Benton's Communications-related Headlines for 4/19/04

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

This is Turn Off TV Week
http://www.tvturnoff.org/

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. Headlines are compiled by
Kevin Taglang (ktaglang( at )etpost.net) -- we welcome your comments.

DIGITAL TELEVISION
Update: Digital TV Transition
Can This Man Save Broadcast TV?
Broadcasters Hesitant to Adopt High-Tech Advances

TELEVISION TODAY
F-Word Is Now 'Fight'
The Big Chill?
In TV Coverage, Kerry Runs a Deficit
Reality Intrudes on a Spring Rite of Network TV

INTERNET
Broadband Use Up
Denmark Is Web-Savviest Nation, U.S. Drops -Survey
Are Public Debates Over Internet Privacy Addressing the Issues?
Lawmaker to AOL: You've Got Mail

SPECTRUM
Nextel's Maneuver For Wireless Rights Has Rivals Fuming

DIGITAL TELEVISION

UPDATE: DIGITAL TV TRANSITION
The National Association of Broadcasters, all four network affiliate
associations and the Association for Maximum Service TV (MSTV) wrote to FCC
Chairman Michael Powell last week saying they believe the Commission's
proposal to advance the transition from analog to digital television is
fundamentally flawed because it would "condone and encourage" cable
downconverting, or "unlawfully degrading," broadcasters' services at the
headend. "It would also thwart Congress's main purpose for the transition,
which was to assure universal availability of digital services to the
American public." Broadcasters say Congress had three main goals for the
transition: that consumers realize the benefits of digital technology,
avoid the loss of free TV and reclaim spectrum.
Broadcasting & Cable is reporting that the FCC's digital TV transition plan
is "dead on arrival" unless the Commission can come up with a way to ensure
that people get high-definition signals. That is not the Commission's
priority, FCC Media Bureau Chief Ken Ferree said. "We'd love for people to
get pretty pictures, but this part of the transition is not really about
that. It's just about trying to make sure sets work" after analog channels
go away. His plan could still theoretically turn millions of analog sets
into landfill. Chief Ferree said it is wrong to characterize the plan as a
change in DTV rules, because the FCC has never said how it would define
85%. He also said it's wrong to say Congress meant only "beautiful
pictures" to count. "So far," says a Hill staffer, "the reaction in
Congress is agnostic to skeptical."
Meanwhile, a coalition of public interest groups is asking the FCC to adopt
four processing guidelines to determine whether broadcasters seeking
license renewals have met their public interest obligations.
Representatives of the Alliance for Better Campaigns, the Benton
Foundation, Center for Creative Voices in Media, Center for
Digital Democracy, Common Cause, the Institute for Public Representation at
Georgetown U. Law Center, Media Access Project, the New America Foundation
and the United Church of Christ met with FCC Commissioner Abernathy's legal
advisor last week. Under the group's guidelines, to receive staff level
license renewal approval,
a broadcaster would have to: 1) Air a minimum of 3 hours per week of local
civic or electoral affairs programming on the most-watched channel the
broadcaster operates. On multicasts, the licensee would have to air 3 hours
per week per channel or 3% of the aggregate number of hours between 7 a.m.
and 11:35 p.m. per week, whichever is less. 2) If an affiliate of a
national TV network, air independently produced programming for at least
25% of the primary channel's prime time schedule. 3) Certify at the end of
each quarter that it put on its Web site or in its public file a report
identifying programming that counts toward the guidelines. If a broadcaster
devotes more than 50% of its daily programming to sales presentations or
program length commercials, its renewal application should be referred to
the Commission, the coalition said.
[SOURCE: Communications Daily, AUTHOR: Brigitte Greenberg]
(Not available online)
Also see:
Searching for Solutions
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA411141?display=Washington
(requires subscription)
Broadcasters' FCC Petition Sets Battle on Indecency Crackdown
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo
annemarie.squeo( at )wsj.com and Joe Flint joe.flint( at )wsj.com]
http://online.wsj.com/article/0,,SB108232850006886073,00.html?mod=home_w...
(requires subscription)
See NAB letter
http://www.nab.org/Newsroom/PressRel/Filings/LetterReFerreePlan041504.pdf

