CABLE/TELEVISION
Public Access Fans Battle Network (Baltimore Sun)
SBS Broadcasting To Acquire Central European Media (WSJ)
MERGERS/TELEPHONY
Phone Merger Moving Ahead (ChicagoTribune)
$200 Million Wireless Deal Reported (NYT)
China To Back U.S. Phone Technology - Daley (SJ Merc)
JOURNALISM
NATO, Belgrade Exploit Absence of Journalists (ChicagoTribune)
Top Court Eyeing 'Ride-Along' Issue (B&C)
ADVERTISING
Speech: Speaking Clearly and Succinctly...(FCC)
Dark Anti-Smoking Ad Turns Networks Off (WSJ)
INTERNET
Politicians Use Web To Raise Funds (SJ Merc)
Cameras In Stores Enhance Online Shopping (SJ Merc)
Direct Web To Give Free PCs To Win Service (WSJ)
CABLE/TELEVISION
PUBLIC ACCESS FANS BATTLE NETWORK
Issue: Cable
In the Baltimore/Washington (DC) area, the Freedom Forum and local PBS
station WETA are trying to launch a new public affairs cable channel. But
since cable channel space is so tight, they are going to cable operators and
asking to "borrow" access channels for 6-18 months. The Alliance for
Community Media, a nonprofit organization that represents public,
educational and government community-access channels, aims to block such
moves. "It's appalling," says ACM's executive director, Bunnie Riedel, of
the Forum Network's strategy of trying to gain control of access channels
now occupied by local community producers as varied as individual musicians,
victims of domestic abuse, school districts and city governments. "The
Freedom Forum is supposed to promote free speech, not try to bury it by
grabbing the people's media," she says. "I understand their desperation.
They have millions of dollars invested in this venture. But they need to
understand that access-channel capacity is for community use." We're not
trying to take anything from anybody," Ed Turner, one of the founding
executives of CNN, said recently. "We want to be partners with the local
producers. The premise of this network is that over the decade, the quality
of journalism on television has diminished to the point where there is very
little for those of us who care about public issues and public policy at the
local, regional and national level." Around the country, access channels are
being folded into public television and PBS President Ervin Duggan says he
thinks access channels would be put to better use if partnered with public
broadcasting. But, at least as the WETA/Freedom Forum deal is concerned,
representatives of local access channels are not convinced: "This proposed
network may have some value, but it's not access. Access is targeted, local
programming created by and for the community. If we give up access channels
to let anything else appear on them, we are giving up on our mission and
reason for being."
[SOURCE: Baltimore Sun, AUTHOR: David Zurawik]
(http://www.baltimoresun.com) 3/27/99
[Thanks to Bunnie Riedel for sending this story our way]
MORE DEALS TO COME
Issue: Mergers
More mergers are to be expected among cable operators, analysts say. As radio
stations have recently consolidated to attempt to dominate cities, so cable
operators are trying to maximize efficiency by dominating by region. As big
players get bigger, markets that have multiple owners, like Los Angeles, New
York, Dallas and Boston, are attractive grounds for industry buyers. "There's
definitely a land rush going on, to gain critical mass in local markets," says
John Waller of Waller Capital, an investment banking specialist. Also, unlike
radio, "the increasingly global nature of telecommunications" is an opportunity
for investors, while a challenge for policy makers, says Marc Gabelli of
Gabelli Asset Management. The history of cable companies' expansion is a rapid
one. Cable companies are now focusing on local ownership, where they used to
take whatever they would be granted by local politicians. Five years ago,
serving 40-50% of cable homes was impressive. Now San Francisco, Chicago and
Houston are served by cable operators that own 80% of the market. Fragmented
markets, such as Philadelphia, Washington, Dallas-Fort Worth, Detroit, and St.
Louis, offer a picture of the companies likely to be involved in mergers. In
Los Angeles, Comcast controls 29% of the market, Adelphia has 24% and Charter
(pending acquisition) will have 19.6%. Brian Deevy, president of Daniels &
Associates, the nations largest cable investment banking firm, says, "In the
last three weeks, AT&T closed on TCI, Adelphia bought Century, and Comcast
bought MediaOne. I think it's fair to call that a peak, but I also think
consolidation continues. There are still a number of deals to be done."
[SOURCE: Broadcasting&Cable (p. 4), AUTHOR: Price Colman and John M. Higgins]
http://www.broadcastingcable.com/
SBS BROADCASTING TO ACQUIRE CENTRAL EUROPEAN MEDIA
Issue: International
SBS Broadcasting has agreed to buy Central European Media Enterprises which
will create Europe's largest broadcasting companies -- holding 18 television
stations and 12 radio stations. Harry Evan Sloan, CEO of SBS, says the new
company will be one of the biggest buyers of international programming and have
increased leverage in negotiating with Hollywood. While SBS has concentrated in
Western Europe and Scandinavia, Central European has attempted to build a base
in Eastern Europe and has struggled with currency fluctuation and the uncharted
territory of privatized TV in the region.
