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Reminder: the 2005 National Conference for Media Reform takes place May=20
13-15 in St Louis (http://www.freepress.net/conference/).
For this and other upcoming media policy events, see=20
http://www.benton.org/calendar.htm

MEDIA IN THE PUBLIC INTEREST
Electronic News Facing Credibility Gap -- RTNDA=92s Shelley
Deloitte: TV Nets Obsolete
PBS Scrutiny Raises Political Antennas
CBS Issues Responsibility Rundown
NBC: Pax 'Abandoning' Net Programming

BROADCASTING
NAB Expects Congress to Decide Multicast Must-Carry
Interoperability Amendment Fails in House Committee

CABLE
More Clout for Cable
Adelphia Deal to Shuffle Cable
Roberts: Post-Adelphia, Comcast at 29%
GAO: Cable=92s Urban Fort Under DBS Assault

TELECOM
Watchdogs to FCC: Telecom Mergers A Disaster for
Competition, Consumers
Qwest Raises Bid For MCI in Effort To Upend Verizon

AT THE FCC
Open Meeting Agenda
$3.65 in E-rate Support Sought in 2005

QUICKLY -- FCC to Clarify Online Indecency Form; Lawmakers Vote to Ban=20
Internet-Based Hunting; Lotteries may Gamble on Internet

MEDIA IN THE PUBLIC INTEREST

ELECTRONIC NEWS FACING CREDIBILITY GAP -- RTDNA'S SHELLEY
Electronic media face a =93credibility gap as fewer and fewer people, from=
=20
across the ideological spectrum, believe what we tell them,=94 said new=20
Radio-Television News Directors Association Chairman Dan Shelley. He said=
=20
viewers have many other news options and =93we insist on telling them we=92r=
e=20
not biased when they know we are.=94 News has become =93an information on=20
demand world,=94 Shelley said, and traditional electronic journalists can no=
=20
longer =93stubbornly cling to the old paradigms of our business.=94 He said=
=20
=93some day=94 broadcast and print news may become =93quaint relics of a=
bygone=20
era.=94 The media are =93uniquely positioned=94 to succeed
in this new environment =93but we will do so only if we begin to act --=20
now... Technological advances have made traditional delivery methods much=20
less relevant.=94
Shelley also criticized =93government manipulation=94 of the media. He cited=
=20
the FCC=92s =93draconian crackdown=94 on broadcast indecency and efforts in=
=20
Congress to force TV and radio stations to provide more local coverage of=20
local news. He agreed there should be more coverage, but =93it just=
shouldn't=20
be mandated by the government.=94
[SOURCE: Communications Daily, AUTHOR: Tack Nail]
(Not available online)
See also --
RTNDA: ID CORPORATE VNRs
The Federal Communications Commission does not require broadcasters to=20
identify corporate video-news releases so long as they have not been=20
directly paid to run them, but the Radio-Television News Directors=20
Association said they must identify them anyway.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA526831?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
PERCEPTION AND REALITY: THE BUSINESS OF MEDIA
Media companies are acting more like companies than they are the champions=
=20
of free speech and the public good, so it shouldn't be a surprise that they=
=20
are viewed increasingly as untrustworthy.
[SOURCE: NPR, AUTHOR: David Folkenflik]
http://www.npr.org/templates/story/story.php?storyId=3D4600783

DELOITTE: TV NETS OBSOLETE
The technology, media and telecommunications group of consulting firm=20
Deloitte released a report Thursday saying TV networks are threatened with=
=20
extinction if they don't evolve quickly into something else. What, you ask?=
=20
"A multi-dimensional, highly adaptable, customer-focused model." In=20
English? "Extending the brand into areas including interactivity and=20
on-demand offerings and new distribution channels like wired and wireless=20
networks." The report's suggestions include: Offer content across a variety=
=20
of channels and platforms; Re-package and market content as services as=20
well as products; Extend content lifespan by offering more digital content=
=20
that can be easily packaged and sold or rented as DVD, VHS, memory cards,=20
and wired and wireless electronic downloads. That repackaging could take=20
the form of: On-demand =ADWarehousing audio and video for web-casts, radio,=
=20
mobile phones, and Video-on-Demand; Interactivity =AD Voting, purchasing,=20
news, games, polls, comment/questions, and web-based chat; and Events =AD=20
Tie-in events like the American Idol concert series.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA526626?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

PBS SCRUTINY RAISES POLITICAL ANTENNAS
Some observers, including people inside the Public Broadcasting Service,=20
see recent developments as troubling. PBS, they say, is being forced to toe=
=20
a more conservative line in its programming by the Republican-dominated=20
Corporation for Public Broadcasting which provides about $30 million in=20
federal funds to PBS. CPB officials say they are merely seeking to ensure=20
balance and fairness in the network's presentation of political news and=20
ideas (using the Fox News Channel as a model). In negotiations with PBS=20
earlier this year, CPB insisted, for the first time, on tying new funding=20
to an agreement that would commit the network to strict "objectivity and=20
balance" in each of its programs -- an idea that PBS's general counsel=20
described in an internal memo as amounting to "government encroachment on=20
and supervision of program content, potentially in violation of the First=20
Amendment." A senior Federal Communications Commission official, who would=
=20
not speak for attribution because he must rule on issues affecting public=20
broadcasting, said CPB "is engaged in a systematic effort not just to=20
sanitize the truth, but to impose a right-wing agenda on PBS. It's almost=20
like a right-wing coup. It appears to be orchestrated."
[SOURCE: Washington Post, AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-dyn/articles/A8067-2005Apr21.html
(requires registration)
See also --
FALLING UP AT CPB
[Commentary] Ken Ferree is now the top executive at the Corporation for=20
Public Broadcasting, charged with developing programming for National=20
Public Radio, Public Radio International and PBS. He's also the former Mass=
=20
media Bureau Chief at the FCC. At the FCC, Ferree acted as the key aide to=
=20
Chairman Michael Powell on media policy formation. As head of the FCC's=20
Media Bureau, Ferree was a key player in putting together the Commission's=
=20
attempt to ram through a set of rules in 2003 that would have taken the lid=
=20
off media ownership limits, effectively allowing media conglomerates to buy=
=20
up as much of the media landscape as their riches would allow.
[SOURCE: Center for American Progress, AUTHOR: Eric Alterman]
http://www.americanprogress.org/site/pp.asp?c=3DbiJRJ8OVF&b=3D569645

CBS ISSUES RESPONSIBILITY RUNDOWN
How does the CBS network and the TV stations it owns serve the public=20
interest. The company decided to count the ways: it aired $212 million=20
worth of PSA's in 2004; a number of writers who have participated in the=20
networks' Writers' Mentoring Program have landed jobs on network programs,=
=20
increasing diversity; it is captioning 90-95 hours of programming; it=20
covered the 2004 election (in infamous fashion) and airs "60 Minutes." [So=
=20
you decide -- are we getting enough of a return on our investment?]
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA526863?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

NBC: PAX 'ABANDONING' NET PROGRAMMING
In its relentless pursuit to serve the public interest, convenience and=20
necessity, Pax TV will virtually cease entertainment programming and=20
instead load its schedule with infomercials, direct response and other paid=
=20
programming.
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
http://www.broadcastingcable.com/article/CA526901?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

BROADCASTING

NAB EXPECTS CONGRESS TO DECIDE MULTICAST MUST-CARRY
A TV station=92s right to require cable systems to carry multiple digital=20
channels probably will be included in congressional DTV legislation,=20
National Association of Broadcasters President Eddie Fritts told reporters=
=20
Wednesday. The NAB was expected to file comments late Thurs. favoring=20
reconsideration of the FCC=92s Feb. ruling that cable need carry only one=20
program stream per station. The association believes stations are entitled=
=20
to require cable to carry all of a stations=92s digital programming,=20
including multiple video streams.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

