MEDIA OWNERSHIP
Gore Stumps for Minority Ownership (B&C)
NTIA Report Finds Minority Broadcast Ownership Remains at
Record Low Levels (NTIA)
Court Denies Recruitment Rehearing (B&C)
TELEVISION
DTV or Bust, Says Kennard (B&C)
Paxson Pushes DTV Partnership (B&C)
High-Stakes Battle for Momentum (NYT)
Studies Differ on Internet's Impact on TV (NYT)
Cable Up, Broadcast Down (B&C)
FCC Requires More Captioning (B&C)
COMPETITION
Opponents are Lining Up to Block Mergers of Phone Companies (ChiTrib)
McCain Says PCS Should Be Viewed as Local Competition (TelecomAM)
The Battle for the Last Mile (WSJ)
INTERNET
FTC Surfs the Web and Gears Up to Demand Privacy Protection (NYT)
A High-Flying Communications Idea (WP)
It's Digital, It's Encrypted -- It's Postage (WSJ)
InfoSeek, Disney Unit to Launch New Internet Site(WSJ)
Broadcom Puts Cable-Modem Circuity on Single Chip,
A Leap for the Industry (WSJ)
Internet Sites Brace for Video of Clinton Before Grand Jury (WSJ)
SATELLITE
Lockheed to Buy Comsat, Satellite Access Seller, For
$2.7 Billion (NYT)
Lockheed Seeks to Buy Comsat for $2.7 Billion (WP)
DBS Deal in Works (B&C)
ADVERTISING
Ford to Sponsor Time's Special Reports on Environment,
In Unusual Agreement (WSJ)
===============
MEDIA OWNERSHIP
===============
GORE STUMPS FOR MINORITY OWNERSHIP
Issue: Minorities
Vice President Albert Gore said last week that "we need to be sure that
consolidation in your industry does not lead to elimination of minority
broadcasters and minority voices." His remarks were made to the National
Association of Black-Owned Broadcasters and seem to support the agenda of
FCC Chairman Bill Kennard. VP Gore said he would ask federal agencies to
review their policies to be sure they are promoting diversity in advertising.
[SOURCE: Broadcasting & Cable (7), AUTHOR: Paige Albiniak and Bill McConnell]
http://www.broadcastingcable.com
NTIA REPORT FINDS MINORITY BROADCAST OWNERSHIP REMAINS AT RECORD LOW LEVELS
Issue: Ownership
Deregulation of the telecommunications industry and the resulting trend
towards media consolidation has led to a decline in the number of minority
broadcast owners, threatening minority employment opportunities and
diversity in the broadcasting industry, according to a Commerce Department
report released today. The 1998 Minority Commercial Broadcast Ownership
report, the eighth annual survey of minority broadcast ownership released by
the Department's National Telecommunications and Information Administration
(NTIA), said the number of minority owned commercial radio and television
stations increased slightly over last year. But overall minority broadcast
ownership remained at record low levels. The report revealed many disturbing
trends which indicate minorities will continue to be severely
underrepresented in the broadcast industry. For example, over a five-year
period (1993-1998), the industry as a whole gained 503 new stations. Over
this same period, minority ownership increased by only 15 stations. Vice
President Al Gore, who previewed the report in a speech to the National
Association of Black Owned Broadcasters, said "this isn't just a question of
diversity, it's a question of democracy. In the marketplace of ideas,
independent minority-owned broadcast stations play a vital role in this
country. As a nation we cannot afford to lose that voice."
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/minown98.htm
COURT DENIES RECRUITMENT REHEARING
Issue: Minorities
A new hearing on the FCC's minority recruitment rules was rejected last week
by the U.S. Court of Appeals. The appeals court ruling in April which
rejected the requirement by broadcasters to actively recruit minorities and
women as unconstitutional will stand. The FCC may appeal to the Supreme Court.
