Communications-related Headlines for 12/20/99

MEDIA & SOCIETY
Century began with unity, ends with isolation (USA Today)

TELEVISION
Technology Could Soon Hand TV Control to the Viewer (NYT)
Digital Broadcasting Must Serve Public Interest (CME)

INTERNET
Governors' Internet Grab (WSJ)
Local Web Sites Make Good As Ads Grow (WSJ)
AOL Reports 20 Million Members (WSJ)

OLD VS NEW MEDIA
NBC to Support a High-Speed Internet Service Over
Phone Lines (NYT)
FCC's Next Airwaves Auction Pits Old Guard vs
Internet Companies (WSJ)
Microsoft to Link With Simon Malls To Market,
Sell Its Internet Service (WSJ)

POLITICAL DISCOURSE
No Radio or TV? No Way, Bradley Responds to Gore (NYT)

PRIVACY
EPIC Releases New Report on Online Privacy (EPIC)

OUTLOOK 2000
The Economy Transformed, Bit by Bit (NYT)
Wireless Industry Looks Beyond Phone (NYT)
A Time of Energy and Enterprise and Now E-Everything (NYT)
E-Commerce Report: Electronic Retailing to a Truly
Mass Market Is Expected (NYT)
The Internet May Precipitate a Tempest for Traditional
Brands and Advertising (NYT)
The A.T.M. Prophet Is a Late Convert to the Internet (NYT)
Patents Considered Vital to Thrive on the Internet (NYT)
Film's Digital Potential Has Hollywood on Edge (NYT)
Telecommuting to Pick Up as Workers Iron Out Kinks (NYT)
In China, Visions of Internet Riches in a PC-Short Land (NYT)

MEDIA & SOCIETY

CENTURY BEGAN WITH UNITY, ENDS WITH ISOLATION
Issue: Media & Society
[Op-Ed] Film critic Michael Medved begins an historical exploration of the
role of media in the 20th century. "During the course of a lifetime, an
average American will spend more time watching...TV than in any other
waking-hour activity -- giving top priority in his brief span on this planet
to a diversion that didn't exist even 100 years ago." Motion pictures at the
beginning of this era, the advent of radio less than 20 years later and
television at mid-century, all increased the penetration of the
entertainment industry into the home. In the first half of the 1900s, movies
and radio brought people together. The silent film created "history's first
truly universal culture."

Television, at mid-century, had a different influence, transfixing families
in their living rooms. The 1980's marked the fragmentation of the TV
audience. The challenges brought by cable to the broadcast networks resulted
in less broadcasting and increasing "narrow casting" -- reaching for a niche
audience. "In days gone by, workplace colleagues could gather by the water
cooler to discuss a universally viewed episode of 'I Love Lucy.' But today,
fans of 'Felicity' may hardly speak the same language as the audience for
'Touched by an Angel.'" Computers, with the promise of more individualized
home entertainment will continue the isolating process. With the average
individual devoting 28 hours/week to a diversion (television) and the work
week declining only 10 hours in the last century, from where do the
remaining 18 hours come? Relationships, Medved concludes. Family members,
friends and neighbors occupy an increasingly lower priority. Medved sees the
situation only getting worse. "In the new millennium the big question will
be whether we own and control the media of entertainment, or whether we
allow those media to own and control us."
[SOURCE: USA Today, AUTHOR: Michael Medved]
(http://www.usatoday.com/news/comment/ncguest.htm)

TELEVISION

TECHNOLOGY COULD SOON HAND TV CONTROL TO THE VIEWER
Issue: Television
"The world in which the television business exists today won't resemble
anything like that world in 15 or 20 years," said Robert A. Iger, chairman
of the ABC group and president of Walt Disney International. "People will
want entertainment and information customized to their own needs, their own
personal tastes. Right now you have a computer on a desktop and a television
set against a wall. In the future, people will use them interchangeably; it
will be the same piece of equipment. It's a combination that's extremely
powerful." First, there will likely be even more choices than there are
today, as the major networks create offshoots aimed at specific audiences.
Technological breakthroughs are also expected to radically change the
viewing experience. The personal video recorder (PVR) will give
viewers total control over when they view programs. "There will be some kind
of confluence between the computer and the television set," said Michael D.
Eisner, chairman of the Walt Disney Company. "But television is only as good
as what the programs are. Good storytelling hasn't changed in a thousand
years. The advance in technology will not advance a bad story."
[SOURCE: New York Times (C26), AUTHOR: Bernard Weinraub]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/122099outlook-te
le.html)

