For upcoming media policy events, see http://www.benton.org/calendar.htm
AGENDA
DTV Bill Tops Busy D.C. Docket
TELEVISION
FCC Chief Considers Forcing Cable TV Competition
Comcast Flexing Content Leverage
Is there a sweatshop behind 'Survivor'?
NCTA Seeks Signal-Fee Reform
FEC Change Could Hurt PSAs
Cable Nets Grab a Bigger Share
OWNERSHIP
Intelsat Sets Deal To Buy PanAmSat For $3.2 Billion
Media Executives Court China, but Still Run Into Obstacles
CDT Offers Recommendations on Broadcast Flag Legislation
QUICKLY -- $34.6 Million in Rural Technology Development Funds; NAB Zeros=
=20
In On Fritts Successor; Interactive Ads: Beyond Watercooler Buzz; FCC=20
Extends VoIP/E-911 Deadline; Copps: Martin=92s FCC Strongly Committed To=20
Homeland Security
AGENDA
DTV BILL TOPS BUSY DC DOCKET
A digital transition bill, two new FCC commissioners and the start of the=
=20
rewrite of media-ownership rules will all be on the to-do list when=20
policymakers and regulators get back to business after Labor Day. While=20
Members have been away, Congressional aides have been working on the text=
=20
of digital television bills -- a DTV bill needs to get to the budget=20
committee by Sept. 16 to be included in a larger budget-reconciliation=20
package that requires various committees to find money for the treasury.=20
Slowing the DTV bills has been debate over subsidies for analog-only TV=20
households and whether to require cable systems to carry all the non-pay=20
channels a broadcaster can fit into its digital channel. The hard date is=
=20
now expected to be June or July 2009. Originally, it had been targeted for=
=20
Jan. 1, 2009, but that date will likely change to push it past the January=
=20
college bowl games, the Super Bowl and the May sweeps and into the=20
low-viewing summer months. In early September, look for the White House to=
=20
finally nominate two new FCC commissioners and renominate Democrat Michael=
=20
Copps. Still expected to get the nods for the two Republican seats are=20
telecom policy adviser Richard Russell and Tennessee utility commissioner=
=20
Deborah Tate.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6252080?display=3DNews&referral=
=3DSUPP
(free access for Benton's Headlines subscribers)
Also --
* Sept. 7 - 8 Event to Lobby for Multicast Must-Carry
More than 85 broadcasters from 22 states plan to meet September 7 - 8 in=20
Washington, DC to educate members of Congress on the need for cable=20
carriage of multicast signals. Legislation to complete the digital=20
television transition is accelerating in both the House and Senate.=20
Specifically, it is expected the House Commerce Committee will consider=20
digital television language the week of September 5, the first week=20
Congress returns from its August recess. The Senate Commerce Committee will=
=20
likely consider its own DTV bill the following week. "Given this compressed=
=20
timetable," the NAB tells its members, "and the need to make our case=20
before the two Committees vote in September, make your plans today to=20
attend the NAB Washington DTV Fly-In." For more info, contact the NAB at=20
1-800-424-8806 or publicaffairs( at )nab.org.
[SOURCE: National Association of Broadcasters]
TELEVISION
FCC CHIEF CONSIDERS FORCING CABLE TV COMPETITION
Reported one week ago, FCC Chairman Kevin Martin apparently thinks the=20
Cable Act of 1992 gives the FCC authority to compel cities to let the=20
regional Bells compete head-on with cable TV operators -- and to do so=20
quickly. The provision of the '92 act -- Section 621(a)(1) -- states that=
=20
local franchising authorities "may not unreasonably refuse to award an=20
additional competitive franchise" for video. By some readings, that means=
=20
cities can't erect obstacles to keep out video competitors. Verizon and SBC=
=20
are spending billions to deploy advanced broadband services =97 voice, data=
=20
and video =97 across the country. Before they can deploy video, however,=20
cities want them to submit to the cable TV franchising process. But there=
=20
are thousands of local franchising authorities, and each has its own=20
licensing process and timetables
[SOURCE: USAToday 8/22, AUTHOR: Leslie Cauley]
http://www.usatoday.com/money/industries/telecom/2005-08-22-telecom-usat...
htm
COMCAST FLEXING CONTENT LEVERAGE
Comcast is taking some bold steps to transform and beef up its content=20
portfolio, from acquiring professional hockey for Outside Living Network=20
(OLN) to starting affiliate-sales consolidation for its networks. According=
=20
to industry sources, Comcast=92s game plan is to use sports programming --=
=20
from its emerging OLN as well as its regional sports networks -- to gain=20
what major programmers like News Corp. and Walt Disney all have: leverage=
=20
with distributors. That leverage will be a tool for top cable operator to=
=20
seek license-fee increases and wider carriage for its growing programming=
=20
stable, by packaging the various services through one central=20
affiliate-sales force.
