GOVERNMENT & COMMUNICATIONS
Bond: White House seems flexible on immunity for telecoms over wiretaps
ELECTIONS & MEDIA
Is The Fat Lady Humming?
FCC REFORM
FCC chairman pushes reform agenda amid congressional inquiry
BROADCASTING
NAB to FCC: Reporting Requirement a Burden
MEDIA OWNERSHIP
Dorgan's Content Play
Big media slams proposal to roll back cross-ownership rule
Consumer Groups Push Issue on XM-Sirius
Cablevision Enlarges News Push with Newsday Buy
Analyst: Newsday Buy Should Clear DC Hurdles
'Newsday' sale eases Tribune debt - for now
SPECTRUM/WIRELESS
Legal troubles could threaten Sprint/Clearwire deal
EarthLink vs. City of Philadelphia
Driver Cellphone Bans Questioned
LABOR
Hollywood actors and studios clash over Internet clips
GOVERNMENT & COMMUNICATIONS
BOND: WHITE HOUSE SEEMS FLEXIBLE ON IMMUNITY FOR TELECOMS OVER WIRETAPS
[SOURCE: The Hill, AUTHOR: Manu Raju]
The White House appears willing to compromise on=20
the issue of retroactive immunity for telephone=20
firms that joined the Bush administration=92s=20
wiretapping program, said Sen. Kit Bond (R-MO).=20
The fight over whether the phone companies that=20
helped in national security surveillance should=20
be given immunity from lawsuits has prevented=20
Republicans and Democrats from reaching an=20
agreement to overhaul the Foreign Intelligence=20
Surveillance Act (FISA). Sen Bond, Vice Chairman=20
of the Intelligence Committee, said the White=20
House seems willing to let the FISA court help=20
determine whether phone companies should be shielded from litigation.
http://thehill.com/leading-the-news/bond-white-house-seems-flexible-on-i...
nity-for-telecoms-over-wiretaps-2008-05-12.html
ELECTIONS & MEDIA
IS THE FAT LADY HUMMING?
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
In a campaign with more twists than a Twilight=20
Zone episode, the media all but officially=20
pronounced Sen Barack Obama (IL) the Democratic=20
nominee last week after he emerged with a big win=20
in North Carolina and a near-tie in Indiana.=20
There are only a handful of Democratic primary=20
contests left. And the consensus was that Sen=20
Hillary Clinton (NY) needed a stronger showing on=20
May 6 to change the increasingly=20
insurmountable-looking pledged delegate math=20
and/or the superdelegates who have been steadily=20
migrating to Sen Obama. Ironically, in the week=20
that calls for her to drop out grew louder, Sen=20
Clinton generated her highest level of coverage=20
this year. According to PEJ=92s Campaign Coverage=20
Index, she was a significant or dominant factor=20
in 70% of the campaign stories from May 5-11. Sen=20
Obama was a close second, at 67%. But at only=20
12%, Republican Sen John McCain (AZ) ended up=20
with his lowest level of coverage in 2008. One=20
other narrative also began to suggest itself last=20
week in the coverage. Even though Sen McCain has=20
been virtually relegated to the role of bystander=20
as the Democrats battled on, that may soon change.
http://www.journalism.org/node/11038
FCC REFORM
FCC CHAIRMAN PUSHES REFORM AGENDA AMID CONGRESSIONAL INQUIRY
[SOURCE: National Journal, AUTHOR: David Hatch]
Last month, in a conference room atop the Federal=20
Communications Commission building that has=20
become a gathering spot for journalists, Chairman=20
Kevin Martin made what appeared to be a routine=20
announcement. The agency, he stated=20
matter-of-factly, would soon issue press releases=20
outlining the tentative agenda of each monthly=20
meeting three weeks in advance. The pronouncement=20
may have sounded routine, but it wasn't. For=20
decades, the agendas have been among the most=20
closely guarded secrets at the commission, which=20
regulates the trillion-dollar communications=20
industry. The FCC formerly issued meeting=20
advisories only seven days in advance, with=20
regulatory items often mysteriously appearing or=20
disappearing at the last moment. The agency still=20
issues updated advisories a week in advance, with=20
fewer surprises at the meetings. The=20
announcement, and the press conference itself,=20
were the direct result of pressure on Martin from=20
the House Energy and Commerce Committee, which is=20
conducting a months-long review of the FCC and=20
its regulatory practices. Four days later, on=20
April 28, an internal Energy and Commerce staff=20
memo tightened the squeeze when it recommended=20
holding oversight hearings in June, asserting,=20
"The FCC process appears broken and most of the=20
blame appears to rest with Chairman Martin." In=20
an effort to tamp down such criticism, the=20
chairman has instituted a series of unilateral=20
moves designed to make the FCC more transparent.=20
"I've tried to be responsive to individual=20
concerns that people have raised about the public=20
not being aware enough about some of the issues=20
that were in front of us," Chairman Martin said. Reviews are mixed.
