TELEVISION
Few Bidders for Networks Despite Good Curb Appeal (NYT)
Get Big or Get Out (B&C)
Can Football Revive CBS and Restore Its Glory Days? (NYT)
Advertising: In N.F.L. Ad War, Sponsors Playing Tough Defense (NYT)
The Return of Family Television (ChiTrib)
Ameritech Gets with Local Connections Program (B&C)
INTERNET
Few Federal Web Sites Observe Federally Proposed Privacy Rules (NYT)
Patents: Plain-English Internet Searching (NYT)
Software for Blocking Web Ads Has a Need -- To Advertise (ChiTrib)
New Wireless Effort Hits Hurdles (ChiTrib)
CAMPAIGN FINANCE REFORM
Campaign Reform's Next Hurdle (NYT)
ANTITRUST
Signs Show 'Wintel' Axis Is Beginning to Wobble (NYT)
US May Seek to Expand Evidence in Microsoft Case (NYT)
LABOR/EMPLOYMENT
US West, Union Reach Agreement (WP)
JOURNALISM
A Publishers Presses His Point (WP)
SATELLITE
Echo Star gets Local OK (B&C)
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TELEVISION
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FEW BIDDERS FOR NETWORKS DESPITE GOOD CURB APPEAL
Issue: Television Economics
Audiences continue to defect to cable and programming costs continue to rise
-- the future of network television seems uncertain. But despite constant
rumors, there have been no bidders for CBS or GE's NBC. "There are new
advantages ever since the Federal Communications Commission allowed network
companies to own their programming and share in the sale of rerun rights,"
said David Londoner, an analyst at Schroder & Co. "In this market, everybody
talks to everybody else. And sure, anyone would love to buy them at the
right price. But you could drive a truck between the bid and the ask."
Howard Anderson, president of the Yankee Group, a consulting firm in Boston,
added: "Owning networks ain't what it used to be. When the prime-time
players had 85 percent of the prime-time audience, you were buying into a
monopoly. Now they are at 50 percent market share. There is sticker shock
over advertising prices. And the Internet is eating away at the youth
market." What's more, Anderson said, "companies have proven that they can
launch their own networks for far less money." While television stations and
cable service make a lot of money, broadcast networks typically yield only
about 10% at best. At worst, they lose money (see CBS story).
[SOURCE: New York Times (C6), AUTHOR: Geraldine Fabrikant]
http://www.nytimes.com/yr/mo/day/news/financial/network-bidders.html
GET BIG OR GET OUT
Issue: Television/ Ownership
Longtime Sacramento Broadcasters, the Kelly family, has just sold last of
it's broadcast operations for $900 million. Kelly Broadcasting was founded
in 1945 by advertising executive Gene Kelly, and is now run by his
grandsons. While Kelly's Sacramento TV station KCRA-TV has been a local
leader for years, it had become increasingly difficult for small
broadcasters to compete for programming. "I lost five out of six shows and
didn't even get to the table," said KCRA station manager Greg Kelly. "We had
to get big or get out, and we were not in a position to get big,"
[SOURCE: Broadcasting&Cable (p.10, 11), AUTHOR: John Higgins]
http://www.broadcastingcable.com/
CAN FOOTBALL REVIVE CBS AND RESTORE ITS GLORY DAYS?
ADVERTISING: In N.F.L. Ad War, Sponsors Playing Tough Defense
Issue: Television Economics
CBS's eight-year, $4 billion deal to broadcast National Football League
games has been and will be closely scrutinized. The price tag is 100% more
than what NBC had been paying for the same package. Executives at CBS are
relying on football to boost profits -- the network has losing $50-$100 per
year for the last few years. But critics -- mostly at NBC -- say that the
deal is financially irresponsible and predict CBS will begin losing $100
million to $150 million a year on football alone. CBS sees football
attracting the young male audience -- which had been leaving the network of
late -- and boosting its ratings for prime time shows. In Elliott's column
we learn that although network executives wanted to charge 25-30% more for
ad time during football games this year, the ad agencies held firm and will
pay no more that 8-10% more for spots. The message: we're not going to pay a
lot for this season.
[SOURCE: New York Times (C1), AUTHOR: Bill Carter]
http://www.nytimes.com/yr/mo/day/news/financial/cbs-nfl-media.html
[SOURCE: New York Times (C7), AUTHOR: Stuart Elliott]
http://www.nytimes.com/yr/mo/day/news/financial/fbn-ad-column.html
THE RETURN OF FAMILY TELEVISION
Issue: Television
With the big networks fighting over adult viewers, new outlets like Pax TV
are trying to find a niche for family viewing. At 11:00am today, Pax TV
(formerly Pax Net) will start broadcasting. "Along with the new Fox Family
Channel and new programming initiatives on Nickelodeon and the Disney
Channel, it is one of a number of TV outlets looking to fill the void in
family viewing as the traditional networks have turned toward the young
adult market," Johnson reports. Bud Paxson's network -- which will reach
50-75 million households, will be the nation's 7th broadcast network:
"Parental Discretion Unnecessary" is one of the network's ad slogans.
