Communications-related Headlines for 8/01/2000

POLITICAL DISCOURSE
Convention's Magic Hour Stays Tuned to Major Networks (NYT)
Big Business Betting Heavy in Competition For Chairman (NYT)

INTERNET
Juno Deal a First for Time Warner (WP)
Chat Not Enough For Community Touch (USA)
Third "Safe Harbor" Application to FTC Receives Conditional Support
from Consumer Groups (CME)
Stephen King E-Tale Near Break-Even After Week (NYT)
Federal Judge Refuses to Award Summary Ruling Against MP3.com (WSJ)
U.K. Health Sites Offer Lesson In Role of Bricks and Mortar (WSJ)
Ford Motor Loses Key Round in Bid To Sell Vehicles Over Web in Texas
(WSJ)
Harris Interactive Sues AOL, Microsoft and Several Others
Over Bar to Email (WSJ)
Using Internet Links From Behind Bars (NYT)

WIRELESS
FCC Again Puts Off Airwave Auction (WP)
Cellphone Researcher's Call: Be Cautious (USA)

MERGERS/ALLIANCES
Canadian TV Makes a Move Into Papers (NYT)
Ford, Qualcomm Confirm Joint Venture To Deliver Wireless Services
To Vehicles (WSJ)

MEDIA & SOCIETY
Recording Industry's Strictest Censor Is Itself (NYT)

POLITICAL DISCOURSE

CONVENTION'S MAGIC HOUR STAYS TUNED TO MAJOR NETWORKS
Issue: Political Discourse
Even though they have drastically cut back their coverage, network
television broadcasters are still king at the Republican convention.
"Everything is geared for the 10 to 11 o'clock hour," said Tom Hannon, the
political director of CNN. "They're obsessed about getting their message
across in the 10 to 11 hour, and that is their driving concern. People say
that the conventions are for cable, but as far as the parties are concerned,
the conventions are for the most eyeballs they can get." All major speeches
are scheduled between 10-11pm eastern when the networks are providing
coverage. As conventions become more planned and scripted, they have become
less newsworthy and networks then cut coverage. But politicians still crave
the cameras that deliver the most eyeballs. "Great drama and great TV and
great journalism are built on conflict," Mr. Zucker said. In fact, the news
vacuum is already something of a joke among reporters. On Sunday, Sam
Donaldson of ABC News came bounding into a work station in one of the media
pavilions here and breathlessly exclaimed, "It's Cheney!" [accidentally
dropping his toupee in the excitement]
Harvard Professor Thomas Patterson reports that convention coverage on ABC,
NBC and CBS dropped from 50 hours in 1976 to 12 in 1996 to 10 this year. If
th networks were to abandon convention coverage altogether, the audience for
the gatherings would be cut in half.
[SOURCE: New York Times (A13), AUTHOR: Peter Marks]
(http://www.nytimes.com/library/politics/camp/080100gop-stage.html)
See Also:
SURFING WITH NARY A WAVE AND HAPPY FACES GALORE
[SOURCE: New York Times (A17), AUTHOR: Rick Lyman]
(http://www.nytimes.com/library/politics/camp/080100gop-media.html)
IN THE NEWS TODAY: WRY OBSERVATIONS AND SNIDE REMARKS
[SOURCE: New York Times (B1), AUTHOR: Julie Salmon]
(http://www.nytimes.com/library/arts/080100stewart-tv.html)

BIG BUSINESS BETTING HEAVY IN COMPETITION FOR CHAIRMAN
Issue: Lobbying
Although Congressional leaders are not being showcased at this week's
Republican convention [honestly, would you?], their Beltway battles and
intrigues have followed them to Philadelphia. The chairmanship of the House
Commerce Committee is up for grabs and two subcommittee chairman are vying
for the position with money, of course. The men are in a race to see ho can
raise the most money -- and to give it away to buy legality with other
lawmakers. Scott Harshbarger, president of Common Cause, a group that
monitors campaign spending, said, "People are giving who have clear business
before these committees." Rep Michael G. Oxley (R-OH) is currently the chair
of the Subcommittee on Finance and Hazardous Materials of the Commerce
Committee. Rep Billy Tauzin (R-LA) is chair of the subcommittee on
telecommunications. Both are bringing in big bucks from corporate political
action committees and individuals with interests in the Commerce Committee's
decisions. Each man is throwing a big party during the week, each costing
some $500,000. Rep Tauzin's Mardi Gras event, to be held on Tuesday night,
is underwritten by "a bunch of telecommunications and energy companies," a
Tauzin aide said. The aide would not name them.
[SOURCE: New York Times (A15), AUTHOR: Broder & Van Natta, Jr]
(http://www.nytimes.com/library/politics/camp/080100gop-donate.html)

