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For upcoming media policy events, see http://www.benton.org/calendar.htm

TELEVISION
No Issue Is Too Obscure For a Political TV Ad Campaign
What's Next in Evening News? Stay Tuned
Support Wanes for 2006 Analog Cutoff
Fox: 'Married' Not Indecent
Indecency Alcatraz Could Afflict Cable
Cable Talks, Wall Street Listens
Time Warner, Comcast Snare Adelphia

INTERNET
Martin Needs Brand X Clarity
Rules Aimed at Digital Misdeeds Lack Bite
France Detects a Cultural Threat in Google

TELECOM
Save the Pay Phone -- a Suddenly Endangered Species
Verizon buys 13 percent stake in MCI
Battle for Italian Phone Unit Whittled Down to One Group

QUICKLY -- GM Pulls LA Times Ads; Rethinking the DMCA; Cox Out at CPB;=20
Senate Commerce Committee Agenda

TELEVISION

NO ISSUE IS TOO OBSCURE FOR A POLITICAL AD CAMPAIGN
Finally, people can turn to television to keep up with obscure policy=20
decisions facing the nation. Unfortunately, it is paid advertising and now=
=20
news coverage of those issues they will find. Washington's airwaves are=20
perpetually blanketed with messages for or against various tax bills and=20
telecommunications policies. But now such issue ads are getting wider=20
exposure, over greater geographic areas and with heftier price tags, as=20
both conservatives and liberals ratchet up their use of the tactic. The=20
increase in issue-specific political advertising is one consequence of the=
=20
hotly contested 2004 elections. Recent restrictions on donations to=20
political parties led many donors to allocate their money to less=20
well-known outside interest groups. In 2004, such groups raised $400=20
million, more than double the amount raised in 2002. Interest groups hope=20
TV ads will help them sustain interest in their causes until the next=20
presidential election, three years away.
[SOURCE: Wall Street Journal, AUTHOR: Yochi J. Dreazen=
yochi.dreazen( at )wsj.com]
http://online.wsj.com/article/0,,SB111318107529403096,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

WHAT'S NEXT IN EVENING NEWS? STAY TUNED
The Big Three broadcast TV networks have been losing audiences to 24-hour=20
cable news, Internet sites, and other sources of instant headlines. All=20
that competition, say many media analysts, will eventually force networks=20
to experiment with the content, style, and format of the evening news.=20
Minus the ads, the average newscast is just 19 minutes, according to Andrew=
=20
Tyndall, who analyzes the network news at The Tyndall Report. That lends=20
itself to summarizing the day's events rather than providing the added=20
value of in-depth reporting. So newscasts may face the same change that=20
newspapers have made -- emphasizing news analysis over news reporting. ABC=
=20
News announced that it will make its coverage available on a variety of=20
media platforms. In addition to ABC News Now, a 24-hour news digital=20
channel, it will provide broadband news and video on demand for cellphones=
=20
and computers.
[SOURCE: The Christian Science Monitor, AUTHOR:Stephen Humphries]
http://www.csmonitor.com/2005/0411/p11s01-ussc.html
See also:
Web Giants Go With Different Angles in Competition for News Audience
[SOURCE: Los Angeles Times, AUTHOR:Chris Gaither]
http://www.latimes.com/business/printedition/la-fi-news11apr11,1,6617164...
ry?coll=3Dla-headlines-pe-business
(requires registration)

SUPPORT WANES FOR 2006 ANALOG CUTOFF
House Energy and Commerce Committee Chairman Joe Barton (R-Texas) favors=20
Dec. 31, 2006 as the deadline for the transition to digital-only television=
=20
broadcasting in the US. But his target puts enormous pressure on Congress=20
to find a quick solution for 73 million analog TV sets that rely=20
exclusively on free, over-the-air TV and would go dark without a set-top=20
box or a connection to cable or satellite television. So apparently, the=20
new earliest date Congress will consider for a deadline is Dec 31, 2007.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA516226.html?display=3DPolicy&refer...
=3DSUPP
(free access for Benton's Headlines subscribers)

FOX: 'MARRIED' NOT INDECENT
The 169 stations carrying the Fox Television Network are expected to=20
challenge the Federal Communications Commission's indecency crackdown by=20
refusing to pay the proposed $1.18 million FCC fine for a raunchy Married=20
by America episode featuring strippers and whipped cream. The stations are=
=20
essentially daring the government to haul them into court. Under federal=20
law, stations are under no legal obligation to pay FCC indecency fines=20
unless the Justice Department takes them to court and wins a judge's order.=
=20
If Fox stations refused to pay a fine for Married by America, they would be=
=20
exercising a legal strategy communications lawyers often threaten but=20
rarely use. Lawyers say Justice is unlikely to sue any station that fails=20
to pay the standard fine. Despite the easy escape, however, nearly all=20
stations pay up because they don't want to annoy the FCC, which controls=20
license renewals, cable-carriage disputes and other regulatory actions=20
critical to a station's survival. But after a year of one record-breaking=20
fine after another, broadcasters are eager to fight the FCC over indecency.=
=20
Besides, lawyers for Fox Television's 35 stations and the network's 134=20
affiliates are gambling that the FCC's legal case is so weak that even the=
=20
lure of preserving the biggest indecency fine in history won't pull Justice=
=20
into court.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA516254.html?display=3DNews&re...
al=3DSUPP
(free access for Benton's Headlines subscribers)

INDECENCY ALCATRAZ COULD AFFLICT CABLE
Senate Commerce Committee Chairman Ted Stevens (R-Alaska) and House Energy=
=20
and Commerce Committee Chairman Joe Barton (R-Texas) would like to see=20
cable operators to create at least one programming tier devoid of sex and=20
profanity. But if cable doesn't accept their invitation, do these leaders=20
have the votes to pass legislation to expand indecency regulation to pay TV=
=20
and radio services? Apparently sentiment on Capitol Hill is now running=20
against cable. Indecency regulation, while designed to address content=20
concerns, could also undermine cable=92s expanded-basic tier =97 the vehicle=
=20
for delivering consumers the highest number of channels at the lowest=20
per-channel price.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA516417.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)
For more on indecency see:
A Man of Few Words
[Commentary] After hearing from FCC Chairman Kevin Martin in San Francisco,=
=20
the cable industry didn't know any more about where his leadership is=20
heading than the day he was appointed.
[SOURCE: Broadcasting&Cable, AUTHOR: J. Max Robins=
bcrobins( at )reedbusiness.com]
http://www.broadcastingcable.com/article/CA516399.html?display=3DNews&re...
al=3DSUPP
(free access for Benton's Headlines subscribers)

CABLE TALKS, WALL STREET LISTENS
A $95 billion upgrade has made cable systems into a giant computer network,=
=20
enabling a rich array of products -- from elaborate telephone services to=20
networked videogaming. Now Wall Street, being Wall Street, wants to know=20
how its helping cable's bottom line.
[SOURCE: Broadcasting&Cable, AUTHOR: John Higgins and Anne Becker]
http://www.broadcastingcable.com/article/CA516397?display=3DFeature&refe...
=3DSUPP
(free access for Benton's Headlines subscribers)
See also:
Cable sees tech as door to growth
[SOURCE: USAToday, AUTHOR:David Lieberman]
http://www.usatoday.com/printedition/money/20050411/tiers.art.htm

TIME WARNER, COMCAST SNARE ADELPHIA
After nearly one year of negotiations and a last-minute bid from=20
Cablevision Systems, Time Warner and Comcast have apparently emerged as the=
=20
winners of Adelphia's 5.3 million cable subscribers, striking a deal in=20
principal worth about $18 billion in cash and stock. In addition to $2=20
billion in cash, Comcast is contributing its 21% interest in Time Warner=20
Cable in return for about 2 million subscribers. It is not clear whether=20
those systems will come from Adelphia, Time Warner Cable or a mixture of=
both.
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
http://www.multichannel.com/article/CA516169.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

