BENTON'S COMMUNICATIONS-RELATED HEADLINES for DECEMBER 6, 2009
A busy week begins with the Federal Trade Commission's privacy roundtable http://bit.ly/7cpeS1
OWNERSHIP
Cross-Ownership Changes: Wait Till Next Year
Comcast's Hollow 'Public Interest' Commitments
Why the Comcast/NBC Merger Poses a Major Threat to Video Competition that Antitrust Authorities Cannot Ignore
Where Does Comcast/NBC Rate On The "Trade Association Scale"?
GE agrees to annual NBCU advertising
Comcast-NBC deal finds donors converging with Obama's principles
Cisco Says It Has Won Control of Tandberg
SPECTRUM/WIRELESS/TELECOM
FCC Sends Verizon Some Questions about Termination Fees and Web Access
Ensign Wants More Spectrum for Wireless Broadband
Google's new open: Spectrum
Competition driving smartphone takeover
The Magic of the Microcell
Apple's Game Changer, Downloading Now
Resolving Issues in the Special Access Rulemaking
NATIONAL BROADBAND PLAN AND THE STIMULUS
FCC admits CableCARD a failure, vows to try something else
NCTA Calls On FCC To Initiate Steps To Develop Robust Digital Set-Top Market
Billions in Government Broadband Money on its Way
NTIA Seeks Comment on State Broadband Data and Development Grant Program
MIT Field Hearing on Broadband's Role in Green Energy and the Environment
First National Database of Broadband Connectivity and Usage
UNIVERSAL SERVICE
Oregon Health Network and the Rural Health Care Pilot Program
2010 E-Rate filing window opens
ADVERTISING
Ad Market Recovery Won't Lift All Media
Is Food Marketing to Children Getting Any Healthier?
GOVERNMENT & COMMUNICATIONS
Lobbying the Executive Branch: Current Practices and Options for Change
Ability to access comments gathered by White House questioned
CYBERSECURITY
New study calls for cybersecurity overhaul in US
Trade group seeks to stave off cybersecurity mandates
HEALTH IT
Leverage today's standards for meaningful use
Public ranks government healthcare Web sites high in new report
MORE ONLINE ...
FCC Re-Ups Intergovernmental Advisory Committee
How Hollywood plans to keep prices up as movies go online
ISPs as copyright police
Motives of 21st-Century-Skills Group Questioned
How Blogging Has Changed Over The Last 3 Years
ITU's call to Copenhagen: ICTs must be part of the solution
OWNERSHIP
CROSSOWNERSHIP DEBATE IN 2010
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
While Federal Communications Commission Chairman Julius Genachowski has said he feels the media's pain and has opened the agency's own inquiry into the state of journalism, the FCC won't be taking any action on newspaper-broadcast cross-ownership for many months. Chairman Genachowski also has asked the courts not to weigh in until the FCC has had time to reconsider the issue. In a letter to the Third Circuit, FCC General Counsel Austin Schlick said the decision will be superseded by the 2010 review. He cautioned further that the current petition does not represent the views of the FCC anyway since three of the five members were not on the commission when the final order came out in 2008. Schlick's letter also mentioned that one of those commissioners, Michael Copps, voted against it. Schlick told the court that there was a method in not getting ahead of the broader 2010 review: "It would be difficult to justify second-guessing decisions that were made based on the record in the 2006 proceeding, when Commission staff are simultaneously gathering an updated record concerning the same issues." For broadcasters, though, it means a further delay after years of regulatory uncertainty. The commission's ownership rules have been in some form or another of regulatory limbo since 2003, when a more deregulatory rule change by then-FCC Chairman Michael Powell was stayed by the Third Circuit after it was challenged by consolidation foes.
