mod=todays...
(requires subscription)

STUDY: NEW SERVICES BOOSTING REVENUE
Cable operators are seeing their average revenue per unit (ARPU) rise
largely due to new digital-cable services -- HDTV, video-on-demand,
digital-video recorders, high-speed data and telephony -- according to a
survey from In-Stat (a sister company to Multichannel News). A total of 50
systems were surveyed, representing a mix of operator sizes and market
locations. Of those, 78% reported increases in ARPU over the past 12
months, and the respondents reported that more than 90% of their
subscribers now have access to digital-cable services.
[SOURCE: Multichannel News]
http://www.multichannel.com/article/CA505836.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

VERIZON PUSHES CALIFORNIA ENTRY BILL
As expected, Verizon Communications has proffered a bill in California that
will ensure that the telephone company may move into the cable business
there but only be required to serve communities already within its
telephony footprint. Under the bill, local franchises would contain the
same PEG-access (public, educational and government) requirements as the
incumbent's pact. But unlike the incumbents -- which were often required to
build out in a specified time frame -- the state bill would allow
competitive franchisees to build out "within a reasonable time," a term
that is not defined. The bill did not specify that telcos would pay
franchise fees, but it noted that local governments may impose additional
terms. Local governments would be required to approve or deny a competitive
franchise within six months of application unless a delay was caused by the
franchise applicant.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA505737.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

CABLEVISION, NEWS SHUFFLE SPORTS HOLDINGS
Cablevision Systems (60%) and News Corp. (40%) share the ownership of
Regional Programming Partners and are restructuring to give each more
control of certain assets. In what the parties are labeling as "a generally
tax-free exchange of assets," Cablevision, once the restructuring is
complete, will own 100% of Madison Square Garden and its assets, notably
the arena itself; the Theater at Madison Square Garden; sports teams the
New York Knicks, the New York Rangers and the New York Liberty; Radio City
Music Hall; MSG Network; and Fox Sports Net (FSN) New York. Additionally,
Cablevision will own 100% of FSN Chicago and continue to hold 50% of FSN
New England -- Comcast Corp. holds the remainder. For its part, News Corp.
will own 100% of FSN, as well as FSN Ohio, FSN Florida and National
Advertising Partners. Following the restructuring, News Corp. will assume
management of both FSN Ohio and FSN Florida and continue its management of
FSN and NAP. Finally, Cablevision and News Corp. will continue to maintain
their 60% and 40% respective stakes in FSN Bay Area
[SOURCE: Multichannel News, AUTHOR: Mike Reynolds]
http://www.multichannel.com/article/CA505562.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
Also in --
WSJ:
http://online.wsj.com/article/0,,SB110908230256160801,00.html?mod=todays...

ISPs URGE COURT TO OPEN CABLE LINES
The Supreme Court should reject the Federal Communications Commission's
conclusion that cable companies do not have to share their high-speed-data
networks with competing Internet-service providers, ISPs told the Court
Tuesday. In the brief, the ISPs told the Supreme Court that the law
requires cable to open its lines and that cable's decision to bundle
transmission and content did not insulate cable-modem service from
open-access requirements. The Court is scheduled to hear the case March 29.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA505853.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

BROAD COALITION SUPPORTS COMMUNITY INTERNET AND MUNICIPAL BROADBAND
In an open letter released today, more than 60 national, state and local
organizations - representing hundreds of thousands of Americans - declared
their support for allowing municipalities and other public entities to
deploy broadband systems. The letter opposes the campaign by incumbent
telephone and cable providers to push legislation through numerous state
legislatures that would either ban or make it more difficult for
municipalities to deploy broadband systems. "We call on all states
considering such legislation to reject it as harmful to the interests of
their citizens," the letter declares. Municipal broadband systems provide a
necessary means of bringing broadband to many rural communities and poorer
urban neighborhoods that lack broadband access or have only one provider.
Without the possibility of municipal deployment, these communities will
continue to suffer as businesses and residents move to better-connected areas.
[SOURCE: Media Access Project/Free Press]
http://www.freepress.net/news/release.php?id=49
See letter at:
http://www.freepress.net/communityinternet/letter.pdf
See also --
The Times Sees No Evil
http://www.alternet.org/mediaculture/21328/

FROM THE BLOG-O-SPHERE

Where's the Press?
The latest media and political scandal involving a pseudo reporter at White
House press conferences raises deeper questions, writes Danny Schechter.
How do we explain the silence of the media lambs who watched but did not
expose or protest being infiltrated by a partisan propagandist?
[SOURCE: MediaChannel.org]
http://www.mediachannel.org/views/dissector/affalert327.shtml

DVD Sales Only Possible After Networks Take Over Production of Shows?
Puh-leeeze!
Brooks Barnes had a remarkable -- and remarkably skewed -- take on the
structure of the TV industry in yesterday's Wall Street Journal. He
describes the increasing sales of DVDs of TV programs, and that those sales
may give another season of life to shows that are "on the bubble." He then
reaches out to make this observation: "The DVD option wouldn't have been
possible without a 1993 Federal Communications Commission ruling relaxing
ownership rules for TV shows." Huh? What? Not true. There is no link
between selling a TV program to DVD and whether a network or an independent
producer owns a TV show. The FCC rules that were eliminated, known as the
Financial Interest and Syndication Rules (FISR), prevented broadcasters
that distributed TV programs over their networks from producing and owning
those programs. Why this rule? Because if the networks that own the
distribution "choke point" -- one of the few national broadcast networks --
can produce and own their own shows, then independent producers will be out
of business. No business can be dependent for its success on making a sale
to the same company that's competing with it. With the end of FISR, the
networks that control distribution are able now to demand (most in the biz
say "extort") ownership of shows from independents, as in "we like your
show, now turn it to over to us, or else it won't get on our
schedule." Independent production has effectively ended, except for a few
long established hold outs like Carsey Werner -- which is exploring a sale.
This has nothing to do with sales of TV show DVDs. Consider the
syndicating of a TV show for later repeat viewings on another network,
broadcast or cable. We all know that TV shows were syndicated before the
end of FISR and shows are still syndicated after the end FISR. Same with
DVD sales. All that changed with the end of FISR was between independent
and network, who owns the program and controls that sale to DVD or
syndication. When it's the network that both makes the content and
distributes it, the American public does not receive the "widest possible
dissemination of information from diverse and antagonistic sources" which
is its First Amendment right, per the Supreme Court. Just as in the
examples in the 2 prior posts concerning cable. This "cause and effect"
statement, that DVD sales of TV shows are only possible after the
elimination of FISR, accompanied by this positive spin, as if DVD sales are
a public benefit of eliminating FISR, is just wrong.
[SOURCE: Center for Creative Voices in Media]
http://creativevoices.typepad.com/blog/

Comcast to Snuff Indie/Rival Networks?
Comcast, after buying up Sony and MGM film content via its role in the
purchase of MGM, is now using its own content to compete with independent
and non-Comcast cable nets. Independent TV program producers could not
stay in business selling their programs to the broadcast network
"gatekeepers" that controlled access to the audience, after those same
networks were allowed by the FCC to become the indies' competitors and
produce their own shows. Unsurprisingly, the networks only broadcast the
shows they produced, running the indies out of business, including some of
the best TV producers around. Now, according to Daily Variety, using the
content it now owns, Comcast is poised to try the exact same tactic --
using its role as cable "gatekeeper" to the nearly 30 percent of American
cable homes it controls to dominate and/or destroy independent cable
networks by favoring its own content.
[SOURCE: Center for Creative Voices in Media]
http://creativevoices.typepad.com/blog/
--------------------------------------------------------------
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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