INTERNET

MARTIN NEEDS BRAND X CLARITY
New Federal Communications Commission Chairman Kevin Martin considers=20
broadband policy a top priority, but his agenda in this area will likely be=
=20
shaped by the Supreme Court decision in the Brand X Internet Services case.=
=20
In the Brand X case, the Supreme Court is expected to rule in a few months=
=20
whether the FCC properly classified cable-modem service as an unregulated=20
information service. If the court disagrees and rules that cable-modem=20
service is a regulated telecommunications service, the Martin FCC has to=20
decide whether to strip away common-carrier regulations from cable and=20
perhaps even from its broadband-access competitors. The agency has until=20
May 5 to act on a petition by SBC Communications asking it to forbear from=
=20
applying common-carrier rules to its =93IP [Internet-protocol] platform=20
services,=94 including the right to exclude competing Internet-service=20
providers. If the commission fails to deny the petition =97 a clear=20
possibility, because the FCC is split 2-2 between Republicans and Democrats=
=20
=97 the SBC petition is automatically deemed granted. The FCC will also be=
=20
looking to the Supreme Court for guidance on what to do next on media=20
ownership rules.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA516227.html?display=3DPolicy&refer...
=3DSUPP
(free access for Benton's Headlines subscribers)

RULES AIMED AT DIGITAL MISDEEDS LACK BITE
At least a dozen federal and state bills covering privacy protection,=20
phishing and spyware have been introduced on Capitol Hill and in state=20
capitals this year. The bills are designed to staunch consumer losses.=20
Identification theft cost consumers, banks and credit card companies $11.7=
=20
billion through the 12 months ended in April 2004, says researcher Gartner.=
=20
Phishing scams, fraudulent e-mails or websites that trick computer users=20
into surrendering personal information, burned U.S. consumers for $500=20
million in the 12-month period ended September 2004.Damages from spyware,=20
software that quietly monitors the activities of Internet users: More than=
=20
$200 million to U.S. consumers last year.
[SOURCE: USAToday, AUTHOR:Jon Swartz]
http://www.usatoday.com/printedition/money/20050411/netlawcover.art.htm
See also:
Bigger phishes ready to spawn
http://news.com.com/Bigger+phishes+ready+to+spawn/2100-7349_3-5656070.ht...
ag=3Dnefd.lede

FRANCE DETECTS A CULTURAL THREAT IN GOOGLE
Google planned to scan 15 million English-language books and make them=20
available as digital files on the Web. But Jean-No=EBl Jeanneney, president=
=20
of the French National Library, believes the move would further strengthen=
=20
American power to set a global cultural agenda. Europe, he said, should=20
counterattack by converting its own books into digital files and by=20
controlling the page rankings of responses to searches. His one-man=20
campaign bore fruit. At a meeting on March 16, President Jacques Chirac of=
=20
France asked Mr. Jeanneney and the culture minister, Renaud Donnedieu de=20
Vabres, to study how French and European library collections could be=20
rapidly made available on the Web.
[SOURCE: New York Times, AUTHOR: Alan Riding]
http://www.nytimes.com/2005/04/11/technology/11google.html
(requires registration)

TELECOM

SAVE THE PAY PHONE -- A SUDDENLY ENDANGERED SPECIES
According to the Federal Communications Commission, the number of pay=20
phones in the US dropped to 1.5 million in 2003, down from 2.1 million five=
=20
years earlier -- as the number of cellphone users surged. But state=20
legislatures around the country are considering legislation to preserve pay=
=20
phones especially where a lack of phone access poses a risk to residents'=20
safety, health, or welfare. 6.5% of American households have no telephone.=
=20
Many use pay phones as their primary means of communication. Supporters say=
=20
that resisting the demise of the pay phone -- even as cellphone coverage=20
continues to expand and costs go down -- is an attempt to close the gap=20
between the technological "haves" and "have nots."
[SOURCE: The Christian Science Monitor, AUTHOR: Sara B. Miller]
http://www.csmonitor.com/2005/0411/p01s02-uspo.html

VERIZON BUYS 13 PERCENT STAKE IN MCI
Verizon Communications said Saturday it agreed to buy the 13.7% stake in=20
MCI held by its largest shareholder, Mexican telecommunications magnate=20
Carlos Slim Helu, for $1.1 billion in cash. Although the move may anger=20
other MCI shareholders receiving a lower price for their shares, Verizon is=
=20
trying to strengthen its bid to purchase MCI by removing a potential critic=
=20
of the merger.
[SOURCE: Reuters]
http://news.com.com/Verizon+buys+13+percent+stake+in+MCI/2100-1036_3-566...
.html?tag=3Dnefd.top

BATTLE FOR ITALIAN PHONE UNIT WHITTLED DOWN TO ONE GROUP
Naguib Sawiris, an Egyptian telecommunications magnate with ambitious=20
growth plans, got the green light over the weekend to attempt a 12.1=20
billion euro ($15.65 billion) buyout of the Wind telecommunications=20
business of Italy. If completed, the deal would be Europe's largest-ever=20
leveraged buyout. Mr. Sawiris, the chairman and chief executive of Orascom=
=20
Telecom Holdings, Egypt's largest phone company, edged out a group of=20
investors led by the private equity firm Blackstone Group, whose offer was=
=20
valued at about 11.9 billion euros. Wind is Italy's third-largest mobile=20
phone company, with 28 million customers, but the potential transaction's=20
importance would stretch far beyond the company's presence in Italy.
[SOURCE: New York Times, AUTHOR: Heather Timmons]
http://www.nytimes.com/2005/04/11/business/worldbusiness/11wind.html
(requires registration)

QUICKLY

ADVERTISER REGISTERS OBJECTION
Marketers have been turning on media outlets for offenses real and=20
perceived, for almost as long as there has been advertising space and=20
commercial time to buy. Although marketers and media companies do business=
=20
together, they are not in the same business, a distinction that manifests=20
itself in fractious disputes caused by the tension between the media's=20
right to say what they please and marketers' right to advertise where they=
=20
please. The uneasy relationship between advertiser and advertisee made news=
=20
again when General Motors said last week that it would stop running its=20
advertising in The Los Angeles Times until further notice. The decision,=20
generated by what a G.M. spokeswoman, Ryndee Carney, described as=20
inaccurate coverage, has put a significant amount of ad revenue for the=20
newspaper in jeopardy. Lauren Rich Fine, the analyst who follows media and=
=20
advertising stocks for Merrill Lynch, wrote in a research note Friday,=20
"There is obviously no positive to this story, unless you are a journalist=
=20
believing in standing up to an advertiser." By one estimate, from The Wall=
=20
Street Journal, G.M. spends more than $10 million a year to advertise in=20
The Times, owned by the Tribune Company. G.M. is the nation's biggest=20
automaker and its second biggest advertiser, behind Procter & Gamble. The=20
Times is the biggest newspaper in the state that is the nation's biggest=20
buyer of cars, trucks, minivans and other vehicles.
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
http://www.nytimes.com/2005/04/11/business/media/11adcol.html
(requires registration)

RETHINKING DCMA
[Commentary] Time and again since its 1998 passage, the Digital Millennium=
=20
Copyright Act has proved to be one of the worst-ever pieces of technology=20
legislation.
[SOURCE: C-Net|News.com, AUTHOR: Charles Cooper]
http://news.com.com/Rethinking+the+DMCA/2010-1030_3-5659364.html?tag=3Dn...
ac

KATHLEEN COX OUT AT CPB
The Corporation for Public Broadcasting announced Friday evening it will=20
replace President Kathleen Cox, its president for 10 months. CPB had just=20
hired an executive as Cox=92s second in command who will serve as acting=20
president: Ken Ferree, former chief of the FCC=92s powerful Media Bureau.
[SOURCE: Current]
http://www.current.org/cpb/cpb0507cox.shtml
See Current's coverage of Ferree's March hiring:
http://www.current.org/cpb/cpb0506ferree.shtml
CPB Press Release: http://www.cpb.org/programs/pr.php?prn=3D402