benton.org/node/30306 | Broadcasting&Cable
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COMCAST'S HOLLOW 'PUBLIC INTEREST' COMMITMENTS
[SOURCE: Free Press, AUTHOR: ]
Free Press, Consumers Union and Consumer Federation of America have reviewed Comcast's memorandum outlining the company's nine-point "public interest commitments." The organizations found that none of the nine "concessions" are meaningful commitments beyond what Comcast is already doing, is likely to do anyway, or is bound to do by law. There is nothing in these commitments that assuages any of the concerns we have raised about the merger regarding reduced competition in cable television, higher cable and broadband rates, and the prospect of anti-competitive practices that will stifle emerging new media markets. Comcast would like to pretend the merger is consumer friendly. But American consumers deserve more than window dressing. On the whole, Comcast is offering almost nothing for the public with its nine-point plan. Consumers have to weigh these empty promises against the prospect of higher cable and broadband bills, less competition, and the concentration of power in one company across multiple media markets. None of the voluntary commitments address the core competition issues raised by this merger. None of the commitments address the effects of this merger on cable companies or news channels competing in local markets where Comcast already dominates the cable market and now will own one or more local channels. With significant market power in three distribution platforms — cable, broadcast and Internet — Comcast can withhold programming from competitors, raise prices with impunity, and squash competition from emerging online video outlets by starving them of content.
benton.org/node/30311 | Free Press
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COMCAST/NBC IS THREAT TO VIDEO COMPETITION
[SOURCE: Free Press, AUTHOR: Mark Cooper, Corie Wright]
Press reports generally indicated a merger of Comcast and NBC Universal would win regulatory approval. However, those who would claim that approval of the Comcast/NBC merger is a foregone conclusion have not undertaken the careful market definition and competitive analysis that the federal authorities must do pursuant to antitrust laws. Far from being a cakewalk, this merger raises the most basic antitrust issues in an emerging space that the Obama administration has declared to be of particular importance. Moreover, given President Obama's criticism of the Justice Department's weak antitrust record during the previous administration, vigorous oversight of anticompetitive conduct — particularly of that involving vertical mergers and innovation focused industries — should be expected. Additionally, to the extent that this combination involves broadcast and cable issues, the Federal Communications Commission is also likely to scrutinize the public interest and competitive impact of the merger. A vertically integrated Comcast/NBC would not only control marquee television and movie content, it would also control the primary avenues for distributing that content: a major television broadcast network, a major cable system operator and a major broadband Internet access provider. Because the merged entity would control both content and distribution, it would have both the incentive and the market power to limit the access of competing content to the distribution platforms it controls. It would also have the power to enforce anticompetitive bundling and pricing of its own programming, or in some cases, to deny its competitors access to its programming altogether.
benton.org/node/30310 | Free Press | TelephonyOnline
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WILL COMCAST JOIN NAB?
[SOURCE: The Huffington Post, AUTHOR: Harold Feld]
[Commentary] As a longtime Washington lobbyist (albeit on the "white hat" consumer advocate side) I propose a new metric for measuring antitrust impact of mergers, the uniquely Washington "Trade Association Scale." How many trade associations/lobbying groups will you qualify for after the merger? If the number is too high, that shows you are getting into far too many lines of business to be healthy, because you have too much influence on everybody else's business. And on the Trade Association Scale, the Comcast/NBC merger ranks a 10 out of 10. Comcast will now be able to join the National Association of Broadcasters (NAB). In ideological terms, it is rather like Vatican City joining the Arab League -- and as a dominant member. Comcast will also be able to join the Motion Picture Association of America (MPAA). Until now, MPAA has been one of the few organizations able to go Trade Orgo a Trade Orgo with cable. Now, with the help of fellow cable content provider Time Warner, Comcast will have another trade association -- with powerful links into the Democratic Party it previously lacked -- it can deploy at need. But Comcast's new sphere of influence doesn't stop with content. Depending on how Comcast develops its broadcast spectrum and other wireless assets, it could join CTIA and other wireless trade associations. These organizations, of course, join the impressive list of trade associations Comcast already belongs to as the largest broadband access provider, one of the largest residential phone companies, one of the largest purchasers of telecommunications equipment, etc.