INTEROPERABILITY AMENDMENT FAILS IN HOUSE COMMITTEE
The House Homeland Security Committee rejected an amendment that would have=
=20
established a separate grant program for interoperable communications.=20
Several Members said that broadcasters were the real source of problems in=
=20
developing interoperable public safety communications. By blocking DTV=20
transition legislation, broadcasters are keeping public safety from getting=
=20
spectrum that would improve interoperability, they said. Rep Weldon (R-PA)=
=20
urged the committee to =93stand
up to broadcasters.=94 Rep Weldon and Rep. Harman (D-CA) have pushed=20
legislation that would require broadcasters to vacate analog spectrum=20
designated for public safety use. Rep. Pascrell (D-NJ) said spectrum was=20
the main issue and Committee leaders needed to acknowledge a =93turf war=94=
=20
between the Homeland Security and Commerce committees. =93Broadcasters have=
=20
taken the front seat while firefighters are in the back seat,=94 he said.=20
Other members, including Reps. Simmons (R-CT), Reichert (R-WA) and King=20
(R-NY), also cited spectrum reclamation as the leading issue for improved=20
interoperability.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

CABLE

MORE CLOUT FOR CABLE
Time Warner and Comcast are paying $17.7 billion in cash and stock for the=
=20
assets of Adelphia, which is in Chapter 11 bankruptcy reorganization. Time=
=20
Warner plans to issue shares in its cable company, which will be merged=20
with most of Adelphia. The deal also enables Comcast to unwind the 21%=20
stake in Time Warner's cable company. If the deal announced yesterday wins=
=20
approval from regulators, 37 million subscribers -- more than one in four=20
U.S. households -- will get their television service from either Comcast or=
=20
Time Warner. Time Warner and Comcast will be able to use their new strength=
=20
in key markets to try to grab the kind of programs and services that can=20
keep customers from defecting and attract new ones. Much of this battle=20
will be conducted in the realm of phone service -- and sports programming.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com and=20
Julia Angwin julia.angwin( at )wsj.com]
http://online.wsj.com/article/0,,SB111408022142013094,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
There's lots more coverage --
USAToday:=20
http://www.usatoday.com/printedition/money/20050422/1b_adelphia22.art.htm
B&C: http://www.broadcastingcable.com/article/CA526618?display=3DBreaking+Ne=
ws
Multichannel:=20
http://www.multichannel.com/article/CA526508.html?display=3DBreaking+News
TVWeek: http://www.tvweek.com/news.cms?newsId=3D7689
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-adelphia22apr22,1,105...
.story?coll=3Dla-headlines-pe-business
http://www.nytimes.com/2005/04/22/business/media/22cable.html

ADELPHIA DEAL TO SHUFFLE CABLE
About one in ten U.S. cable subscribers would get a new provider as the=20
result of the $17.6 billion deal unveiled Thursday in which Comcast Corp.=20
and Time Warner Corp. agreed to jointly buy Adelphia Communications as well=
=20
as swap some of their own cable customers. Time Warner is getting a net=20
gain of about 3.5 million basic cable subscribers as part of the deal. Time=
=20
Warner will have 14.4 million basic subscribers of its own, and another 1.5=
=20
million in a continued partnership with Comcast. It is paying $9.2 billion=
=20
in cash for the Adelphia assets in addition to issuing the stake in its=20
cable unit, as well as paying $2.0 billion to Comcast for a stake it has=20
held in Time Warner Cable. The additional customers push Time Warner Cable=
=20
ahead of the nation's two satellite television operators: DirecTV and=20
EchoStar Communications' Dish Network. After the deal Comcast will have=20
about 23.3 million basic cable customers of its own and an additional 3.5=20
million additional subscribers held in various partnerships. In addition to=
=20
using Adelphia's territories to supplement their own system, Comcast and=20
Time Warner will also swap certain cable operations as part of the deal to=
=20
give each one greater concentration of customers in their new service area.=
=20
Time Warner will have 85 percent of its customers in five large clusters,=20
with more than a third of its overall customer base in either the New York=
=20
or Los Angeles metropolitan areas. Comcast will have much of its customer=20
base concentrated in the Boston to Washington corridor, as well as the=20
upper Midwest.
[SOURCE: CNNMoney (owned by Time Warner), AUTHOR: Chris Isidore]
http://money.cnn.com/2005/04/21/technology/adelphia/index.htm?cnn=3Dyes

ROBERTS: POST-ADELPHIA, COMCAST AT 29%
With the purchase with Time Warner of Adelphia cable systems, Comcast will=
=20
pick up 1.8 million subscribers and will have 23.3 million wholly owned=20
subscribers after the transaction closes. It will continue to own under FCC=
=20
attribution rules another 3.5 million subscribers in various partnerships.=
=20
Based on a pay TV market with 92.2 million subscribers, Comcast ends up=20
with 29% of the market.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA526720.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

GAO: CABLE'S URBAN FORT UNDER DBS ASSAULT
The U.S. Government Accountability Office released a report Thursday=20
confirming what cable operators have known for a long time:=20
Direct-broadcast satellite providers are invading their urban fortress.=20
According to the 40-page report, EchoStar Communications Corp. and DirecTV=
=20
Inc. have grown =93most rapidly in urban and suburban areas=94 since 2001.=
=20
However, the report noted, DBS penetration remains highest in rural=20
markets. In the report, the GAO found that from 2001-04, satellite=92s=
growth=20
rate was 15% in rural areas, 32% in suburban areas and 50% in urban areas.=
=20
It also found that DBS served 29% of rural, 18% of suburban and 13% of=20
urban homes. In examining other trends, the GAO found that DBS providers=20
were less successful in picking up subscribers in markets where they do not=
=20
offer local TV signals and where cable companies have upgraded their=20
networks. The GAO found that DirecTV and EchoStar have also been struggling=
=20
in so-called overbuild markets, where the cable incumbent goes head-to-head=
=20
with another wire-line pay TV provider. The GAO report was requested by=20
Sens. Mike DeWine (R-Ohio) and Herb Kohl (D-Wis.), respectively the=20
chairman and ranking member of the Senate Judiciary Subcommittee on=20
Antitrust, Competition, Business and Consumer Rights.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA526900.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

TELECOM

WATCHDOGS TO FCC: TELECOM MERGERS A DISASTER FOR COMPETITION, CONSUMERS
Consumers Union, the Consumer Federation of America, U.S. Public Interest=20
Research Group and the National Association of State Utility Consumer=20
Advocates condemned the pending telecommunications mergers between SBC-AT&T=
=20
and Verizon-MCI currently before the Federal Communications Commission=20
(FCC), because further consolidation threatens consumer prices, competition=
=20
and access to the high-speed Internet. The groups argued that the=20
telecommunications marketplace today is already concentrated and lacks real=
=20
competition. If approved, the two proposed mergers will unite the nation=92s=
=20
two largest telecom firms with their two largest competitors in a=20
monopolistic stranglehold on consumers and potential competitors. They=20
argue that the mergers seek to transform Baby Bells into regionally=20
dominant =93Behemoth Bells=94, undoing the anti-monopoly goals of the 1984=
=20
breakup of the AT&T monopoly. Should the mergers be approved, the newly=20
formed telecommunications giants will attain about a 90 percent market=20
share in residential local wireline, 70 percent in long distance, and 40-50=
=20
percent in wireless. As Behemoth Bells they will have the incentive and=20
opportunity to discriminate through price squeezes against those=20
competitors who require access to their networks.
[SOURCE: Consumers Union Press Release]
http://www.consumersunion.org/pub/core_telecom_and_utilities/002169.html...
e

QWEST RAISES BID FOR MCI IN EFFORT TO UPEND VERIZON
MCI has until tomorrow to decide on a "best and final" offer from Qwest=20
which is now offering $30/share. The total value of the bid is $9.74=20
billion. MCI and Verizon currently have an accepted deal valued at $23.10 a=
=20
share.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com=20
and Almar Latour almar.latour( at )wsj.com]
http://online.wsj.com/article/0,,SB111411855367313690,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
Also in:
WP: http://www.washingtonpost.com/wp-dyn/articles/A8104-2005Apr21.html
USAToday:=
http://www.usatoday.com/printedition/money/20050422/qwest22.art.htm
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-qwest22apr22,1,707940...
ory?coll=3Dla-headlines-pe-business
http://www.nytimes.com/2005/04/22/business/22qwest.html