DIGITAL BROADCASTING MUST SERVE PUBLIC INTEREST
Issue: DTV
The Center for Media Education (CME) announced that it is launching a
campaign to ensure that commercial digital broadcasters serve the interests
of the public, particularly children. CME's new effort is in response to
today's decision by the Federal Communications Commission (FCC) to launch a
Notice of Inquiry (NOI) on public interest policies for broadcasters.
Children's needs must be safeguarded, said Kathryn Montgomery, Ph.D.,
president of CME. "We'll be taking a hard look at digital broadcasting to
make sure that children are protected from manipulative and exploitative
advertising in the digital age. We have a civic responsibility to harness
the power of this new interactive medium for the benefit of children." CME
will file comments with the FCC outlining new ways broadcasters can meet
their digital obligations. The proposed policies will focus on serving the
educational and informational needs of children, including providing schools
with access to a portion of a station's digital spectrum. CME also intends
to present the Commission with new safeguards designed to protect children
from harmful interactive marketing and advertising practices on digital
broadcasting.
[SOURCE: Center For Media Education]
(http://www.cme.org/digitaltv/press_12-15-99.html)

INTERNET

GOVERNORS' INTERNET GRAB
Issue: E-commerce
[Editorial] Governors are warning that if online commerce remains unfettered
by sales taxes, it will devour brick and mortar shop owners throughout the
country. The Governors, led by Republican Mike Leavitt of Utah, are now
backing a multi-state agreement under which Internet businesses would
"volunteer" to collect sales taxes on behalf of all states from all Internet
shoppers. Any such agreement would quickly become a wedge for all sorts of
new taxes for the Internet. "The drive to squeeze every last tax dollar out
of Internet shopping isn't about voters, fairness, simplification, harmony
or financing highways. It is about public power. Right now, the Governors
and their friends at the National Association of Counties and the U.S.
Conference of Mayors have a lot of power, a good share of it derived from
sales tax revenues. Naturally, they want more." The National Federation of
Independent Business has been silent about the "voluntary" plan, the U.S.
Chamber of Commerce isn't for it, and the Small Business Survival Committee
sent a spokesman to testify against the multi-state tax plan. "Indeed, up to
now the main retailer the Governors could claim as an ally was Wal-Mart, not
an enterprise one normally associates with rescuing vulnerable downtown
retailers. Even that support could change: Last Wednesday Wal-Mart announced
it was joining hands with America Online to explore business possibilities
on the Web." Similar charges were made in the early 1980s against mail-order
commerce, but L.L. Bean and similar outfitters have made no visible dents in
state tax revenues. "The point is that the states now fussing over their
need to ensure future revenue flows are ignoring the benefits they and their
constituents are already realizing from this decade's technology- and, yes,
Internet-driven prosperity."
[SOURCE: Wall Street Journal (A26), AUTHOR: Wall Street Journal
Editorial Board]
(http://interactive.wsj.com/articles/SB94546661157936244.htm)
See Also:
NET TAXES: PREDICTING THE WHETHER
[SOURCE: Washington Post (F13), AUTHOR: Peter Behr]
(http://washingtonpost.com/wp-srv/business/feed/a14175-1999dec20.htm)

LOCAL WEB SITES MAKE GOOD AS ADS GROW
Issue: Internet/Advertising
Internet advertisers are targeting the growing number of consumers who
use local and regional Web sites to find out about movies, restaurants
and the weather. According to a report being released Monday by San
Francisco online-research group Jupiter Communications, local and
regional online advertising will account for about 24%, or $2.7 billion,
of the estimated $11.5 billion to be spent on ads on the Internet by
2003. By comparison, Jupiter estimates the regional category for 1999
will amount to about 14%, or $466 million, of the $3.2 billion being
spent online for ads. However, advertisers so far have had mixed results
in figuring out how to target audiences for regional online messages, it
being a far more complicated task in cyberspace than in print or
broadcast. One reason is that targeting Internet users for regional ads
by the location of their computers can be complicated. For instance, all
of America Online's subscribers are listed as being located at the
company's corporate office in Dulles, Va.
[SOURCE: Wall Street Journal (B9), AUTHOR: Kathryn Kranhold]
( http://interactive.wsj.com/articles/SB945645573464112913.htm)

AOL REPORTS 20 MILLION MEMBERS
Issue: Internet
America Online said its core service membership surpassed 20 million.
Over the past two years, the company has added 10 million subscribers to
the AOL service. In a new push to attract users as the current market
reaches its limit,
AOL has formed an alliance with retailer Wal-Mart to attract new customers.
Under the terms of the deal , AOL's CompuServe unit will provide
Wal-Mart-brand Internet access.
[SOURCE: Wall Street Journal]
(http://interactive.wsj.com/articles/SB945439856170100241.htm)