SENATE COMMERCE COMMITTEE AGENDA
Monday: Hearing on S. 241, Universal Service Fund Exemption From=20
Anti-deficiency Act
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1443
Wednesday: S. 714, The Junk Fax Prevention Act of 2005
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1457
Thursday: Full Committee Mark-up (includes: S. 714, The Junk Fax Prevention=
=20
Act of 2005 and S. 432, The Minority Serving Institution Digital & Wireless=
=20
Technology Opportunity Act of 2005)
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1458
[SOURCE: US Senate]
http://commerce.senate.gov/
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

POLICYMAKERS
Telecos Agree on Telecom Rewrite
Martin Breaks Silence, Resigns
NAB, NCTA Bad Blood Spills into Conventions

OWNERSHIP
Battle for MCI Changes Course -- Again
XM, Sirius to Merge

PUBLIC BROADCASTING
Listeners Ask Pubradio for Pledge
Arthur's Turn in Hot Seat

POLICYMAKERS

TELECOS AGREE ON TELECOM REWRITE
With Congress ending a two-week break, large telephone companies have had
time to work through the details of telecommunications reform they hope to
pass by the end of the year. The Telecommunications Consumer Empowerment
Act of 2005 will be circulated to key Congressional leaders next week. It
includes provisions that: 1) ensure telephone companies will only have to
provide service where they can maximize profit; 2) set "voluntary goals"
instead of mandates for emergency 911 service quality; 3) codify early
termination penalties; 4) minimize the role of states in the areas of
consumer protection, economic regulation of dominant carriers and
developing competition; 5) grant telecos the primary authority over the
retail relationship between the customer and the customer's
telecommunications provider; 6) remove regulation of service quality; 7)
guarantee that telecos' privacy related to their telecommunications
services is maintained; 8) highlight that the First Amendment applies to
all telecommunications marketing and billing which will no longer be
regulated; 9) sets a hard date -- January 1, 2009 -- for a sunset of all
federal telecommunications regulation; and 10) create an independent
consumer advocate nominated by large phone companies for purposes of
representing consumer interests in telecommunications matters before the
Federal Communications Commission. The bill currently has 300 co-sponsors
in the House and 65 in the Senate.
[SOURCE: HillWatch, AUTHOR: Cliff Bruff]
(http://www.hillswatch.com/2005/04/01/0987111.html)
(requires registration)

MARTIN BREAKS SILENCE, RESIGNS
The Federal Communications Commissions faces an agenda clogged with a
number of hot-button issues: transitioning broadcast TV to digital signals
and rewriting media-concentration rules; shoring up the Universal Service
Fund; overhauling the haphazard system phone companies use to compensate
each other for completing calls; and deciding what rules should apply to
Internet phone services. But after a two week review of this pending
business, new chairman Kevin Martin surprised Washington by announcing his
resignation. "Although I have been a Commissioner since 2001," Martin said
in a released statement, "I did not fully comprehend the utter mess we've
made of US communications policy. This job is too big for this mere mortal.
Unfortunately, this decision will have the most adverse impact on small,
independent, religious, family-friendly and minority broadcasters." Perhaps
the most surprising part of Martin's announcement is that his resignation
is immediate, leaving the Commission with a Democratic majority until
President Bush names nominees for seats perviously held by Martin and
departed former-Chairman Michael Powell.
[SOURCE: Communiscriptions Day, AUTHOR: Abbie Lane]
(Not available online)

NAB, NCTA BAD BLOOD SPILLS INTO CONVENTIONS
With policy stakes continually increasing and policy making turning into an
"always on" campaign, the national conventions of two bitter rivals
apparently will become new battle grounds for the future of television.
Thousands of cable executives -- most from giants Comcast and Time Warner
-- fly West today to San Francisco for the 54th Annual Convention &
International Exposition of the National Cable & Telecommunications
Association (NCTA). With the unexpected departure of FCC Chairman Kevin
Martin (see story above), these executives will turn a keen ear to remarks
by Michael D. Gallagher, Director of the National Telecommunications and
Information Administration and possible Martin replacement. But according
to a strategy memo obtained by the Washingtown Post, broadcasters are
planning to crash the NCTA party, protesting cable's "iron-fisted control
of television programming." The television station owners are arming
themselves with bullhorns and press passes distributed to their news teams
for some old fashion gorilla-style media activism. They've even hired a
plane to fly over the convention site with a sign reading: "No cord, no
cable can forcibly hold so fast, as the love of free TV and rabbit ears."
Cable spokesperson Liam Ditz replied to the planned protest saying, "Let
them try this and we'll see if we can make a connection between
'broadcasters' and 'broad arses' in Vegas," referring to the National
Association of Broadcasters annual meeting later in the month.
[SOURCE: Washingtown Post, AUTHOR: Alice Camen]
(http://www.washingtownpost.com/inloop/20050401.htm)
(requires registration)

OWNERSHIP

BATTLE FOR MCI CHANGES COURSE -- AGAIN
Fresh off the news that MCI, the nation's second-largest long distance
company, had accepted a $7.6 billion bid from Verizon, Qwest has officially
withdrawn its $8.45 billion bid. But Verizon will now, in turn, purchase
Qwest for $7 billion and create the nation's largest phone company with
market dominance in both the Northeast and Northwest. "There's no question
that the Verizon-Qwest-MCI combination will be a more competitive company
than an independent Verizon," said Iwan B. Slenderberg who will become
chairman and CEO of the new company, tentatively called Veqwem (pronounced
wigwam). Analysts were somewhat started, but suggested it will be the only
way for Qwest and MCI to survive in the consolidating marketplace and for
Verizon to effectively compete with the proposed SBC-AT&T-BellSouth
combination. "The benefits to the public are obvious," said Wall Street
analyst and former FCC Commissioner Drew Barnett. "The deal will face some
obligatory regulatory scrutiny, but should win approval without much
graft." Asked about possible state regulatory review, a company
representative said there was little expected problems from the "regulatory
underbrush."
[SOURCE: Will Street Journal, AUTHOR: Les Jucker]
(http://willsj.com/current/update/merger/050401.html)
(requires subscription)

XM, SIRIUS TO MERGE
With an unanticipatedly quick technological breakthrough allowing
interoperablity for Sirius and XM receivers, the two companies will
announce later today that they are merging to form Your Satellite Radio
(YSR). "They were the technology leaders," Mel Karmazin, Sirius's chief
executive, said of XM. "We were the content leader. Combined, we'll be the
market leader in a matter of years." YSR's integrated technology will
offer, potentially, thousands of audio channels for subscribers. The new
radios will be installed on all new GM, BMW, DaimlerChrysler AG and Ford
cars sold in the US beginning with 2006 models. XM's Hugh Panero will be
the new company's CEO, but Karmazin will get the corner office in the new
company's headquarters. "It is the only one big enough to hold his, um,
belongings," a spokesperson said.
[SOURCE: Rooters, AUTHOR: Drew O'Sullivan]
(http://www.rooters.com/newsChannel.jhtml?type=technologyNews)

PUBLIC BROADCASTING

LISTENERS ASK PUBRADIO FOR PLEDGE
Around the country this week and next, public radio stations are asking
listeners to become members and pledge in large round figures. But
listeners seem to have their own ideas this year. Using
www.putthePinNPR.net as an organizing tool, listeners are withholding their
pledges and renewals in hopes of gaining more than another free tote bag.
Apparently, they want members to have a more active role in governing
public radio stations. According to the web site, new and existing members
will not make pledges until 1) the stations' boards of directors are
elected by and from the ranks of the membership, 2) these boards are given
power to hire/fire top executives and 3) free parking at live tapings. (OK,
#3 is a joke -- they really want a say in "establishing overall policies
which give direction to the Executive Director and the professional staff
for the day-to-day operations of the station.") The website keeps a running
tab on total pledges being withheld -- and the total per station.
[SOURCE: Currents, AUTHOR: Stephen Brens]
http://www.currents.org/ch/ch0505pledgetime.shtml
Also see:
http://www.current.org/current/cursteve.html