AT THE FCC

OPEN MEETING AGENDA
The Federal Communications Commission will hold an Open Meeting on=20
Thursday, April 28, 2005, which is scheduled to commence at 9:30 a.m. in=20
Room TW-C305, at 445 12th Street, S.W., Washington, D.C. The agenda=20
includes four items: 1) a Notice of Proposed Rulemaking that initiates a=20
proceeding to implement new satellite broadcast carriage requirements in=20
the noncontiguous states; 2) a Notice of Inquiry regarding standards that=20
allow viewers that are unserved by a digital television broadcast station=20
to receive network programming via satellite; 3) a Report and Order=20
concerning the Mandatory Electronic Filing for International=20
Telecommunications Services; and 4) an Order the Subscriber List=20
Information (SLI)/Directory Assistance (DA). Come early to get a good seat;=
=20
I'll see you there.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-258262A1.doc
More info at: http://www.fcc.gov/fccmeetings.html

$3.65 IN E-RATE SUPPORT SOUGHT IN 2005
On April 15, 2005, the Schools and Libraries Division (SLD) of the=20
Universal Service Administrative Company (USAC) reported to the Federal=20
Communications Commission that $3.65 billion in requested funding has been=
=20
estimated for schools and libraries seeking E-rate discounts for Funding=20
Year 2005. This estimate is based on the dollars requested in 38,799=20
applications received or postmarked by February 18, 2005, the close of the=
=20
Form 471 application filing window. There are several factors that will=20
reduce ultimately the funds requested from the estimated level. First,=20
while efforts have been made to eliminate duplicate requests, inevitably we=
=20
will discover more duplication as we process these applications. Second,=20
the SLD's efforts to assure that applications are substantially complete=20
and that funds are committed only for eligible services, for use by=20
eligible entities with the appropriate discount rate, and are otherwise=20
consistent with program rules, will further reduce the demand.
[SOURCE: , AUTHOR: ]
http://www.sl.universalservice.org/whatsnew/2005/042005.asp#041805

QUICKLY

FCC TO CLARIFY ONLINE INDECENCY FORM
After a B&C story noted the confusion created by the FCC's new indecency=20
complaint form, the FCC is moving to change and clarify online instructions=
=20
for filling out the form.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA526826?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

CALIFORNIA LAWMAKERS VOTE TO BAN INTERNET-BASED HUNTING
California state senators approved a bill on Thursday that would ban=20
hunters from killing animals over the Internet.
Hunters may now stalk prey online at www.live-shot.com, a Web site linking=
=20
firearms and cameras so customers can point, click and shoot antelope,=20
sheep and wild hogs on a Texas ranch from thousands of miles away.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D8...
48

LOTTERIES MAY GAMBLE ON INTERNET
Several states are considering selling lottery tickets on the Internet
[SOURCE: USAToday]
http://www.usatoday.com/printedition/news/20050422/1a_bottomstrip22.art.htm
--------------------------------------------------------------
...and we are outta here. Have a great weekend -- is it Spring yet in your=
=20
neck of the woods?
--------------------------------------------------------------
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.
--------------------------------------------------------------

The House Subcommittee on Telecommunications and the Internet is hold a=20
hearing today: How Internet Protocol-Enabled Services Are Changing the Face=
=20
of Communications: A Look at Video and Data Services. For this and other=20
upcoming media policy events, see http://www.benton.org/calendar.htm

TELEVISION
Broadcasters and the Public Interest: Gambling with Our Democracy
Mitchell Charts Course for PBS
Broadcasters Pitch Own Content Crackdown
Strong Support for ACA Retrans-Reform Move
CEA Fires Back in Tuner Battle

OWNERSHIP
Merger Critics Seek Telecom Regulation
Time Warner, Comcast may Face Battle about Adelphia

QUICKLY -- Radio Is Blamed For Unrest In Ecuador; Multicast Radio; Internet=
=20
Taxation Legislation; State-Level Cable Franchising; Donaldson: Network=20
News Dead; Hewitt: No It's Not

TELEVISION

BROADCASTERS AND THE PUBLIC INTEREST: GAMBLING WITH DEMOCRACY
[Commentary] The health of a democratic system depends on an informed,=20
engaged citizenry. And the reality is that television continues to play an=
=20
enormous role in the process of getting the public the information they=20
need to make their own decisions about the issues of the day, especially at=
=20
election time. Unfortunately, plenty of data prove that broadcasters are=20
failing to provide even basic information about local politics and public=20
issues. A study of local news during the last election by the Norman Lear=20
Center clearly shows that the "if it bleeds, it leads" mentality continues=
=20
to drive news decisions. And that means that when citizens across the=20
country went to the ballot box last year, they were essentially forced to=20
shrug their shoulders and roll the dice. As trustees of a public resource,=
=20
broadcasters have a statutory obligation to air programming that is in the=
=20
public interest. But too many in the broadcast industry continue to resist=
=20
even minor efforts to strengthen the public interest standard - to the=20
detriment of the public, and our democracy itself.
[SOURCE: Campaign Legal Center , AUTHOR: Meredith McGehee]
http://www.campaignlegalcenter.org/press-1645.html

MITCHELL CHARTS COURSE FOR PBS
Last week, PBS CEO Pat Mitchell identified four priorities: 1) Development=
=20
of a new and standard-setting educational children's program strategy for=20
preschoolers and expand reach to older kids with a new digital service=20
built on the success of PBS Kids GO. 2) Implementation of digital=20
technologies to meet age-specific learning that addresses the much-needed=20
gaps in our country in math and science education. 3) Renewal of the Ready=
=20
to Learn Partnership with the Department of Education. 4) Creation of a=20
plan for the future that includes new sources of revenue including a=20
national fund for special initiatives and services managed by the newly=20
created PBS Foundation in alliance with stations and producers and in=20
alignment with PBS Content strategies developed in consultation with=20
stations and producers.
[SOURCE: PBS Press Release]
http://www.pbs.org/aboutpbs/news/20050413_mitchellshowcase.html

BROADCASTERS PITCH OWN CONTENT CRACKDOWN
A task force of broadcast industry executives organized by the National=20
Association of Broadcasters will present its recommendations this summer,=20
says LIN Television Chairman Gary Chapman. Areas of focus include better=20
audience communication on safeguards like the V-Chip and ratings system.=20
Radio and TV stations will also share their "best practices" for training=20
staff and trying to prevent FCC violations. There has been talk of reviving=
=20
the so-called family hour, but execs familiar with the plan say that it is=
=20
unlikely that NAB will recommend that stations institute a prime time=20
family viewing period, though it is something that new FCC Chairman Kevin=20
Martin has suggested broadcasters institute voluntarily.
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
http://www.broadcastingcable.com/article/CA526288?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See also:
* TV, Radio to Issue Decency Guide This Summer
http://www.reuters.com/newsArticle.jhtml?type=3DtopNews&storyID=3D8230855
* Broadcasters Plan to Offer Voluntary Code on Indecency to Police=20
Industry's Airwaves
http://www.latimes.com/business/printedition/la-fi-nab20apr20,1,5565082....
y?coll=3Dla-headlines-pe-business

STRONG SUPPORT FOR AA RETRANS-REFORM MOVE
More than 55 cable companies, independent programmers and national=20
organizations have filed comments with the Federal Communications=20
Commission in support of the American Cable Association=92s call for reform=
=20
of retransmission-consent rules. The AA in March filed a petition with the=
=20
FCC asking the agency to examine and change regulations used by the =93Big=
=20
Four=94 TV-broadcast networks and TV-station groups to allegedly prop up the=
=20
price of retransmission consent. The AA charged that cash-for-carry=20
retransmission-consent demands could cost the small-cable-operator group=20
and its customers an estimated $1 billion if current rules aren't changed.
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
http://www.multichannel.com/article/CA526308.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See a show of support for ACE from the National Telecommunications=20
Cooperative Association at:
http://www.ntca.org/ka/ka-3.cfm?content_item_id=3D3173&folder_id=3D522
More on retransmission:
* CBS Eyes Retrans After Viacom Split
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
http://www.multichannel.com/article/CA525947.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* CBS May Seek Signal Fee
[SOURCE: Los Angeles Times, AUTHOR: Sallie Hofmeister]
http://www.latimes.com/business/printedition/la-fi-viacom20apr20,1,70966...
tory?coll=3Dla-headlines-pe-business
(requires registration)

