Communications-related Headlines for 6/16/97

Communications-related Headlines for 6/16/97 (our biggest issue ever!)

White House Is Set To Ease Its Stance On Internet Smut

Waiving Our Freedom

Revisions in TV Ratings Called Imminent

If It Looks Like HDTV, It Does Not Mean It Is

CNN Orders Its News Staff To Avoid Ads

Internet Song Use Spurs Recording Industry Suits

Radio Technology Fails To Win US Acceptance

Cashing In When Opportunity Knocks

Privacy Fears and the Internet

The Jones Case: Glass Houses at The Fourth Estate

Concept Videos for Children: No Violence, No Sexism

Special Wall Street Journal Technology Section

House Commerce Republicans Overcome Doubts, Approve $26.3 Billion Spectrum
Auction Proposal

Ratings likely to get content adds

News Corp. finally gets Family Deal

House would give more time for DTV transition

Hundt agrees to put alcohol inquiry on hold

Did we forget to mention...

Hundt raps Grossman public TV plan

Shifting personnel atop the FCC

Annenberg grades children's television

FCC tracking cable competition

More Push for PSAs

Cable mergers draw fire from Washington

Broadcast Advertisement of Distilled Spirits
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Title: White House Is Set To Ease Its Stance On Internet Smut
Source: New York Times (A1)
Author: John Broder
Issue: Communications Decency Act
Description: "To the extent, then, that effective filtering technology is
available, content regulations traditionally imposed on radio and television
need not be extended to the Internet. In fact, unnecessary regulation or
censorship could cripple the growth and diversity of the Internet," says a
draft policy paper written by a working group led by Ira Magaziner. The
proposed policy comes in anticipation that the Supreme Court will strike
down the Communications Decency Act. It also represents a reversal in the
Clinton Administration which argued for the CDA just 3 months ago. [see
for more information]

Title: Waiving Our Freedom
Source: New York Times (A23)
Author: Horace Freeland Judson, George Washington University
Issue: First Amendment
Description: Editorial addresses a draft amendment to the Constitution
allowing states to ban burning and desecration of the American flag. "The
American flag is beyond desecration by physical means, any more than I could
desecrate the Constitution by using a copy of it to light the barbecue. [The
draft amendment's] aim is not defense but attack -- an attack on freedom of
political agrement. Now's there's a desecration for you."

Title: Revisions in TV Ratings Called Imminent
Source: New York Times (B1)
Author: Lawrie Mifflin
Issue: V-Chip
Description: Compromise may come as early as Friday on revising the current
TV ratings system. Most broadcast and cable operators seem ready to add
content warnings -- S, L, V -- to the current aged-based system. Meetings
continue this week between legislators, advocacy groups, and television
executives. Some groups also want D for dialogue added to shows with
suggestive dialogue. Many argue that Congressional involvement in this
process is "frightening" and uses children as an excuse for censorship. But
"if [television execs] had been more careful about how they rated the shows
from the outset, and not tried to get away with too much, they might not be
in this situation," said Peggy Charren, a longtime advocate for children's
programming.

Title: If It Looks Like HDTV, It Does Not Mean It Is
Source: New York Times (D1)
Author: Joel Brinkley
Issue: Digital TV (ATV)
Description: Instead of making expensive, conventional TV equipment
obsolete, some broadcasters are looking into "line-doublers" that improve
the resolution of a standard, broadcast-television signal and convert it
into digital form. This "fake HDTV" could save broadcasters millions in
analog-to-digital conversion costs. Broadcasters must begin digital
broadcasts in the next 18-24 months. "I think its hilarious, but we don't
care," an official at the Federal Communications Commission said.

Title: CNN Orders Its News Staff To Avoid Ads
Source: New York Times (D3)
Author: Media and Technology Updates
Issue: Journalism
Description: Visa has agreed to stop an ad campaign that included CNN
reporter Jonathan Karl. CNN is changing its policy for review. CNN reporters
will now be banned from commercial advertisements except those that promote
CNN itself.

Title: Internet Song Use Spurs Recording Industry Suits
Source: New York Times (D6)
Author: Andrew Ross Sorkin
Issue: Copyright
Description: The Internet has been likened to a giant copying machine. But
for owners of intellectual property -- software manufacturers, the recording
industry, the movie industry, photographers -- this can mean a threat to
their business if copies are made unchecked. The recording industry filed
suit with three Internet sites that were pirating and distributing
copyrighted songs. Most music pirates operate their sites as hobbies not
revenue generators but "they don't understand the scope of the threat they
pose to the industry," a Business Software Alliance rep said.

Title: Radio Technology Fails To Win US Acceptance
Source: New York Times (D11)
Author: Steve Knoll
Issue: Radio/Info tech
Description: Radio Data Systems (RDS) seem to be a failure in the US. RDS
allows radio stations to transmit messages displayed on your radio, allows
your radio to be tuned by station format rather than frequency, even allows
a tape or regular program to be interrupted when there's important weather
or traffic info. There's no critical mass of Smart radio or stations using
the technology yet.