ARTHUR'S TURN IN HOT SEAT
First Sponge Bob, then Buster the Bunny, now Arthur the Aardvark is the
focus criticism. The plots of Arthur stories usually revolve around simple
events that children can identify with, such as taking a family vacation,
getting glasses, adjusting to a new baby in the family, or writing a story
for a homework assignment. A program scheduled for May 1, however, had
Arthur visiting an Eastern Orthodox church to celebrate Easter. In a letter
to author/illustrator Marc Brown, a Department of Education faith-based
initiative official wrote, "There's seems to be some misunderstanding about
our funding priorities as outlined by President Bush and detailed in our
educational television RFP. Obviously, many parents may find it disturbing
to have their children realize that Arthur's family has not shed its old
world ways and assimilated into American Christianity. We suggest you
rewrite the script for 'A Day at St Andrew's' so that Arthur visits a
normal, protestant Church." WTTW, the Chicago public television station
that produced the show, apparently will go ahead with plans to air the
program, but the show's sponsor Brach's Confections has pulled its
underwriting announcement which included plugs for its popular Bridge
Mix(R) and Peanut Butter Meltaways(R). The program will be made available
for distribution, but not by beleaguered PBS which is urging stations to
air it in the evening so parents can review its controversial content.
[SOURCE: Broadcast&Cable, AUTHOR: Sean Jeggerton]
http://www.broadcastcable.com/article/CA513929.html?display=Breaking+New...
(subsidized access for Benton's Headlines subscribers)
--------------------------------------------------------------

AT THE SUPREME COURT
Supreme Court Scrutinizes Regulatory Issues in 'Brand X'
Supreme Court Hears Grokster Case; Pundits Predict Narrow Decision

CONTENT
Bob and Barney, With a Few Words From Sponsors
Every Nook and Cranny: The Dangerous Spread of Commercialized Culture
FCC and GOP May Over Reach If They Go After Cable TV
Dow Jones Executive Foresees More Paid Web Sites

SPECTRUM
Dolan to FCC: Block Deal with EchoStar
Spectrum Needs of Emergency Response Providers
Two Upstarts Vie For Dominance In Satellite Radio

TELECOM
MCI Formally Spurns Revised Qwest Offer, Will Stay with Verizon
NASUCA Appeals FCC Billing Rules

QUICKLY -- Energy Efficient DTV; We're at WISPCON VII, Commissioner;
Product Place in Media 2005

AT THE SUPREME COURT

SUPREME COURT SCRUTINIZES REGULATORY ISSUES IN 'BRAND X'
In the Brand X cable modem case hearing at the Supreme Court yesterday,
Justices asked about how the FCC defines an information service. "The
justices appeared willing to grapple with the substantive issue themselves
rather than sending the case to the lower court," said a Legg Mason
analysis. "Based on oral argument, we believe the Supreme Court will likely
side with cable and Bell companies seeking a 'bottom up' approach to
regulating" -- putting the burden on proponents of regulation. But ISPs
have a fighting chance to get the Court to side with them on their "top
down" approach to deregulating -- shifting the burden, Legg Mason said. The
Court is expect to make its decision in June.
[SOURCE: Communications Daily, AUTHOR: Anne Veigle]
(Not available online)
Links to coverage --
Reuters:
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=8028212
B&C:
http://www.broadcastingcable.com/article/CA513835?display=Breaking+News&...
MCN:
http://www.multichannel.com/article/CA513740.html?display=Breaking+News&...
WP: http://www.washingtonpost.com/wp-dyn/articles/A11429-2005Mar29.html
USAToday:
http://www.usatoday.com/printedition/money/20050330/3b_broadband_30.art.htm
News.com (op-ed):
http://news.com.com/Is+an+open+Internet+a+doomed+concept/2010-1034_3-564...

SUPREME COURT HEARS GROKSTER CASE; PUNDITS PREDICT NARROW DECISION
Tuesday was a busy day for the Supreme Court. Justices expressed concerns
over the impact on technological innovation of holding file sharing firms
liable for illegal copying done using their programs. During oral argument
in MGM v. Grokster, the Justices engaged in brisk exchanges with attorneys
for both sides, treading cautiously on the Sony/VCR standard set by the
High Court in a close decision over two decades ago. Members of both camps
agreed the justices asked the questions needed to rule on whether
peer-to-peer (P2P) companies should be subject to secondary liability for
copyright infringement by their users. The decision is expected before the
end of the Supreme Court session in June.
[SOURCE: Communications Daily, AUTHOR: Andrew Noyes]
(Not available online)
Links to coverage --
Reuters:
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=8026655
News.com:
http://news.com.com/Supreme+Court+takes+hard+look+at+P2P/2100-1028_3-564...
B&C:
http://www.broadcastingcable.com/article/CA513842?display=Breaking+News&...
NYTimes: http://www.nytimes.com/2005/03/30/technology/30bizcourt.html
WSJ:
http://online.wsj.com/article/0,,SB111211785362792087,00.html?mod=todays...
WP: http://www.washingtonpost.com/wp-dyn/articles/A8684-2005Mar29.html
WP (Editorial):
http://www.washingtonpost.com/wp-dyn/articles/A11315-2005Mar29.html
USAToday:
http://www.usatoday.com/printedition/money/20050330/3b_fileshare_30.art.htm
(Editorial):
http://www.usatoday.com/printedition/news/20050330/edit30.art.htm
(Op-ed)
http://www.usatoday.com/printedition/news/20050330/oppose30.art.htm
LATimes:
http://www.latimes.com/business/printedition/la-fi-scotus30mar30,1,43303...
(Op-ed):
http://www.latimes.com/news/printedition/opinion/la-oe-anderson30mar30,1...
(Editorial):http://www.latimes.com/news/printedition/opinion/la-ed-justices30mar30,1...

CONTENT

BOB AND BARNEY, WITH A FEW WORDS FROM SPONSORS
On Monday Comcast is to announce the details of its new 24-hour digital
cable channel for preschoolers, which will feature Elmo, Big Bird, Barney -
and commercials. PBS not only approves, but is a partner: the channel's
co-owners are PBS, Sesame Workshop and HIT Entertainment, producer of
"Barney and Friends" and "Bob the Builder." "I don't like pitching
products to young children and I never have," said Joan Ganz Cooney, a
co-founder of Children's Television Workshop (now Sesame Workshop) and the
chairwoman of the executive committee of its board. "But to some degree
that is nostalgia for a time that is past. The whole society, the whole
business is so commercialized, even public television. This is another way
of getting PBS's excellent programming to children." The distinction
between public and commercial television has become increasingly ephemeral
in the last decade as traditional underwriter announcements have taken on
the trappings of regular advertising. The merchandizing of popular
characters like Barney and Elmo is big business. Meanwhile, technology has
upended traditional ideas of what people watch and when.
[SOURCE: New York Times, AUTHOR: Julie Salmon]
http://www.nytimes.com/2005/03/30/arts/television/30pbs.html?
(requires registration)

EVERY NOOK AND CRANNY: THE DANGEROUS SPREAD OF COMMERCIALIZED CULTURE
Advertisers have long relied on 30-second TV spots to deliver messages to
mass audiences. During the 1990s, the impact of these ads began to drop
off, in part because viewers simply clicked to different programs during
ads. In response, many advertisers began to place ads elsewhere, leading to
?ad creep? -- the spread of ads throughout social space and cultural
institutions.
[SOURCE: Multinational Monitor (via Media Savvy), AUTHOR: Gary Ruskin and
Juliet Schor]
http://www.multinationalmonitor.org/mm2005/012005/ruskin.html

