Benton's Communications-related Headlines for 9/28/04

Media ownership is on today's calendar with a hearing in the Senate and a=20
panel discussion this evening at the National Press Club. The Senate will=20
also be discussing Effectiveness of Media Rating Systems. For these and=20
other upcoming media policy events, see http://www.benton.org/calendar.htm

MEDIA POLICY
Media Reform at a Crossroads
Study Rejects Print-Broadcast Combos
700 MHz Issues are Perplexing
U.S. Senate to Weigh Bill Targeting Web Song Swaps
CBS Fine Fires up Desires for Strict Federal Nanny

PUBLIC BROADCASTING
To BBC's Rivals, 'Auntie' Is Too Big For Its Britches
Morphing Commercial Radio Could Attract Pubradio Fans
Petitioner Angles for Time on 7 Midwestern Stations

CABLE
Time Warner, Comcast Weigh Bid for Adelphia
Digital TV Over Cable

TELECOM
Legalized Extortion by Any Other Name
Telecom's Next Wave: Alliances

QUICKLY
Welcome To Broadband City
Low Power FM: The People's Choice

MEDIA POLICY

MEDIA REFORM AT A CROSSROADS
[Commentary] Congresswoman Diane Waston believes that we are standing at a=
=20
crossroads to the future of US media. Will we allow a powerful media lobby=
=20
in Washington to continue to encourage consolidation of ownership, or will=
=20
Americans rise up to demand a media system that fosters more local, diverse=
=20
and democratic media. Today, decades of irresponsible deregulation in=20
telecommunication policy has created great discontent among consumers who=20
are angry at the lack of choices among an extremely concentrated media=20
market. Five giant media conglomerates -- Viacom/CBS, GE/NBCUniversal,=20
Disney/ABC, News Corp./FOX, and Time Warner -- control approximately a 75%=
=20
share of broadcast and cable prime-time viewing.When big media get larger,=
=20
and the race for audiences turns to the lowest denominator in trash=20
programming as an appeal to the broadest possible audience, these=20
conglomerates move further away from quality programming and the principles=
=20
of diversity, localism, and competition, which is crucial to serving the=20
public interest. Recently, Representative Maurice Hinchey and Rep Watson=20
introduced H.R. 4069, the Media Ownership Reform Act of 2004, which seeks=20
to undo the massive consolidation of the media that has been ongoing for=20
nearly 20 years, and writing into statute precise limitations to a=20
company's ability to own and operate media outlets in a single market. The=
=20
bill would restore the Fairness Doctrine, reinstate a national cap on=20
ownership of radio stations, and lower the number of radio stations one=20
company can own in a local market. It would also keep in place the current=
=20
cross ownership rules regarding newspaper and broadcast ownership, local TV=
=20
ownership rules, and prohibit one company from owning a TV station and a=20
cable system in the same local market. The bill also sets up new media=20
ownership guidelines for the FCC to use in future rulings, especially in=20
gauging the level of diversity in the nation's media to measure how many=20
people are watching television programming. Reps Hinchey and Watson will be=
=20
reintroducing this important piece of legislation next year, and hope to=20
have your support as the struggle for media ownership reform continues.
[SOURCE: MediaChannel.org]
http://www.mediachannel.org/views/dissector/affalert260.shtml

STUDY REJECTS PRINT-BROADCAST COMBOS
A new study to be released today by Fordham University's McGannon=20
Communications Research Center concludes that mergers between TV stations=20
and newspapers in any size market should not be allowed. A Philadelphia=20
appeals court told the FCC to better calculate market concentration and=20
the new study purports to show how "far off the mark" the FCC's proposed=20
diversity index would be compared to the court's instruction on what it=20
should be looking for. According to the study, the FCC overestimated radio=
=20
and the Internet as alternative news sources "by a factor of four," and=20
underestimated daily newspapers' importance by a factor of 2.5.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA456444?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