Title: Cashing In When Opportunity Knocks
Source: Washington Post (A1)
Author: Jerry Knight
Issue: Mergers
Description: Two Washington technology entrepreneurs have found that the
road to riches is 1) start tech company, 2) "take it public, 3) become a
millionaire
by selling off your stock, and then 4) arrange to merge with a bigger firm and
get really rich." Their company, Telco Communications Group Inc. which
provides discount long-distance service, is merging with Excel Communications
Inc. of Dallas. One analyst reports that the past 12 months have provided
telecom companies with a chance to merge and bundle services and that
companies in different niches are buying each other.

Title: Privacy Fears and the Internet
Source: Washington Post (A20)
Author: WP Editorial Staff
Issue: Privacy Fears and the Internet
Description: At the Federal Trade Commission's hearings on Internet privacy,
the Commission
heard horror stories of privacy violations and cross-my-heart-hope-to-die
promises from tech companies that they would do a better job of regulating
themselves and allowing less information about individuals to be made
available. Companies have such strong financial incentives to use all the
information they can get from consumers to better tailor sales it's hard to
believe that they will be able to regulate themselves.

Title: The Jones Case: Glass Houses at The Fourth Estate
Source: Washington Post (C1)
Author: Howard Kurtz
Issue: Journalism
Description: "It never fails: When journalists criticize the personal
conduct of public figures, someone points an accusatory finger at them."
Last week a writer for the New York Observer criticized five journalists for
their questioning of Clinton's ethics when they themselves had messy
divorces. Critiquing the private lives of journalists who are covering the
Clinton-Jones issue is not necessarily a fruitful investigative path.
Because a journalist is divorced doesn't mean s/he is incapable of covering
Clinton's ethics.

Title: Concept Videos for Children: No Violence, No Sexism
Source: Washington Post (Wash Tech pg 9)
Author: Sandra Evans
Issue: Children's Television
Description: DC-based Troon productions creates claymation home videos
(for the home, not homemade) for kids 10 and under. The story lines have
strong female characters and little violence. Research by Girls Inc. has shown
that there are three males characters for every one female character in
prime-time TV
and commercials.

Title: Special Technology Section
Source: Wall Street Journal (R)
Author: WSJ Staff
Issue: Family
Description: A special section on technology in the home with articles on
the technology gap when only one spouse adopts new gadgets, how to keep
children away from inappropriate sites on the Internet, how e-mail is
changing how we communicate, the dangers of cyberlife, and girls and
technology.

Title: House Commerce Republicans Overcome Doubts, Approve $26.3 Billion
Spectrum Auction
Proposal
Source: Telecommunications Reports
Author: Matthew Petrillo
Issue: Spectrum/Budget Issues
Description: The House Commerce Committee approved a budget reconciliation
bill that aims to collect $26 billion i spectrum license auctions over the
next five years. Most legislators do not believe that the auctions will
raise even $20 billion though. The FCC was directed to begin an auction in
2001 of spectrum to be returned by broadcasters in 2006. But the Committee
also approved an amendment that would allow broadcasters to retain that
spectrum if 5% or more households in those markets still rely on analog
signals. No new technology has reached that high a penetration so fast.

Title: Ratings likely to get content adds
Source: Broadcasting&Cable (p. 12)
Author: Paige Albiniak
Issue: V-Chip
Description: Broadcasters and cable companies (except maybe NBC) have
decided to add content indicators to TV ratings. Many politicians are trying
to take credit for this turnaround by broadcasters, who were initially
opposed to content ratings. House Telecommunication Subcommittee Chairman
Billy Tauzin believes that because the TV industry volunteered (with
pressure from children's advocacy groups) to add the new ratings, there is
no need for legislation on the issue.

Title: News Corp. finally gets Family Deal
Source: Broadcasting&Cable (p. 12)
Author: John M. Higgins
Issue: Media Mergers
Description: A unit of Rupert Murdoch's News Corp. is going to take over
International Family Entertainment Inc. for $1.9 billion. News Corp. will
use the Family Channel, which IFE owned half of, as an outlet for kids'
programming. The Family Channel will be populated with kids' programs by
Saban Entertainment, which owns the other half of the Family Channel. Tim
Robertson, Pat Robertson's son, will continue to lead the Family Channel.
Walt Disney had also been trying to buy the channel.

Title: House would give more time for DTV transition
Source: Broadcasting&Cable (p. 14)
Author: Paige Albiniak
Issue: ATV
Description: The House Commerce Committee voted to extend the time
broadcasters can have their analog channel in the transition to digital
television. The Committee's proposition would let broadcasters hold two
channels past the FCC's 2006 deadline until 95% of the TV viewers in their
markets had digital sets or converters. Gigi Sohn of the Media Access
Project doesn't believe that this is in consumers' best interest as
broadcasters claim, "It's a backhanded way for broadcasters to try to keep
both blocks of spectrum indefinitely...and the notion that this is
pro-consumer is just a big, fat, lie." The Clinton Administration would
like those who did not pay for spectrum at auction to pay fees in case the
auctions of the analog channels don't raise the $26.3 billion the government
has them down for. Billy Tauzin of the House telecom sub-committee is
against spectrum fees and the committee hopes to boost the auctions by
allowing broadcasters to buy back their analog channel. Duopoly rules would
be relaxed, and broadcasters would be able to own one UHF and one VHF
channel (but not two VHF channels and certainly not two VHF channels with
cheese). Another provision might eliminate the ban against owning
newspapers and TV stations in the same market.