INTERNET

JUNO DEAL A FIRST FOR TIME WARNER
Issue: Internet/Cable
Time Warner announced yesterday an agreement giving Juno Online Services
access to TW's cable television subscribers. The announcement comes just days
after federal regulators questioned the company on how its merger with
America Online would not be a barrier to such deals. The agreement will
allow Juno to offer its services to cable subscribers nationwide after a
trial run. The deal is Time Warner's first with an Internet service provider
that is not affiliated with the media giant. Sources say the companies would
split the Internet access subscription fees in a manner similar to Time
Warner's contract with Road Runner, an Internet service provider in
which it owns a stake. Months ago, Time Warner and AOL signed a non-binding
memorandum of understanding pledging to open their cable lines to
competitors. In the past months, however, rival companies, worried that the
AOL - Time Warner merger will keep them from gaining access to the Time
Warner cable network and the high-speed "broadband" Internet services such
as interactive television.
[SOURCE: Washington Post (E1), AUTHOR: Ariana Eunjung Cha]
(http://washingtonpost.com/wp-dyn/articles/A13996-2000Jul31.html)
See Also:
TIME WARNER TO LET INTERNET PROVIDER USE CABLE SYSTEM
[SOURCE: New York Times (C10)]
(http://www.nytimes.com/library/tech/00/08/biztech/articles/01tsc-time.html)

CHAT NOT ENOUGH FOR COMMUNITY TOUCH
Issue: Internet
Nearly everyone on the Internet is searching for ways to create community.
"There are a lot of bad imitations of virtual community out there," says
Howard Rheingold, author of The Virtual Community, first published in 1993.
In an attempt to attract and keep visitors, some Web sites have even begun
to offer full-service toolkits for users to organize communities of their
own, including message boards and chat rooms, photo albums and interactive
calendars. One of the problems on today's Web, Rheingold suggests, is that
in the rush to jump on the community bandwagon, many sites have focused on
the tools they offer rather than on the quality of users' interactions. "The
knowledge that there's such a thing as quality isn't even widespread," he
says. "There are good ones to be found, but I don't think the majority are
strong communities."
[SOURCE: USAToday (3D), AUTHOR: Leslie Miller]
(http://www.usatoday.com/usatonline/20000801/2506764s.htm)

THIRD "SAFE HARBOR" APPLICATION TO FTC RECEIVES CONDITIONAL SUPPORT FROM
CONSUMER GROUPS
Issue: Privacy
A "safe harbor" application to the Federal Trade Commission (FTC) by the
Entertainment Software Rating Board Privacy Online Program (ESRB Privacy
Online) received conditional support from a coalition of child advocacy,
consumer and health groups. Previously, the coalition recommended rejection
of safe harbor applications from two other organizations - PrivacyBot.com
and the Children's Advertising Review Unit (CARU) of the Council of Better
Business Bureaus. Safe harbor is designed for industry groups or others who
want to create self-regulatory programs to govern Web site operators'
compliance with the provisions of the Children's Online Privacy Protection
Rule. The Rule, which went into effect on April 21, 2000, requires
commercial Web sites that collect personal information from children under
age 13 to have a clearly posted privacy policy, obtain verifiable parental
consent before collecting and using personal information, and provide
parents the option to review and delete their child's personal information.
[SOURCE: Center For Media Education]
(http://www.cme.org/press/000731pr.html)