http://www.govexec.com/dailyfed/0508/051208nj1.htm
BROADCASTING
NAB TO FCC: REPORTING REQUIREMENT A BURDEN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Commercial television broadcasters love to=20
provide loads of programming that addresses the=20
safety, cultural, educational, local civic and=20
public affairs needs of their communities. But,=20
oh, the paper work -- now that's a burden. The=20
National Association of Broadcasters told the=20
Federal Communications Commission its new=20
program-reporting requirement -- part of a=20
package of TV localism proposals -- would=20
increase the paperwork burden on stations by more=20
than 1,000%. It said stations would have to=20
devote an extra 21.5 hours per week to comply, or=20
more than 4 million hours per year [that is, if=20
you believe 21.5 x 52 equals 4 million -- but=20
that's Hollywood math, right?] The FCC wants=20
broadcasters to fill out a new disclosure form=20
that requires more detailed information on what=20
kind of programming it aired and why. The NAB=20
said such a burden would divert resources from=20
its mission to serve its communities. It also=20
said it would wind up being a larger burden than=20
the FCC's old program-ascertainment policy, scuttled in the deregulatory 19=
80s.
http://www.broadcastingcable.com/article/CA6560265.html?rssid=3D193
* NAB: FCC Understated New Disclosure Burden
http://www.tvnewsday.com/articles/2008/05/12/daily.8/
MEDIA OWNERSHIP
DORGAN'S CONTENT PLAY
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
[Commentary] Even a cursory glance at today's=20
media landscape reveals that a few companies do=20
not determine what Americans see, hear and read=20
every day. Americans have far more media choices=20
than ever before, including ever-growing cable,=20
satellite and Internet offerings. Increasingly,=20
nontraditional outlets are making their presence=20
felt. Cross-ownership bans also make little sense=20
when newspapers are losing market share. Because=20
ad dollars and eyeballs are migrating online =96=20
more than a third of Americans read news on the=20
Web =96 traditional media properties are being sold=20
off to invest in the new media frontier. Some 60%=20
of Internet users download videos. YouTube alone=20
uses more bandwidth today than the entire=20
Internet did in 2000. Senator Dorgan's bill has=20
25 sponsors, including Senator Obama, and was=20
voted out of committee last month. President Bush=20
has promised a veto, and we hope he keeps that promise.
http://online.wsj.com/article/SB121063603460086723.html?mod=3Dtodays_us_...
nion
(requires subscription)
BIG MEDIA SLAMS PROPOSAL TO ROLL BACK CROSS-OWNERSHIP RULE
[SOURCE: ars technica, AUTHOR: Matthew Lasar]
Rarely has one Federal Communications Commission=20
filing provoked as much ire as this. Thirteen=20
major broadcast and newspaper groups have filed=20
lengthy denunciations of a public interest=20
group's appeal to redo the FCC's recent=20
relaxation of its TV station/newspaper=20
cross-ownership ban. Their comments once again=20
expose the enormous divide between public opinion=20
and big media on this issue. Common Cause, the=20
Benton Foundation, the National Hispanic Media=20
Coalition, and three other groups opposes the=20
FCC's new media ownership rule outright. But the=20
groups knows that FCC Chair Kevin Martin's=20
Republican majority isn't going to rescind it.=20
They are instead asking the Commission to=20
eliminate the complex waiver rules the agency=20
added to their three-pronged merger criteria,=20
especially the "four factor" test. These new=20
provisions "provide no mechanism by which to hold=20
applicants accountable for promises made while=20
seeking waivers once their waivers are granted,"=20
the petitioners write. "If after receiving a=20
waiver, an applicant who promised to increase=20
local news or exercise independent news judgment=20
does not follow through," the Commission's Order=20
provides no way to undo the merger or discipline=20
the license holder. "The Commission should deny=20
the petition," insists CBS. "CBS has submitted=20
hundreds upon hundreds of pages of comments,=20
facts, and studies in this proceeding, all with=20
the goal of demonstrating that the FCC's=20
broadcast ownership scheme is woefully and=20
perilously out of sync with the realities of=20
today's media marketplace. To that end, we have=20
urged the Commission to deregulate all of its=20
media ownership rules." CBS, Clear Channel, Fox=20
Television, Gannett, Media General, the National=20
Association of Broadcasters, the Newspaper=20
Association of America, Tribune, and five other=20
parties are responding to a plucky March 24th=20
Petition for Reconsideration filed by Common Cause et al.