benton.org/node/30309 | Huffington Post, The
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GE AGREES TO ANNUAL NBCU ADVERTISING
[SOURCE: Variety, AUTHOR: Cynthia Littleton]
No matter what happens to the Peacock in the Comcast era, General Electric is sure to be a paying customer on NBC Universal's air for years to come. The joint venture agreement unveiled by Comcast and GE Thursday includes a commitment from GE to buy $59 million a year in advertising on NBC U properties for five years, starting from the time the merger closes, according to a Securities and Exchange Commission filing made Friday by Comcast Corp. The closing date is expected to in the second half of 2010 at the earliest. Of course, for a mega-conglom like GE, $59 million is lunch money. The pact also includes a provision committing GE to buy $60 million of ad time in connection with NBC U's coverage of the 2012 Olympic Games. GE has the right to compel Comcast to buy half of its remaining stake in NBC U at the three and a half year anniversary of the deal's closing, and the remainder of the stake at the seven-year mark. If GE decides not to exercise its option, Comcast can trigger a buyout in two stages, at the four-year and eight-year anniversaries of the deal's closing. GE will retain certain veto powers so long as it owns at least 10% of the Peacock. GE will have to give its approval for any NBC U acquisitions over $500 million, or any moves that would incur debt of more than $250 million. GE has to approve any transactions between sibling divisions of NBC U or Comcast that are valued at more than $7.5 million.
benton.org/node/30308 | Variety
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COMCAST-NBC DEAL FINDS DONORS CONVERGING WITH OBAMA'S PRINCIPLES
[SOURCE: The Hill, AUTHOR: Kim Hart]
The proposed merger of Comcast and NBC Universal will be the first big test of the Obama administration's stance on the hot-button issue of media consolidation. It could also put the Obama administration and Democrats in Congress at odds with a few of their largest supporters. The deal faces strict scrutiny by federal regulators appointed by President Barack Obama, who voiced concern about increasing media consolidation on the campaign trail. But the companies under scrutiny in the biggest media deal since the Time Warner-AOL merger are helmed by executives who have been long-time contributors of the Democratic party and have other ties to the Administration.
benton.org/node/30307 | Hill, The
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CISCO SAYS IT HAS WON CONTROL OF TANDBERG
[SOURCE: Reuters, AUTHOR: ]
Cisco Systems, the network equipment maker, said on Friday that it had control of more than 90 percent of the Norwegian videoconferencing company Tandberg, and would buy out remaining shareholders. Cisco said it had 89.1 percent acceptance for its offer of 19 billion Norwegian kroner, or $3.4 billion, in addition to the 2 percent of Tandberg, or 2.2 million shares, that it bought in November. The companies also said on Friday that the United States Justice Department had requested additional information about the deal.
benton.org/node/30305 | Reuters
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SPECTRUM/WIRELESS/TELECOM
FCC SENDS VERIZON SOME QUESTIONS ABOUT TERMINATION FEES AND WEB ACCESS
[SOURCE: Federal Communications Commission, AUTHOR: Chief Ruth Milkman]
The Federal Communications Commission has sent a letter to Verizon Wireless asking the company about recent press reports indicating that the carrier has 1) doubled the "early termination fee" (ETF) it charges new customers purchasing an "advanced device" if they disconnect service prior to completing the contract term and 2) charged customers for minimal, inadvertent use of Verizon's Mobile Web service. The FCC has 9 questions for Verizon that it has requested the company reply to by December 17, 2009. What information about the higher ETF does Verizon Wireless provide to prospective customers, and when? How can customers learn about the formula for prorating the ETF? Are there any trial periods in which customers may discontinue service without being subject to the increased ETF? What is the rationale for the increase? Is the increase related to the wholesale price of "advanced devices" charged by equipment manufacturers? Why isn't the ETF prorated? Are month-to-month service plans available consumers purchasing "advanced devices"? When does Verizon Wireless charge usage fees for access to Verizon Mobile Web? Can a customer re-program keys that provide for one-press access to various Mobile Web services to disable that function?
