Communications-related Headlines for 10/16/2000

TELEVISION/POLITICAL DISCOURSE
F.C.C.'s Rift With Industry Is Widening (FCC)
Stunts and Thrills at Daybreak (NYT)
Fox Pursuing a Gentler Reality (NYT)
Why the Mind Shrivels for the Body Politic (NYT)
Gore Outspent, Not Outgunned With TV Ads (USA)
Actor Sees Politics in Editing of Film (NYT)

SPECTRUM
President Orders FCC to Clear Airwaves For Next Generation
of Wireless Services (WSJ)
Digital: Cannot-See TV? Set Owners Are Thrown For A Loss (USA)

MERGERS
Vivendi's Deal For Seagram Is Cleared by EU Regulators (WSJ)

DIGITAL DIVIDE
More Homes Online, But Usage Stays Flat (USA)

TELEVISION/POLITICAL DISCOURSE

F.C.C.'S RIFT WITH INDUSTRY IS WIDENING
Issue: Television
How bad is FCC Chairman Bill Kennard's relationship with broadcasters?
Here's Labaton's two takes: 1) If Kennard produced a TV show, the series
might be called "Lost in Place." It would be the saga of a crass industry
that, swimming in a sea of profit and consolidation, has forsaken its
obligations as trustees of the airwaves, corrupted children through
sexually explicit and violent programming, ignored the political weal by
refusing to provide adequate air time for candidates, and pretty much
forgotten about opening its ranks to minorities. 2) If the script were
written by the broadcasters, about Mr. Kennard, they might call it "As the
Regulator Burns." It would be the biography of a frustrated and
antagonistic Washington bureaucrat hell-bent on imposing his skewed
public-interest vision of what's best for the marketplace by unfurling
rolls of red tape, impeding the technological advancement of digital
television and chilling free speech.
What's going on? The FCC is holding a hearing today on the public interest
obligations of broadcasters. Last Wednesday, a Federal appeals court sided
with broadcasters and repealed the last major vestiges of the fairness
doctrine. Last Tuesday, Kennard delivered a speech in which he derided the
"disarray and disinterest of our mass media towards fulfilling its crucial
democratic commitments" and criticized the broadcasters for "increasingly
elevating financial interests above the public interest." He proposed that
they rapidly accelerate their conversion to digital television or face a
special tax. Earlier this month, the broadcasters were once again in court,
challenging the heavily watered down F.C.C. guidelines for eliminating
discrimination by broadcasters. A centerpiece of Mr. Kennard's agenda, a
plan to issue licenses to hundreds of low-power FM radio stations run by
schools, churches, civic groups and others, has also come under heavy
assault by the broadcasters' association and may be killed by Congress in
the next few days. [And you think "Titans" will ever get more entertaining
than this?]
[SOURCE: New York Times (C1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2000/10/16/business/16FCC.html)
(requires registration)

STUNTS AND THRILLS AT DAYBREAK
Issue: Television
The competition between morning news shows is the fiercest it has ever
been. Does that mean investigative journalism is at an all-time high, too?
Well, not really. Accusations and counteraccusations are flying -- about
stolen guests, outright sabotage and petty thievery. In essence, it's
similar to the great old newspaper movies like "The Front Page." "There's
an air of hysteria," said Steve Friedman, executive producer of the CBS
"Early Show," who previously ran "Today." "I've never seen this before, and
I've been doing this a long time." Why the fuss?
The morning is the only time when the audience for network news is actually
growing. The three morning programs pulled in nearly $400 million in
revenue just through July -- nearly $100 million more than the three major
evening network newscasts, according to estimates by Nielsen Monitor-Plus.
What's more, though there is a difference of less than $20 million in
revenue between NBC's first place "Nightly News" and CBS's third-place
"Evening News," there was a difference of nearly $150 million in revenue
between the first-place "Today" and the third-place "Early Show." And, by
the end of July, "Today" had taken in nearly $80 million more than its
closest competitor, "Good Morning America," according to Nielsen.
[SOURCE: New York Times (C1), AUTHOR: Jim Rutenberg]
(http://www.nytimes.com/2000/10/16/business/16TUBE.html)
(requires registration)