[SOURCE: Broadcasting & Cable (26), AUTHOR: Bill McConnell and Paige Albiniak]
http://www.broadcastingcable.com
==========
TELEVISION
==========
DTV OR BUST, SAYS KENNARD
Issue: Digital TV
FCC Chairman Bill Kennard sees a limited role for government in the
introduction and acceptance of digital television. Speaking last week to
the International Radio and Television Society, he said the FCC still has
some major decisions in the field, including must-carry rules for cable.
Other areas of federal involvement he included were work with TV set
manufacturers and cable companies on how DTV signals will be sent via cable,
providing consumer information on DTV, working on international
interference, and dealing with local authorities on DTV construction issues.
[SOURCE: Broadcasting & Cable (22), AUTHOR: Harry A. Jessell]
http://www.broadcastingcable.com
PAXSON PUSHES DTV PARTNERSHIP
Issue: Digital TV
Bud Paxson said digital television's success requires partnerships between
broadcasters and cable, satellite and computer industries. Speaking at a
Broadcasting & Cable conference he also criticized the FCC for its lack of
help on DTV. He stated his support for must-carry rules for cable services
to provide carriage of digital signals. Paxson, the head of the new Pax TV
network, also recommended the loosening of restrictions on TV station
ownership.
[SOURCE: Broadcasting & Cable (18), AUTHOR: Harry A. Jessell]
http://www.broadcastingcable.com
HIGH-STAKES BATTLE FOR MOMENTUM
Issue: Television Economics
Network executives committed $6.5 billion to the new prime time season which
begins tonight. That's no more than last year, but seen as a positive
considering expectations for the networks: ever-decreasing ratings as
audience is lost to cable channels. One senior network executive, speaking
on condition of anonymity, said: "I've told people at the network that the
next 18 months will be the ugliest in the history of this business. What
there is in the air is desperation." The desperation is reflected, the
executive continued, in the record-breaking deal for "E.R."
[SOURCE: New York Times (C7), AUTHOR: Bill Carter]
http://www.nytimes.com/yr/mo/day/news/financial/tv-fallseason-media.html
STUDIES DIFFER ON INTERNET'S IMPACT ON TV
Issue: Old vs New Media
Discovery Communications, the operator of science-oriented cable channels,
will release today a new study on the effects of Internet use on television
viewing habits. Looking at Nielsen Media Research numbers used for America
Online last month, Discovery will report that teen-agers that use the
Internet watch less TV, for all other age groups, Internet use increases
time spent watching television. "We see media consumption leading to more
media consumption," said Betsy Frank, executive vice president for research
at MTV Networks. "People don't quit watching television because they go
online. They do more of both."
[SOURCE: New York Times (C2), AUTHOR: Saul Hansell]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/21net.html
CABLE UP, BROADCAST DOWN
Issue: Television Economics
Cable networks and cable operators should see continued revenue growth for
the next five years, according to a panel at a Broadcasting & Cable
conference last week. With developing technology, the capacity for dual and
alternate streams of revenue will fuel cable services' expansion while
broadcast TV networks, lacking those opportunities, will continue a downward
spiral.
[SOURCE: Broadcasting & Cable (15), AUTHOR: Donna Petrozzello]
http://www.broadcastingcable.com
===========
COMPETITION
===========
OPPONENTS ARE LINING UP TO TRY TO BLOCK MERGERS OF PHONE COMPANIES
Issue: Mergers/Competition
The WorldCom/MCI merger is official, but phone companies are lining up
against mergers still on the table. At a US Senate subcommittee meeting last
week, Sprint's CEO William Esrey said the proposed SBC/Ameritech and Bell
Atlantic/GTE mergers "are over the line and must be blocked." Mr. Esrey
said "innovation comes from competitive market pressures, not monopolies."
Senators Michael DeWine, Republican of Ohio, and Herb Kohl, Democrat of
Wisconsin, said they would send a letter recommending that antitrust
authorities not approve the pending mergers without
guarantees that the new companies will promote vigorous competition. "We've
heard too many unkept promises of market entry and seen too many failed
plans for local competition," said Sen DeWine,
Chairman of the Senate Judiciary Committee's antitrust subcommittee.
