MEDIA & SOCIETY
Hollywood Insiders Give Thumbs-Down to Critics (NYT)
'Dr Laura' Pulls In Weak Ratings and Ads (NYT)
POLITICAL DISCOURSE
Would-Be Representatives Campaign Via Web Sites (WSJ)
Agency Investigates 'Rats' Ad (NYT)
MERGERS
Europe Watches Warily As AOL Flexes Muscles (WP)
SBC Looking To Seal Deal With Telia For $6B (USA)
Here's The Inside Scoop On All Those Mega-Mergers (USA)
AT&T to Consider Link Ups With British Telecom Units (WSJ)
INTERNET
Sellers Hire Auditors to Verify Privacy Policies and Increase Trust
(CyberTimes)
Get Me That Web Site, Stat! Internet Speeds Up Emergency Medicine
(USA)
Net2Phone Shifts to Software for Routing More Telephone Traffic
Over the Internet (ESJ)
ANTITRUST
Regulator Investigates Deutsche Telekom For Anticompetitive Pricing
Suspicions (WSJ)
JOURNALISM
The Right Strategy for Fox (NYT)
Spread of Violence Against Journalists (NYT)
Tycoon Takes to the Road With Media-vs.-Moscow Wars (NYT)
MEDIA & SOCIETY
HOLLYWOOD INSIDERS GIVE THUMBS-DOWN TO CRITICS
Issue: Media&Socity
Hollywood executives have been somewhat tight-lipped in advance of a second
Congressional hearing on the Federal Trade Commission report about marketing
violence to children. But moviemakers are beginning to chafe at the barrage
from politicians. "I think it's a bunch of weasels scrambling for votes,"
said Larry Kasanoff, president of Threshold Entertainment, a company that
makes, among other things, movies based on action-oriented video games like
Mortal Kombat and Duke Nukem. "In all honesty, I think what they're doing is
reprehensible," he said. "What they should be doing is focusing on why there
is less of a family structure in America today. Instead, they attack us.
These guys attack the easy issue because the hard issue doesn't make for
such big headlines for them." Others are upset that it is VP Al Gore and Sen
Joseph Lieberman at the front of the parade. "When you have Al Gore saying
that Hollywood has six months to get its act together, that sounds like
McCarthyism to me and I find it very troubling," said the screenwriter and
director Rod Lurie. "I worked for Gore in '88 and I am really taken aback by
this. It's one thing to co-opt the enemy's issues, but not in a way that
betrays your most important, fundamental values." "I think two different
things about it," said Budd Schulberg, the veteran screenwriter and author
of the novel "What Makes Sammy Run?," about a quintessential Hollywood
wheeler-dealer. "One is that there is always a real danger in the government
trying to make artistic decisions, which could lead to censorship. At the
same time, I understand why they might want to, because with some of the
films I've seen recently, I wish there was more self-censorship going on in
Hollywood." Rick Hess, president of Propaganda Films, said: "At the moment,
I'm a provider of content, which means that I'm not in the driver's seat in
making those kinds of marketing decisions. But I
also have kids of my own and, I have to tell you, I don't envy those who
have to make those marketing decisions."
[SOURCE: New York Times (A1/A19), AUTHOR: Rick Lyman]
(http://www.nytimes.com/2000/09/18/politics/18HOLL.html)
(requires registration)
'DR LAURA' PULLS IN WEAK RATINGS AND ADS (NYT)
Issue: Television
Dr. Laura Schlessinger's new syndicated daytime television show has so far
failed to attract either viewers or advertisers. Gay and lesbian activists
successfully pressured all the big packaged-goods and retail advertisers
that typically buy spots on daytime talk shows not to become sponsors. Now,
the ratings for the first four "Dr. Laura" programs show that viewership has
fallen 15 to 28 percent compared with the programs that run in time slots
just before "Dr. Laura". "It's a goner," said Marc Berman, media analyst for
the Mediaweek .com. "Viewers are not seeking out the controversial doctor"
on television, Mr. Berman said. "Sometimes it's better to be just heard and
not seen."