[SOURCE: Multichannel News, AUTHOR: R. Thomas Umstead & Linda Moss]
http://www.multichannel.com/article/CA6252103.html
(requires subscription)
IS THERE A SWEATSHOP BEHIND 'SURVIVOR'?
In an Aug. 23 move that Writers Guild of America (WGA) calls "the largest=
=20
organizing effort" since its founding in 1933, ten reality TV writers=20
alleged that Fox Broadcasting Co. and Rocket Science Laboratories have=20
violated California labor laws. On behalf of 1,000 other story editors,=20
field producers, and editor assistants at over 70 companies, the=20
WGA-supported class action lawsuit also claims unlawful practices of=20
perpetrating and concealing overtime. Observers say the litigation will=20
shine light into the behind-the-scenes world of television's newest genre,=
=20
reality TV, whose emergence is generally dated to the debut of "Survivor"=
=20
in 2000. Because the Guild has signed up so many complaints at other=20
production companies, some say the suit could have serious repercussions on=
=20
the way production companies and networks treat the creators of reality=20
shows, and determine union protections for the future. Some observers say=
=20
the legal action could curtail further development of reality shows, which=
=20
are attractive to networks because they carry lower price tags compared to=
=20
dramas and sitcoms. Others say a more likely outcome could be the emergence=
=20
of a higher quality of show, as the genre could attract and hold better=20
writers.
[SOURCE: The Christian Science Monitor, AUTHOR: Daniel B. Wood]
http://www.csmonitor.com/2005/0829/p02s02-wmgn.html
NCTA SEEKS SIGNAL-FEE REFORM
Cable operators deserve a break in the fees they pay for compulsory=20
licenses to carry stations affiliated with broadcasters Fox, UPN, The WB=20
and Paxson Communications Corp., the National Cable & Telecommunications=20
Association asserts in a recent filing with the federal Copyright Office.=
=20
In its Aug. 17 petition for rulemaking, the NCTA contends that stations in=
=20
those groups now meet the definition of network, not independent, stations.=
=20
The definition is important: cable systems pay a full distant-signal=20
equivalent, calculated at 0.956 of 1% of a station's gross revenues, as=20
royalties for an independent station. The payment drops by three-quarters=
=20
for network stations.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA6252104.html?display=3DTop+Stories
(requires subscription)
FEC CHANGE COULD HURT PSAs
The Federal Election Commission is seeking comment on changes to campaign=
=20
finance rules that could narrow the exemptions from prohibited=20
"electioneering communications" and change the definition of "publicly=20
distributed" to include PSAs by excluding unpaid as well as paid TV or=20
radio appearances by a federal candidate. The current definition of=20
"publicly distributed" is "aired, broadcast, cablecast or otherwise=20
disseminated for a fee through the facilities of a television station,=20
radio station, cable TV system or satellite system." The FEC wants comment=
=20
on whether removing the "for a fee" language and subjecting PSAs to the=20
electioneering restrictions would discourage broadcasters from airing them.=
=20
The FEC is also considering narrowing or even eliminating, the=20
"electioneering" exemption for national and local charities and nonprofits.=
=20
The controversial status of so-called 527s, like Swift Boat Veterans for=20
Truth, is not addressed in the notice of proposed rulemaking issued Aug.=20
24, which is targeted to addressing the specific court findings. Comments=
=20
are due Sept. 30 and a hearing is slated for Oct. 19.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6251760?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
For more info from the FEC see=20
http://www.fec.gov/pdf/nprm/exemption_doc_films/notice_2005-20.pdf
CABLE NETS A BIGGER SHARE
Projections for summer season television viewing ratings have cable winning=
=20
a 61% share to broadcast's 32%. Broadcast=92s showing marks an all-time low=
=20
for the medium, its largest decline since 1997. This will be the fifth=20
summer in a row that cable has outdelivered broadcast in primetime.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA6252109.html
(requires subscription)
* Summer Migration: Viewers Turn to Cable
http://www.nytimes.com/2005/08/29/business/29drill.html
OWNERSHIP