OLD VS NEW MEDIA

NBC TO SUPPORT A HIGH-SPEED INTERNET SERVICE OVER PHONE LINES
Issue: Broadband
NBC, along with several affiliated companies, has plans to invest in a new,
nationwide service that will offer high-speed Internet access over telephone
lines. NBC and its affiliates will be investing $70.5 million for a 19.5
percent stake in Telocity, a company that offers high-speed digital
subscriber line (DSL) Internet access for $50/month. "High-speed broadband
means video. And finally the Internet is moving to a turf we understand as
well as or better than anyone else in the world," Martin J. Yudkovitz,
president of NBC Interactive Media. So far, the market for high-speed access
has grown slowly, in large part because the services were not available to
most customers. "If you look eight years out, we believe that 60 to 70
percent of the households will have broadband access," said Edmond Sanctis,
the president of NBC.
[SOURCE: New York Times (A26), AUTHOR: Saul Hansell]
(http://www.nytimes.com/library/tech/99/12/biztech/articles/20net.html)
See Also:
NBC INTERNET IS SET TO ANNOUNCE PACT WITH BROADBAND-SERVICE FIRM TELOCITY
[SOURCE: Wall Street Journal (B9), AUTHOR: Joe Flint]
(http://interactive.wsj.com/articles/SB945644125954549651.htm)

FCC'S NEXT AIRWAVES AUCTION PITS OLD GUARD VS INTERNET COMPANIES
Issue: Spectrum/Auction
In its auction next spring, the Federal Communications Commission is
planning to sell licenses for a valuable band of electromagnetic spectrum
that may be used for multiple purposes, from wireless Internet access to
traditional two-way radios. This round of auctions is attracting everyone
from old-line manufacturers like Boeing and Ford to new-economy blue chips
like Microsoft and Cisco Systems. The bidding begins in late April or early
May. The spectrum being freed up -- originally allocated to television
broadcasters as UHF channels 60 through 69 -- also has the rare ability to
easily penetrate building walls, making it ideal for wireless Internet
services and other high-speed data applications. The old guard companies,
including oil companies, utilities, airlines and some members of the
agricultural sector, say they badly need some of the spectrum for the
two-way radio systems that they have used for internal communications for
the last five decades.
[SOURCE: Wall Street Journal (B1), AUTHOR: Kathy Chen]
(http://interactive.wsj.com/articles/SB945644704700490017.htm)

MICROSOFT TO LINK SIMON MALLS TO MARKET, SELL ITS INTERNET SERVICE
Issue: Internet
Microsoft is teaming up with the nation's biggest mall owner
and operator to advertise and sell its Internet service in shopping
centers throughout the US. Starting on Jan. 2, Indianapolis-based Simon
Property Group will let Microsoft hawk its MSN Internet service in 120
of its more than 190 large malls. Those malls not included are in areas
where local Internet access is not currently available or the costs to
go online are still prohibitively high. Simon will advertise MSN around
its malls and in its S magazine that is distributed in its shopping
centers. Shoppers who sign up for a six-month prepaid subscription to
MSN will pay $99, and get a $50 gift certificate in return, which can be
used at any store in any Simon mall, including those shopping centers
not participating in the program. Shoppers who prepay $180 for a
year-long subscription will receive a $100 mall gift certificate. The
program will run through February 29. Through the two-month period,
Microsoft will be the exclusive Internet service offered at Simon's
malls.
[SOURCE: Wall Street Journal, AUTHOR: Associated Press]
(http://interactive.wsj.com/articles/SB945659213196257282.htm)

POLITICAL DISCOURSE

NO RADIO OR TV? NO WAY, BRADLEY RESPONDS TO GORE
Issue: Political Discourse
Vice President Al Gore made an offer to rival Bill Bradley yesterday: let's
stop all TV and radio ads during the primary season and, instead, we'll
debate twice a week. Former-Senator Bradley declined. VP Gore's advisors
said he was trying to tap into voter disgust with political advertising,
which some Americans consider the most repellent aspect of campaigns. The
Vice President was also trying to counter Mr. Bradley's claims that he's the
most authentic campaign finance reformer. Mr. Bradley is currently
outspending Mr. Gore on commercials; Mr. Gore is better known.
[SOURCE: New York Times (A1), AUTHOR: Richard Berke]
(http://www.nytimes.com/library/politics/camp/122099wh-dem-debate.html)
See Also
TONIGHT: OUR CANDIDATES VS. THOSE OTHER NETWORKS
Kurtz looks at the exclusive deals networks are getting to carry
presidential debates.
[SOURCE: Washington Post (C1), AUTHOR: Howard Kurtz]
(http://washingtonpost.com/wp-srv/style/feed/a14217-1999dec20.htm)

PRIVACY

EPIC RELEASES NEW REPORT ON ONLINE PRIVACY
Issue: Privacy
"Surfer Beware III: Privacy Policies without Privacy Protection"
(http://www.epic.org/reports/surfer-beware3.html) finds that none of the top
100 shopping web sites adequately protect consumer privacy." EPIC recommends
legislation to enforce "Fair Information Practices" and the development of
Privacy Enhancing Techniques to protect anonymity.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/reports/pr_surfer_beware3.html)

OUTLOOK 2000
[The NYTimes has a special expanded Business section today; here's some
pointers to stories we thought you might be interested in, but, like us, may
not have time to read.]