[SOURCE: Chicago Tribune (Sec 5, p.1), AUTHOR: Steve Johnson]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808310033,00.html
AMERITECH GETS WITH LOCAL CONNECTIONS PROGRAM
Issue: Cable
Ameritech's cable system, americast, has launched a free text information
service in the Columbus, Ohio market. Local Connections, as its called, will
offer local information ranging from movie times to weather forecasts on 49
channels. Ameritech is hoping the local information channels will give them
an edge over cable competitors Time Warner and Insight Communications.
[SOURCE: Broadcasting&Cable (p.43), AUTHOR: Price Colman]
http://www.broadcastingcable.com/
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INTERNET
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FEW FEDERAL WEB SITES OBSERVE FEDERALLY PROPOSED PRIVACY RULES
Issue: Privacy
The Clinton Administration does not practice what it preaches when it comes
to online privacy. The Federal Trade Commission recently criticized business
sites for failing to post privacy information or help protect children --
many of the Government's sites fail on these fronts as well. "It's really a
matter of practicing what they preach," said David Banisar, senior policy
analyst and staff counsel at the Electronic Privacy Information Center, a
public interest research group in Washington. "They have been pushing notice
and consent, and they can't even do it themselves. They really have a dismal
record on this." Clausing reports, "The White House Web site provides links
to 70 Web sites of federal agencies, Cabinet departments and White House
offices and commissions. Of those 70 sites, only 12 had posted privacy
policies as of Friday afternoon. That amounts to 17 percent of the sites
surveyed, only slightly better than the 14 percent of commercial sites that,
according to the FTC's report, had clearly posted privacy policies earlier
this year."
[SOURCE: New York Times (C1), AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/98/08/cyber/articles/31privacy.html
PATENTS: PLAIN-ENGLISH INTERNET SEARCHING
Issue: InfoTech/Internet
Kathleen Dahlgren, a computational linguist, and her colleague, Edward
Stabler, have received a patent for Inquizit, a natural-language based
Internet searching tool. The system retrieves and stores information in much
the way that people talk. "We model the way people interpret the meanings of
a word -- through context," Ms. Dahlgren said. "We search on meaning by
using grammar and structure and semantics. Every word has associated with it
a set of beliefs." Thus, Ms. Dahlgren said, a query such as "What kinds of
wood are bats made of?" would probably yield documents having to do with
baseball bats and hickory.
[SOURCE: New York Times (C2), AUTHOR: Teresa Riordan]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/31patents.html
SOFTWARE FOR BLOCKING WEB ADS HAS A NEED--TO ADVERTISE
Issue: Advertising/Internet
New software is available that prevents ads being displayed on a Web page.
Few people are using the programs yet, but some are concerned -- especially
since ~$1 billion a year is spent to advertise to the roughly 71 million
Americans on the Internet. "This is now a mass medium, and I ask you, who's
going to pay for it?" asked Bob Colvin, who runs Interactive Media Partners,
an ad consulting firm. "It's not subscription fees, and it sure isn't going
to be the government. It's got to be the advertising." Ad-blockers also stop
"cookies" -- the files sites use to chronicle consumers' surfing habits.
"Because they're getting it free, are they obligated?" said Beth Snyder, who
writes about on-line ads for Advertising Age magazine. "That's kind of a
philosophical question. Do you owe anybody anything?" Interested in the
software? See AdWipe, JunkBusters www.junkbusters.com, AtGuard
www.atguard.com, and Internet Mute www.intermute.com.
[SOURCE: Chicago Tribune (Sec 4,p.2), AUTHOR: Associated Press]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808310005,00.html
NEW WIRELESS EFFORT HITS HURDLES
Issue: Internet Access/Wireless/Role of Local Government
Chicago is the next target area for Metricom's wireless Internet access.
Metricom attaches small radio units to the tops of light poles to provide
data transmission. The firm is working out agreements with local and county
officials and power company managers. Local governments are considering
hiring consultants to advise them. The worry: that a town signs a deal for
less money than the town down the road.
[SOURCE: Chicago Tribune (Sec4, p.3), AUTHOR: Mitch Martin & Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808310008,00.html
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CAMPAIGN FINANCE REFORM
=======================
CAMPAIGN REFORM'S NEXT HURDLE
Issue: Campaign Fiance Reform
The Senate returns to Washington this week, focused on the Clinton scandal.