FOX PURSUING A GENTLER REALITY
Issue: Television
The days of animal attacks and marrying millionaires on Fox are "gone,
over," but some 90 episodes of reality-based shows are in some stage of
development along with 25-30 hours of specials. Contestants will try to
survive military-style boot camp, unmarried couples will test their
fidelity on an island filled with male and female models and longtime
girlfriends will try to compel their boyfriends to propose on a show called
"Surprise Wedding." [So, what's all the fuss, Chairman Kennard?]
[SOURCE: New York Times (C1), AUTHOR: Bill Carter]
(http://www.nytimes.com/2000/10/16/business/16FOX.html)
(requires registration)

WHY THE MIND SHRIVELS FOR THE BODY POLITIC
Issue: Political Discourse
According to the Flesch-Kincaid reading level formula, a gauge widely used
by publishers and educators for evaluating the difficulty of a text
(according to the length of its words and the complexity of its sentences),
Vice President Al Gore's statements in the first debate read at
approximately the level of an 8th-grader. Gov Bush's statements read
approximately one grade lower. Both candidates' speech fell a half grade in
the second debate. Speaking at a low reading level is in some ways a
measure of success for a politician in an age of the mass media, since
less-challenging usage is accessible to more of the electorate. "The lower
reading level shows they are more interested in people who are going to
vote than in history and posterity," Professor Beard said. "You wouldn't
simplify your speech to impress intellectuals or to appear statesmanlike."
[SOURCE: New York Times (C16), AUTHOR: David Kirkpatrick]
(http://www.nytimes.com/2000/10/16/business/16DEBA.html)
(requires registration)

GORE OUTSPENT, NOT OUTGUNNED WITH TV ADS
Issue: Political Discourse
According to a study by the University of Wisconsin and Brennan Center for
Justice at New York University, Vice President Al Gore has spent less on TV
ads
than his Republican opponent, Texas Gov. George W. Bush, but Gore is
benefiting far more from spending by outside interest groups. Gore has spent
$13.8 million on television advertising since the primary elections,
compared with Bush's $19.5 million. Wisconsin political scientist Ken
Goldstein says that the vice president is getting a big boost from interest
groups that are running ads "virtually indistinguishable" from candidate
ads. The five biggest groups have aired more than $5 million in ads on his
behalf.
[SOURCE: USAToday (1A), AUTHOR: Martha T. Moore]
(http://www.usatoday.com/usatonline/20001016/2752710s.htm)

ACTOR SEES POLITICS IN EDITING OF FILM
Issue: Political Discourse
Was "The Contender" edited to win political points? Actor Gary Oldman
believes so. Oldman argues that DreamWorks massaged the movie's editing
process so that his character is portrayed as a villain -- not as the
multifaceted Republican hero Oldman agreed to play. "The movie endeavored
to show that in politics there are no good guys and bad guys. It is not
black and white," said Oldman's agent, Douglas Urbanski who is also one of
the film's producers, of the film's original intent. "But given the very
loud professed public opinions of those at DreamWorks, it can't help but
raise the question that if this movie clicks with the critics or at the box
office, is there a chance that it is the ultimate political commercial?"
[SOURCE: New York Times (C16), AUTHOR: Alex Kuczynski]
(http://www.nytimes.com/2000/10/16/business/16FILM.html)
(requires registration)