CEA FIRES BACK IN TUNER BATTLE
The Consumer Electronics Association fired back at the National Association=
=20
of Broadcasters Tuesday, saying that broadcasters should "stop pushing for=
=20
regulations on other industries, 'remove its shackles' and market the value=
=20
of its digital service to consumers," in the words of CEA president Gary=20
Shapiro. If broadcasters want to advance the DTV transition they should: 1)=
=20
Promote free over-the-air broadcasting; 2) Shift to HDTV quickly and=20
promote DTV on analog channels; 3) Support a hard cut-off date for analog=20
broadcasts and 4) Defend the First Amendment.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA525946?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See NAB's comments at:=20
http://www.nab.org/newsroom/pressrel/Releases/NAB_Blasts_CEA.htm

OWNERSHIP

MERGER CRITICS SEEK TELECOM REGULATION
At a Senate Judiciary subcommittee on antitrust, competition policy and=20
consumer rights in a hearing yesterday, Critics of consolidation in the=20
telecommunications industry warned members of Congress that specific=20
remedies would be necessary to ensure consumers are not harmed by a series=
=20
of recently proposed mergers. The resulting mega-companies could, among=20
other things, drive up costs by requiring customers to buy multiple=20
services bundled together, even if consumers don't want them, Consumers=20
Union senior director Gene Kimmelman said. Smaller providers, including new=
=20
competitors in the Internet telephone service market, worry the combined=20
companies could block access to 911 emergency services and the public=20
telephone network.
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/articles/A2400-2005Apr19.html
(requires registration)
Link to hearing: http://judiciary.senate.gov/hearing.cfm?id=3D1465
See testimony offered by Consumers Union:
http://www.consumersunion.org/pub/0419%20gk%20testimony%20final.pdf

TIME WARNER, COMCAST MAY FACE BATTLE ABOUT ADELPHIA
Consumer groups and cable's top rivals are gearing up to fight at the=20
Federal Communications Commission and before antitrust officials the=20
proposed sale of Adelphia to the nation's largest cable companies -- Time=
=20
Warner and Comcast. By adding Adelphia's customers and swapping some=20
systems with Comcast, Time Warner could end up with 70% of Los Angeles=20
cable and satellite customers, vs. about 13% today. Its hold on Cleveland=20
could hit 80% from 32%. And Comcast's share of Washington, D.C.'s market=20
could rise to 70% from 57%. Such market power could pose big problems for=20
the satellite companies and phone companies planning to enter the video=20
business if the cable operators cut exclusive deals with popular=20
programmers -- particularly regional sports channels. In 1992, Congress=20
ordered the FCC to cap the national market share a cable operator could=20
have. But in 2001, a federal court rejected the regulators' limit of 30%,=20
saying that the FCC hadn't justified the number. The commission has yet to=
=20
address that objection or try to set a new limit. Andrew Schwartzman of the=
=20
Media Access Project, a public interest law firm, says he might ask the=20
court to insist that the FCC set a new cap before approving any additional=
=20
deals. Such a case could drag on longer than the companies care to wait.
[SOURCE: USAToday, AUTHOR: David Lieberman]
http://www.usatoday.com/printedition/money/20050420/2b_adelphia20.art.htm

QUICKLY

RADIO IS BLAMED FOR UNREST IN ECUADOR
La Luna, a small radio station in Ecuador, is being blamed by government=20
officials for escalating unrest. Throughout the crisis, the station has=20
regularly informed listeners where and when demonstrations would occur.=20
During the height of tonight's chaotic demonstrations, the station provided=
=20
directions for protesters wishing to navigate street closures and avert=20
police blockades to reach the presidential palace. The station's signal was=
=20
cut for several hours Monday, during the evening, when most street actions=
=20
have been organized. The government blamed the outage on an electrical=20
failure at a transmission tower and said several stations were affected,=20
including a state-run television station. But many Ecuadorans who oppose=20
the president said they believed the government was targeting La Luna. [I=20
tried to sing along | But damn that radio song | Hey hey hey]
[SOURCE: Washington Post, AUTHOR: Monte Reel]
http://www.washingtonpost.com/wp-dyn/articles/A2940-2005Apr19.html
(requires registration)

MULTICAST RADIO
National Public Radio announced Monday that it will begin offering five=20
programmed music formats to multicasting stations: classical, jazz,=20
electronica, triple-A and folk. Other program offerings NPR is developing=20
for stations with new channels include a news and information service and=20
formats that would serve culturally diverse audiences. Multicasting is a=
=20
feature of HD Radio=99 technology that creates multiple broadcast channels=
=20
from what is presently one analog radio signal.
[SOURCE: National Public Radio Press Release]
http://www.npr.org/about/press/050418.tomorrowradio.html

LEGISLATION IN BOTH HOUSES TACKLES INTERNET TAXATION
Sens. Wyden (D-OR) and Allen (R-VA) and Rep. Cox (R-CA) have introduced=20
bills to extend 1998=92s Internet Tax Freedom Act, which bans taxes on=20
Internet access, double taxation of a product or service bought online and=
=20
taxes that treat Internet purchases differently from other types of sales.=
=20
That law currently expires in Nov. 2007. The bills have not been assigned a=
=20
number yet. Apparently Rep Cox plans to introduce one measure identical to=
=20
the Senate=92s, which lets states=92 Internet tax statutes time out, and a=
2nd=20
that would repeal the grandfathered provisions immediately. This leaves it=
=20
up to the House Judiciary Committee to decide what bill to pursue.
[SOURCE: Communications Daily, AUTHOR: Andrew Noyes]
(Not available online)

BELLS BACK TEXAS BILL TO MOVE CABLE FRANCHISING TO STATE
The Texas legislature is the new locus for cable vs. phone company fighting=
=20
over rules on provision of video service. It is considering a bill=20
(HB-3176) that would move the franchising process to the state level.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

DONALDSON: NETWORK NEWS IS DEAD
Former ABC News reporter/anchor Sam Donaldson said it so it must be true:=20
broadcast network TV news is dead. There will be no film at 11.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/CA526034.html
http://www.multichannel.com/article/CA526067.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
http://www.tvweek.com/news.cms?newsId=3D7679

NEWS WITH VIEWS
[Commentary] The executive producer of the first 30-minute network newscast=
=20
in 1960 thinks providing more commentary is the way to revitalize nightly,=
=20
network broadcast TV newscasts.
[SOURCE: New York Times, AUTHOR: Don Hewitt, CBS]
http://www.nytimes.com/2005/04/20/opinion/20hewitt.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.
--------------------------------------------------------------

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

TELEVISION
Who Owns TV Stations?
Loosen Up, Already
Local News Wakes Up
Media Could Get Millions More Ad Dollars
TV Underserves Disabled, Bush Told
Merger of TV and Web May Hit Cable Industry Before It's Prepared

JOURNALISM
Williams Deal Mismanaged, Not Illegal, Says DOE
The Truth About VNRs
Fox's Sandstorm
For Every Story, An Online Epilogue

INDECENCY
White House Clarifies Indecency Stand
Disney=92s Balancing Act on Indecency

QUICKLY -- Comstock Out of Running for FCC; Who Will be Next to Run NAB?;=20
Tighter Reins On Lobbyists?; Is Verizon Redlining?; CEA Downgrades 2005 DTV=
=20
Forecast; filmmakers vs. "Family-Friendly" Editors; Mobile Broadband; ICANN=
=20
Bosses Slam Net-phone Regulation; The Truth about Cell Phones and the D Not=
=20
Call List