FCC AND GOP MAY OVER REACH IF THEY GO AFTER CABLE TV
[Commentary] The FCC and prominent Republicans seem interested in
regulating decency on cable TV the way they do on the broadcast networks.
It's an interesting prospect. But one that could bite them at the polls if
they continue to misread the public. Consumers of all political stripes
don't like it when government removes choices from them.
[SOURCE: BusinessWeek, AUTHOR: David Kiley]
http://www.businessweek.com/the_thread/brandnewday/archives/00000052.htm
Also see (thanks to Media Savvy)--
* THE COMING CONTENT WARS
[Commentary] "Reasonable, mature, reflective and democratic. Ideally, these
should be the hallmarks of our media, but with people like [Brent] Bozell
and [FCC Chairman Kevin] Martin uninterested in allowing discerning
citizens to make their own choices, and politicians interested in scoring
cheap points to "protect" us from ourselves, there's a real danger that we
will get merely the media we're allowed, and not the one we deserve."
[SOURCE: CJR Daily, AUTHOR: Paul McLeary]
http://www.cjrdaily.org/archives/001403.asp
* CLEANUP CRUSADE COULD CENSOR CONTROVERSY, TOO
[Commenary] One of the signposts of America's cultural divide is the
renewed insistence that TV and radio clean up their tawdry acts, or else.
But making the "or else" too extreme will do more than clean up the
airwaves, it will inevitably lead to so much self-censorship that anything
seriously controversial may also disappear, claims this Detroit Free Press
editorial.
[SOURCE: Detroit Free Press, AUTHOR: Editorial Staff]
http://www.freep.com/voices/editorials/eindecency28e_20050328.htm

DOW JONES EXECUTIVE FORESEES MORE PAID WEB SITES
Gordon Crovitz, president of electronic publishing at Dow Jones, predicts
that more publishers likely will try to wean readers off free Internet
versions of their newspapers by starting to charge online subscription
fees. Charging for news that appears in print -- and then giving it away
over the Web -- is "an unsustainable business model," he says.
[SOURCE: Reuters, AUTHOR: Martha Graybow]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=8026971

SPECTRUM

DOLAN TO FCC: BLOCK DEAL WITH ECHOSTAR
Cablevision Systems chairman Charles F. Dolan and a group called The
Association of Consumers to Preserve and Promote DBS Competition asked the
Federal Communications Commission to reject the transfer of
direct-broadcast satellite spectrum from Rainbow DBS to EchoStar
Communications. They argue that EchoStar's acquisition of the satellite
assets "would undermine" competition in the pay TV market and clash with
"well-established" FCC policies of "fostering competition and new entry
among DBS service providers." Dolan's filing said the EchoStar deal would
harm competition because it "would result in a loss of service to the
approximately 40,000 existing subscribers to the Voom DBS service," which
is in the process of raising funds to purchase the Rainbow assets.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA513846.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)
See also --
* Dolan Pledges $400 Million to Voom
http://online.wsj.com/article/0,,SB111214427178692679,00.html?mod=todays...

SPECTRUM NEEDS OF EMERGENCY RESPONSE PROVIDERS
On December 17, 2004, the President signed the Intelligence Reform and
Terrorism Prevention Act of 2004 ("Intelligence Reform Act" or "Act") into
law to reform the United States intelligence community and
intelligence-related activities. Title VII of the Act implements certain
recommendations of the National Commission on Terrorist Attacks Upon the
United States, including a number of communications-related provisions,
particularly with respect to use of the electromagnetic spectrum by
Federal, State, and local emergency response providers. Among other
requirements, the Intelligence Reform Act requires the Federal
Communications Commission to conduct a study to assess the short-term and
long-term spectrum needs of emergency response providers, and report its
findings to Congress not later than December 17, 2005. Accordingly, the
Commission seeks comment from interested parties in order to assist it in
conducting the study.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-80A1.doc

TWO UPSTARTS VIE FOR DOMINANCE IN SATELLITE RADIO
Sirius and XM are fighting for supremacy in the satellite-radio industry.
Racing to win control of an embryonic new medium, the two have followed
sharply different paths: XM has cut extensive distribution deals and offers
distinctive technology while Sirius is amassing a trove of exclusive
content. Both want to lure listeners away from regular radio broadcasts
with subscription services offering more than 100 channels. When satellite
radio launched, few thought consumers could be persuaded to pay for a
service that was similar to what they already got free. But the services'
high-quality programming and minimal commercial interruptions have been a
strong lure. XM and Sirius have signed up more than four million
subscribers who pay $12.95 a month. That's tiny compared with the total
universe of 229 million radio listeners, as measured by the ratings service
Arbitron Inc., but double the number of subscribers compared with a year ago.
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com]
http://online.wsj.com/article/0,,SB111214960407492809,00.html?mod=todays...
(requires subscription)

TELECOM

MCI FORMALLY SPURNS REVISED QWEST OFFER, WILL STAY WITH VERIZON
No MCI for you, Qwest. MCI once again rebuffed Qwest Tuesday accepting a
revised -- but still lower -- bid from chosen merger partner Verizon.
Verizon offered $23.50 a share in cash and stock. Qwest instead has offered
$26 a share. Qwest said in a statement it was still assessing and left the
door open to another run at MCI.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
More coverage --
NYTimes: http://www.nytimes.com/2005/03/30/business/30phone.html
WSJ:
http://online.wsj.com/article/0,,SB111210284638691884,00.html?mod=todays...
WP: http://www.washingtonpost.com/wp-dyn/articles/A11437-2005Mar29.html
USAToday: http://www.usatoday.com/printedition/money/20050330/1b_mci30.art.htm
LATimes:
http://www.latimes.com/business/printedition/la-fi-mci30mar30,1,2349224....

NASUCA APPEALS FCC BILLING RULES
National Association of State Utility Consumer Advocates (affectionately
known as NASUCA) appealed an FCC billing decision extending
truth-in-billing rules to wireless carriers and preempting state controls
on line items on wireless consumer bills. The FCC order responded partly to
a NASUCA petition seeking a ban on many "regulatory" charges on
long-distance and wireless bills. "Unfortunately, in response to our call
for misleading charges to be eliminated, the FCC has failed to take any
meaningful action that will benefit our nation's telephone consumers," said
NASUCA Telecom Committee Chairman David Bergmann. He said NASUCA appealed
"the entire order, but the two key things we are appealing are state
preemption and extension of what we believe inadequate rules to wireless
carriers... We plan on looking at the order to see whether there are any
other points we want to make on the appeal." The National Association of
Regulatory Utility Commissioners (NARUC) will also appeal the decision.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

QUICKLY

ENERGY EFFICIENCY ADVOCATES EYE STATE STANDARDS FOR DTV CONVERTORS
At the federal level, the digital TV debate focuses on setting a hard date
to end the transition to DTV. At the state level, the current debate seems
to be about setting energy level standards for digital convertor boxes. In
fighting bills aiming to set energy standards for settop boxes, industry
representatives say they will stifle innovation and complicate bundling.
Proponents of the legislation say this year's legislative crop seeks to
keep the market from being flooded with "cheap and inefficient" converter
boxes when a hard date is set for digital conversion:
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

WISPS: PROVIDING OPPORTUNITIES FOR RURAL AMERICA THROUGH ACCESS TO BROADBAND
Text of FCC Commissioner Jonathan S. Adelstein's speech at the Wireless
Internet Service Providers Convention (WISPCON VII).
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-257737A1.doc

PRODUCT PLACEMENT IN MEDIA 2005
Following on the NYTimes article summarized here yesterday, PQ Media
released a report Tuesday on the size and structure of the product
placement market. See a summary of the report at the URL below.
http://www.pqmedia.com/ppsm2005-es.pdf
See coverage in --
Broadcasting&Cable:
http://www.broadcastingcable.com/article/CA513541.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

For upcoming media policy events, see http://www.benton.org/calendar.htm

JOURNALISM
The Art of Manufactured News
Is Online News Reaching Its Potential?
White House Media May Get Temporary Boot

CABLE/INTERNET
The Cable Behemoth
Media Wars Move to High Court
Hobbling Grokster -- and Innovation, Too
When David Steals Goliath's Music

TELECOM/INTERNET
FCC Grants BellSouth Petition
In Fight for MCI, Qwest CEO Won't Take No for an Answer