SPECTRUM

PRESIDENT ORDERS FCC TO CLEAR AIRWAVES FOR NEXT GENERATION OF WIRELESS
SERVICES
Issue: Spectrum
President Clinton on Friday ordered government agencies to work with the
Federal Communications Commission and the private sector to find spectrum
space that can be used for new wireless services, even if that means
reallocating airwaves currently used for other purposes. Telecommunications
companies have complained that while countries such as Japan, Britain and
Germany are apportioning airwaves for next-generation wireless services,
there isn't enough to go around in the U.S. because most spectrum space
capable of handling the latest applications already has been appropriated.
Next-generation -- or 3G -- mobile wireless services are expected to
facilitate high-speed Internet access and improve the quality of Web-related
audio and video. Working with the private sector, the FCC would decide which
pieces of the spectrum can be cleared of their current users and auctioned
for 3G services. Among the users occupying the swath of spectrum the
government would like to reallocate are WorldCom, Sprint and the Defense
Department. There is "a danger that the U.S. could lose market share in the
industries of the 21st century" if it doesn't move quickly to allocate
spectrum for such cutting-edge services, President Clinton said in a
statement.
[SOURCE: Wall Street Journal (B8), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB971645633639660952.htm)
(Requires subscription)
See Also:
Statements by Assistant Secretary Greg Rohde and other participants in
conference call on 3G policy
(http://www.ntia.doc.gov/ntiahome/press/2000/all3g101300.htm).
President Clinton's October 13, 2000 Executive Memorandum
(http://www.ntia.doc.gov/ntiahome/threeg/3gmemo.htm) on Advanced Mobile
Communications/Third Generation Wireless Systems
President Clinton's October 13, 2000 Statement on Advanced Mobile
Communications/Third Generation Wireless Systems
(http://www.ntia.doc.gov/ntiahome/threeg/3gstate.htm)
[SOURCE: NTIA]

DIGITAL: CANNOT-SEE TV? SET OWNERS ARE THROWN FOR A LOSS
Issue: DTV
Despite a 2006 deadline, TV networks aren't increasing the high-definition
offerings among prime-time programming. Four years ago, Congress gave the TV
industry additional broadcast spectrum to begin the transition to digital
broadcasting. Since then, 158 local stations have begun transmitting digital
signals, but the transition is going slow. In addition to a lack of
programming, there is concern about the quality of the chosen digital
transmission standard, and the price of DTV sets, $3,000 and above, is
still out of range for
many. "It took color TV 22 years and VCRs 16 years to reach that
penetration," FCC chairman William Kennard said in a speech last week. "If
those are any indication, DTV conversion will take much, much longer than
2006, particularly given the way broadcasters are dragging
their feet." Last week, Kennard called on Congress to consider charging
broadcasters for analog spectrum not returned by 2006.
[SOURCE: USAToday (3D), AUTHOR: Mike Snider]
(http://www.usatoday.com/usatonline/20001016/2752517s.htm)

MERGERS

VIVENDI'S DEAL FOR SEAGRAM IS CLEARED BY EU REGULATORS
Issue: Mergers
The European Commission on Friday gave its blessing to Vivendi's $34 billion
acquisition of Seagram of Canada after resolving last-minute differences
over film rights for pay television. Vivendi's acquisition of Seagram
already has been cleared by the U.S. Federal Trade Commission but still
requires shareholder approval on both sides. The commission had been worried
that the combination of Vivendi's dominance of several European national
pay-television markets, combined with any preferential use of Universal's
strong film library, would have crippled the ability of other companies to
compete effectively with the new media behemoth. Vivendi Chairman Jean-Marie
Messier agreed not to discriminate against competitors that wanted access to
the film and music libraries of Seagram's Universal unit. Some observers
were surprised by the apparent ease with which Vivendi and Seagram were able
to get their deal cleared -- a far cry from the five-month probe that
jeopardized European regulatory approval for America Online.
[SOURCE: Wall Street Journal (B8), AUTHOR: Brandon Mitchener, Charles
Fleming And Charles]
(http://interactive.wsj.com/articles/SB971449044267043079.htm)
(Requires subscription)

DIGITAL DIVIDE

MORE HOMES ONLINE, BUT USAGE STAYS FLAT
Issue: Digital Divide
The percentage of households with home Internet access reached 50% in 19 of
the top 35 markets, according to report to be released today by research
firm Nielsen//NetRatings. But even as home access has grown, the percentage
of those who are "active" has been flat, 60% vs. 63% in March. Allen Weiner
of NetRatings suggests that Internet companies may be failing to provide
compelling content. "Right now, the main killer application is e-mail, but
there need to be more, so users will be excited not only about being on the
Web, but staying on it."
[SOURCE: USAToday (3D), AUTHOR: Leslie Miller]
(http://www.usatoday.com/usatonline/20001016/2752696s.htm)

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