[SOURCE: Chicago Tribune (Sec 4, p.2), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,ART-15066,00.html
MCCAIN SAYS PCS SHOULD BE VIEWED AS LOCAL COMPETITION
Issue: Competition
Senate Commerce Committee Chairman John McCain (R-AZ) has written a letter
to FCC Chairman Bill Kennard saying that "Congress intended" for personal
communications services (PCS) networks to be viewed as local competition to
Bell companies. Congress deliberately excluded cellular service, the
senator wrote, but not PCS, from the definition of what constitutes local
competition. Cellular already had been deployed throughout the U.S. but PCS
networks hadn't and thus could "potentially provide new competition in the
local market," Sen McCain said. "I encourage you to give serious
consideration to whether PCS is providing competition to the local exchange
market," Sen McCain said. "The Commission should be focused on implementing
the Telecommunications Act to
encourage competition, not maintain the status quo."
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/
THE BATTLE FOR THE LAST MILE
Issue: Telecommunications Act/Regulation
In a 30-page section devoted entirely to telecommunications, the WSJ looks
back at the last 2-1/2 years since passage of the Telecommunications Act.
Recalling claims that the local service market would be opened to
competition between the Baby Bells and the long distance companies, the
series of articles review why competition hasn't occurred. Topics covered
in seventeen articles include why cable-TV firms haven't gone anywhere, why
the promise of deregulation is yet to be fulfilled, why wireless technology
might provide a detour around the Bells' grip. At the time of this writing,
free online access to this special report was not available; hard copy
reprints, however, are available from Telecommunications, Dow Jones &
Company, Inc., Attn: Anita Deragon, 84 Second Avenue, Chicopee, MA 01020.
$4 for one copy; $2 each for each additional copy. Check or money order
(payable to Dow Jones & Co.) only.
[SOURCE: Wall Street Journal (Section R), AUTHOR: (various); edited by Bart
Ziegler]
http://wsj.com
========
INTERNET
========
FTC SURFS THE WEB AND GEARS UP TO DEMAND PRIVACY PROTECTION
Issue: Privacy/Internet Regulation
"We are losing patience with self-regulation," David Medine, an associate
director in the Federal Trade Commission's Bureau of Consumer Protection,
said in an interview, reflecting the larger agency opinion on this issue.
"It's too bad, but I think industry has lost the opportunity to show that
they will do it on their own." Last spring, dozens of lawyers participated
in the Big Surf: the traveled the World Wide Web searching for privacy
problems. In a report this summer, the results were published: more than 90%
of 1,400 sites examined collected personal information from visitors, but
only 14% of them disclosed how the information would be used.
[SOURCE: New York Times (C1), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/98/09/biztech/articles/21privacy.html
A HIGH-FLYING COMMUNICATIONS IDEA
Issue: Internet Access
Angel Technologies Corp., a St. Louis company, has a unique way to offer
Internet service: "With 2,000 pounds of communications gear as payload and a
large antenna strapped to the fuselage, the Angel HALO (high-altitude,
long-operation) planes would run tag-team missions above selected cities,
serving as many as 50,000 subscribers in coverage circles of 50 to 75 miles
in diameter," Mills reports. Anyone within the coverage area with a small,
dome-shaped receiving antenna will be able to receive high-speed Internet
access and phone calls.
[SOURCE: Washington Post (F27), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/WPlate/1998-09/21/028l-092198-idx.html
IT'S DIGITAL, IT'S ENCRYPTED -- IT'S POSTAGE
Issue: E-Commerce
This summer, the U.S. Postal Service began testing digital postage. The
system allows users to purchase postage "stamps" (their technical title is
"indicia") through the Internet and print them out for hard-copy mail.
Current indicia include scannable sender and recipient data. Vendors are
expected to charge a 5-15% service charge for the convenience.
[SOURCE: Wall Street Journal (B1, B6), AUTHOR: George Anders]
http://wsj.com
INFOSEEK, DISNEY UNIT TO LAUNCH NEW INTERNET SITE
Issue:
Infoseek and Disney's online division today announce the "Go Network"
(go.com) which will replace the Infoseek brand as a new "portal" to compete
with Yahoo, Excite and other central hub sites on the Internet. Disney
owns 43% of Infoseek. Expect to see Go.Com ads on ABC over the next five
years. The new site will combine search and directory functions with
personalized services, electronic commerce, and featuring other Disney-owned
sites prominently.