benton.org/node/30304 | Federal Communications Commission | TechDailyDose | GigaOm
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ENSIGN WANTS MORE SPECTRUM FOR WIRELESS BROADBAND
[SOURCE: BroadbandBreakfast.com, AUTHOR: Winter Casey]
On Friday, Sen John Ensign (R-NV), the ranking member of the Senate Communications Subcommittee, said the US must act soon to meet the increasing demand for more spectrum: "Our nation is on the verge of a wireless spectrum shortage. As evidenced by the tremendous success of smart phones, demand for wireless broadband devices and services is exploding. If the United States does not act soon to meet the increasing demand for more spectrum, we risk falling behind other nations in developing new technologies." Sen Ensign said he commended the Federal Communications Commission for taking a "first step toward allocating more spectrum for wireless broadband. This is a vitally important conversation that our nation must have now if we are to stay at the cutting edge of innovation. I also applaud the FCC for recognizing the important public interest value of free over-the-air broadcast television. I look forward to working with my colleagues in Congress, the FCC, the NTIA, and all public and private spectrum stakeholders to allocate more spectrum for wireless broadband."
benton.org/node/30303 | BroadbandBreakfast.com
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GOOGLE'S NEW OPEN: SPECTRUM
[SOURCE: TelephonyOnline, AUTHOR: Kevin Fitchard]
Through its lobbying of the Federal Communications Commission in 2007, Google ensured that at least one mobile operator would have an open access network on the 700 MHz band. Its advocacy of the Android platform has pushed many operators to adopt their first open-source operating systems and open application distribution platforms. But Google is pushing for one more type of open: open spectrum. Vint Cerf, Google's chief Internet evangelist, is advocating a policy of spectrum sharing among operators. At the Open Mobile Summit, Cerf said that new modulation schemes in wireless would allow for the simultaneous occupation of the same spectrum by multiple parties, making the notion of a single operator/single license obsolete. For instance, orthogonal frequency division multiplexing access, which is the basis for WiMax and long-term evolution, abandons the notion of a single wide channel and instead splits a band into multiple sub-channels or tones, which could be used to dynamically create channels of varying widths. By tweaking the technologies already in development today for multiple entities, the industry could make a huge leap forward in more efficiently utilizing public spectrum resources, Cerf said.
benton.org/node/30302 | TelephonyOnline
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COMPETITION DRIVING SMARTPHONE TAKEOVER
[SOURCE: TelephonyOnline, AUTHOR: Sarah Reedy]
While smartphones have captured the most industry buzz for the past couple of years, standard cell phones have always captured the majority of market share. This is changing at a rapid pace, however, with smartphone sales poised to overtake standard mobile phones by 2012, according to Infonetics Research's biannual mobile/Wi-Fi phones report. Smartphones are on track to post a 14.5% increase in the number of units sold worldwide in 2009 and a 21% compound annual growth rate from 2008 to 2013, which is significantly better than any other mobile phone segment.
benton.org/node/30299 | TelephonyOnline
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RESOLVING ISSUES IN THE SPECIAL ACCESS RULEMAKING
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission invites interested parties to comment on the appropriate analytical framework for examining the various issues that have been raised in the rulemaking proceeding on special access services pending before the Commission. Comments are due on or before January 19, 2010 and reply comments are due on or before February 17, 2010.
benton.org/node/30298 | Federal Communications Commission
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NATIONAL BROADBAND PLAN AND THE STIMULUS
FCC ADMITS CABLECARD A FAILURE
[SOURCE: ars technica, AUTHOR: Nate Anderson]
The Federal Communications Commission admits that its CableCARD mandate has been an abysmal failure. That doesn't mean it's giving up the fight to encourage set-box innovation; instead, the FCC wants ideas for a new set of rules that will bust open access to video streams from cable and IPTV operators. Call it "Son of CableCARD"... and rest assured, the cable industry ain't gonna like it. If you're curious how an agency like the FCC says something like "total failure," take a look at yesterday's innocuously titled document, "Comment sought on video device innovation." Buried inside that document are these lines: "The Commission's CableCARD rules have resulted in limited success in developing a retail market for navigation devices. Certification for plug-and-play devices is costly and complex." "Limited success" is a bureaucratic euphemism for abject failure, as the FCC made clear during its own November open meeting. During that event, as part of its discussion about the National Broadband Plan, it noted that set-top box innovation had stagnated.