700 MHZ ISSUES ARE PERPLEXING
How did anybody ever think the transition to digital TV broadcasting was=20
going to be easy? With slow consumer uptake of digital broadcasting=20
equipment, the transition could take decades, tieing up spectrum that could=
=20
be used for public safety and other uses. Cable operators say they'll carry=
=20
all available digital signals when there's consumer demand for it, while=20
broadcasters say demand will increase only if cable operators are required=
=20
to carry every digital signal, as well as analog signals. But why do=20
broadcasters kept winning policy battles that slow the transition? "In a=20
society where winning elections by less than 10% of the vote is=20
commonplace, telling more than 10% of the electorate that their analog TVs=
=20
won't work anymore probably isn't feasible," Jackson writes. He concludes:=
=20
"...it appears that some extraordinary measures will have to be taken for=20
public safety and wireless operators to have a shot at using this spectrum.=
=20
The encouraging note for both groups is that the potential economic and=20
social benefits that would come from clearing the 700 MHz spectrum warrant=
=20
such action. Just don't hold your breath waiting for it to happen."
[SOURCE: Telephony's Regulatory Insider, AUTHOR: Donny Jackson]
djackson( at )primediabusiness.com

U.S. SENATE TO WEIGH BILL TARGETING WEB SONG TRANSFER
After weeks of negotiations, the U.S. Senate could take action on Thursday=
=20
on the Inducing Infringement of Copyrights Act that would make it easier to=
=20
sue "peer-to-peer" networks like Kazaa and LimeWire that allow users to=20
copy music and movies over the Internet. The bill would hold liable anyone=
=20
who "induces" others to reproduce copyrighted material. The bill would give=
=20
a boost to recording companies and movie studios, which so far have been=20
unable to shut down the online file-trading networks in court. A new=20
version of the bill released after months of negotiation contains=20
carve-outs for venture-capital investors, advertisers, reviewers, and=20
nonprofits. Still, the new version seemed to win few converts. "Although=20
this new draft may appear on the surface to be more friendly to technology=
=20
and innovation than were past drafts, in fact it is not," said Gigi Sohn,=20
president of the nonprofit policy group Public Knowledge. "The stakes here=
=20
are chilling what drives America's economy, which is technical innovation,=
=20
both in the marketplace of products and the marketplace of ideas," said=20
Adam Eisgrau, executive director of P2P United, a trade group for several=20
peer-to-peer networks.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D6...
13
Public Knowledge is organizing an effort to oppose the Induce bill, S 2560.=
=20
The group warns that the bill could do away with the court ruling that=20
allowed the VCR, the
iPod, computer hard drives, and even the Internet, to be developed and to=20
flourish. The legislation would give the music and movie companies control=
=20
over the kinds of products and services consumers will be able to use to=20
listen to music.
See http://www.publicknowledge.org/take-action/induce

CBS FIRES UP DESIRES FOR STRICT FEDERAL NANNY
[Commentary] The Kaiser Family Foundation got a lot of press last week when=
=20
it released a survey that found parents are concerned with the amount of=20
sex and violence on TV. Vicky Rideout, director of Kaiser's Program for the=
=20
Study of Entertainment Media and Health, said the survey was intended to be=
=20
quantitative, not qualitative. She described it as "a broad tool that can=20
lead to suggested legislation or policy." McFadden expresses fear of that=20
"broad tool" because it could end up punishing the evening news for images=
=20
of abused Abu Ghraib prisoners when trying to shield youngsters from=20
brutal, shoot-'em-up cartoons. The Center for Creative Voices in Media's=20
Jonathan Rintels doesn't defend sex and violence on TV. But he is upset=20
about the chilling effects of an ill-defined outcry. "Unfortunately,=20
Congress and the FCC have taken what ought to be the last resort =97=20
government regulation of speech =97 and made it the first resort," said=20
Rintels. "What we're saying is: Let's look at all the other alternatives to=
=20
dealing with sex and violence on TV first instead of making the government=
=20
a national nanny." The alternatives: 1) Getting the FCC to clearly define=20
prohibited words, terms and deeds. So far, the agency has declined to do=20
so. 2) Offering viewers so-called a la carte cable, which lets them choose=
=20
individual channels and reduce the risk of getting racier options packaged=
=20
with family fare. The a la carte option is opposed by the U.S. cable=20
industry and would require government intercession.
[SOURCE: The Seattle Times, AUTHOR: Kay McFadden]
http://seattletimes.nwsource.com/html/artsentertainment/2002045580_kay27...
l
Jonathan Rintels spoke about the Super Bowl half time show and the=20
resulting fine on The NewsHour on PBS. See a transcript at:
http://www.pbs.org/newshour/bb/media/july-dec04/fine_9-23.html