CAN THIS MAN SAVE BROADCAST TV?
Emmis Communications CEO Jeff Smulyan will present a new plan to fellow
broadcasters this week in Las Vegas aimed at making them more profitable
after the transition to digital television. He'll lobby his fellow TV
broadcasters to pool their digital spectrum in a bold effort to offer a new
wireless cable service in cities nationwide. Under the plan, stations would
offer subscribers a package of 15 or so of the most popular cable networks
for $25/month. Consultants hired by Smulyan estimate that 10%-15% of TV
homes could be drawn to a low-cost service, and he estimates that
three-quarters of the customers would come from existing cable and DBS
consumers who consider their service too expensive.
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
http://www.broadcastingcable.com/article/CA411234?display=Top+of+the+Week

BROADCASTERS HESITANT TO ADOPT HIGH-TECH ADVANCES
The computer industry has transformed telecommunications, manufacturing and
the office cubicle, but television hasn't changed much in six years since
Apple Computer founder Steve Jobs started to urge broadcasters to undergo a
high-tech makeover. Is it fear of technology and/or piracy that makes
broadcasters hesitant? "Rather than protecting content," the networks,
producers and equipment makers "are trying to protect a broadcast business
model, which is falling apart without any push from the computer industry,"
said James M. Burger, a Washington communications lawyer who represents
Apple, Hewlett-Packard and Microsoft on digital TV issues. As broadcasters
meet this week in Las Vegas, Silicon Valley executives and engineers will
be there, trying to convince the television industry that the future is a
digital living room.
[SOURCE: Los Angeles Times, AUTHOR: Jube Shiver Jr]
http://www.latimes.com/business/printedition/la-fi-digital19apr19,1,5769...

TELEVISION TODAY

F-WORD IS NOW 'FIGHT'
Changes in indecency standards at the FCC are making for some strange
bedfellows who through petition are asking the Commission to reverse
course. "The Commission's harsh new policy has sent shock waves through the
broadcast industry and is forcing licensees to censor speech that
unquestionably is protected by the First Amendment," says noted First
Amendment attorney Robert Corn-Revere in the petition. "The FCC consciously
assumed the role of a national arbiter of good taste, and its decision
already is exerting a chilling effect." If the FCC does not favorably act
on the petition, which is highly unlikely, Mr. Corn-Revere warns of a legal
battle that would land every detail of Washington's anti-indecency
crackdown at the Supreme Court. Allies in this fight include Viacom, Fox,
handful of midsize broadcast groups, People for the American Way, the Media
Access Project, and a few performers, such as Penn & Teller and comedian
Margaret Cho.
The FCC is expected to fine Viacom $1.5 million this week for airing the
Howard Stern show.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA411239?display=Top+of+the+Week

THE BIG CHILL?
In this commentary, Wright writes that further broadcast content regulation
is necessary and suggests that the entire broadcast industry is being
confused with a few "shock jocks" of radio who have drawn so much
government attention. Broadcast licensees take seriously their obligation
to refrain from airing obscene, indecent, or profane programming, he
writes. He also warns of the chilling effect increased Washington attention
-- both proposed legislation and increasing fines -- has had on
broadcasters, "sacrificing creative integrity." Wright concludes, "Do we
really want to enter an era in which an inadvertent curse word aired during
live coverage of a breaking news story would result in fines and possible
license revocations? It would be a loss to everyone if the high standards
of news organizations like NBC News were sacrificed in the effort to
minimize the real risks that apparently are now part of any live broadcast.
Some material has no place on broadcast radio or television. But the
federal government needs to act with caution and restraint when it comes to
exercising its powers in this area. The vast majority of broadcast
licensees do an excellent job of knowing where and when to draw the line.
Errors of judgment are rare. Ultimately, we have much less to fear from
obscene, indecent, or profane content than we do from an overzealous
government willing to limit First Amendment protections and censor creative
expression. That would be indecent."
[SOURCE: Wall Street Journal, AUTHOR: Bob Wright, vice chairman of General
Electric, and chairman and CEO of NBC]
http://online.wsj.com/article/0,,SB108232926678386106,00.html?mod=todays...
(requires subscription)

