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MEDIA OWNERSHIP
Antitrust Issues Raised by the Emerging Global Internet Economy
Sizing up Microsoft and Yahoo: Did anybody win?
The War for the Web
Three companies Microsoft could buy instead of Yahoo
Cablevision-Newsday Union Would Raise Regulatory Concerns: Moffett
The Wealthiest Colleges Should Acquire 'The New York Times'
Saints Owner Grabs WVUE
NETWORK NEUTRALITY
McSlarrow: Net Neutrality Law Not Needed
SPECTRUM/WIRELESS
Google concerned about Verizon's open access
Sprint Mulls Shedding Nextel Unit
Many wireless resellers going under
BROADCASTING/CABLE
FCC Releases DTV Consumer Education Plan -- sort of
Nielsen: Product Placement On The Rise On Broadcast TV
QUICKLY -- American Council of the Blind Named=20
to FCC Consumer Advisory Committee; Jeremiah=20
Wright Was Biggest Newsmaker; Newspapers likely=20
to be free in the future: survey
MEDIA OWNERSHIP
ANTITRUST ISSUES RAISED BY THE EMERGING GLOBAL INTERNET ECONOMY
[SOURCE: Northwestern University Law Review, AUTHOR: David Evans]
The Internet economy is likely to raise antitrust=20
concerns -- and possible demands for regulation=20
-- for years to come. Global gargantuan firms=20
have emerged, which will likely attract scrutiny=20
by competition authorities and by policymakers=20
concerned with competition issues. The web=20
economy poses two major challenges to competition=20
authorities. The law and economics for analyzing=20
the multi-sided platforms that dominate the=20
Internet sector is not well developed. At the=20
same time the web-economy is evolving very=20
rapidly and in ways that are sure to result in=20
antitrust complaints and=20
investigations. Competition authorities and=20
courts will need to exercise great care in=20
balancing the protection of consumers from=20
anticompetitive behavior against causing harm=20
from interfering in complex businesses that are=20
both rapidly moving and not fully understood.
http://colloquy.law.northwestern.edu/main/2008/05/antitrust-issue.html
SIZING UP MICROSOFT AND YAHOO: DID ANYONE WIN?
[SOURCE: InfoWorld, AUTHOR: Linda Rosencrance]
Microsoft gave up its effort to acquire Yahoo=20
because the software company decided it wasn't=20
worth the cost and potential negative publicity=20
involved with a proxy fight -- either that or=20
Microsoft figured it couldn't win in a proxy=20
fight. It is likely that Microsoft will increase=20
the pressure on the U.S. Department of Justice to=20
investigate the proposed advertising joint=20
venture between Yahoo and Google. Microsoft's=20
initial strategy was to overbid its offer so the=20
company could close the deal with Yahoo quickly.=20
But Microsoft didn't leave Yahoo's board with an=20
option that allowed it to exit the process=20
looking like it had negotiated strongly.
http://www.infoworld.com/article/08/05/05/Sizing-up-Microsoft-and-Yahoo-...
-anybody-win_1.html
* Google, From Stirrer to Spoiler, Ends Microsoft=92s Yahoo Search
http://www.nytimes.com/2008/05/06/technology/06google.html?ref=3Dtodaysp...
* Failed Yahoo Talks Leave Google on Top
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/05/AR200805...
0114.html
* Google triumphs as its rivals' courtship fizzles
http://www.latimes.com/news/printedition/front/la-fi-google6-2008may06,0...