[SOURCE: Wall Street Journal (B10), AUTHOR: Kyle Pope]
(http://wsj.com/)
MERGERS
PHONE MERGER MOVING AHEAD
Issue: Merger
Even though Illinois Commerce Commission staff oppose the proposed
Ameritech-SBC merger, the case's hearing officers have ruled that the deal
will not stifle competition, cause higher phone rates or lead to poorer
service. The hearing officers have recommended just two conditions for the
merger: 1) that the combined company face higher penalties for failing to
meet state standards for restoring service and 2) requiring the company to
rebate any savings from the merger to consumers. "The commissioners are the
final judges, and I doubt that they'll accept the hearing examiners'
proposal without change," said Craig Clausen, a former senior policy adviser
at the ICC. "This proposal does make it unlikely the commissioners would
kill the merger, but I'd bet they will impose some conditions to reflect the
strong fears expressed by the ICC staff." The ruling is a setback for
consumer advocates and others who have opposed the merger. Robert Ruiz,
chief of the Cook County state's attorney, said, "We was robbed." Concerned
parties still have two weeks to submit more arguments related to the order.
A final proposed order will then go to ICC commissioners. [For more info
including the proposed order, see
(http://www.icc.state.il.us/icc/Telecom/Mergers/SBC_AMfiling/0329sched.htm)]
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9903300107,00.html)
$200 MILLION WIRELESS DEAL REPORTED
Issue: Wireless
MCI Worldcom, the nation's number two long distance carrier, has plans to
invest about $200 million in 4 different wireless cable operators: CAI
Wireless systems, CS Wireless Systems, People's Choice, and Wireless One.
These companies use wireless technology to transmit television signals into
people's homes. Although it has not proven cost effective to transmit
television signals via land-based wireless technology, MCI hopes it will be
profitable to use the same technology to transmit Internet data. MCI and
other Internet carriers, frustrated from having to lease lines from local
Bells, are looking for new ways to carry data to and from homes and businesses.
[SOURCE: New York Times (C9), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/99/03/biztech/articles/30cable.html)
CHINA TO BACK U.S. PHONE TECHNOLOGY - DALEY
Issue: Telephony/International
Chinese Premier Zhu Rongji has told US officials that China will use CDMA
for their mobile phone technology. Use of Code Division Multiple Access
technology in the Chinese wireless systems would mean billions of dollars
for Motorola and Lucent Technologies who made the sale and for Sweden's
Ericsson. Ericsson last week announced a deal to buy the infrastructure
division of Qualcomm, the developer of CDMA. Presently China is using the
European standard for its wireless system but it has trials in a few cities
using CDMA. International telecommunications executives are wary of China
because the country is bidding for acceptance into the World Trade
Organization.
[SOURCE: San Jose Mercury News, AUTHOR: Matt Pottinger (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/288120l.htm)
See also:
U.S. CONCERNS OVER CHINESE MILITARY DAMP CELEBRATION OF NEW TELECOM PACT
This version of the CDMA deal centers on US worries about China's military
involvement with CDMA or rather the government's perception of Commerce
Secretary William Daley being photographed with the owners of the Great
Wall, a Chinese telecom company in charge of the CDMA alternative. Great
Wall is half owned by the Chinese military. Daley will not be at the
Thursday signing ceremony.
[SOURCE: Wall Street Journal, AUTHOR: Ian Johnson]
(http://wsj.com)
JOURNALISM
NATO, BELGRADE EXPLOIT ABSENCE OF JOURNALISTS
Issue: Journalism
Few foreign reporters remain in Kosovo so there is little independent
confirmation of the claims both NATO and Serbian leaders make. Serbia's
state-run television service is highlighting NATO's destruction of civilian
homes, but does not show any causalities in hopes of avoiding a spread of
panic. The world's media reports from the boarders of Serbia and relies on
NATO briefings. The rhetoric of both sides of the conflict equate their
enemy with the German Nazis of the World War II era. On Serbian television
this week: "Wag the Dog" and "Apocalypse Now."
[SOURCE: Chicago Tribune (Sec 1, p.14), AUTHOR: Guy Dinmore]
(http://chicagotribune.com/textversion/article/0,1492,ART-26228,00.html)
TOP COURT EYEING 'RIDE-ALONG' ISSUE
Issue: Regulation/Privacy
A decision is expected in June following arguments made before the US Supreme
Court Wednesday that journalists invade the privacy of citizens being served
warrants when they ride along with police officers. While Justices argued the
rides were in violation of the fourth amendment, media organizations and
advocates of civil liberties argued their views. Barbara Cochran, president of
the Radio-Television News Directors said, "The presence of the media can serve
as a safeguard for people." Arguments have been made by the courts that shows,
like Cops, serve more of an entertainment purpose than a watchdog purpose. John
Langley, creator of Cops, says that a Supreme Court ruling against media
"ride-alongs" wouldn't affect the show because they don't show the servicing of
warrants. He also says he is disturbed by the case, saying, "The moment a
search warrant is issued, there is no longer any reasonable expectation of
privacy." The American Civil Liberties Union says, "the media's watchdog
function does not outweigh individuals' privacy rights." Further, they say
police monitor when ride-alongs can take place, meaning the media doesn't
play an independent role.