TELEVISION
Under New Chief, FCC Considers Widening Its Reach
On Public TV, Not Quite an Ad But Pretty Close
Stay Tuned for the Next Commercial
A Traumatic End to the DTV Transition?
TV Is Still the Medium That Builds Brands Best

QUICKLY -- Bill Gates' "Think Week"; State Telecom Legislation; New Web=20
Sites to Store Public's Digital Content; Expanding Use of =93Orphan Works=94=
;=20
Sharpton and Violent Radio; A Transatlantic Spam Alliance; Rural Telecom=20
Demand; Blockbuster Drops Hollywood Bid; Censorship in the Science Museums

JOURNALISM

THE ART OF MANUFACTURED NEWS
If Professor Noam Chomsky was dead, he'd be spinning in his grave. As the=20
media world assesses new ground rules, producer Medialink Worldwide says=20
=93branded journalism=94 is the best way to advertise in a splintered=
market.=20
Instead of sending out video news releases in hopes that stations and cable=
=20
networks will air them, PR firms are actually creating the newscast, then=20
buying spots on networks the way a Madison Avenue firm would. If viewers=20
were confused before, they'll certainly have a hard time discerning news=20
updates from mini-infomercials now. Critics say the most troubling aspect=20
of the latest VNR product from Medialink=97a paid ad spot=97is that the news=
=20
content is genuine but serves as a conduit for a brand or corporate=20
mention. Moskowitz says Medialink is exploring a wide range of similar=20
formats in what he calls =93marketing public relations=94 and what other=20
PR-industry insiders dub =93secured placements.=94 By secured, they mean=
that=20
the media time was purchased and guaranteed to air unlike conventional VNR=
=20
or B-roll footage. Moreover, Medialink Chairman/CEO Laurence says he is=20
creating a new genre of television that blends news, PR and conventional=20
Madison Avenue media-buying practices. In effect, he is competing with both=
=20
Madison Avenue and the TV news industry, while blurring the lines between=20
them. Moskowitz sees the distinctions between ad agencies and PR companies=
=20
fading fast. Ad agencies spend millions producing commercials, buying media=
=20
time or negotiating branded content deals; their PR counterparts are=20
accomplishing the same for pennies on the marketing dollar.
[SOURCE: Broadcasting&Cable, AUTHOR: Joe Mandese]
http://www.broadcastingcable.com/article/CA513090.html?display=3DFeature...
erral=3DSUPP
(free access for Benton's Headlines subscribers)

IS ONLINE NEWS REACHING ITS POTENTIAL?
Ten years ago, at the first =93New News=94 seminar held at the Poynter=20
Institute, a group of digital pioneers brainstormed what would be new about=
=20
online news. They listed what it was that newspapers were not providing=20
that the new digital news space would enable and how the new medium might=20
change news reporting and writing.
Many of the predictions were based on the idea of the =93limitless=
newshole,=94=20
an endless space for providing deep context and satisfying the =93give me=20
more=94 that reporters thought news seekers were craving. The promise of=20
hyperlinking and easier communication between readers and reporters were=20
all high on the list of ways this new news space would change news.=20
Creating new expressive forms of reporting, providing better follow-up on=20
reported stories and crafting new relationships between words and graphics=
=20
were noted as new potentials for online news. Ten years later, just how far=
=20
have we come in realizing these predictions? How much have we truly=20
leveraged the possibilities of new forms of news writing and reporting=
online?
[SOURCE: Online Journalism Review, AUTHOR: Nora Paul]
http://www.ojr.org/ojr/stories/050324paul/

WHITE HOUSE MEDIA MAY GET TEMPORARY BOOT
The stuffy, packed, run-down White House briefing room has become something=
=20
of a safety hazard over the years and may require a top-to-bottom=20
renovation this summer. If the administration moves forward, the dozens of=
=20
reporters who work and virtually live in the cramped quarters will be=20
relocated to a spot outside the White House, a scenario that does not sit=20
well with some journalists concerned about long-term access to the=20
president and administration officials. The temporary accommodations for=20
the White House press corps would likely be in the nearby Eisenhower=20
Executive Office Building.
[SOURCE: Washington Post, AUTHOR: Jim VandeHei]
http://www.washingtonpost.com/wp-dyn/articles/A5283-2005Mar27.html
(requires registration)

CABLE/GROKSTER

THE CABLE BEHEMOTH
[Commentary] In New York, Cablevision reigns over a sports and=20
entertainment empire that is the sports equivalent of the old Hollywood=20
studio system before it was broken up on antitrust grounds. It owns Madison=
=20
Square Garden, Radio City Music Hall, the NBA Knicks franchise and the=20
NHL's Rangers, as well as the cable channel (the MSG network) that=20
broadcasts the teams' games. You'd think Cablevision wouldn't want to call=
=20
attention to its monopolistic control over professional sports in=20
Manhattan. Think again -- the cable operator is leading the fight against a=
=20
proposed New York Jets football stadium. Cablevision, loath to see an=20
alternative entertainment venue in midtown Manhattan, has spent millions=20
lobbying against the Jets project (after backing out of talks with the Jets=
=20
to be partners on the deal). Then it recklessly dreamed up an alternative=20
development plan. Most alarming of all, Cablevision blocked pro-stadium ads=
=20
from its cable system. That prompted the Jets to file a lawsuit accusing=20
the cable operator of violating antitrust laws. The growing power of cable=
=20
operators to restrain trade and competition is a matter for Congress and=20
the rest of the nation to keep an eye on.
[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
http://www.latimes.com/news/printedition/opinion/la-ed-cable28mar28,1,16...
0.story?coll=3Dla-news-comment
(requires registration)

MEDIA WARS MOVE TO HIGH COURT
Grokster. Brand X. How do these Supreme Court cases relate to me, a global=
=20
media conglomerate? At stake, from the commercial perspective, is billions=
=20
in content protection and billions in broadband infrastructure. Grokster=92s=
=20
allies acknowledge that file-swapping has cost traditional content=20
providers huge sums of money. The 100 million music files downloaded in=20
2004 represent $1.3 billion in lost profits, says the Consumer Federation=20
of America. The music industry says its annual losses are actually $4=20
billion. Mark Cooper, research director for Consumer Federation of America,=
=20
says Hollywood and other media giants are standing in the way of technology=
=20
rather than finding ways to adapt their business to new options available=20
to consumers. Now that technology has made it easy for Web surfers to=20
obtain songs one at a time, they are no longer willing to pay the $13 cost=
=20
for an entire album. Rather than forcing consumers to stick with the old,=20
expensive business model, media companies should make it easier to download=
=20
single files legally by using royalty-management software already on the=20
market. If Earthlink and its allies win the Brand X case, subscribers to=20
cable-modem service would be able to choose from many ISPs rather than=20
being forced to use their cable company=92s broadband service. If the=20
justices side with the cable industry, however, operators will be able to=20
dictate what rival services, if any, are available on their networks. For=20
instance, an operator might ban not only independent ISPs, but also=20
companies offering Internet telephone service in competition with the cable=
=20
company=92s brand. Mark Cooper, research director for Consumer Federation of=
=20
America, says development of new high-speed services will be stymied if=20
cable isn't forced to carry competing providers. For instance, the largest=
=20
cable operator, Comcast, is only now rolling out Internet telephone service=
=20
-- three years after independent Vonage began offering the service over=20
cable lines. =93It=92s not the Comcasts of the world that are inventing new=
=20
technologies,=94 he says.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA513093?display=3DNews&referra...
SUPP
(free access for Benton's Headlines subscribers)
See also --
* Why 'Brand X=92 Matters to Cable
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA513269.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)
* A Supreme Court Showdown for File Sharing
[SOURCE: New York Times, AUTHOR: Saul Hansell & Jeff Leeds]
http://www.nytimes.com/2005/03/28/technology/28grokster.html
(requires registration)
* USAToday:=20
http://www.usatoday.com/printedition/news/20050328/a_court28.art.htm
=
http://www.usatoday.com/printedition/money/20050328/grokster28.art.htm
=
http://www.usatoday.com/printedition/money/20050328/fileshare28.art.htm
=
http://www.usatoday.com/printedition/money/20050328/legit28.art.htm
*=20
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-grokster28mar28,1,686...
.story?coll=3Dla-headlines-pe-business