[SOURCE: New York Times (C15), AUTHOR: Stuart Elliott]
(http://www.nytimes.com/2000/09/18/business/18LAUR.html)
(requires registration)
POLITICAL DISCOURSE
WOULD-BE REPRESENTATIVES CAMPAIGN VIA WEB SITES
Issue: Political Discourse
Online campaigns aren't just for big-name politicians anymore. Two
first-time candidates, Ann Kitchen and Jill Warren, both of Austin Texas are
running for a seat in the state legislature. Both would-be representatives
are running virtual campaigns side by side with their traditional efforts,
using e-mail and Web pages in addition to leaflets and yard signs to reach
voters. In Austin and in scattered contests around the U.S., the Web's
influence is percolating down to local politics. As a result, voters are
getting a valuable new way to learn about and even interact with those who
would represent them. If proposed online voting systems make casting a
ballot push-button easy, this trend could broaden participation in local
politics. "There are only so many doors I can knock on," says Ms. Warren.
"If I can talk to people online, that's an advantage," says Ms. Warren, a
Republican. "For a local race, people don't get a whole lot of exposure to
the candidates," says Ms. Kitchen, 45, the Democratic opponent. "They don't
get video or audio, yet that gives people a more complete picture." But with
plenty of voters still unwired, there are also questions about the digital
divide. "The Internet is great," Ms. Kitchen adds. "But it's not there yet
for everybody."
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Tom Weber]
(http://interactive.wsj.com/articles/SB969222134607846557.htm)
(Requires subscription)
AGENCY INVESTIGATES 'RATS' AD
Issue: Political Discourse
Responding to complaints from two Democratic senators, the Federal
Communications Commission has begun an investigation into a Republican
campaign television commercial to determine whether it used subliminal
advertising techniques. In letters sent to 217 television stations that may
have aired the ad, Charles W. Kelley, chief of the investigations and
hearings division of the commission's enforcement bureau, asked whether any
of the stations' officers, directors or employees knew before the commercial
was broadcast that it contained the word "rats." The agency has no power to
sanction political campaigns or producers of advertisements. But it can send
a letter of admonishment or even revoke the license of a station that
knowingly broadcasts an advertisement the agency deems unfairly deceptive.
[SOURCE: New York Times (A18), AUTHOR: Steven Holmes]
(http://www.nytimes.com/2000/09/18/national/18FCC.html)
(requires registration)
MERGERS
EUROPE WATCHES WARILY AS AOL FLEXES MUSCLES
Issue: Mergers
This past spring a gag e-mail hit a little too close to home for Michael
Haentjes, chairman and chief executive of Edel Music AG. The e-mail was a
fake press release: "In a surprise announcement, AOL Time Warner announced
Friday that it had acquired France." The e-mail sentiment goes to the heart
of European's fears about America Online $183 billion takeover of Time
Warner. Imagine, Haentjes said, the effect of "Wal-Mart buying Coca Cola,"
where the distributor controls the product. "It's not going to be beneficial
for us," he said. Since January, AOL and Time Warner have insisted that the
deal will benefit all consumers. But lawmakers, consumer groups and business
rivals have raised the specter of a corporate marriage that could control
access to the Internet, restrict consumer choice and stifle competition.
But, for Europe the merger raises other questions as well: Will the
Americans dominate the Internet in Europe? What are the personal privacy
implications of the merger? Will the United States gain greater control over
the distribution here of music, entertainment and media? And what will the
U.S. acquire next? "The concern that the commission has expressed is if they
dominate the market, they're not subject to competition, and consumers don't
have choice then," said Alec Burnside, a Brussels-based lawyer specializing
in antitrust issues. Some worry that children are particularly susceptible
to the practices of online data and targeted marketing. But for all of the
concern about AOL Time Warner, few European brows have been raised about
another deal with similar dimensions, Vivendi SA's recent announcement to
aquire Seagram Co. Why? "Because it's a European company acquiring an
American," Haentjes said.
[SOURCE: Washington Post (A1), AUTHOR: Alec Klein]
(http://washingtonpost.com/wp-dyn/articles/A15200-2000Sep15.html)
See Also
TIME WARNER, EMI OFFER THE EU PROPOSED CONCESSIONS ON VENTURE
[SOURCE: Wall Street Journal (A26), AUTHOR: Brandon Mitchener And Martin
Peers]
(http://interactive.wsj.com/articles/SB969036703659336219.htm)
(Requires subscription)
AT&T TO CONSIDER LINK UPS WITH BRITISH TELECOM UNITS
Issue: Mergers
AT&T and British Telecommunications wants to combine some of their
businesses as well as a range of other options. The Wall Street Journal
reported last month that AT&T's chairman and chief executive, and BT's chief
executive, had discussed the possibility of a merger. While the two sides
haven't ruled out a complete merger, AT&T will now focus on merging specific
operations, such as AT&T's business-services division with BT's
business-customer unit. Although talks are fluid and could still fall apart,
AT&T Wireless and Nextel Communications are discussing a possible merger,
and a deal could be announced as early as next month. AT&T is facing fierce
competition in its long-distance offering from the local Bell phone
companies as they begin offering long-distance service. AT&T is also
considering selling its consumer long-distance business entirely, or
combining it with Liberty Media Group, the cable-programming business that
trades separately as an AT&T tracking stock, and spinning it off. AT&T
management is expected to give presentations and discuss strategy on all
these possibilities at a meeting starting Thursday.