STEPHEN KING E-TALE NEAR BREAK-EVEN AFTER WEEK
Issue: Online Publishing
One week into his e-publishing experiment, Stephen King said yesterday that
he is about to break even. King announced that he would self-publish the
first chapters of "The Plant" through his Web site. King promised to keep
writing the novel and making chapters available if 75% of the readers paid
him $1 for the chapters downloaded. Mr. King estimated that readers
downloaded 152,132 copies in the first seven days. He reports that 116,200
have paid or promised to pay, meeting his threshold to continue writing. He
also said 93,200 have already paid by credit card through Amazon.com, which
is collecting for him. An actual 227,000 copies were downloaded, but some
were lost to user errors and had to be repeated. To account for repeats, Mr.
King adjusted his assessment down to a number he considered "fair." King's
publishing venture is serving as a type of litmus test for some publishers.
The results will speak to what degree [well-known] authors need to rely on
their publishing houses. In just seven days "The Plant" is nearly in the
black. King spent about $124,150 on his self publishing effort, including
two advertisements in Publishers Weekly and USA Today. The downloads
themselves cost less than 2 cents a piece. With $116,000 promised, after
seven days Mr. King is out roughly $10,000. King estimates that if he writes
10 or 11 chapters, readers might ultimately download 1,673,452 individual
installments and pay him a dollar for each. "Do the math," he wrote. "It's
pretty good math, if people keep coming back." The next installment appears
in August.
[SOURCE: New York Times (C11), AUTHOR: David Kirkpatrick]
(http://www.nytimes.com/library/tech/00/08/biztech/articles/01book.html)

FEDERAL JUDGE REFUSES TO AWARD SUMMARY RULING AGAINST MP3.COM
Issue: Intellectual Property
In a closely watched legal battle, a federal judge refused to award a
summary judgment against MP3.com, a decision that could limit the damages
the online music firm will ultimately have to pay. MP3 was sued earlier
this year by major record labels for making digital copies of thousands of
compact disks without permission and making the copies available to users of
its Web site. The record companies had requested a summary judgment that
would peg damages in the case to each song MP3.com has used without
permission, rather than each CD. The ruling is a setback for the recording
labels in their attempt to collect a big damage award from MP3. A spokesman
for MP3.com said the company believed the judge will use a CD as the "unit
of measurement in any statutory damages." "We feel it's a victory for
MP3.com," the spokesman said.
[SOURCE: Wall Street Journal (B4), AUTHOR: Anna Wilde Mathews]
(http://interactive.wsj.com/articles/SB965085543950093853.htm)

U.K. HEALTH SITES OFFER LESSON IN ROLE OF BRICKS AND MORTAR
Issue: eCommerce/Health Online
The closure of a United Kingdom Health Web site is being seen as an omen for
other consumer-oriented Web ventures. Clickmango (www.clickmango.com) is
shutting its doors after less than four months because it cannot raise an
additional 300,000 pounds ($451,000, or 483,540 euros) to keep the site
running through the next quarter. Another British health site, ThinkNatural,
meanwhile, recently garnered 4.5 million pounds in financing as well as a
new outlet for sales. The difference? ThinkNatural formed an alliance with
an Old Economy company -- Kingfisher PLC, which owns Superdrug and
Woolworths. Under the deal, signed in May, Kingfisher gets a 13% stake in
ThinkNatural and an online outlet for its drug stores. ThinkNatural, in
turn, gets to distribute its mail-order catalog in Superdrug stores.
"They're able to give us exposure on High Street," said Carol Dukes,
co-founder of ThinkNatural Ltd., "and we are able to distribute our catalog
through High Street stories rather than through direct mail." "In the long
run, we are looking at 50% of business coming from the Internet and 50% from
other sources," Ms. Dukes said.
[SOURCE: Wall Street Journal, AUTHOR: CECILE GUTSCHER]
(http://interactive.wsj.com/articles/SB965069161120840023.htm)