PUBLIC BROADCASTING

TO BBC'S RIVALS, 'AUNTIE' IS TOO BIG FOR ITS BRITCHES
What's the role of public broadcasting in a rapidly changing media=20
landscape? This is a question being asked all over the world, but=20
especially in England where the government is conducting a once-in-a-decade=
=20
review of the Royal Charter that sets the BBC's terms of operation and=20
funding. There's no question that the BBC's charter will be renewed, but=20
the government may mandate changes that will set the course of the BBC for=
=20
the next 10 years. Competitors complain that the BBC uses public funds to=20
compete with commercial broadcasters, which some say violates the BBC's=20
public-service mission. They argue that the BBC should produce and=20
broadcast only programming that commercial broadcasters can't or won't,=20
filling gaps in the market rather than producing mainstream TV fare.
A draft charter is expected in January.
[SOURCE: Wall Street Journal, AUTHOR: Marc Champion marc.champion( at )wsj.com,=
=20
Emily Nelson emily.nelson( at )wsj.com, Charles Goldsmith=20
charles.goldsmith( at )wsj.com ]
http://online.wsj.com/article/0,,SB109632206969429290,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

MORPHING COMMERCIAL RADIO COULD ATTRACT PUBRADIO FANS
Neo-Radio, contemporary music without the hype. Progressive, left-leaning=20
radio talk shows. Classical music. All public radio formats, right? Now=20
commercial stations are moving into these areas, too. Neo-Radio and Air=20
America are just getting going and a commercial classic network is in the=20
making. Could they cut into public radio audiences? Or do they provide=20
opportunities for cross-promotion?
[SOURCE: Current, AUTHOR: Mike Janssen]
(http://www.current.org/)

PETITIONER ANGLES FOR TIME ON 7 MIDWESTERN STATIONS
A midwestern religious broadcaster has filed with the FCC trying to gain=20
time on if not the licenses of six public radio stations and one repeater=20
operated by a pubcaster. The religious broadcaster, Martin Hensley. claims=
=20
some of the stations provide no local service or fall short of the minimum=
=20
weekly operating schedule the FCC requires of noncommercial stations.=20
Hensley wants to restrict the schools to broadcasting during school hours=20
[since students never listen to the radio after school] and fill the=20
remainder of time with news, music and sports and to address issues like=20
depression, drunken driving and teen pregnancy.
[SOURCE: Current, AUTHOR: Mike Janssen]
(http://www.current.org/)

CABLE

TIME WARNER, COMCAST WEIGH BID FOR ADELPHIA
Look for more consolidation of ownership in the cable industry. With the=20
nation's 5th-largest cable operator, Adelphia, up for sale, the two largest=
=20
operators, Comcast and Time Warner, are expected to make a joint bid for=20
Adelphia's holdings in 31 states. Public interest advocates are worried=20
about the concentration of ownership power -- especially at Comcast. The=20
Philadelphia-based company already reaches more than 21 million subscribers=
=20
and close to one in five U.S. households; it also is the country's largest=
=20
provider of broadband Internet access. Critics say Comcast already wields=20
too much power over the Internet and what viewers see on TV. "In any=20
democratic society, you don't want a single entity to have too much power=20
to bless one channel over another," says Harold Feld, associate director of=
=20
Media Access Project, a Washington public-interest law firm.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com &=20
James Bandler james.bandler( at )wsj.com]
http://online.wsj.com/article/0,,SB109629633422928793,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
See also --
WP: http://www.washingtonpost.com/wp-dyn/articles/A55560-2004Sep27.html
USAToday:=20
http://www.usatoday.com/printedition/money/20040928/1b_adelphia28.art.htm
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-adelphia28sep28,1,642...
.story?coll=3Dla-headlines-pe-business

DIGITAL TV OVER CABLE
The number of local TV markets in which consumers can now receive a package=
=20
of HDTV services from their cable operator has grown to 177 (out of 210),=20
including all of the top 100 Designated Market Areas, the National Cable &=
=20
Telecommunications Association (NCTA) said today in releasing results of a=
=20
recent survey of its member companies. NCTA also reported that the number=20
of local digital broadcast stations being carried by cable systems has=20
increased to 454, up from 304 in December 2003, growth of nearly 50%.=20
Consumer availability of HDTV via cable has skyrocketed since its=20
commercial introduction by cable operators in 2002. Of the 108 million U.S.=
=20
TV households today, 90 million are now passed by a cable system that=20
offers a package of HDTV programming, NCTA said, an increase of more than=20
28% over the 70 million mark since last December. In addition, 17 cable=20
networks now offer HD programming during some or all of their network=20
schedules, in broad genres including movies, sports and general interest.=20
The NCTA data reflects activity through mid-September 2004.
[SOURCE: National Cable & Telecommunications Association Press Release]
http://www.ncta.com/press/press.cfm?PRid=3D536&showArticles=3Dok