[SOURCE: Wall Street Journal (A3), AUTHOR: Deborah Solomon, Gautam Naik And
Anita Raghavan]
(http://interactive.wsj.com/articles/SB969226095679972212.htm)
(Requires subscription)
SBC LOOKING TO SEAL DEAL WITH TELIA FOR $6B
Issue: Merger/International
USA's second-largest local phone company SBC Communications, is in
negotiations to sell most of its European telecommunications assets to
Swedish state-owned operator Telia for more than $6 billion. SBC is looking
to sell its 42% stake in Tele Danmark, Denmark's leading local and
long-distance carrier, in exchange for Telia stock and cash. The move
reflects SBC Chief Edward Whitacre's desire to shift focus from Europe to
opportunities in the USA and Latin America. Almost a fifth of the former
regional Bell's revenue comes from international operations. SBC has already
begun a partial pullout in Europe, recently selling off its 29.8% stake in
Hungarian flagship carrier MATAV for $2.2 billion.
[SOURCE: USAToday (1B), AUTHOR: Thor Valdmanis]
(http://www.usatoday.com/usatonline/20000918/2652847s.htm)
HERE'S THE INSIDE SCOOP ON ALL THOSE MEGA-MERGERS
Issue: Mergers
USAToday media writer David Leiberman makes some predictions regarding
pending mergers:
*The America Online and Time Warner deal will likely be approved with
conditions: 1)the FTC will probably mandate open access so independent
Internet providers can offer high-speed services on AOL Time Warner's cable
systems, and 2) the FCC will likely insist that AOL opens its messaging
system to rivals.
* The European Union is unlikely to block the AOL/Warner deal because it is
too busy deciding whether to block the music joint venture between Time
Warner and EMI.
* The Vivendi and Seagram merger will likely go through without much
opposition.
* News Corp's Rupert Murdoch will probably make a bid to buy DirecTV,
America's No. 1 satellite TV provider.
[SOURCE: USAToday (B5), AUTHOR: David Lieberman]
(http://www.usatoday.com/usatonline/20000918/2652819s.htm)
INTERNET
SELLERS HIRE AUDITORS TO VERIFY PRIVACY POLICIES AND INCREASE TRUST
(CYBERTIMES)
Issue: Privacy/E-commerce
According to analysts, most Internet users who have not shopped online cite
inadequate privacy as the main reason. 92 percent of online households do
not trust online companies to keep their information private, no matter what
they promise, found a survey earlier this year by the research firm Odyssey.
Some e-businesses are trying to counter the rising tide of distrust by
paying well-known financial services firms to audit their Web sites
compliance with their own privacy policies. Most recently, Expedia.com, the
travel site owned by Microsoft, subjected its privacy policies to an audit
by PricewaterhouseCoopers. While both Truste and the Better Business Bureau
Online use audits as part of their seal programs, they are less consistent
and comprehensive than those performed by the major accounting firms.
Privacy advocates are, predictably, pleased with those who have gone public
with audits, but say more protections are necessary. "We still need baseline
legislation so we can go after bad actors, and we need better technologies
that will increase privacy," said Ari Schwartz, senior policy analyst for
the Center for Democracy and Technology.
[SOURCE: CyberTimes, AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/2000/09/18/technology/18ECOMMERCE.html)
(requires registration)
GET ME THAT WEB SITE, STAT! INTERNET SPEEDS UP EMERGENCY MEDICINE
Issue: Internet/Health
Surveys suggest that the number of U.S. emergency rooms with Internet access
has doubled since 1998. And the number is expected to double again over the
next year. Doctors have found the Internet an invaluable tool for helping
them treat patients, who are expected to receive 18,000 different diagnoses
in U.S. emergency rooms this year. "We're in a hunter-gatherer mode as
physicians," says Dr. Craig Feied. "The effort we have to go through to get
one little bit of information about patients is very large. We wanted to
build something that would allow us to become the information farmers."