FORD MOTOR LOSES KEY ROUND IN BID TO SELL VEHICLES OVER WEB IN TEXAS
Issue: eCommerce
Ford has lost a bid to reverse a decision by Texas state regulators who last
year ordered the company to stop selling its used cars and trucks over the
Internet to Texas residents. U.S. District Court Judge Sam Sparks wrote that
the state has the power to regulate who is qualified to sell motor vehicles
in Texas and under what conditions. The Texas dispute tested state
motor-vehicle franchise laws that keep auto companies out of the retail end
of the business in most states. Dealers have been successfully pushing state
lawmakers to make the laws even more restrictive as auto companies have
moved to selling directly over the Internet. If the court were to accept
Ford's interpretation, Judge Sam Sparks wrote, then all state regulations
would "fall before the mighty altar of the Internet."
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Staff Reporter
(http://interactive.wsj.com/articles/SB965085872327204169.htm)

HARRIS INTERACTIVE SUES AOL, MICROSOFT AND SEVERAL OTHERS OVER BAR TO E-MAIL
Issue: Internet
Market-research firm Harris Interactive filed a lawsuit against America
Online, Microsoft and a dozen other Internet companies and organizations,
alleging that the defendants are improperly blocking Harris e-mail sent to
their users. Harris alleges that a nonprofit organization called Mail Abuse
Prevention System (MAPS) mistakenly identified Harris as a "spammer," or
sender of unsolicited commercial e-mail, to the Internet companies. As a
result the Internet companies have blocked e-mail to about 2.7 million of
the 6.6 million users that participate in polls, according to Harris.
Rochester-based Harris is best known as creator of the Harris Poll
public-opinion surveys. Once a company is on the MAPS list it can no longer
send messages or receive messages from any Internet or e-mail service
provider that subscribes to the list. In the lawsuit, Harris claims that the
action MAPS allegedly took against it was instigated by an executive from a
Harris competitor, Incon Research.
[SOURCE: Wall Street Journal, AUTHOR: Nick Wingfield]
(http://interactive.wsj.com/articles/SB965091989474207557.htm)

USING INTERNET LINKS FROM BEHIND BARS (NYT)
Issue: Internet
While American prisoners are not allowed to access to the Internet, the
World Wide Web has still given them a new platform to plead their cases and
seek companionship. Prisoners use third-party services, usually for a fee,
to reach out to potentially huge audiences online, sparking outrage among
many families of victims and creating a new debate about the rights of the
growing number of prisoners. Victims' rights groups complain that it is
humiliating for victims and their families to see prisoners popping up on
Web sites and, as a result, some states have banned prisoners' use of
third-party Internet service providers. But many civil libertarians feel
that such measures infringe on the First Amendment rights of inmates.
[SOURCE: New York Times (A10), AUTHOR: Dirk Johnson]
(http://www.nytimes.com/library/national/080100prison-internet.html)

WIRELESS

FCC AGAIN PUTS OFF AIRWAVE AUCTION
Issue: Spectrum
The Federal Communications Commission has again delayed the auction of an
enormous chunk of the airwaves. The agency seems to be having difficulty
sorting out the claims to the airwaves. The nation's largest wireless
carriers expressed concern about the auction as well. The slice of the
airwaves at issue in yesterday's decision is the 700-megahertz band. The
spectrum is particularly useful because it allows transmission around
buildings and other obstacles, much like a television signal. The auction of
the spectrum is complicated by competing claims: Congress gave television
broadcasters use of the spectrum until at least 2006. Lawmakers required the
FCC to sell it to wireless carries. Now the FCC has to sort out how to do
both. By announcing a delay in the spectrum's sale, the FCC is giving
broadcaster's more time to voluntarily relinquish their rights to the band.
"Although the Commission takes congressional deadlines very seriously . . .
the action taken today is appropriately tailored to balance our
responsibilities in a manner that best serves the public interest," FCC
Chairman William E. Kennard said in a written statement. "Industry needs
more time to develop their business plans." The delay requires the approval
of Congress.
[SOURCE: Washington Post (E1), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A13950-2000Jul31.html)