IN TV COVERAGE, KERRY RUNS A DEFICIT
In the daily battle for television airtime, President Bush has drawn more
than three times as much live cable coverage as his Democratic challenger,
Sen John Kerry (D-MA), yet another example of the advantages of incumbency.
A review by The Washington Post, using a video monitoring service, finds
that the cable news networks have covered more Bush events and stayed with
them longer. From March 3, the day after the senator clinched the
nomination, through Friday, they have devoted 12 hours and 11 minutes to
live appearances by Bush -- including Tuesday's prime-time news conference,
which was also carried by NBC, CBS and ABC. Kerry's live cable coverage
during this period: 3 hours 47 minutes. Bush campaign spokesman Terry Holt
calls the coverage "a testament to who's making news. . . . We think being
on the cable news programs is very important because people who follow
politics and cover politics keep a close eye on their TVs during the day."
The situation is hardly new. Scott Reed, Bob Dole's 1996 presidential
campaign manager, faced the same problem against President Clinton. "The
commander in chief always has the opportunity to steal the stage and
overshadow the challenger," he says. "In the beginning you feel frustrated
by it, but eventually you accept reality. . . . There's nothing Kerry can
do to break in."
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A22713-2004Apr18.html
(requires registration)

REALITY INTRUDES ON A SPRING RITE OF NETWORK TV
In the current television season, 12 of the top 20 shows are reality shows,
and many of the others are either about to close down for good, like
"Friends," or are part of multipart crime franchises, like NBC's "Law and
Order" and CBS's "C.S.I." So as the networks gear up next year's shows,
television writers, directors and actors are worried as well about how many
jobs the business is going to continue to generate because fewer prime time
slots are going to be available for scripted shows. For example, Jeff
Zucker, the president of NBC Entertainment, said: "It turns out that the
next 'Friends' was not a half-hour scripted comedy. It was 'The
Apprentice.' " As they prepare for "upfront presentations" soon, Fox has
announced it debut new shows in June because it has no fall season, CBS and
NBC will do little to alter their schedules except add a third "C.S.I."
franchise and a fourth "Law and Order." But perhaps more importantly,
networks will be selling advertisers on reality -- upscale reality. "The
game has changed," Mr. Zucker said. "Everybody is looking for the next big
scripted success. And people had some scripted successes. We had 'Las
Vegas.' Fox had 'The O.C.' CBS had 'Two and a Half Men.' But most of the
big successes this year, what the viewers have been flocking to, especially
viewers under the age of 50, is a different kind of program. You can't deny
it now. And it's not a fad. You can't have 12 of the top 20 and keep
believing it's not going to stay around."
[SOURCE: New York Times, AUTHOR: Bill Carter]
http://www.nytimes.com/2004/04/19/business/media/19network.html
(requires registration)

INTERNET

BROADBAND USE UP
Broadband Internet access is increasingly being woven into the work and
home lives of Internet users in the United States. According to the
February 2004 survey of the Pew Internet & American Life Project, 55% of
American Internet users have access to broadband either at home or in the
workplace. Fully 39% of U.S. online users have broadband access at home.
Much of the growth in broadband adoption at home is attributable to users'
unhappiness with the dial-up doldrums - that is, people growing frustrated
with their slow dial-up connections. Nearly 60% of home broadband users say
that impatience with dial-up connections or a desire to download files
faster is the reason they switched to broadband. Price of service plays a
relatively minor role in the home high-speed adoption decision. "People do
more things online the longer they have been Internet users, and the
additional waiting sours them on dial-up," said John B. Horrigan, Senior
Research Specialist at the Pew Internet & American Life Project and author
of the report. "Paying more for broadband thus has big efficiency payoffs
for many dial-up users. The extra monthly cost is well worth it for
high-speed home users, and this is why they tell us price is not a big
factor in their move to broadband."
[SOURCE: Pew Internet & American Life Project, AUTHOR: ]
http://www.pewinternet.org/reports/toc.asp?Report=120
http://www.pewinternet.org/reports/pdfs/PIP_Broadband04.DataMemo.pdf
See also:
Broadband Internet Use Up Sharply, Survey Finds
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=48578...
In a Fast-Moving Web World, Some Prefer the Dial-Up Lane
[SOURCE: New York Times, AUTHOR: Matt Richtel]
http://www.nytimes.com/2004/04/19/technology/19DIAL.html?hp
(requires registration)
Internet surfers get tired of poking along, dump dial-up for high speed
[SOURCE: USAToday, AUTHOR: Edward C. Baig]
http://www.usatoday.com/usatonline/20040419/6124265s.htm