THE ECONOMY TRANSFORMED, BIT BY BIT
Issue: InfoTech
"Every business now knows that it faces the opportunity and threat of being
transformed by the Internet, and this was the year that happened," said
Daniel Yergin, a business consultant and author. The Internet is
increasingly seen as symbol of evolution in not only business, but also in
politics and culture. It is a global network with open technology standards,
not owned or controlled by a single company or nation. Peter Schwartz, a
leading futurist and business consultant, says that the Internet's growth
and impact will be strongly effected by the policies of nations. The
Internet economy carries the potential for creating "a deep divide between
those who have the skills to prosper and those who don't," he said. "That's
why education policy is so important."
[SOURCE: New York Times (C1), AUTHOR: Steve Lohr]
(http://www.nytimes.com/library/financial/122099outlook-econ.html)

WIRELESS INDUSTRY LOOKS BEYOND PHONE
Issue: Wireless
When top communication executives discuss the future of wireless technology,
it is likely that they will not mention the word "phone" at all. Many
experts predict that the future of wireless lies in a new generation of
mobile wireless devices that function not only as telephones but also as
Internet terminals, or perhaps even radios and televisions that can be
customized for personal tastes. "Now we will be able to focus on getting the
individual his or her own information, no matter how they would like to
receive it," said Phillip T. Redman, an analyst for the Yankee Group. "The
information will be localized, will be personalized and will be timely,"
said Haroon I. Alvi, director for business development of Nokia's wireless
handset operation.
[SOURCE: New York Times (C37), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/122099outlook-wi
r
e.html)

A TIME OF ENERGY AND ENTERPRISE AND NOW E-EVERYTHING
Issue: InfoTech
Top executives laud technology but harbor fears of its darker side. Read
thoughts of Fannie Mae CEO Franklin Raines, Disney's Michael Eisner, Martha
Stewart, cartoonist Stan Lee, Robert Rubin, former US Treasury secretary,
David Komansky, CEO of Merrill Lynch, Honeywell chairman Lawrence Bossidy
and AOL's Steve Case.
[SOURCE: New York Times (C2), AUTHOR: Reed Abelson]
(http://www.nytimes.com/library/financial/122099outlook-epit.html)

E-COMMERCE REPORT: ELECTRONIC RETAILING TO A TRULY MASS MARKET IS EXPECTED
Issue: E-Commerce
[SOURCE: New York Times (C40), AUTHOR: Bob Tedeschi (tedeschi( at )nytimes.com)]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/122099outlook-te
dd.html)

THE INTERNET MAY PRECIPITATE A TEMPEST FOR TRADITIONAL BRANDS AND
ADVERTISING
Issue: Advertising
[SOURCE: New York Times (C43), AUTHOR: Stuart Elliott]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/122099outlook-ad
co.html)

THE A.T.M. PROPHET IS A LATE CONVERT TO THE INTERNET
Issue: E-Commerce
[SOURCE: New York Times (C18), AUTHOR: Timothy O'Brien]
(http://www.nytimes.com/library/financial/122099outlook-reed.html)

PATENTS CONSIDERED VITAL TO THRIVE ON THE INTERNET
Issue: Intellectual Property
[SOURCE: New York Times (C39), AUTHOR: Teresa Riordan]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/122099outlook-pa
te.html)

FILM'S DIGITAL POTENTIAL HAS HOLLYWOOD ON EDGE
Issue: Convergence
[SOURCE: New York Times (C41), AUTHOR: Rick Lyman]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/122099outlook-fi
lm.html)

TELECOMMUTING TO PICK UP AS WORKERS IRON OUT KINKS
Issue: Telecommuting
[SOURCE: New York Times (C6), AUTHOR: David Leonhardt]
(http://www.nytimes.com/library/financial/122099outlook-work.html)

IN CHINA, VISIONS OF INTERNET RICHES IN A PC-SHORT LAND
Issue: International
[SOURCE: New York Times (C22), AUTHOR: Mark Landler]
(http://www.nytimes.com/library/financial/122099outlook-china.html)
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