80142.story
THE WAR FOR THE WEB
[SOURCE: Wall Street Journal, AUTHOR: Andy Kessler]
[Commentary] With the Microsoft/Yahoo deal=20
breakdown, everyone assumes Google walks away=20
with the prize. Not so fast. This contest is just=20
starting. For Microsoft or Google or anyone else=20
to win, they need four key elements of an=20
end-to-end strategy: The Cloud. The desktop=20
computer isn't going away. But as bandwidth=20
speeds increase, more and more computing can be=20
done in the network of computers sitting in data=20
centers =96 aka the "cloud." The Edge. The cloud is=20
nothing without devices, browsers and users to=20
feed it. Book buyers are basically paying for=20
Amazon's data centers. Yahoo is a favorite for=20
finance and sports enthusiasts, who pay for its=20
data centers. Google worked its way into the=20
toolbars of Firefox, and even Microsoft's=20
browser. And Microsoft? It was stripped of its=20
ability to control Windows desktop real estate=20
during the late '90s Netscape feud. Speed. Once=20
you build the cloud, it's all about network=20
operations. Whoever can deliver search results=20
faster, wins. Users only realize this=20
subconsciously, but it's true: Google's dominant=20
share is as much about speed as it is for=20
relevant results. Compare it to Microsoft or=20
Yahoo and you'll see. Google built data centers=20
next to waterfalls so electricity could be cheap=20
enough to help it win the speed war. Platform.=20
Yahoo's mistake was relying on expensive workers=20
to update Web pages and sell ads, and especially=20
to run Yahoo Finance, Sports, HotJobs and Travel.=20
Google hates using people for these tasks. The=20
company may love programmers and probably=20
customers as well, but it tries to put absolutely=20
no one in between them. Google's genius was to=20
automate all its Web page creation and to have a market set prices for ads.
http://online.wsj.com/article/SB121003554710769393.html?mod=3Dtodays_us_...
nion
(requires subscription)
THREE COMPANIES MICROSOFT COULD BUY INSTEAD OF YAHOO
[SOURCE: InfoWorld, AUTHOR: Eric Lai]
Assuming that Saturday's public walkaway by=20
Microsoft doesn't prove just to be a high-risk=20
negotiation tactic against Yahoo -- after all,=20
the companies are rumored to have been talking=20
about some sort of merger or acquisition for=20
almost three years -- then what we have is a=20
software vendor suddenly awash in tens of=20
billions of unspent dollars that it can now=20
lavish on other Internet firms. What companies=20
could Microsoft target? AOL; LinkedIn; ValueClick.
http://www.infoworld.com/article/08/05/05/Three-companies-Microsoft-coul...
uy-instead-of-Yahoo_1.html
CABLEVISION-NEWSDAY UNION WOULD RAISE REGULATORY CONCERNS: MOFFETT
[SOURCE: Multichannel News, AUTHOR: Mike Reynolds]
Should Cablevision Systems succeed in its quest=20
to acquire Long Island newspaper Newsday the deal=20
could come under regulatory scrutiny, according=20
to Sanford C. Bernstein & Co. vice president and=20
senior analyst Craig Moffett. Moffett, in a note=20
released Monday morning, wrote that if=20
Cablevision=92s $620 million bid -- currently above=20
the $580 million offered by both Rupert Murdoch=92s=20
News Corp., which owns the New York Post and real=20
estate mogul Mort Zuckerman, owner of the Daily=20
News -- wins, it would not be =93a regulatory slam=20
dunk.=94 Moffett points out that while much has=20
been written about anti-trust concerns raised by=20
a Murdoch acquisition of Newsday (News Corp.=20
already runs the Post under an exemption that=20
would ban Murdoch=92s because he controls the Fox=20
affiliate in the New York market), Cablevision=92s=20
gambit does not cut across similar=20
newspaper/broadcast prohibitions. Nevertheless,=20
Moffett believes a Cablevision/Newsday union=20
would attract scrutiny from the Federal Communications Commission and Congr=
ess.
http://www.multichannel.com/article/CA6557291.html?nid=3D4262
* What Does Cablevision Want With Newsday? (Harold Feld)
http://www.wetmachine.com//item/1177
THE WEALTHIEST COLLEGES SHOULD ACQUIRE 'THE NEW YORK TIMES'
[SOURCE: The Chronicle of Higher Education, AUTHOR: Lee Smith, Fortune]
[Commentary] The time has come for the nation's=20
wealthiest colleges and universities to rescue=20
its leading newspapers -- resources almost as=20
vital to higher education's purpose as libraries,=20
laboratories, classrooms, and concert halls. The=20
plan I have in mind would call upon the richest=20
institutions to set aside 3 percent of their=20
endowments to buy The New York Times. That's for=20
a start. Additional purchases of other newspapers=20
by other endowments should follow. Never has the=20
need to protect journalism as the source of=20
current knowledge been more evident than now.=20
Surveys of Americans unearth disturbing shards of=20
information: Many cannot name a single U.S.=20
Supreme Court justice; some do not read a single=20
nonfiction book a year. Higher-education=20
institutions and newspapers have an essential=20
bond -- a dedication to the accumulation and=20
dissemination of knowledge -- that makes them=20
mutually dependent. Over the years newspapers=20
have generally defended colleges and universities=20
as sanctuaries for the exchange of ideas -- no=20
matter how repugnant some of those ideas may be=20
-- and championed expenditures on education. Now=20
it's time for higher education, specifically the=20
nation's wealthiest institutions, to come to the aid of newspapers.