TELEVISION

WHO OWNS TV STATIONS?
The Top 25 Station Groups are ranked according to the percentage of the=20
109.6 million U.S. TV homes they reach, as measured by Nielsen Media=20
Research. Stations' reach is calculated to correspond with FCC ownership=20
rules (listed as coverage FCC in the tables below). The FCC method=20
discounts by half the reach of UHF stations, those channel 14 and above.=20
The ranking also shows reach without the discount (coverage total). If a=20
group owns other stations in a market, those stations' coverage is not=20
counted in the group's total. Media conglomerates looking to grow national=
=20
and local footprints, small group owners hoping to cash out, and investment=
=20
bankers eager for commissions all predicted a wild market for station=20
transactions following the FCC=92s 2003 deregulation of broadcast- ownership=
=20
rules. But the expected rush of transactions was smothered at birth by=20
legal challenges that ultimately resulted in federal appeals judges=92=20
throwing out deregulation that would have permitted the biggest station=20
groups to get bigger and would have opened the door to many more ownership=
=20
combinations of local TV, radio and newspaper groups.
[SOURCE: Broadcasting&Cable, AUTHOR: George Winslow/Bill McConnell]
http://www.broadcastingcable.com/article/CA525332.html?display=3DSpecial...
ort&referral=3DSUPP
http://www.broadcastingcable.com/article/CA525331.html?display=3DSpecial...
ort&referral=3DSUPP
(free access for Benton's Headlines subscribers)

LOOSEN UP, ALREADY
[Commentary] Without any ownership-rule relief, local stations now facing=20
increased, unregulated competition from hundreds of cable and=20
satellite-delivered systems are finding themselves in dire times,=20
threatening their position and ability to serve their communities. So who=20
wins by further regulating over-the-air television stations? Who wins by=20
the delay in changing local-ownership rules and the lack of adequate=20
consideration of those changes to the rules for small- and medium-market=20
television stations? Clearly, not broadcasters who are prevented from=20
becoming more efficient and are saddled with further expensive obligations=
=20
that their competitors do not face. And clearly, not the communities served=
=20
by these broadcasters. It is time for the FCC -- with its new chairman and=
=20
commissioners -- and Congress to recognize that relief is necessary and=20
that further obligations threaten the system of local broadcasting that has=
=20
served these communities for more than 50 years.
[SOURCE: Broadcasting&Cable, AUTHOR: Mark R. Fratrik, a vice president of=20
BIA Financial Network]
http://www.broadcastingcable.com/article/CA525381.html?display=3DOpinion...
erral=3DSUPP
(free access for Benton's Headlines subscribers)

LOCAL NEWS WAKES UP
Across the country, stations are waking up to the early shift. Changing=20
lifestyles=97longer work hours and earlier bedtimes=97are sapping the=
audience=20
for evening news. In contrast, the morning audience is growing. In 2004,=20
25% of American homes were watching TV at 6:30 a.m., compared with 15% in=20
1991, according to Nielsen Media Research. At 6 a.m., the tune-in levels=20
jumped to 20% from 11%. Drawn by cheaper spots and strong ratings, national=
=20
advertisers are jumping aboard the early-morning bandwagon, and stations=20
are exploiting new ways to make money in the morning: One example is by=20
selling sponsorships for the weather and traffic.
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
http://www.broadcastingcable.com/article/CA525318?display=3DFeatures&ref...
l=3DSUPP
(free access for Benton's Headlines subscribers)

MEDIA COULD GET MILLIONS MORE AD DOLLARS
A task force commissioned by the Campaign Finance Institute said in a=20
report Friday that public funding limits should be raised to match levels=20
for the general election. Greater public support for primaries is=20
necessary, the report concluded, because of competitiveness and the rising=
=20
expense of party primaries. "Without a sound system, future campaigns could=
=20
well be limited to front-runners and rich people," the institute said.=20
Specifically, the task force urged raising the primary spending limit per=20
candidate from $50 million to $75 million, the same as general elections.=20
The public amount of matching funds should be capped at $20 million per=20
candidate.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA525160?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
CFI Press Release: http://www.cfinst.org/pr/041205.html
So the Voters May Choose...
Reviving the Presidential Matching Fund System
http://www.cfinst.org/presidential/report2/pdf/VotersChoose.pdf

TV UNDERSERVES DISABLED, BUSH TOLD
The National Council on Disability in a letter to President Bush Friday=20
said White House homeland-security initiatives should include requiring TV=
=20
programmers to do more to ensure that disabled persons have access to=20
emergency information during terrorist attacks and other disasters. NCD=20
called for the FCC to better enforce requirements that stations, cable=20
operators and DBS providers make emergency information available to people=
=20
with hearing and vision disabilities. Among the TV industry's shortcomings,=
=20
NCD said, is that news crawls frequently block visibility of closed=20
captioning, thus robbing those with hearing difficulties of the often more=
=20
comprehensive voiced information. For instance, NCD noted that deaf people=
=20
experienced "heightened anxiety and confusion" during the 2001 terrorist=20
attacks because of the lack of captioning on broadcast systems. Similar=20
problems on California TV stations kept many from knowing that their=20
neighborhoods were threatened by the wildfires of 2003.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA525177?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See NCB Press Release: http://www.ncd.gov/newsroom/news/2005/r05-486.htm
Saving Lives: Including People with Disabilities in Emergency Planning
http://www.ncd.gov/newsroom/publications/2005/saving_lives.htm

MERGER OF TV AND WEB MAY HIT CABLE INDUSTRY BEFORE IT'S PREPARED
The Internet is coming to TV whether cable companies like it or not. Phone=
=20
giants like SBC Communications and Verizon Communications, which are racing=
=20
to offer TV over the new fiber networks they're building, plan to deliver=20
their signals using an Internet technology known as IP TV. While cable=20
companies broadcast all their channels at once to the TV, blocking those=20
that aren't paid for, with IP TV, SBC and Verizon will deliver only=20
programs that viewers request. That essentially makes a limitless amount of=
=20
content available, just as there's no cap on the number of Web sites. For=20
programmers, total integration would open the door wider to file swapping=20
and piracy. For cable operators, it raises the specter of viewers going=20
directly to content providers for shows and films, bypassing the middleman.
[SOURCE: Wall Street Journal, AUTHOR: Peter Grant peter.grant( at )wsj.com]
http://online.wsj.com/article/0,,SB111377749479709036,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

JOURNALISM

WILLIAMS DEAL MISMANAGED, NOT ILLEGAL, SAYS DOE
The Department of Education's public relations contracts with Ketchum=20
Communications and conservative columnist Armstrong Williams may not have=20
violated any "significant" laws or regulations, but they were severely=20
mismanaged, with the result that DOE paid for work that was not received,=20
that "most likely" didn't reach its target audience, and that was "of poor=
=20
quality," the DOE Inspector General (IG) John P. Higgins has concluded.=20
Williams was paid $240,000 to endorse the "No Child Left Behind" program.=20
While the report concluded that the payment went "solely to the production=
=20
of ads and airtime," it found "the Department has no assurance the ads=20
received the airtime for which it paid." In addition, because "the body of=
=20
the Ketchum proposal also indicated that Mr. Williams would regularly=20
comment on NCLB (no child left behind) during the course of his broadcasts,=
=20
the appearance is that the department may have been paying for more than=20
just the advertising," the IG's report concluded.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA525535?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
Review of Formation Issues Regarding the Department of Education's Fiscal=20
Year 2003 Contract with Ketchum, Inc. for Media Relations Services
http://www.ed.gov/about/offices/list/oig/aireports/a19f0007.doc

THE TRUTH ABOUT VNRs
[Commentary] The reality is that the news business won't survive on=20
self-produced content alone. It is na=EFve to think otherwise. But using=20
voiced reports without attribution is self-defeating and will ultimately=20
undermine the relationship between news provider and viewer. Though on=20
opposite ends of the spectrum, the news professional and the PR=20
professional are united by one defining factor: The success of both=20
professions rests entirely on credibility.
[SOURCE: Broadcasting&Cable, AUTHOR: Shoba Purushothaman, CEO of The=20
NewsMarket]
http://www.broadcastingcable.com/article/CA525378.html?display=3DOpinion...
erral=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
* Fake News Flack Ducks Behind First Amendment
You know that the PR industry is getting desperate the moment they cite=20
George Orwell in their own defense. Such is the sad state of affairs at D S=
=20
Simon Productions, the flacks who've built a business out of dressing up=20
video news releases (VNRs) to look, sound and feel like real news.
[SOURCE: MediaCitizen, AUTHOR: Timothy Karr]
http://mediacitizen.blogspot.com/2005/04/fake-news-flack-ducks-behind-fi...
html