DENMARK IS WEB-SAVVIEST NATION, U.S. DROPS - SURVEY
IBM and The Economist have ranked the Web-savviest nations in the world and
the US has dropped from the top five which is: Denmark, England, Sweden,
Norway and Finland. "Scandinavia is remarkable for the way in which
citizens have incorporated Internet technology into their daily lives,
completely altering how they work, shop, and communicate with officials,"
the report said. The United States dropped to sixth place from a shared
third place despite having the world's best social and cultural environment
for the Internet, because the percentage of broadband connections was
falling behind other nations.
[SOURCE: Reuters, AUTHOR: Lucas van Grinsven]
http://www.reuters.com/newsArticle.jhtml?type=technologyNews&storyID=485...

ARE PUBLIC DEBATES OVER INTERNET PRIVACY ADDRESSING THE ISSUES?
There is a large digital-privacy lobby out there, Gomes writes in his
column, and for the most part I wish it well. I just worry that they are
fighting epic battles over what in the end are merely inconveniences. Gomes
thinks there is too much attention and outrage for spam, Gmail and spyware
and too little for Yousef Yee, the former Guantanamo chaplain, or Wen Ho
Lee, the former Los Alamos researcher or Jose Padilla, an American citizen
accused of trying to build a "dirty bomb" and being held without legal
representation.
[SOURCE: Wall Street Journal, AUTHOR: Lee Gomes]
(http://wsj.com/)
(requires subscription)

LAWMAKER TO AOL: YOU'VE GOT MAIL
California Assemblywoman Loni Hancock (D-Berkeley) recently introduced a
bill that would require companies that mail CDs or DVDs in unsolicited bulk
to include self-addressed, stamped envelopes. That would easily allow
people who don't want to receive another offer for 1,000 free minutes of
AOL, for instance, to mail the CD back to the company or to a processing
plant that recycles CDs. "This bill will take care of a growing problem of
hundreds of millions of CDs mailed out unsolicited," Hancock said. The
manufacturers "use increasingly scarce and expensive petroleum. The CDs
then last up to 400 years in a landfill and, in fact, they can be reused."
[SOURCE: C-Net|News.com, AUTHOR: Jim Hu ]
http://news.com.com/2100-1024-5193717.html?tag=cd.top

SPECTRUM

NEXTEL'S MANEUVER FOR WIRELESS RIGHTS HAS RIVALS FUMING
The Nextel saga is retold on the front page of the WSJ: how the company's
service to customers jammed public safety communications, the initial
indifference the company showed public-safety departments across the nation
and how eventually the situation has led to what many would call a spectrum
grab by Nextel. Why does the FCC seem poised to give Nextel spectrum
licenses worth billions when the company is offering less than a billion to
help public safety officials upgrade their equipment? "If the FCC votes
against the plan, it's not like they're voting against Nextel, it's like
they're voting against public safety. In this climate, it makes it hard to
vote against it," says Blair Levin, a former FCC chief of staff and now an
analyst for Legg Mason Wood Walker.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com
and Anne Marie Squeo annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB108232836088986064,00.html?mod=todays...
(requires subscription)
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