CELLPHONE RESEARCHER'S CALL: BE CAUTIOUS
Issue: Wireless
Despite the failure of seventy-five studies over the past six years to prove
that cellphones cause brain cancer, pathologist and lawyer George Carlo
suggests that cellphone users would be wise to take precautions anyway.
"There is enough (evidence) to raise some serious questions about the safety
of cellphones," said Carlo, director of the Wireless Technology Research
program, a $27 million project funded by the cellular industry. "While we
can't prove that cellphones cause cancer, we can't prove that they are
absolutely safe." Jo-Anne Basile of the Cellular Telecommunications Industry
Association says the science clearly contradicts Carlo's warnings. "It is
the opinion of policymakers and the scientific community that there are no
adverse health effects from cellphones," she says. "You can't make all sorts
of extrapolations from the science that is out there."
[SOURCE: USAToday (1D), AUTHOR: John Tuohy]
(http://www.usatoday.com/usatonline/20000801/2506920s.htm)

MERGERS/ALLIANCES

CANADIAN TV MAKES A MOVE INTO PAPERS (NYT)
Issue: Merger/Newspapers
In the largest media deal in Canadian history, CanWest Global
Communications, Canada's second-largest private television network has
announced that it will buy about half of the country's larger daily
newspapers from Conrad Black, the international press magnate. The deal
would strengthen the news-gathering capacity of CanWest, making it "far and
away the leading Canadian media operation," said Chris Dornan, director of
Carleton University's journalism school. "These guys are going to have the
most robust news rooms in every single market in the country."
[SOURCE: New York Times (C1), AUTHOR: James Brooke]
(http://www.nytimes.com/library/financial/080100conrad-black.html)
See Also:
CANWEST TO BUY NEWSPAPER CHAIN
[SOURCE: Washington Post (E3), AUTHOR: Bloomberg News]
(http://washingtonpost.com)

FORD, QUALCOMM CONFIRM JOINT VENTURE TO DELIVER WIRELESS SERVICES TO
VEHICLES
Issue: Alliance
A joint venture of Ford and Qualcomm called Wingcast will deliver wireless
services, including
Internet access and safety services. Among the possibilities of Wingcast are
the dispatch of ambulances when airbags are deployed and the availability of
concierge services to make
reservations from vehicles. Ford is trying to position itself for
competition with its archrival, General Motors. GM has a similar in-vehicle
communications service called OnStar, which has been offered for four years
[and endorsed by Batman]. GM also plans to offer at least the most basic of
safety services as part of standard or preferred equipment packages to 32 of
its 54 models by
2001. Wingcast services will be available next year, and will be marketed to
other carmakers as well. Japan's Nissan already has agreed to use the
services in certain luxury vehicles. "There will be more rich types of media
that can go in and out of the car," Paul Jacobs, executive vice
president of Qualcomm, said in an interview. Customers can ask, "Where is my
next meeting, and what is the best route to it?" he said.
[SOURCE: Wall Street Journal, AUTHOR: Karen Lundegaard & Pui-Wing Tam]
(http://interactive.wsj.com/articles/SB965094673549846428.htm)

MEDIA & SOCIETY

RECORDING INDUSTRY'S STRICTEST CENSOR IS ITSELF
Issue: Censorship
The record-buying audience is getting younger and political and business
pressures on record companies are mounting to produce music that parents can
buy for their kids. In the 1980s and 1990s, music labels help themselves up
as free speech champions; now they are reviewing and editing song lyrics
regularly. Universal Music, the nation's biggest record label, now has a
review board of employees representing different races and both sexes. The
board screens the lyrics of every record the company releases for explicit
language. As a result, recent albums by rappers like Eminem, Dr. Dre and
Juvenile have lyrics that are bleeped or excised from all copies of their
albums -- not just the clean versions -- in a practice that has never
existed to such a degree in the industry. "It's getting like we almost have
a McCarthyism in the business," said Phyllis Pollack, a press agent who has
worked with some of rap's most notorious groups, including N.W.A. and the
Geto Boys. "But the censorship isn't new; what's new is the fear and the
compliance going on to this extent. And I think a lot of artists go along
with it because they're afraid of being lost in the corporate shuffle and
falling out of favor with their labels."
[SOURCE: New York Times (A1), AUTHOR: Neil Strauss]
(http://www.nytimes.com/library/music/080100lyrics.html)

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