INTELSAT SETS DEAL TO BUY PANAMSAT FOR $3.2 BILLION
Intelsat will acquire PanAmSat for $3.2 billion, bidding to create the=20
world's largest commercial-satellite fleet with unparalleled influence over=
=20
new offerings such as high-definition television and Internet access. With=
=20
its global reach, 53-satellite fleet and ability to manage in-orbit=20
satellites to cope with malfunctions and minimize outlays for additional=20
launches, the merged company would have unparalleled influence over the=20
satellite-communications sector. The nearest competitor would be SES Global=
=20
SA of Luxembourg, which has been the industry leader and trendsetter in=20
terms of major acquisitions and joint ventures. Consolidation has been=20
building among satellite operators for years, as they struggle amid weak=20
demand to pare the costs of launching and operating spacecraft designed to=
=20
beam television programs, voice traffic and all sorts of government and=20
corporate data. But even more powerful forces have prodded major shifts in=
=20
strategy and management: Seeking to leverage the ability of satellite firms=
=20
to generate cash, a long list of well-known private equity firms pumped=20
about $9 billion into the sector in recent years. They also have taken=20
advantage of generous capital markets to unveil a series of initial public=
=20
offerings, special dividends and merger plans to notch significant profits.=
=20
The Federal Communications Commission and the government's antitrust=20
authorities will review the deal.
[SOURCE: Wall Street Journal, AUTHOR: Dennis K. Berman=20
dennis.berman( at )wsj.com and Andy Pasztor andy.pasztor( at )wsj.com]
http://online.wsj.com/article/0,,SB112528363497425318,00.html?mod=3Dtoda...
us_page_one
(requires subscription)
See more coverage:
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/28/AR200508...
1185.html
http://www.nytimes.com/2005/08/29/business/29deal.html
MEDIA EXECUTIVES COURT CHINA, BUT STILL RUN INTO OBSTACLES
The long-held optimism of Western media companies about venturing into the=
=20
Chinese market has suffered several setbacks recently. At the beginning of=
=20
the month, as part of an effort to tighten control over cultural products,=
=20
China's Propaganda Department, the Ministry of Culture and four other=20
regulators published new rules that further restricted what foreign=20
filmmakers and television companies can do in China. Last week, the News=20
Corporation's plan for a new television channel to be co-owned with a=20
Chinese company was quashed by the government. The question facing Western=
=20
media companies is how long the newly tightened restrictions will hold.=20
Pessimists in media organizations worry whether the latest crackdown=20
reflects a longer-term shift under a more cautious Chinese president, Hu=20
Jintao. Optimists suggest that the recent moves are just the latest in a=20
long series of episodic, sometimes short-lived efforts by the Chinese=20
Communist Party to preserve social control. Over the longer term, access to=
=20
the China media is crucial to American companies like Time Warner and Walt=
=20
Disney, in addition to Viacom and the News Corporation. Growth at these=20
giant conglomerates has slowed and their stock prices have been under=20
pressure. If they can export their feature films, cable and TV programs, or=
=20
even co-produce new shows with Chinese companies, the returns could be=20
substantial.
[SOURCE: New York Times, AUTHOR: Geraldine Fabrikant]
http://www.nytimes.com/2005/08/29/business/worldbusiness/29china.html
(requires registration)
CDT OFFERS RECOMMENDATIONS ON BROADCAST FLAG
As Congress considers mandating a "broadcast flag" regime to protect=20
digital television signals from piracy, the Center for Democracy and=20
Technology is urging lawmakers to ensure that such a law does not interfere=
=20
with the rights of individuals to use digital content, or of inventors to=
=20
develop new technologies. To that end, CDT has drafted a report outlining=
=20
key considerations for Congress. Though it is unclear whether Congress will=
=20
move on legislation this year, pressure to enact a law has increased since=
=20
a federal court struck down broadcast flag rules written by the Federal=20
Communications Commission. CDT is not endorsing a flag regime, but believes=
=20
if one is passed, it must include appropriate limitations and safeguards.