TELECOM

LEGALIZED EXTORTION BY ANY OTHER NAME
[Commentary] McCullagh says the Senate Commerce Committee's approval of the=
=20
Wireless 411 Privacy Act bill was "an exercise in frivolity and futility."=
=20
So why did it take the trouble? First, it is great to grandstand as a=20
protector of consumer privacy. But McCullagh goes on to suggest something a=
=20
bit more sinister. "Politicians will enact legislation or press for=20
regulation that they suspect will cause problems," says Don Boudreaux,=20
chairman of the economics department at George Mason University. "They know=
=20
that the people who are affected by the problems will come to them, begging=
=20
that the problem be solved and contributing to their re-election efforts.=20
Economists have a term for it: rent extraction...It's particularly likely=20
when the issue is one that can be portrayed in sound bites and very quick=20
headlines as something good. 'I voted to require opt-in'--that sounds good.=
=20
It doesn't sound suspicious on its face." Boudreaux and other scholars,=20
including Northwestern University's Fred McChesney, have documented how=20
politicians have painstakingly made some areas of the law--like the tax=20
code--especially convoluted and then have proceeded to rewrite portions=20
every year or two. The repeated tinkering and high stakes, the argument=20
goes, guarantee a constant flow of political tribute.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/2010-1028-5381536.html

TELECOM'S NEXT WAVE: ALLIANCES
Consumer spending on bundled communications services, which includes=20
wireline, wireless, Internet, and cable or satellite TV, has been climbing.=
=20
Telecos are competing fiercely with other local wireline, wireless, and=20
cable-service providers, leading to losses in local-access lines. Looking=20
ahead, competition will only grow with the launch of Internet telephony and=
=20
the expansion of wireless broadband networks. But unlike earlier periods,=20
when telcos ratcheted up capital spending to boost growth and gain customer=
=20
loyalty, partnerships are now the vogue as carriers try to reduce debt.=20
What makes the partnerships appealing is that they let one company provide=
=20
new services to customers, while allowing its partner make use of excess=20
capacity to become more efficient.
[SOURCE: BusinessWeek, AUTHOR: Todd Rosenbluth]
http://www.businessweek.com/investor/content/sep2004/pi20040924_0182_pi0...
tm

QUICKLY

WELCOME TO BROADBAND CITY
Philadelphia is not alone in wanting to offer city-wide high-speed Internet=
=20
access. By sending signals over the airwaves from inexpensive antennas=20
mounted on light poles, small-town mayors and local entrepreneurs around=20
the country are already providing low-cost broadband. Corpus Christi and=20
Houston are also moving forward on Wi-Fi networks. Not surprisingly, cable=
=20
and telcos aren't happy about their new rivals -- and lobbying hard to halt=
=20
the trend. The muni wireless network is an unexpected twist in what had=20
been a two-way race to sign up broadband subscribers. By creating "a third=
=20
pipeline," muni networks should lower prices and speed the spread of=20
broadband, says Michael Calabrese, vice-president at the New America=20
Foundation, a Washington think tank.
[SOURCE: BusinessWeek, AUTHOR: Catherine Yang & Heather Green ]
http://www.businessweek.com/magazine/content/04_40/b3902057_mz011.htm

LOW POWER FM: THE PEOPLE'S CHOICE
An hour-long documentary on the story of how low power FM radio is bringing=
=20
diverse peoples closer together and giving new life to declining=20
communities, new strength to neighborhoods and new voices in the=20
marketplace of ideas. Meet the people who helped launch low power FM radio=
=20
and see how the LPFM radio movement withstood the rigors of Capitol Hill=20
and special interest attacks.
[SOURCE: United Church of Christ]
http://www.ucc.org/ocinc/lpfmradio/peopleschoice.htmhttp://www.ucc.org/oci=
nc/lpfmradio/peopleschoice.htm
--------------------------------------------------------------
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. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------