http://arstechnica.com/news.ars/post/20080512-big-media-slams-proposal-t...
oll-back-cross-ownership-rule.html
CONSUMER GROUPS PUSH ISSUE ON XM-SIRIUS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
As the Federal Communications Commission=20
continues to consider whether or not to allow XM=20
Satellite Radio and Sirius Satellite Radio, the=20
nation's two satellite-radio companies, to become=20
one, the Consumer Federation of America,=20
Consumers Union and Free Press, called the merger=20
a "roadmap to monopoly" and asked the FCC to=20
throw up its own roadblock after the Justice=20
Department gave the deal a green light. They=20
strongly opposed the merger. But if the FCC does=20
approve it, they said, it needs to make it clear=20
that it is not a precedent for other=20
media-ownership mergers, nor a roadmap for=20
others. The groups wrote the FCC outlining the=20
"fundamental flaws" in the DOJ decision, which=20
they said "abandons all of the most basic=20
principles of antitrust analysis," and how the=20
FCC should look at the deal differently. The FCC=20
already must look beyond simply competition=20
issues to include its impact more broadly on the public interest.
http://www.broadcastingcable.com/article/CA6560238.html?rssid=3D193
CABLEVISION ENLARGES NEWS PUSH WITH NEWSDAY BUY
[SOURCE: Broadcasting&Cable, AUTHOR: Robert Marich]
Cablevision Systems doubled up its news footprint=20
on Long Island in suburban New York by firming a=20
$650 million definitive agreement Monday to buy a=20
97% stake in local daily newspaper Newsday. The=20
suburban newspaper overlaps Cablevision systems=20
in Long Island and will provide editorial=20
resources that can help the company's News 12=20
news channels. In the buy, Cablevision -- the=20
nation=92s fifth-largest cable system-- will=20
acquire the stake in Newsday Media Group for $632=20
million from Tribune, which will retain a 3%=20
stake. Tribune -- which is selling assets to pay=20
down debt associated with its $8.2 billion sale=20
in December -- will also receive $18 million at=20
closing as prepaid rent from leases of property=20
used in the Newsday business, bringing the value=20
to $650 million. The deal is expected to be=20
structured as a joint venture for tax reasons.
http://www.broadcastingcable.com/article/CA6559829.html?rssid=3D193
ANALYST: NEWSDAY BUY SHOULD CLEAR DC HURDLES
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Cablevision=92s $650 million purchase of Long=20
Island (NY) newspaper Newsday shouldn't face high=20
regulatory hurdles in Washington, according to=20
Stifel Nicolaus analyst Blair Levin. =93As best we=20
can determine, the Federal Communications=20
Commission would have no jurisdiction to directly=20
review the transaction because there do not=20
appear to be any communications licenses that=20
would have to be transferred and require=20
regulatory approval," he wrote to clients. The=20
FCC regulates common ownership of newspapers and=20
television or radio stations in the same local=20
market. The agency does not regulate the joint=20
ownership of cable systems and newspapers in the=20
same local market. In his client note, Levin said=20
that if the Justice Department reviews the deal,=20
Cablevision probably would not face a tough=20
ordeal. =93We do expect the deal to face some=20
antitrust scrutiny, presumably from the=20
Department of Justice, but because Cablevision=20
does not own newspapers, we believe the DOJ is=20
unlikely to give it a difficult review," Levin=20
said. Levin said that if Cablevision's control of=20
Newsday were to ignite a new round in the media=20
ownership debate, the cable operator would likely=20
come out ahead because Newsday would not end up=20
in the hands of Rupert Murdoch's News Corp.,=20
owner of the Wall Street Journal, the New York=20
Post, and two TV stations in the New York market.
http://www.multichannel.com/article/CA6559913.html?nid=3D4262
'NEWSDAY' SALES EASES TRIBUNE DEBT - FOR NOW
[SOURCE: Associated Press, AUTHOR: Seth Sutel]
Tribune Co.'s $650 million sale of Newsday,=20
announced Monday, is an important step toward=20
alleviating its debt burden -- for this year. To=20
get favorable tax treatment, Tribune will retain=20
a 3% stake in a joint venture to be formed=20
containing Newsday, as well as several related=20
assets, including Newsday.com, some regional=20
magazines and the free New York City daily=20
newspaper amNewYork. Cablevision will hold the=20
other 97%. Now, the Chicago company needs to move=20
on its next big asset sales, including the=20
Chicago Cubs baseball team and Wrigley Field, to=20
meet its obligations to creditors looming in=20
2009. Tribune needs the cash it will raise in the=20
sale. Last December, it bought out its public=20
shareholders in an $8.2 billion deal orchestrated=20
by real estate mogul Sam Zell, and now it's=20
struggling to service that debt. Zell had=20
originally hoped to keep Tribune's newspaper and=20
broadcasting businesses intact, but had to=20
consider options for Newsday, following a rapid=20
drop in the newspaper business this year. Tribune=20
now seems to be covered on a $650 million=20
lump-sum debt payment coming due in December as=20
well as other near-term obligations, but analysts=20
say it needs to get moving on other asset sales=20
to be in shape to deliver on a $750 million debt=20
payment due in June 2009. Another option for=20
Tribune would be selling its roughly 30% stake in=20
Food Network back to E.W. Scripps, which owns the=20
rest of the rapidly growing cable TV channel.=20
Analysts estimate that stake could be worth well above $500 million.