Milwaukee emergency doctor Ed Barthell says that the different uses of the
Internet are also growing. "It is most often utilized as a reference tool,
but more specific applications directed toward the specialty are beginning
to evolve,'' Barthell says. "For example, we have a network of hospitals now
collecting stroke research data on an Internet-based system that is much
more efficient than previous data collection methods."
[SOURCE: USAToday (1D), AUTHOR: Rita Rubin]
(http://www.usatoday.com/usatonline/20000918/2652969s.htm)
NET2PHONE SHIFTS TO SOFTWARE FOR ROUTING MORE TELEPHONE TRAFFIC OVER THE
INTERNET
Issue: Internet
Three years ago Net2Phone Inc. made a splash by charging only pennies for
long-distance phone calls made over the Internet. It didn't take long for
Net2Phone to learn the hard lessons long-distance phone service providers
have painfully known for a long time, and as a result, is switching
strategies of doing business. The company has concluded that long-distance
calling is as much of a cutthroat business on the Internet as it is in the
traditional off-line world. Hence, it is planning to market software that
will enable traditional carriers to route more of their traffic over the
Internet -- though that new market is itself becoming a crowded one. While
Internet toll charges now account for 95% of the company's business, the
company hope to shrink that percentage to 50% within two years, with most of
their revenue to come from their new business line: telephone network
management software for major carriers, like AT&T, which are moving more of
their calling to the Internet. Hard lessons: Although it claims a 40% share
of the small but growing market for Internet telephony, the Internet
telephony market is a crowded and unprofitable one, with 300 companies using
price cuts to win customers and driving toll rates to as low as two cents a
minute for domestic Internet calls. Net2Phone is expected to report a loss
of $41.5 million for the fiscal year that ended July 31, on sales of $70
million.
[SOURCE: Wall Street Journal (B10), AUTHOR: Jennifer L. Rewick]
(http://interactive.wsj.com/articles/SB969058211191117045.htm)
(Requires subscription)
ANTITRUST
REGULATOR INVESTIGATES DEUTSCHE TELEKOM FOR ANTICOMPETITIVE PRICING
SUSPICIONS
Issue: Antitrust
Germany's Deutsche Telekom is under investigation on suspicion of
anticompetitive pricing for services to Internet-service providers that use
its network to reach their customers. German regulators charge that
Germany's dominant phone company discriminates against Internet-service
providers because "these offer customers a flat rate, but at the same time
can only receive the necessary service from Deutsche Telekom on a per-minute
basis." The regulator fears that Deutsche Telekom's own service provider,
T-Online, pays less for the services received from Deutsche Telekom than the
company's rivals. The regulator's probe could be the first step towards
establishing flat fees across Europe for the services that Internet-service
providers and online services receive from network operators. While such
fees are the norm in the U.S. and the U.K., elsewhere in Europe per-minute
fees are charged. The German regulators could set a precedent that changes
the economics of offering Internet access, lowering costs to service
providers and their customers.
[SOURCE: Wall Street Journal (A26), AUTHOR: William Boston]
(http://interactive.wsj.com/articles/SB969223392748265472.htm)
(Requires subscription)
JOURNALISM
THE RIGHT STRATEGY FOR FOX
Issue: Cable/Journalism
Fox News Channel, the cable news network created by Rupert Murdoch to
counter CNN's liberal bias, is growing in ratings, household distribution
and revenue. But by staking out this ground, the network may never be
accepted as a mainstream source of news. Democrats, for example, shy away
from appearing on its programs, fearing they will not be treated fairly. And
Republicans sometimes don't appear, prompting Fox executives to speculate
that the party is taking the network's viewers for granted. "I think there
is an underserved audience that is hungry for fair and balanced news," said
Roger E. Ailes, the Fox News Channel chairman and chief executive who put
together the network for Mr. Murdoch. "If the conservative point of view is
not presented anywhere else in journalism, then those people will come to
us."
[SOURCE: New York Times (C1), AUTHOR: Jim Rutenberg]
(http://www.nytimes.com/2000/09/18/business/18FOX.html)
(requires registration)
SPREAD OF VIOLENCE AGAINST JOURNALISTS
Issue: Journalism
An assailant shot a Montreal reporter five times last week, in the parking
lot of the reporter's newspaper. After listening to death threats on his
answering machine for years, Michel Auger may be a victim of the beat he
covers, Montreal's underworld. "All Canadians are shocked at what took place
in the parking lot of Le Journal de Montr