benton.org/node/30297 | Ars Technica
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NCTA CALLS ON FCC TO DEVELOP ROBUST SET-TOP MARKET
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A robust retail market in digital set-tops has not materialized, the National Cable & Telecommunications Association says, and it is calling on the Federal Communications Commission to initiate a broad notice of inquiry to discover how, and whether, such a market can be achieved. That came in a letter to FCC Media Bureau Chief Bill Lake from NCTA President Kyle McSlarrow Friday and followed the FCC's announcement of a request for comment on spurring a market in set-tops that could deliver both cable and broadband video to TVs as a way of spurring broadband adoption--76% of homes have computers, over 99% have TVs. But NCTA wants the FCC to take the next step and open a notice of inquiry. We agree with NCTA President Kyle McSlarrow," said Public Knowledge President Gigi Sohn in a statement. "We also agree that the rules for set-top boxes and related devices should apply to all video providers."
benton.org/node/30296 | Broadcasting&Cable
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BILLIONS IN BROADBAND STIMULUS COMING
[SOURCE: BroadbandBreakfast.com, AUTHOR: Winter Casey]
Despite government delays in announcing the grant awards for the $7.2 billion in broadband stimulus money Congress allocated in January, Vice President Joe Biden Thursday said that within the next month billions will be given to broadband and high-speed rail investments. "And by design, the items in the act which have the biggest impact are yet to come. Within the next two weeks to a month, another roughly $13 billion is going to be announced rolling out in terms of both investments in broadband and high-speed rail, and competitive education and infrastructure," said Biden in remarks he gave at the opening session of the White House Jobs and Economic Growth Forum. "In fact, the money spent on clean water, renewable energy, superfund sites, and much more, is going to more than double — it's going to more than double in this quarter and will maintain a similar pace for the next two quarters," he said.
benton.org/node/30295 | BroadbandBreakfast.com
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NTIA SEEKS COMMENT ON STATE BROADBAND DATA AND DEVELOPMENT GRANT PROGRAM
[SOURCE: National Telecommunications and Information Administration]
The National Telecommunications and Information Administration is seeking public and agency input on the data it is collecting for the broadband mapping project created by the stimulus. Comments are invited on: a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; b) the accuracy of the agency's estimate of the burden (including hours and cost) of the proposed collection of information; c) ways to enhance the quality, utility, and clarity of the information to be collected; and d) ways to minimize the burden of the collection of information on respondents, e.g., the use of automated collection techniques or other forms of information technology. Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval of the information collection.
benton.org/node/30294 | National Telecommunications and Information Administration | BroadbandBreakfast.com
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MIT FIELD HEARING ON BROADBAND'S ROLE IN GREEN ENERGY
[SOURCE: Federal Communications Commission, AUTHOR: Nick Sinai]
On November 30, the Federal Communications Commission held a field hearing at MIT to discuss how broadband can facilitate the smart grid and the energy information economy. The house was packed, the discussion lively, and there was an impressive set of technology demonstrations afterwards. The first panel provided context for understanding the role that the smart grid, and other smart technologies, can play in the U.S. achieving its energy goals. Dr Grochow of the MIT Energy Initiative shared how MIT has been able to achieve a significant reduction in its energy consumption through building energy audits and addressing the large energy requirements of IT through fairly simple measures like turning computers off rather than having their screen saver come on. During the second panel the discussion shifted to provide some examples of how vendors are using energy information to increase the reliability and efficiency of our electricity grid. CEO Adrian Tuck of Tendril, which provides an energy management system for residential users, highlighted that a standard clothes dryer is preset to dry a load in 58 minutes. Simply by adding twenty minutes to the drying time, however, the dryer will consume 50% less energy. Informed customers could decide if they needed the convenience of faster cycle or might prefer to set a longer cycle in exchange for a lower energy bill.