Title: Hundt agrees to put alcohol inquiry on hold
Source: Broadcasting&Cable (p. 15)
Author: CM
Issue: Advertising
Description: Commissioner Chong requested that an inquiry into broadcast
alcohol advertising be removed from the FCC's meeting agenda this week, and
Hundt granted that request.

Title: Did we forget to mention...
Source: Broadcasting&Cable (p. 18)
Author: BC Staff
Issue: Journalism/Media Mergers
Description: When ABC's Nightline covered News Corp.'s acquisition of the
Family Channel last week, it did not mention that Disney/ABC (aka
Nightline's parent company) was in competition with News Corp. to buy the
channel. Nightline criticized Murdoch for a lack of imagination by airing
sports. Murdoch is trying to buy the LA Dodgers, but the fact that Disney
has an interest in the California Angels wasn't mentioned.

Title: Hundt raps Grossman public TV plan
Source: Broadcasting&Cable (p. 20)
Author: Chris McConnell
Issue: Public Television
Description: Chairman Hundt came out against the former head of PBS's
proposal to have ads on public television. Former PBS president Larry
Grossman says that something needs to be done to help public television.
Billy Tauzin wants broadcasters to pay into a fund to support public TV and
wants this donation to free broadcasters of public interest obligations.
Hundt, on the other hand, wants educational programming to stay on the
heavily watched stations. Hundt says putting all the educational
programming on one channel would be like creating an "educational ghetto."

Title: Shifting personnel atop the FCC
Source: Broadcasting&Cable (p. 21)
Author: CM
Issue: FCC
Description: Hundt's departure from the FCC could lead to a lot of personnel
shifts. Many people have already left: International Bureau Chiefs Scott
Harris, Donald Gips, Wireless Telecommunications Chief Michelle Farquhar,
and Chief Counsel Julius Genachowski (about to leave) among others.

Title: Annenberg grades children's television
Source: Broadcasting&Cable (p. 21)
Author: Elizabeth A. Rathburn
Issue: Children's Television
Description: The Annenberg Public Policy Center of the University of
Pennsylvania has produced a study that found that 22% of the shows
broadcasters consider educational were not even close. Broadcasters must
start showing 3 hours a week of educational programming, but the FCC hasn't
really defined what counts as educational beyond "furthers the positive
development of children 16 years of age and under." Annenberg is hoping to
develop "reasonable benchmarks" that broadcasters can use to gage how
educational a program is for kids. The article has a chart ranking quality
of educational programming by venue (PBS, basic cable, big, three,
Paramount) and also side boxes on how local kids programming could suffer
under the FCC's new guidelines, how newspapers do not sufficiently cover
children's television according to child advocates, and one box with the
usual terrifying numbers on just how much TV kids watch.

Title: FCC tracking cable competition
Source: Broadcasting&Cable (p. 25)
Author: BC Staff
Issue: Cable
Description: The FCC has started its latest research into cable
competition. The Commission found in 1996 that cable had 89% of all
multi-channel video programming subscribers. This year it will be looking
into the impact of the Telecom Act on competition.

Title: More Push for PSAs
Source: Broadcasting&Cable (p. 24)
Author: BC Staff
Issue: Public Television
Description: Chairman Hundt is pulling in supporters for his campaign for
more public service announcements on TV. Colin Powell told broadcasters
that they should show more public service announcements, and Newt Gingrich
stated at a mayor's conference that TV networks could give some air time to
fight drugs. Gingrich said that if networks could afford to pay the actors
in Seinfeld $600,000 an episode, they could afford to spare a little air
time. "They [the broadcasters] ought to do it as citizens, because
Americans have been pretty darn good to the networks," sayeth the Speaker.

Title: Cable mergers draw fire from Washington
Source: Broadcasting&Cable (p. 54)
Author: Paige Albiniak
Issue: Media Mergers
Description: TCI's most recent round of proposed mergers has lawmakers
peeved and federal agencies are going to be reviewing proposals very
carefully. Senate Commerce Committee Chairman John McCain (R-Ariz) stated
that "We are seeing mergers and consolidations with the telecommunications
industry, rather than competition...That should be very disturbing to all
of us." TCI has hired some top lobbyists to help smooth the deals through
Washington. TCI is one of the big holders of Primestar which just agreed to
a huge deal with Murdoch's News Corp. Also, TCI and Cablevision are working
together.

At the FCC
Broadcast Advertisement of Distilled Spirits. On Thursday, June 19, the FCC
will consider action regarding the recent initiation of broadcast
advertising by the distilled spirits industry, particularly with regard to
liquor consumption by minors, and seeks comment on what governmental
response, if any, is appropriate.

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