But most Americans think his moral values are the same or better than that
of most politicians. "There is one very big thing that Congress can do to
restore voter confidence, and that is to finish the job of overhauling the
campaign fund-raising system, eliminating "soft money" and other abuses that
undermine the integrity of American politics," the editorial states. The
House passed the Shays-Meehan bill earlier in August, Americans want it, and
a majority of the Senate supports it. But a campaign reform bill may never
be voted on in the Senate because Trent Lott, the majority leader, and Mitch
McConnell (R-Kentucky) will frustrate popular will with a filibuster. "All
that is needed is eight Republican votes to shut off the filibuster that
Lott and McConnell are sure to engineer this month. The responsibility for
finding those votes falls on Senators John McCain of Arizona and Russell
Feingold of Wisconsin, who championed the cause earlier this year and now
must pick it up again. Is it too much to ask that this Congress, on the eve
of the next century, return to the spirit that has fired reformers since the
beginning of this century?"
[SOURCE: New York Times (A18), AUTHOR: NYT Editorial Staff]
http://www.nytimes.com/yr/mo/day/editorial/31mon1.html
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ANTITRUST
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SIGNS SHOW 'WINTEL' AXIS IS BEGINNING TO WOBBLE
US MAY SEE TO EXPAND EVIDENCE IN MICROSOFT CASE
Issue: Antitrust
As part of the antitrust suit against Microsoft, the Dept of Justice (DOJ)
has obtained documents that show the deep frustration of Intel executives
with pressure from Microsoft's Bill Gates. The alliance between Microsoft
Windows and Intel computer chips -- the "Wintel" duopoly -- may be
unraveling. Intel is already feeling heat from rival chip makers Advanced
Micro Devices and National Semiconductor. Microsoft is seeking new partners
like Matsushita, and the growth in the industry is in consumer electronics
like cellular phones and hand-held personal digital assistants -- markets in
which neither Microsoft or Intel wield much influence. In a related story,
Lohr reports that the DOJ and 20 states may ask a Federal judge to admit new
evidence in the Microsoft antitrust case. Investigators are trying to find
out if the software giant used its market power to try to limit competition
in segments of the emerging market for Internet software. They are looking
at Microsoft's dealings with Intel, Apple, and Real Networks.
[SOURCE: New York Times (C1), AUTHOR: John Markoff]
http://www.nytimes.com/library/tech/98/08/biztech/articles/31chip.html
[SOURCE: New York Times (C4), AUTHOR: Steve Lohr]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/31microsoft.html
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LABOR/EMPLOYMENT
==================
US WEST, UNION REACH AGREEMENT
Issue: Labor/ Telephony
Members of the Communication Workers of America employed by US West are
expected to return to work today after 15 days of striking. About 34,000
union members in 13 states went on strike after the break down of
negotiations regarding forced overtime, health-care benefits and a
performance based pay proposal. Federal Mediator Jim Mahon helped the two
sides in reaching the tentative agreement that ended the first strike in US
West's 14-year history.
[SOURCE: Washington Post (p.A7), AUTHOR: News Services]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/31/134l-083198-idx.html
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JOURNALISM
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A PUBLISHER PRESSES HIS POINT
Issue: Journalism
Frank Blethem, millionaire Seattle business man has recently launched a
media campaign, including a series of ads in the Seattle Times, advocating
the abolition of the estate tax. The only problem is that Blethem also
happens to the publisher of that very same paper. "The appearance of a
conflict of interest is real," concedes the Time's executive editor Michael
Fancher. "There is no actual conflict of interest," he contends, "because I
know that it's not going to affect our reporters." Blithe, himself aware of
the problematic appearance, explains that "the family feels that's the way
to use our voice. We can't use [news columns in] the newspaper because of
our insistence that the newspaper be independent." The issue raises
difficult questions about how far newspaper publishers can go in expressing
political viewpoints.
[SOURCE: Washington Post (C1,C4), AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/31/080l-083198-idx.html
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SATELLITE
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ECHOSTAR GETS LOCAL OK
Issue: SatelliteT.V.
The Federal Communications Commission has given satellite TV distributor
EchoStar permission to enter four new western markets, while waving the
requirement to serve Alaska and Hawaii too. EchoStar plans to offer local
broadcast signals to "underserved' (those unable to receive broadcasts 50%
of the time) subscribers in western states. Satellite services like EchoStar
are hoping that Congress will eventually change the law that prevents them
from providing local signals to subscribers who can receive those signals
over the air. Some members of congress have expressed the belief that
allowing satellite carriers to distribute local signals may be the best way
to encourage competition that would force down cable rates.
[SOURCE: Broadcasting&Cable (p.17), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/
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Way to go Tom's River!