[SOURCE: Broadcasting&Cable (p. 14), AUTHOR: Dan Trigoboff]
(http://www.broadcastingcable.com/)
ADVERTISING
SPEECH: SPEAKING CLEARLY AND SUCCINCTLY...
Issue: Advertising/Regulation
Commissioner Ness' remarks before the American Advertising Federation
National Governmental Affairs Conference address: 1) The government's role
in content regulation; 2) non-discriminatory buying practices; and 3) the
future of advertising. Commissioner Ness concludes: "The role of advertising
in American media is not fully appreciated. I hardly need to tell you that
the 65 billion dollars forecast to be spent in 1999 on radio, television,
and cable network advertising fund the production of news, entertainment,
and public affairs programs that we value so highly. It is clear that we
have a rich mix of media in this country because of the effectiveness of
consumer advertising. I hope that you will let your advertising dollars
speak clearly and succinctly to support quality educational programming for
children; to reflect the growing importance of minority audiences in your
non-discriminatory buying practices; and to spur new and innovative
technologies for the American consumer."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Ness/spsn906.html)
DARK ANTI-SMOKING AD TURNS NETWORKS OFF
Issue: Public Service
ABC, NBC, CNN and TBS Superstation have refused to air an anti-smoking ad
distributed by the American Cancer Society's Los Angeles office. The ad,
produced with donated time and equipment from the Hollywood film industry,
parodies a cigarette-company sales promotion -- offering caskets and
chemotherapy for prizes and features a model lounging on the beach with a
ventilator attached to a tube coming out of her throat. While NBC refuses to
say why they will not air it, an ABC spokesperson says it's a policy issue --
they only accept ads from national headquarters. CBS is airing it as is
Viacom/Time Warner's Comedy Central. Ruth Wooden of the Advertising Council, a
nonprofit that produces public service ads, says networks are more sensitive to
public service ads because they feel their name is being stamped on it in a
different way than regular ads. Carla Agar, deputy director of the California
health department, says they are finding teenage populations respond to
messages that are real with an element of shock.
[SOURCE: Wall Street Journal (B10), AUTHOR: Gordon Faircough]
(http://wsj.com/)
INTERNET
POLITICIANS USE WEB TO RAISE FUNDS
Issue: Campaign Finance
The Federal Election Commission allows donors to presidential political
campaigns to make donations by credit card, but it prohibits credit card
donations from counting toward a presidential candidate's ability to qualify
for federal matching funds. The FEC has been concerned that fraud was more
likely with credit card donations. Qualified candidates can get dollar-for-
dollar matching for the first $250 of each private donation they receive
(not including credit card donations) provided they agree to spending
limits. Candidates and their supporters are beginning to question the
process as they point more toward contributions raised via the Internet.
They want credit card donations to be included in the matching fund
qualifying totals since most campaign Web sites have pages that allow
visitors to donate to the candidate, usually by credit card. Former Sen.
Bill Bradley, a Democratic candidate, last week called for the FEC to change
its policy. A Republican fund raiser said the FEC's argument that credit
card transactions are not secure enough is flawed, especially in an era when
consumers can buy everything from books to cars over the Web. A decision
from the FEC is required within 60 days of Mr. Bradley's request, but FEC
representatives say there is still too much danger of fraud.
[SOURCE: San Jose Mercury News, AUTHOR: Douglas Kiker (Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/288132l.htm)
CAMERAS IN STORES ENHANCE ONLINE SHOPPING
Issue: Electronic commerce
The interactivity of the Internet strikes again. Perceptual Robotics
recently started putting cameras in retail stores to give shoppers a
real-time view of the goods they are considering for purchase. PRI works
with retailers using its "look and buy" software system to create the
Internet site. PRI's cameras take a string of still pictures requested by
the online user, allowing them to view the scene from different angles and
to zoom in or out. [For an example, try (http://www.galleryfurniture.com),
the Web site of Gallery Furniture, a Houston-based furniture superstore.]
Donna Hoffman, a management professor at Vanderbilt University said, while
"look and buy" technology is still experimental, it has the potential to be
successful. She said, "It begins to give you a glimpse of the future."
[SOURCE: San Jose Mercury News, AUTHOR: Gregory Crawford (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/288106l.htm)
DIRECT WEB TO GIVE FREE PCs TO WIN SERVICE
Issue: Internet
DirectWeb, a NJ company, plans to offer customers "free PC's," to those who pay
$19.95 to $49.95 per month for unlimited Internet service. President and CEO
of Direct Web, Dennis Cline, says the plan will initially be launched in
Philadelphia and will possibly branch out to other parts of the US. DirectWeb's
"free PC" plan is part of a trend. Other companies, like Free-PC.com of
Pasadena, CA and Microworkz, of Seattle, have offered similar deals that
require customers to read advertisements or give personal information in
exchange for a computer and Internet service. Cline says
DirectWeb will not have customers give information or view advertisements as
part of the deal.
[SOURCE: Wall Street Journal (B9), AUTHOR: David P. Hamilton]
(http://wsj.com/)
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