http://chronicle.com/free/v54/i35/35a03201.htm
SAINTS OWNER GRABS WVUE
[SOURCE: Broadcasting&Cable, AUTHOR: Michael Malone]
Emmis Communications has agreed to sell WVUE New=20
Orleans to Louisiana Media Company, whose=20
principal owner is New Orleans Saints owner Tom=20
Benson. The purchase price for the Fox affiliate=20
is $41 million. The New Orleans DMA, which slid=20
10 spots to #53 post-Hurricane Katrina, lost=20
about 20% of its population after the storm.=20
According to BIA Financial, WVUE was the #3=20
grossing New Orleans station in 2006, grabbing $16.3 million.
http://www.broadcastingcable.com/article/CA6557393.html?rssid=3D193
NETWORK NEUTRALITY
MCSLARROW: NET NEUTRALITY LAW NOT NEEDED
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Congress should refrain from adopting a Network=20
Neutrality law because cable operators are=20
managing their broadband networks in an open=20
manner and do not engage in anticompetitive=20
conduct, National Cable & Telecommunications=20
Association president Kyle McSlarrow plans to say=20
in testimony today on Capitol Hill. McSlarrow is=20
scheduled to testify before the House=20
Subcommittee on Telecommunications and the=20
Internet on Network Neutrality legislation=20
introduced by subcommittee chairman Rep. Edward=20
Markey (D-MA). McSlarrow suggests that=20
legislation would be inappropriate because=20
supporters of a net neutrality law have failed to=20
make the case that broadband network operators=20
have engaged in conduct harmful to consumers,=20
justifying the need for government intervention.
http://www.multichannel.com/article/CA6557729.html?nid=3D4262
SPECTRUM/WIRELESS
GOOGLE CONCERNED ABOUT VERIZON'S OPEN ACCESS
[SOURCE: InfoWorld, AUTHOR: Grant Gross]
Google has asked the Federal Communications=20
Commission to obtain a pledge from Verizon=20
Wireless that it will honor the open-access=20
conditions on a band of 700MHz spectrum before=20
selling the spectrum to the carrier. Google, in a=20
filing with the FCC Friday, raised concerns that=20
Verizon Wireless wasn't committed to the=20
open-access rules the FCC put on the nationwide C=20
block of the 700MHz spectrum the agency sold in=20
an auction ending in mid-March. The FCC's=20
open-access rules required the winner of the C=20
block to allow customers to connect wireless=20
devices of their choosing and run any=20
applications on the network using the C block.=20
Google's filing doesn't explicitly spell out what=20
the company wants the FCC to do if Verizon=20
doesn't pledge to follow the open-access rules,=20
but it implies that the FCC shouldn't sell Verizon the spectrum in that cas=
e.
http://www.infoworld.com/article/08/05/05/Google-concerned-about-Verizon...