HOBBLING GROKSTER -- AND INNOVATION, TOO
[Commentary] Although the U.S. Supreme Court won't hear arguments in MGM=20
Studios v. Grokster until tomorrow, the case is already having a chilling=20
effect on technological innovation. Feeling the sting of the massive theft=
=20
by users of peer-to-peer (P2P) software made by Grokster and other=20
defendants, movie and music studios are asking the court to hold tech=20
companies liable for copyright infringement if people use their products to=
=20
steal films, songs, or other protected works. If the Court sides with=20
Hollywood, it could put an entire up-and-coming generation of technological=
=20
innovation at risk. Ever since the invention of the player piano, the=20
reigning entertainment titans of the day have fought new technologies, most=
=20
recently taking up arms against VCRs, CDs, and MP3 players. Each time, they=
=20
eventually came to recognize the value of these innovations, for themselves=
=20
and for their customers. P2P -- and whatever as-yet-unimagined technologies=
=20
might follow -- will be no different. The Supreme Court needs to keep the=20
way clear for innovation.
[SOURCE: BusinessWeek, AUTHOR: Lorraine Woellert]
http://www.businessweek.com/technology/content/mar2005/tc20050324_0001.htm

WHEN DAVID STEALS GOLIATH'S MUSIC
[Commentary] When the Supreme Court takes up peer-to-peer file sharing this=
=20
week, the NY Times hopes it considers individual creators of music, movies=
=20
and books, who need to keep getting paid if they are going to keep=20
creating. If their work is suddenly made "free," all of society is likely=20
to suffer. The founders wrote copyright protections into the Constitution=20
because they believed that they were necessary for progress. Movies, music=
=20
and books require investments of money and time. If their creators cannot=20
make money from them, many will be unwilling or unable to keep producing.=20
Or they may have to finance their work in troubling ways, like by building=
=20
in product placements or taking money from donors with agendas. Grokster's=
=20
supporters are justified in worrying that if the courts are too quick to=20
rein in new technology, innovation can be stifled. They are also right to=20
point out that copyright has sometimes been given too much protection,=20
notably in the Copyright Term Extension Act, which gratuitously added 20=20
years to existing copyrights. But these concerns do not erase the=20
continuing importance of intellectual property, which is unquestionably=20
under assault. Both the court and Congress should be sensitive to evolving=
=20
technologies. But they should not let technology evolve in a way that=20
deprives people who create of the ability to be paid for their work.
[SOURCE: New York Times, AUTHOR: Editorial Staff]
http://www.nytimes.com/2005/03/28/opinion/28mon1.html
(requires registration)

TELECOM/INTERNET

FCC GRANTS BELLSOUTH PETITION
In an order released Friday, the FCC decided to preempt state telecom=20
regulations requiring BellSouth to provide DSL service to customers getting=
=20
voice service from competitors that lease BellSouth's network. The March 17=
=20
vote, one of the last before ex-FCC Chairman Michael Powell left, covers=20
all state commissions, not just those in BellSouth territory. Commissioners=
=20
Copps and Adelstein dissented in part saying the decision =93unwisely=
flashes=20
the green light for broadband tying arrangements.=94 They said the BellSouth=
=20
practice of refusing to offer DSL without voice service is a form of tying,=
=20
which they defined as an arrangement in which =93a seller conditions the=20
availability of one product on the buyer=92s purchase of a second product.=
=94
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
BellSouth Press Release: BellSouth Says FCC Broadband Order Clears=20
Underbrush; Encourages Broadband Rollout
http://bellsouthcorp.com/proactive/newsroom/release.vtml?id=3D49287
FCC Order: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-78A1.doc
Commissioners Copps and Adelstein Statement:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-78A2.doc
Coverage --
News.com:=20
http://news.com.com/FCC+starts+to+look+at+naked+DSL/2100-1034_3-5637790....
?tag=3Dnefd.top
WSJ:=20
http://online.wsj.com/article/0,,SB111196508520290459,00.html?mod=3Dtoda...
s_marketplace

IN FIGHT FOR MCI, QWEST CEO WON'T TAKE NO FOR AN ANSWER
Talks between the MCI and Qwest face a deadline of midnight tonight. So=20
perhaps as soon as today, the MCI board is expected to publicly indicate=20
whether Qwest's bid has a chance to scuttle the deal with Verizon. Although=
=20
Qwest was informed February 13 that it had lost its bid for the long=20
distance company, Qwest CEO Richard C. Notebaert has refused to concede=20
defeat, launching a guerrilla-style campaign for MCI.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com and=
=20
Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB111196616816090474,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
* Plan to Merge MCI, Qwest Has A Sour Ring to It
As a long-time advocate for investors, it pains Jerry Knight to say that=20
MCI's board of directors ought to tell shareholders who oppose merging with=
=20
Verizon Communications to take a hike.
http://www.washingtonpost.com/wp-dyn/articles/A5750-2005Mar27.html

TELEVISION

UNDER NEW CHIEF, FCC CONSIDERS WIDENING ITS REACH
A look at the stakes for the radio and television industries as new policy=
=20
leaders in Washington consider curbing indecent content. Leading lawmakers=
=20
and the new FCC chairman, Kevin Martin, would like to see significant=20
increases in the size of fines for indecent programming via broadcast, new=
=20
procedures that could jeopardize the licenses of stations that repeatedly=20
violate the rules and a possible expansion of rules to cable and satellite=
=20
television and radio providers. And organizations opposing what they=20
consider indecent programming have joined forces with consumer groups that=
=20
have been trying to tighten regulation over the cable industry and force it=
=20
to offer consumers less expensive packages of fewer stations, known as =E0=
la=20
carte services. Some of the anti-indecency groups see =E0 la carte services=
=20
as a way of helping consumers block out programming they consider indecent.=
=20
"We are at a rare moment when there seems to be bipartisan energy on both=20
sides of the political aisle and both sides of the ideological divide,"=20
said Brent Bozell, president of the Parents Television Council, a leading=20
advocacy organization that officials say has been responsible for the vast=
=20
majority of complaints against the broadcasters.
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2005/03/28/business/media/28decency.html
(requires registration)

ON PUBLIC TV, NOT QUITE AN AD BUT PRETTY CLOSE
In March 2004, the Public Broadcasting Service, a nonprofit membership=20
organization of public television stations, loosened its guidelines on the=
=20
content of the credits. So to raise money for noncommercial programming,=20
producers and distributors increasingly allow their corporate underwriters=
=20
to turn their credits into something resembling regular commercials. Since=
=20
the mid-1990's, the underwriter announcements that precede and follow many=
=20
public television programs (and usually conclude with the narrator thanking=
=20
"viewers like you") have gradually adopted many trappings of regular=20
advertising, despite appearing on "commercial-free" television. Many=20
station managers argue that these new sponsorship arrangements are=20
necessary. Federal funding for public television has grown each year since=
=20
2000, but not enough, managers say, to keep up with rising operating costs=
=20
and the additional expense of converting to digital signals. And the=20
states' support has been hampered by money woes.
[SOURCE: New York Times, AUTHOR: Nat Ives]
http://www.nytimes.com/2005/03/28/business/media/28adcol.html?
(requires registration)

STAY TUNED FOR THE NEXT COMMERCIAL
Don't touch that remote! With television watchers increasingly inured to=20
the shocking sights and kooky characters long used in commercials to snare=
=20
attention, many marketers are chasing a new goal: They are aiming to make=20
ads as compelling as the programs they interrupt. "In the old days, you=20
could get away with a funny idea, or anything that was goofy or=20
slap-happy," says Paul Venables, founder and co-creative director of=20
independent San Francisco shop Venables, Bell & Partners. Now, TV ads=20
require a higher level of craftsmanship, better casting and a more obvious=
=20
show of money and intelligence. "It's making people step up and treat TV=20
commercials as what they should be -- not just as a big bullhorn, but=20
something that could create intimacy, where you connect with somebody," he=
=20
says.
[SOURCE: Wall Street Journal, AUTHOR: Brian Steinberg=20
brian.steinberg( at )wsj.com ]
http://online.wsj.com/article/0,,SB111196827904490510,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