FOX'S SANDSTORM
[Commentary] The style of Fox News Channel is having two dangerous effects:=
=20
1) the popularity of the approach leads cable competitors to mimic it,=20
which in turn debases the quality of the news available to that segment of=
=20
the TV audience, and 2) it threatens to destroy public confidence in all=20
news. The plan at FNC is not so much to convince the public that its=20
particular view is correct but rather to sell the notion that what FNC=20
presents is just another set of biases, no worse than the biases that=20
routinely drive the presentation of the news on ABC, CBS or NBC. FNC=20
doesn't try to convince that it has a corner on the truth, just that the=20
rest of the news business is grinding partisan axes all the time and that=20
none deserve to be taken seriously as seekers of truth. What is at risk is=
=20
not a reputation for infallibility; everyone knows that even the best=20
newspapers and most careful broadcasters make mistakes. But it has been=20
generally accepted that the mainstream media at least try to get it right.
[SOURCE: Washington Post, AUTHOR: William Raspberry willrasp( at )washpost.com]
http://www.washingtonpost.com/wp-dyn/articles/A61709-2005Apr17.html
(requires registration)

FOR EVERY STORY, AN ONLINE EPILOGUE
The rise of the blogosphere remains one of the most exciting communications=
=20
developments in decades, giving ordinary folks the chance to bite back at a=
=20
media establishment widely viewed as arrogant. It's little surprise that=20
mainstream media types don't like being questioned, challenged and chided=20
by critics typing from their basements and bedrooms. But the increasingly=20
caustic nature of some online criticism is prompting many journalists to=20
complain that their honesty and motivation are being trashed along with=20
their work.
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A61803-2005Apr17.html
(requires registration)

INDECENCY

WHITE HOUSE CLARIFIES INDECENCY STAND
"What I mean when I said 'indecency' is that there are decent standards out=
=20
there and people should meet them. Or they should just turn it off."=20
President Bush did not say that last week (I'm just sad there's, like, 350=
=20
days until April 1). But White House spokesperson Trent Duffy did try to=20
clarify the President's April 14 remarks on indecency saying President Bush=
=20
was actually endorsing the House bill that would increase the fines for=20
broadcast radio and TV indecency, but not addressing cable and satellite TV.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA525149?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
Also --
Bush Misspoke on Cable Indecency
http://www.multichannel.com/article/CA525313.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

DISNEY'S BALANCING ACT ON INDECENCY
The National Cable & Telecommunications Association=92s official position is=
=20
that a cable indecency law would violate the First Amendment and that the=20
best way to empower parents that want to filter racy content is to offer=20
channel-blocking tools, such as digital set-top boxes. But if necessary to=
=20
inject some fairness in the law, Disney would not object to indecency=20
regulation of cable=92s expanded-basic tier. That Disney is outside the=
cable=20
tent is more than a cosmetic problem, largely because the company owns such=
=20
marquee brands as ESPN, Disney Channel and Toon Disney and because the=20
company would be a formidable ally in helping kill cable indecency=
legislation.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA525200.html?display=3DPolicy&refer...
=3DSUPP
(free access for Benton's Headlines subscribers)

QUICKLY

COMSTOCK TAKING HIMSELF OUT OF RUNNING FOR FCC POST
Earl Comstock, one of the leading candidates for a Republican vacancy at=20
the Federal Communications Commission, has taken himself out of the running=
=20
for the post, sources said Friday. Mr. Comstock, who is a lawyer at Sher &=
=20
Blackwell in Washington, had the backing of Sen. Ted Stevens, R-Alaska.
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=3D7656
(requires free registration)

THE NEXT FRITTS: PLACE YOUR BETS
There are three early favorites in the race to become the next head of the=
=20
National Association of Broadcasters: CBS Executive VP Marty Franks,=20
Disney/ABC lobbyist Mitch Rose, and David Kennedy, CEO of radio group=20
Susquehanna Media. Franks is a former Democratic House and Senate staffer=20
whose current job includes running CBS=92 digital-TV operations; Rose is=20
former chief of staff to Senate Commerce Committee Chairman Ted Stevens;=20
and Kennedy is immediate past chairman of the NAB=92s joint TV/radio board=
=20
and is co-chairman of the committee searching for Fritts=92 replacement.
[SOURCE: Broadcasting&Cable, AUTHOR: Staff]
http://www.broadcastingcable.com/article/CA525206?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

BUZZ GETS LOUDER FOR TIGHTER REINS ON LOBBYISTS
Do-gooders and constant complainers aren't the only people calling for=20
repair of lobbying disclosure. Anyone with even a passing acquaintance with=
=20
the system for disclosure knows that it doesn't work. Expect bi-partisan=20
legislation to be introduced as early as this week. Birnbaum offers the=20
following to improve lobbying laws: 1) Require lobbyists to say who they've=
=20
lobbied and about what; 2) Expand the definition of lobbying to include=20
"grass-roots" activities. 3) Demand more frequent and more complete=20
disclosures. 4) Lengthen the time former government officials must wait=20
before lobbying. 5) Curtail fundraising by professional lobbyists.
[SOURCE: Washington Post, AUTHOR: Jeffrey H. Birnbaum=20
kstreetconfidential( at )washpost.com]
http://www.washingtonpost.com/wp-dyn/articles/A61206-2005Apr17.html
(requires registration)

WEALTHY TARGETS
Some of the wealthiest neighborhoods in Verizon=92s footprint have been the=
=20
first to receive its fiber-delivered FiOS Internet Service, and they may=20
eventually be the first communities to get the telco=92s upcoming video=20
product. A look at the demographics of the 55 communities where Verizon=20
recently launched FiOS Internet shows that the average median household=20
income in these localities is $81,920. That=92s nearly twice the national=20
median household income average of $41,994, according to U.S. Census Bureau=
=20
data analyzed by Multichannel News.
[SOURCE: Multichannel News, AUTHOR: Steve Donohue]
http://www.multichannel.com/article/CA525531.html&referral=3DSUPP
(free access for Benton's Headlines subscribers)

CEA DOWNGRADES 2005 DTV SHIPMENT FORECAST 25%
The Consumer Electronics Association has revised its forecast for digital=20
TV sales in 2005 from 20 million to 15 million. The group said it=20
overstated the effect of the FCC=92s DTV tuner mandate and misread the=20
commitment of broadcast and cable TV to accelerating the transition to=20
digital television.
[SOURCE: Communications Daily, AUTHOR: Paul Gluckman]
(Not available online)

NOW ON DVD: THE SANITIZER'S CUT
A look at the battle between filmmakers and the self-proclaimed=20
"family-friendly" editors who delete scenes containing sexuality, violence=
=20
or crude language from the DVD releases of Hollywood movies. The edited=20
DVDs are resold or rented to parents and others who want a "clean" version=
=20
of the movie.
[SOURCE: Washington Post, AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-dyn/articles/A61565-2005Apr17.html
(requires registration)

INTEL SEES MOBILE BROADBAND STARTING IN 2006
WiMax is seen as a longer-range successor to Wi-Fi, the wireless computer=20
standard popularized in coffee shops and used in homes and restaurants.=20
WiMax enables broadband Internet connections over several miles or=20
kilometers, currently to fixed locations but next year also to mobile=20
devices such as laptops or small computers. It should be available to=20
consumers late in 2006.
[SOURCE: Reuters, AUTHOR: Tarmo Virki]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DKUAIS1GTD12VUCRBAE...
A?type=3DtechnologyNews&storyID=3D8196392

ICANN BOSSES SLAM NET-PHONE REGULATION
Vinton Cerf, chairman of the Internet Corporation for Assigned Names and=20
Numbers, told an Internet governance roundtable in Sydney, Australia, that=
=20
in his personal opinion the best way to approach VoIP is without=20
regulation. "A problem in the regulatory world," he said, "is that=20
communications media is particularly associated with the delivery service."=
=20
Consequently, Cerf said, regulators could not differentiate between=20
regulation of normal telephony and VoIP, because to a casual observer they=
=20
appeared to be the same technology, even though they were delivered over=20
radically different mediums. If legislators choose to define VoIP the same=
=20
way they do normal telephony, Cerf warned, "they will discover that they=20
have legislated themselves into a pretty big corner."
[SOURCE: C-Net|News.com, AUTHOR: Renai LeMay]
http://news.com.com/ICANN+bosses+slam+Net-phone+regulation/2100-7352_3-5...
14.html?tag=3Dnefd.top