benton.org/node/30293 | Federal Communications Commission
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FIRST NATIONAL DATABASE OF BROADBAND CONNECTIVITY
[SOURCE: IDInsight, AUTHOR: Press release]
Broadband stimulus grant applicants can cut proposal prep time, dramatically reduce their risk to challenges and create more accurate statewide broadband maps to support a national broadband strategy using the first national broadband database. BroadBand ScoutSM from data and analytics company ID Insight reports broadband connectivity and usage down to the census block, also helping broadband service providers open new markets. BroadBand Scout provides instant access to the data required to successfully apply for grant monies from the $7.2 billion American Recovery and Reinvestment Act of 2009 broadband stimulus program. This same data also allows broadband and wireless carriers to cost-effectively target new areas for service expansion and better research competitors. BroadBand Scout was developed by a unique analytical survey process of accessing the millions of records in ID Insight's proprietary databases that were initially assembled to track retail activity. By combining known Internet access information with address-related data, BroadBand Scout allows clients to see connectivity and usage at the most granular level.
benton.org/node/30292 | IDInsight
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UNIVERSAL SERVICE
RURAL HEALTH CARE PILOT PROGRAM
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Oregon Health Network (OHN), one of the largest projects funded by the Federal Communications Commission's Rural Health Care Pilot Program, will mark an important milestone as it launches its network operations center in a ceremony at the center in Beaverton, Oregon. OHN has a stated goal of bringing low-cost, high speed broadband to primary healthcare stakeholders in Oregon, potentially linking over 300 non-profit health care facilities, both urban and rural. The Pilot Program will provide up to $20.2 million in funding for the project. The launch of the network applications center (NOC) is an important milestone in the project, allowing centralized management and tracking of network quality and connections, and facilitating trouble shooting with telecommunications vendors on behalf of OHN participants. The NOC will improve the quality, reliability and functionality of the network by pulling together multiple service providers into a single, consistent network. For example, the NOC would enable a doctor in a Wallowa, Oregon hospital, participating in a video consultation with a doctor at the Oregon Health Science University, to quickly resolve any network problems with a single call to the NOC.
benton.org/node/30291 | Federal Communications Commission
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2010 E-RATE WINDOW OPENS
[SOURCE: eSchool News, AUTHOR: Laura Devaney]
The 2010 filing window for the federal E-Rate program opened Dec. 3. Schools and libraries will have until Feb. 11 to apply for their share of $2.25 billion in discounts on telecommunications services, Internet access, and the internal connections -- wiring, routers, switches, and file servers -- necessary to deliver Internet service to classrooms.
benton.org/node/30290 | eSchool News
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ADVERTISING
AD MARKET RECOVERY WON'T LIFT ALL MEDIA
[SOURCE: AdAge, AUTHOR: Nat Ives]
Most people in the media business are excited to put 2009 behind them, but a stabilizing or even recovering ad market won't help everyone equally, according to a new forecast by Fitch Ratings. First national broadcast TV, and then cable networks and large-market broadcast TV are likely to participate in any recovery, but some media -- print mediums, namely newspapers, yellow pages and consumer magazines -- will fall short of even their depressed 2009 levels, Fitch said. The company predicts media companies with print products will erect and then dismantle online pay walls next year. Audience fragmentation will continue but the pace of "legitimate" new media entrants will slow. Consumers aren't likely to cancel cable subscriptions to watch shows entirely online. The four major broadcast networks, including the NBC network that General Electric is selling to Comcast, will remain in 2010. But at least one could explore becoming a cable network as early as 2011, according to Fitch, which called NBC and ABC the most logical candidates.
benton.org/node/30286 | AdAge | MediaPost
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