en-access_1.html
SPRINT MULLS SHEDDING NEXTEL UNIT
[SOURCE: Wall Street Journal, AUTHOR: Amol Sharma, Joann S. Lublin]
Wireless provider Sprint Nextel Corp. is=20
considering spinning off or selling its ailing=20
Nextel unit. The move would be a dramatic=20
acknowledgment that Sprint's $35 billion=20
acquisition of Nextel Communications in 2005 has=20
been a failure. Sprint is said to be=20
contemplating a couple of options for Nextel. The=20
company has held preliminary talks with Nextel=20
founder Morgan O'Brien, who now runs a company=20
called Cyren Call Communications in McLean, Va.,=20
that is trying to create a nationwide wireless=20
network for public-safety communications. People=20
familiar with the discussions say Mr. O'Brien is=20
trying to assemble a consortium of investors to=20
acquire Nextel. Cyren Call itself wouldn't be the=20
buyer. Sprint is contemplating other possible=20
buyers, such as private-equity firms. The company=20
could also choose to spin off Nextel into a=20
separate company. Activist investor Ralph=20
Whitworth of Relational Investors, who obtained a=20
seat on Sprint's board earlier this year, has=20
advocated a sale or spinoff. Nextel's=20
walkie-talkie-style phones have traditionally=20
been popular with construction workers, airline=20
maintenance personnel and other business users.=20
But the market for those services is shrinking.=20
People close to the company project Nextel will=20
have a core, highly loyal user base of five=20
million to seven million subscribers in two=20
years, about half of current levels. A decision=20
last week by the Washington, D.C., Circuit Court=20
of Appeals may exacerbate that situation: The=20
court ruled that by June 26, Nextel must stop=20
using certain radio frequencies that are close to=20
those used by first responders.
http://online.wsj.com/article/SB121001458454368317.html?mod=3Dtodays_us_...
e_one
(requires subscription)
MANY WIRELESS RESELLERS GOING UNDER
[SOURCE: USAToday, AUTHOR: Paul Davidson]
A few years ago, organizations from Disney to=20
7-Eleven to the local pinochle club were jumping=20
into the cellphone business, leveraging their=20
brands to appeal to niches untapped by the big=20
carriers. Now, many are digesting a hard reality:=20
Running a wireless company isn't as easy as it=20
seemed. Many resellers of cellphone service =97=20
which lease the networks of national carriers =97=20
are closing, going bankrupt or struggling.=20
Resellers, also known as mobile virtual network=20
operators (MVNOs), are being tripped up by: Fresh=20
competition from the major carriers. With U.S.=20
cellphone penetration reaching 84%, the big=20
carriers are targeting the faster-growing youth=20
and lower-income prepaid markets that had been=20
the province of MVNOs such as Virgin, say Entner=20
and Yankee Group analyst Chris Collins. Failure=20
to offer a distinctive service. ESPN, Amp'd=20
Mobile and Helio coveted the same high-spending,=20
data-savvy subscribers sought by large carriers=20
"that can do it better," Collins says. Rick=20
Heineman, a spokesman for Helio, which is partly=20
owned by EarthLink, disagrees, saying the=20
start-up stands out for its global-positioning,=20
music and video services. The company, with=20
nearly 200,000 subscribers, had 2007 losses of=20
about $320 million. Heineman says the losses were=20
expected. Low volumes. Some firms targeted tiny=20
niches. Many clubs that joined Sonopia had just a=20
few dozen subscribers. "You need to have volume=20
and scale to survive," says Ovum analyst Raymond=20
Yu. Operational blunders. Movida, a prepaid=20
service, offered a jumble of confusing rates and=20
gave subscribers free texting even though it paid=20
Sprint Nextel for the service, Greene says.=20
"Things were upside down," he says, adding that he's fixing the problems.
http://www.usatoday.com/printedition/money/20080506/1b_wireless_reseller...
.art.htm
BROADCASTING/CABLE
FCC RELEASES DTV CONSUMER EDUCATION PLAN
[SOURCE: Federal Communications Commission, AUTHOR: Ketchum]
The Federal Communications Commission is=20
responsible for making rules to facilitate the=20
upcoming transition to digital-only television=20
broadcasting, enforcing those rules to protect=20
consumers, and promoting awareness of the=20
transition through direct to consumer education=20
and other outreach tools including media=20
relations. The FCC must develop a consumer=20
education plan that will augment its current=20
outreach activities and educate the American=20
public to create a steady drum beat of evolving messaging
around the transition leading up to February 17,=20
2009. Creative thinking and a disciplined=20
approach will be essential to keep the transition=20
=AD a confusing technical issue =AD relevant for the=20
American public in a somewhat cluttered media=20
landscape. The primary goal of the Consumer=20
Education Plan is to identify channels and outreach activities
not yet employed by the FCC to ensure that=20
Americans are made aware of the digital=20
television transition so that they may reap the=20
benefits of it and, if necessary, take action so=20
they are prepared when transition occurs. At the=20
same time, the plan must take into account those=20
high over-the-air audiences that may be harder to=20
reach through conventional information channels.=20
Ketchum recommends that the FCC: 1) Concentrate=20
communications to =93over-the-air=94 (OTA) consumers and hard-to-reach
populations. 2) Leverage earned media tactics to=20
deliver appropriate messaging. 3) Identify=20
direct-to-consumer channels that will=20
cost-effectively target OTA households.=20
4) Create and distribute publications and TV and=20
Radio PSAs that are clear, concise and=20
consistent. 5) Communicate directly with target=20
populations through public and private partnerships, Web site and call cent=
er.