A TRAUMATIC END TO THE DTV TRANSITION?
So why are a few key lawmakers so eager to shut down analog broadcasting in=
=20
a few months and run the risk of enraging millions of voters stuck with=20
useless TV sets? First there's potential spectrum auction revenues, the=20
crack cocaine of federal telecom policy. Then there's the potential that=20
the companies that win those auctions will use them to provide wireless,=20
broadband connections competing with the emerging cable-teleco duopoly. Add=
=20
to that national security concerns as some of the returned spectrum will be=
=20
set aside for first responders. At stake in a poorly planned are 73 million=
=20
TV sets would become useless unless their owners obtained an over-the-air=20
digital converter, a new DTV set or a connection to cable or direct=20
broadcast satellite. Oh and some politicians jobs could be at stake if they=
=20
screw with people's TVs. Americans love their TV, and messing with it could=
=20
inspire a backlash. Just a few years ago, Congress was stunned by the=20
outpouring of anger generated by some of the 500,000 satellite-TV=20
subscribers that were close to losing access to distant feeds of ABC, NBC,=
=20
CBS and Fox programming. =93I think it=92s going to be ugly,=94 said Josh=20
Bernoff, vice president of Boston-based Forrester Research. =93The real name=
=20
for this hard date should be, 'The No More Television for Poor Old People=20
Act.'=94
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA513178.html?display=3DPolicy&refer...
=3DSUPP
(free access for Benton's Headlines subscribers)

ROHRS: TV IS STILL THE MEDIUM THAT BUILDS BRANDS BEST
TV watching still constitutes 54% of the media that audiences =93consume=94=
and=20
that it is still, by far, the best way to reach mass markets and build=20
brands. Last year, local broadcast revenues grew by 12% in the top 100=20
markets. Revenues were up in nine of the top-10 advertising categories for=
=20
the year, led by political spending, real estate, furniture, automotive and=
=20
car dealerships. In the fourth quarter of 2004, local television revenues=20
jumped by 18%, driven mostly by political advertising as the presidential=20
election came to a close.
[SOURCE: Broadcasting&Cable, AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/article/CA513110?display=3DSpecial+Repo...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

QUICKLY

IN SECRET HIDEAWAY, BILL GATES PONDERS MICROSOFT'S FUTURE
Accompanied only by the memories of his mentor, a short green fellow named=
=20
Allen, Master Bill has retreated to a waterfront cottage for his "Think=20
Week," a seven-day stretch of seclusion he uses to ponder the future of=20
technology. Then the digital master, known to many as Bill Gates,=20
propagates those thoughts across the Microsoft empire. The reading list is=
=20
papers collected from the four corners of that empire, from employees --=20
some papers make pleas for more people and money but most are focused on=20
technology trends and development. The effects of this Think Week are=20
rippling through Microsoft. Yusuf Mehdi, vice president in the MSN online=20
group, says he lugged a 6-inch-thick printout of Mr. Gates's Think Week=20
comments on a business trip. In the Office-software division, one group=20
says it used Mr. Gates's comments to change direction on whether to team up=
=20
with or acquire certain companies. (They won't say which way.) A team=20
member was soon in Europe meeting potential partners.
[SOURCE: Wall Street Journal, AUTHOR: Robert A. Guth rob.guth( at )wsj.com]
http://online.wsj.com/article/0,,SB111196625830690477,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

TELECOM FIRES BLAZE IN STATES
A number of states are considering new telecommunications legislation.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA513274.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)

NEW WEB SITES TO STORE PUBLIC'S DIGITAL CONTENT
Tapping into a growing interest in so-called citizens' media, two Web sites=
=20
launched this week that aim to become repositories and clearinghouses for a=
=20
wide variety of digital content created by the public.
[SOURCE: San Jose Mercury News, AUTHOR: Michael Bazeley]
http://www.siliconvalley.com/mld/siliconvalley/11219984.htm
See also --
Yahoo Launches Search For Nontraditionally Licensed Content
Yahoo is releasing in beta a search engine that looks for pictures,=20
writings and other creative works available for reuse under nontraditional=
=20
copyright licenses offered by Creative Commons.
http://www.techweb.com/wire/ebiz/159905530

PUBLIC KNOWLEDGE SUPPORTS EXPANDING USE OF "ORPHAN WORKS"
The U.S. Copyright Office should permit movie makers, recording artists,=20
authors, scholars and others to make a =93reasonable effort=94 to find=20
copyright owners as a way of making =93orphan works=94 more available,=
Public=20
Knowledge said Friday. =93Orphan works=94 are copyrighted materials for=
which=20
the copyright owner can't be reasonably located. Artists who want to use=20
such material in new creations could be liable for copyright infringement=20
under present law.
[SOURCE: PublicKnowldge Press Release]
http://www.publicknowledge.org/pressroom/releases/pressrelease.2005-03-2...
58900841

SHARPTON WANTS US FCC TO STEP IN ON VIOLENT RADIO
On Thursday, Rev. Al Sharpton urged the FCC to step in to stop what he said=
=20
was violence fomented by radio stations. He asking for field hearings to=20
investigate violence involving radio stations, bar artists from the air for=
=20
90 days if linked to violence, and consider such incidents when deciding=20
whether to renew broadcast licenses.
[SOURCE: Reuters, AUTHOR: ]
http://www.reuters.com/newsArticle.jhtml?storyID=3D8000078

POLITICIANS FORM TRANSATLANTIC SPAM ALLIANCE
The U.S. Congressional Internet Caucus, the body charged with educating=20
lawmakers about the Internet and fostering its growth, is teaming up with=20
its U.K. counterpart to tackle spam. The move will improve communication=20
between the two countries on e-commerce, as well as help tighten laws on=20
unsolicited bulk e-mail, said Derek Wyatt, chairman of the U.K. body, the=20
All Party Parliamentary Internet Group.
[SOURCE: C-Net|News.com, AUTHOR: Dan Ilett]
http://news.com.com/Politicians+form+transatlantic+spam+alliance/2100-73...
-5637131.html?tag=3Dnefd.top

TELECOM: KEY TO RURAL HAPPINESS
Yes, Virginia, there's demand for bundled telecommunications in rural areas=
=20
too.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA513275.html?display=3DTop+Stories&...
rral=3DSUPP
(free access for Benton's Headlines subscribers)

BLOCKBUSTER DROPS HOLLYWOOD BID
Blockbuster, the largest U.S. video-store chain with about 5,500 outlets,=20
has abandoned its hostile bid to acquire rival video-store chain Hollywood=
=20
Entertainment clearing the way for Movie Gallery to proceed with its=20
accepted bid for Hollywood. Blockbuster cited regulatory concerns as the=20
main reason it wouldn't extend its $991 million offer to acquire Hollywood,=
=20
the third-largest video-store chain with 1,920 stores.
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint joe.flint( at )wsj.com]
http://online.wsj.com/article/0,,SB111190652212190373,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
USAToday:=20
http://www.usatoday.com/printedition/money/20050328/7b_blockbuster_28.ar...
m

CENSORSHIP IN THE SCIENCE MUSEUMS
[Commentary] A dozen or so Imax theaters, mostly in the South, have been=20
shying away from science documentaries that might offend Christian=20
fundamentalists. The danger in self-censorship by museums is that it will=20
reduce the already tiny world of Imax theaters available for big-screen=20
science documentaries. Producers have a hard time making money as it is. It=
=20
would be unfortunate if censorship by science museums helped drive them=20
away from topics that might offend religious fundamentalists.
[SOURCE: New York Times, AUTHOR: Editorial Staff]
http://www.nytimes.com/2005/03/28/opinion/28mon3.html
(requires registration)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------