[SOURCE: Center for Democracy and Technology]
http://www.cdt.org/copyright/20050822BroadcastFlag.pdf
http://www.cdt.org/copyright/20020825broadcastflagletter.pdf
* Digital Group Changes Its Stance On 'Broadcast Flag'
http://www.njtelecomupdate.com/lenya/telco/live/tb-NKRO1124989543658.html
QUICKLY
$34.6 MILLION IN RURAL TECHNOLOGY DEVELOPMENT FUNDS FOR RURAL AMERICA
On August 18, Agriculture Deputy Secretary Chuck Conner announced the=20
approval of $34.6 million in USDA Rural Development funds to support the=20
development and expansion of rural telecommunication technologies in=20
targeted rural areas in the states of Alabama, Indiana, Maryland, Michigan,=
=20
New Hampshire and Virginia. The funding will bring first-time telephone=20
service to remote areas of Michigan, and for the first time, USDA will=20
finance broadband infrastructure using electric power lines.
[SOURCE: US Department of Agriculture]
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=3Dtr...
contentid=3D2005/08/0317.xml
NAB ZEROS IN ON FRITTS SUCCESSOR
Apparently the National Association of Broadcasters has narrowed its list=
=20
for a successor for outgoing president Eddie Fritts: 1) former Congressman,=
=20
nonprofit executive, Love Boat co-star, and WMAL radio morning jock Fred=20
Grandy; 2) Disney/ABC Lobbyist Mitch Rose (ABC has just rejoined the NAB);=
=20
and perhaps the leading candidate David Rehr, president of the National=20
Beer Wholesalers Association.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA6252029?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
INTERACTIVE ADS: BEYOND WATERCOOLER BUZZ
Given the rate of digital-TV deployment -- particularly digital video=20
recorders, video-on-demand and broadband video options that allow consumers=
=20
to time-shift or bypass ads -- advertisers believe they must shape the=20
future of interactive TV themselves.
[SOURCE: Broadcasting&Cable, AUTHOR: Joe Mandese]
http://www.broadcastingcable.com/article/CA6252123?display=3DAdvertising...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
FCC CUTS VOIP PROVIDERS SLACK TO GET CUSTOMER E-911 REPLIES
The FCC Enforcement Bureau delayed imposition of a rule requiring VoIP=20
providers to disconnect subscribers who haven't responded to alerts about=
=20
911 service limitations. The FCC will extend the August 30 cutoff date 30=
=20
days, until September 28. But VoIP providers must file two more reports on=
=20
their progress educating customers and gaining their acknowledgments.=20
Reports filed in early August indicated some providers have replies from=20
90% or more of customers. Vonage claimed a 96% response rate. But tens of=
=20
thousands of phones still could have been cut off next week without the=20
extension.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
See the Bureau's announcement at:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-2358A1.doc
COPPS:MARTIN'S FCC STRONGLY COMMITTED TO HOMELAND SECURITY
Speaking to the Association of Public-Safety Communications Officials last=
=20
week, FCC Commissioner Michael Copps expressed confidence that the=20
Commission under Chairman Kevin Martin will be strongly committed to public=
=20
safety and homeland security. Commissioner Copps offered his own ideas for=
=20
the FCC to focus on as it proceeds. =93The Commission needs to be=20
front-and-center in the action, pushing for interoperability, striving for=
=20
redundancy, acting as a convener, an expediter and a planning innovator.=94=
=20
=93The FCC is not even mentioned in The 9/11 Commission Report,=94 Commissi=
oner=20
Copps noted. =93We need a higher profile -- not for the sake of profile but=
=20
for the sake of progress. The Commission has more to contribute than it=20
has.=94 One focus of a separate FCC homeland security office -- which Copps=
=20
has long advocated -- =93could be to help local public safety organizations=
=20
share ideas, prepare plans, vet proposals and coordinate them with both=20
government and industry.=94
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)
--------------------------------------------------------------
OK, OK, there's always next year, Cubs fans.
--------------------------------------------------------------
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.
--------------------------------------------------------------