http://www.dtv.gov/DTVEducationPlan.pdf
NIELSEN: PRODUCT PLACEMENT ON THE RISE ON BROADCAST TV
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Product placement is way up on broadcast TV, but=20
essentially flat on cable. That's according to a=20
new study of prime time plugs by Nielsen for the=20
first quarter of 2008. But cable still far=20
outpaces broadcast in the number of such plugs.=20
Product placement on broadcast TV was up 39% to=20
15,404 for the top ten shows in the first=20
quarter, with NBC's Biggest Loser the big winner=20
in placements with 3,977, edging out American=20
Idol with 3,291. The only scripted show to make=20
the top 10 broadcast shows in product placement=20
was One Tree Hill, which came in at number 10=20
with 557. NBC had three of the top four, with=20
Apprentice (3) and Deal Or No Deal (4) joining=20
Biggest Loser in the winners circle.
http://www.broadcastingcable.com/article/CA6557386.html?rssid=3D193
QUICKLY
AMERICAN COUNCIL OF THE BLIND NAMED TO CONSUMER ADVISORY COMMITTEE
[SOURCE: Federal Communications Commission]
Federal Communications Commission Chairman Kevin=20
Martin has added Eric Bridges of the American=20
Council of the Blind to the FCC's Consumer=20
Advisory Committee. This appointment is effective=20
immediately, and shall terminate November 17,=20
2008, or when the Committee is terminated, whichever is earlier.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-08-1058A1.doc
JEREMIAH WRIGHT WAS BIGGEST NEWSMAKER
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
Last week -- as Chicago minister Jeremiah Wright=20
re-emerged into full public view to speak to PBS=92=20
Bill Moyers, the NAACP and the National Press=20
Club -- the controversy he generated made more=20
news than both Sens Hillary Clinton (D-NY) and=20
John McCain (R-AZ). Sen Clinton was a significant=20
or dominant factor in 41% of the campaign stories=20
and Sen McCain registered in 14% of them.=20
Meanwhile the relationship between Wright and his=20
former parishioner Sen Barack Obama (D-IL)=20
accounted for 42% of the week=92s campaign=20
coverage. Sen Obama, who moved to decisively=20
denounce Wright last week, was the significant or=20
dominant newsmaker in 69% of the stories,=20
according to PEJ=92s News Coverage Index for April=20
28-May 4. These coverage numbers are strikingly=20
similar to those from March 17-23 when Wright=92s=20
inflammatory statements about race and the U.S.=20
triggered the first Obama damage control effort,=20
including a major March 18 speech on race=20
relations. That week, the Wright-Obama story line=20
accounted for 37% of the campaign stories and=20
Obama dominated coverage at 72%. Clinton (at 30%)=20
and McCain (17%) were virtual afterthoughts.
http://www.journalism.org/node/10928
NEWSPAPERS LIKELY TO BE FREE IN THE FUTURE: SURVEY
[SOURCE: Reuters, AUTHOR: Kate Holton]
Newspapers seeking to compete with the Internet=20
are likely to become free and place greater=20
emphasis on comment and opinion in the future, a=20
survey of the world's editors showed on Tuesday.=20
The report, conducted by Zogby International for=20
the World Editors Forum and Reuters, revealed=20
that newspaper editors were still optimistic=20
about the future of their publications but=20
believed they would have to adapt further for the=20
digital age. Some 86 percent of respondents=20
believed newsrooms should become more integrated=20
with digital services as two in three believe the=20
most common form of news consumption will be via=20
electronic media such as online or mobiles within a decade.
http://www.reuters.com/article/technologyNews/idUSL0214163420080506
--------------------------------------------------------------
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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