[SOURCE: Wall Street Journal (B4), AUTHOR: Kara Swisher, Bruce Orwall]
http://wsj.com
BROADCOM PUTS CABLE-MODEM CIRCUITRY ON SINGLE CHIP,
A LEAP FOR THE INDUSTRY
Issue:
Broadcom is coming out with a single computer chip that blends the
circuitry for TV signals as well as computer data onto one chip instead of
the current three. The new technology is expected to sharply cut the cost of
home
equipment, making way for cable companies to reduce their costs enough to
compete with telephone companies that are pushing to offer similar services
through traditional phone wires. The chip will support two-way voice and
data transfer over cable.
[SOURCE: Wall Street Journal (B4), AUTHOR: Frederick Rose]
http://wsj.com
INTERNET SITES BRACE FOR VIDEO OF CLINTON BEFORE GRAND JURY
Issue: Content
While Starr's 445-page report released on September 11 would take up only
one 3-1/2 inch floppy disk, that same disk could hold less than one minute
of Clinton's video testimony released today. Great concern exists that
Internet Service Providers (ISPs) will come to a groaning halt while
millions of netizens attempt to view the video online. Sites that are
showing the video online include CNN Interactive. Microsoft and GE will air
the video with a few second delay in order to edit out anything "really
obscene." Yahoo, on the other hand, is only posting a text transcript, and
America OnLine is encouraging its users to access an audio-only feed.
[SOURCE: Wall Street Journal (A8), AUTHOR: Rebecca Quick, Thomas E. Weber]
http://wsj.com
=========
SATELLITE
=========
LOCKHEED TO BUY COMSAT, SATELLITE ACCESS SELLER, FOR $2.7 BILLION
LOCKHEED SEEKS TO BUY COMCAST FOR $2.7 BILLION
Issue: Satellite/Merger
Lockheed Martin Corporation will purchase Comsat Corporation for $2.7
billion. Comsat is a leading provider of voice data, video and other
services between the US and other countries. AT&T, MCI and Sprint uses
Comcast to send calls overseas. The deal will need to be approved by the
Department of Justice and the FCC. The deal marks a move for Lockheed from
military products to global telecommunications. [Or does it mark a move of
telecommunications into military use?]
[SOURCE: New York Times (A11), AUTHOR: Leslie Wayne]
http://www.nytimes.com/
[SOURCE: Washington Post (A1), AUTHOR: Tim Smart]
http://www.washingtonpost.com/wp-srv/WPlate/1998-09/21/074l-092198-idx.html
DBS DEAL IN WORKS
Issue: Satellite TV
Congress may pass legislation in this session that would permit satellite TV
companies to provide local broadcast signals. Bills are being introduced in
both the House and Senate. Because of a recent court decision and agreement
in the industry the bills are being given a last minute push. Under the
bills must-carry rules for local station service by DBS providers would take
effect in the future.
[SOURCE: Broadcasting & Cable (10,11), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com
===========
ADVERTISING
===========
FORD TO SPONSOR TIME'S SPECIAL REPORTS ON ENVIRONMENT,
IN UNUSUAL AGREEMENT
Issue: Advertising/Content
In an unusual agreement bridging advertising and editorial content, Ford
Motor Company, eager to be seen as "eco-friendly," will be the exclusive
sponsor of a series of environmental articles in Time magazine. Time will
run stories about eco-heroes in four special reports during the
next year, accompanied by Ford advertising. As part of the deal (financial
details of which were not disclosed), Ford gets "first look" at any
extensions of the heroes theme. Charles Axelrod, Time's international
editor admitted that the section isn't likely to feature stories profiling
environmentalists battling the auto industry. That would be like running
"airline ads next to stories about airline crashes," he said.
[SOURCE: Wall Street Journal (B8), AUTHOR: Sally Beatty]
http://wsj.com
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