THE TRUTH ABOUT CELL PHONES AND THE NATIONAL DO NOT CALL REGISTRY.
If you've received an e-mail telling you that your cell phone is about to=20
be assaulted by telemarketing calls as a result of a new cell phone number=
=20
database, rest assured that this is not the case. Telemarketing to cell=20
phone numbers has always been illegal in most cases and will continue to be=
=20
so. In response to recent e-mail campaigns urging consumers to place their=
=20
cell phone numbers on the National Do Not Call Registry, the Federal Trade=
=20
Commission and Federal Communications Commission issue an advisory to give=
=20
consumers the facts.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-258164A1.doc
--------------------------------------------------------------
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.
--------------------------------------------------------------

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

JOURNALISM
FCC on Video News Releases
Yahoo 'Hybrid' Now Dominates News Web Sites
Blog Censorship Gains Support
New House Bill Protects Political Bloggers
Advertising, Editorial Lines Blur as Bloggers' Salaries Tied to Traffic
Call Them What You Will, Bloggers Won't Shut Up

OWNERSHIP
FCC Trumps Court To Aid Ailing Station
In Media, Size Does Matter
Watson on Media Consolidation, Radio
Berlusconi's Family to Reduce Shares in Broadcast Company
MCI Could Face Legal Hurdle Over Verizon Bid

INTERNET
Congressional Broadband Efforts Likely to Highlight IP Services

ADVERTISING
Networks Take On the Time Machine
Ad Firms Follow Customers Around the Web

QUICKLY -- Senate Commerce Committee Subcommittee Assignments; Web Censors=
=20
In China Find Success

JOURNALISM

FCC ON VIDEO NEWS RELEASES
The FCC has recently received a large number of requests that it consider=20
whether the use of "video news releases" or "VNRs," by broadcast licensees,=
=20
cable operators, and others complies with the Commission's sponsorship=20
identification rules. VNRs are essentially prepackaged news stories, that=20
may use actors to play reporters and include suggested scripts to introduce=
=20
the stories. These practices allow such externally prepackaged news stories=
=20
to be aired, without alteration, as broadcast or cable news. Some of the=20
parties contacting the Commission have suggested that broadcast licensees=20
and cable operators may have aired VNRs with news stories containing=20
material paid for, prepared and/or provided to them by or on behalf of=20
commercial, governmental and other entities without disclosing, at the time=
=20
of the airing, the source of and the circumstances surrounding their=20
acquisition of such material. On Wednesday, the FCC reminded broadcast=20
licensees and cable operators that air VNRs, as well as all entities and=20
individuals involved in the production and provision of the material at=20
issue, of their respective disclosure responsibilities under the=20
Commission's sponsorship identification rules. These rules are grounded in=
=20
the principle that listeners and viewers are entitled to know who seeks to=
=20
persuade them with the programming offered over broadcast stations and=20
cable systems. For the reasons noted in the FCC's Public Notice, and as=20
provided for in the statutory provisions and in the Commission's rules,=20
whenever broadcast stations and cable operators air VNRs, licensees and=20
operators generally must clearly disclose to members of their audiences the=
=20
nature, source and sponsorship of the material that they are viewing. The=
=20
FCC promised to take appropriate enforcement action against entities that=20
do not comply with these rules. The Public Notice is confined to the=20
disclosure obligations required under Section 317 and our rules thereunder,=
=20
and does not address the recent controversy over when or whether the=20
government is permitted to sponsor VNRs, which is an issue beyond the=20
Commission's jurisdiction.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-84A1.doc
Statements by Commissioners:
Copps: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-84A2.doc
Adelstein: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-84A3.doc
Coverage:
* FCC: Disclose Those Political VNRs
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA524900?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* WSJ:=20
http://online.wsj.com/article/0,,SB111344720582006777,00.html?mod=3Dtoda...
s_marketplace
* WashPost:=
http://www.washingtonpost.com/wp-dyn/articles/A51375-2005Apr13.html

YAHOO 'HYBRID' NOW DOMINATES NEWS WEB SITES
A decade into the consumer Internet revolution, industry executives and=20
analysts say users favor sites that offer information from more than one=20
news organization. In six of the past 14 months, Yahoo's news site has=20
drawn more unique visitors than any rival, displacing longtime news leader=
=20
CNN.com, according to research firm Nielsen/NetRatings. Yahoo has=20
agreements to display or link to content from about 100 news organizations,=
=20
from USA Today to French news service Agence France Presse. Users can=20
search through about 7,000 additional online news sources that Yahoo=20
catalogs for information. Yahoo's rise comes as some traditional news=20
organizations rethink their online strategies. Some that have offered free=
=20
content are now considering charging for some items. "Is Yahoo a threat to=
=20
the business model of traditional news organizations? Yeah," says Paul=20
Grabowicz, director of the New Media program at the University of=20
California, Berkeley Graduate School of Journalism. "But it's not a threat=
=20
that's going to go away. And if it's not Yahoo, it's somebody else."
[SOURCE: Wall Street Journal, AUTHOR: Kevin J. Delaney=
kevin.delaney( at )wsj.com]
http://online.wsj.com/article/0,,SB111343722734506550,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

BLOG CENSORSHIP GAINS SUPPORT
Web hosting company Hostway this week released the results of its poll of=20
2,500 Americans on blogging. 80% of respondents did not believe that=20
bloggers should be allowed to publish home addresses and other personal=20
information about private citizens. 72% favored censorship of personal=20
information about celebrities, and 68%, information about elected or=20
appointed government officials such as judges or mayors. However, more than=
=20
one-third of respondents had never heard of blogs before participating in=20
the survey, and only around 30% of participants had actually visited a blog=
=20
themselves.
[SOURCE: C-Net|News.com, AUTHOR: Renai LeMay]
http://news.com.com/Blog+censorship+gains+support/2100-1028_3-5670096.ht...
ag=3Dnefd.top

NEW HOUSE BILL PROTECTS POLITICAL BLOGGERS
Rep. Jeb Hensarling (R-TX) introduced a bill Wednesday that would prevent=20
the federal government from extending campaign finance laws to the=20
Internet. The bill mirrors a companion measure in the Senate that was=20
introduced last month by Minority Leader Harry Reid (D-NV).
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/New+House+bill+protects+political+bloggers/2100-1028...
669806.html?tag=3Dnefd.top

ADVERTISING, EDITORIAL LINES BLUR AS BLOGGERS' SALARIES TIED TO TRAFFIC
The Internet has been lauded for providing advertisers with exact metrics=20
on how their ads perform, but it also can be turned against writers and=20
journalists, especially at sites that live and die by traffic. About.com=20
pioneered pay for Guides that's tied to traffic growth, and now Gawker=20
Media is also paying a base salary for its stable of bloggers, along with=20
bonuses for increased traffic. While this blurring of the Chinese wall=20
between advertising and editorial could hurt the credibility of the nascent=
=20
operations, few journalists can ignore the economic viability of their=20
publications.
[SOURCE: Online Journalism Review, AUTHOR: Mark Glaser]
http://www.ojr.org/ojr/stories/050412glaser/

CALL THEM WHAT YOU WILL, BLOGGERS WON'T SHUT UP
[Commentary] Rather than fruitlessly debating whether bloggers are=20
journalists, we should ponder how our newly transformed news environment=20
can best function. Newspapers have a huge stake in this debate. Young=20
people no longer get their news exclusively from the morning papers,=20
evening network newscasts or other traditional outlets. Increasingly, they=
=20
go online to find news -- and read bloggers that professional journalists=20
deem so dangerous.
[SOURCE: Media Is Plural, AUTHOR: Rory O'Connor]
http://www.roryoconnor.org/blog/