http://www.usatoday.com/printedition/money/20080513/2b_newsday13.art.htm
SPECTRUM/WIRELESS
LEGAL TROUBLES COULD THREATEN SPRINT/CLEARWIRE DEAL
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
Sprint Nextel's plan to spin off its WiMax=20
network and form a $14.5 billion joint venture=20
with Clearwire may have hit a speed bump. On=20
Monday iPCS, Sprint Nextel's largest affiliate,=20
said it will try to block the deal that was=20
announced last week. iPCS, which serves 640,600=20
subscribers in seven states, said three of its=20
subsidiaries have filed suit in Cook County=20
Circuit Court in Illinois against Sprint for=20
violating an exclusivity contract. iPCS , which=20
sells wireless services under the Sprint brand in=20
states like Illinois and Iowa, says it has the=20
exclusive right to sell services under the Sprint=20
brand in 81 markets. In its lawsuit, the company=20
says that the new Clearwire service would compete=20
against its iPCS's service, violating the=20
exclusivity contract it has had with Sprint since 1999.
http://www.news.com/8301-10784_3-9942218-7.html?part=3Drss&subj=3Dnews&tag=
=3D2547-1_3-0-5
EARTHLINK VS CITY OF PHILADELPHIA
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
Philadelphia=92s Wi-Fi project is in jeopardy. Over=20
the past year, Wi-Fi builder EarthLink has exited=20
a number of municipal Wi-Fi projects claiming=20
they were unprofitable. Now, it appears that the=20
company is preparing to exit its most ambitious=20
municipal Wi-Fi project: Philly. But the city=20
isn't about to let that happen without a fight.
http://www.businessweek.com/the_thread/techbeat/archives/2008/05/earthli...
vs_ci.html?campaign_id=3Drss_blog_blogspotting
* Philly's Wi-Fi network in jeopardy (C|Net)
http://www.news.com/8301-10784_3-9940374-7.html?tag=3Dcnetfd.mt
* The State of Philadelphia's Citywide Wi-Fi Network
http://www.wirelessphiladelphia.org/blog_detail.cfm/blog/64
DRIVER CELLPHONE BANS QUESTIONED
[SOURCE: Wall Street Journal, AUTHOR: Rebecca Buckman]
As California gears up to start enforcing a law=20
banning hand-held cellphone use by its millions=20
of drivers, a new study casts doubt on whether=20
such laws do much good in many situations. The=20
study, from the nonpartisan Public Policy=20
Institute of California, predicts that the=20
state's hands-free requirement, which goes into=20
effect July 1, will reduce traffic deaths in the=20
state by 300 a year. But the institute -- which=20
reached its conclusion by studying state-by-state=20
traffic-fatality data, including data from a=20
handful of states that already restrict=20
cellphones on the road -- found a decrease in=20
deaths only when people drove in adverse=20
conditions, such as in rain, or on wet or icy roads.
http://online.wsj.com/article/SB121064495947187259.html?mod=3Dtodays_us_...
sonal_journal
(requires subscription)
LABOR
HOLLYWOOD ACTORS AND STUDIOS CLASH OVER INTERNET CLIPS
[SOURCE: Reuters, AUTHOR: Steve Gorman]
Getting Hollywood actors paid for their smallest=20
performances -- video clips on the Internet -- is=20
shaping up as one their biggest sticking points=20
in stalemated contract negotiations with major=20
studios. Whether actors must give consent for=20
snippets of their film and TV work to be=20
displayed online, and how much they should earn=20
for them, was the No. 1 disputed issue cited by=20
the Screen Actors Guild after labor talks broke=20
down last Tuesday. Studios want to freely=20
distribute YouTube-style clips of old TV shows=20
and movies without seeking actors' permission and=20
pay them a flat fee rather than bargain on a=20
price with each performer individually. The=20
actors' union staunchly opposes that move.
http://www.reuters.com/article/internetNews/idUSN1233346620080512
--------------------------------------------------------------
Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
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