OWNERSHIP

FCC TRUMPS COURT TO AID AILING STATION
The FCC Wednesday essentially nullified a court's order that Tribune sell=
=20
TV station WTXX Hartford (CT) to come into compliance with the Commission's=
=20
ban on crossownership of TV stations and local newspapers. Since 2001,=20
Tribune has been under FCC orders to sell either WTXX or the Hartford=20
Courant newspaper, which the company acquired as part of its purchase of=20
Times-Mirror. Now, Tribune has permission to keep the station until 2007,=20
when licenses for WTXX and another Hartford station owned by Tribune, WTIC,=
=20
must be renewed. FCC Democrats Michael Copps and Jonathan Adelstein=20
approved the WTXX waiver even though they fiercely oppose relaxation of=20
media ownership limits. In this case, the public interest is served by the=
=20
waiver because they believe the station probably would go dark if Tribune=20
was forced to sell now. Also they were pleased that their fellow=20
commissioners relied on specific public interest criteria, such as=20
Tribune's improvements to WTXX programming, in approving the waiver=
extension.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA524896?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
FCC Order: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-83A1.doc
Statement by Copps and Adelstein:=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-83A2.doc

IN MEDIA, SIZE DOES MATTER
Synergy. Media executives all profess to hate the word, but for years the=20
principle has guided consolidation in the industry. Dividing Viacom into=20
two pieces may diminish the opportunities for one part to benefit from the=
=20
other. Viacom is a charter member of the synergy club, using reports from=20
its CBS news operation to provide feeds to MTV and the Black Entertainment=
=20
Television channels. When Viacom converted its Nashville Network into the=20
hot Spike TV cable channel, it boosted ratings growth by airing two of=20
Viacom's hit CSI shows -- which air on CBS. Granted, the prices Spike paid=
=20
were steep -- an estimated $1.9 million per episode for CSI: New York last=
=20
year -- but having negotiators from within the group on both sides of the=20
table no doubt helped keep the show in the family. So why the split? With=20
Viacom's stock down by 17% over the last year, the company's chairman,=20
Sumner Redstone, wants to get some value for his faster-growing cable=20
channels (which include MTV, Nickelodeon, and Noggin), while allowing his=20
more traditional assets to weather the smirks of Wall Street investors who=
=20
think the radio market has seen better days. Still, that unit produces=20
hefty cash flow -- the radio stations alone mint some $1 billion a year --=
=20
and Redstone figures it could use that cash to buy up shares or increase=20
dividends. That could allow both stocks to lure investors
[SOURCE: BusinessWeek, AUTHOR: Ronald Grover]
http://www.businessweek.com/bwdaily/dnflash/apr2005/nf20050413_9680_db01...
m

WATSON ON MEDIA CONSOLIDATION, RADIO
Rep. Diane Watson (D-CA), chair of the House Entertainment Caucus, spoke=20
to the Future of Music Coalition on Tuesday. She said a consolidated U.S.=20
media market increasingly is susceptible to manipulation, not only by=20
corporate owners, but by the government -- a trend that has had a bad,=20
homogenizing effect on the music industry. Nationwide corporate radio=20
playlists that =93repeat songs over and over again=94 shortchange=
independent=20
musicians and keep the public from hearing diverse music and new artists.=20
=93Seeking out original sound on the radio today is like looking for prime=
=20
time television without a reality show,=94 she said. =93Both are results of=
a=20
profit-driven approach to programming that emphasizes the bottom line at=20
the expense of creativity.=94 As independent radio stations vanish, so does=
=20
coverage of local interests and news and =93in some ways, the local=
standards=20
seem to go into oblivion,=94 Rep Watson said. She noted that since the=20
Telecom Act, the number of radio station owners has dropped 34%. In=20
programming proliferation of partisan talk radio has =93left no middle=
ground=20
for actual substantive discussions of public policy.=94 =93Our radio=20
broadcasting sector is facing a crisis where consolidation has not only=20
killed the radio star, but is close to destroying the entire platform for=20
free expression of ideas.=94 Saying the Bush Administration has
capitalized on a media market in =93dire need of proper checks and=
balances,=94=20
Rep Watson claimed more than 20 federal agencies and offices have spent=20
more than $250 million to produce =93fake news clips=94 and hire =93so-calle=
d=20
commentators to secretly promote the White House=92s priorities.=94 Rep=
Watson=20
likened current legal and legislative debates over the evolution of TV,=20
radio and online media to previous battles over traditional media.
[SOURCE: Communications Daily, AUTHOR: Andrew Noyes]
(Not available online)

BERLUSCONI'S FAMILY TO REDUCE SHARES IN BROADCAST COMPANY
Prime Minister Silvio Berlusconi's family said on Wednesday that it was=20
selling a 2 billion euro ($2.58 billion) stake in the broadcasting company=
=20
Mediaset, a move intended in part to dilute accusations that the holdings=20
constitute a conflict of interests.Fininvest, the family's holding company,=
=20
announced that it would place nearly 17 percent of Mediaset - Italy's=20
largest private broadcaster, with three television channels - on the=20
market, reducing its share to 34.3 percent. The sale comes a week after Mr.=
=20
Berlusconi's center-right government suffered a devastating defeat in local=
=20
elections.
[SOURCE: New York Times, AUTHOR: Elisabetta Povoledo]
http://www.nytimes.com/2005/04/14/international/europe/14italy.html
(requires registration)

MCI COULD FACE LEGAL HURDLE OVER VERIZON BID
MCI could face legal challenges if it proceeds with its plan to ask=20
shareholders to approve a takeover offer from Verizon Communications Inc.=20
that is less rich than what it has agreed to pay MCI's biggest shareholder.=
=20
Merger attorneys and law professors say there is nothing wrong with Verizon=
=20
paying a premium for Mexican billionaire Carlos Slim Hel=FA's shares. But=
the=20
$2.62-a-share difference between that price and Verizon's general offer to=
=20
MCI shareholders, plus more potential upside from the free call option,=20
does wedge the door open for a legal argument against MCI's board asking=20
its shareholders to vote on the lower-priced deal. The argument, attorneys=
=20
say, would be that MCI's board didn't try to seek the highest price=20
possible from Verizon. The higher price paid to Mr. Slim, the argument=20
goes, shows that MCI didn't exercise its duty of care to the rest of the=20
MCI shareholders.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com=20
and Dennis K. Berman dennis.berman( at )wsj.com]
http://online.wsj.com/article/0,,SB111344063442306648,00.html?mod=3Dtoda...
s_money_and_investing
(requires subscription)

INTERNET

CONGRESSIONAL BROADBAND EFFORTS LIKELY TO HIGHLIGHT IP SERVICES
How will Congress address high-speed Internet access? Oh, let us count the=
=20
ways. Look for legislation that would create a regulatory class for=20
Internet Protocol platforms covering services such as VoIP, video over IP=20
and standard broadband, whether delivered by cable providers, phone or=20
power companies. The House will likely seek to keep these services mostly=20
free of regulation, especially by the states. But will probably try to=20
ensure that VoIP meets public service obligations such as 911 and the=20
Communications Assistance to Law Enforcement Act (CALEA), which would allow=
=20
police to wiretap Internet phone calls. But even issues that don't seem=20
directly related to broadband could have some affect -- the transition to=20
digital television and reform of the Universal Service Fund (USF) and=20
E-rate program. Congress may also get involved in limiting municipal=20
networks. House Telecom Subcommittee Chairman Fred Upton (R-MI) says some=20
Members are concerned that local governments have advantages over industry=
=20
on issues such as rights of way. Rep Upton said it was seen as a =93soft=20
subsidy.=94
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

ADVERTISING

NETWORKS TAKE ON THE TIME MACHINE
A new Accenture study says 2% of ads are skipped in all U.S. households. By=
=20
2009 that figure should rise to 22%. In addition, 40% of U.S. homes should=
=20
have DVR devices by then, up from 8% at present, the consulting firm says.=
=20
Consumers have long recorded programs for later viewing, and the nation's=20
broadcast networks for years have promoted programs as must-see, don't-miss=
=20
occurrences. With time-shifting, ad-skipping devices such as digital video=
=20
recorders gaining more of a TV-room roost, however, getting couch potatoes=
=20
to watch a show at its specified time is taking on new importance. That=20
makes networks increasingly eager to lend scheduled programs the sheen of a=
=20
live sports event or one-time-only spectacular.
[SOURCE: Wall Street Journal, AUTHOR: Brian Steinberg]
http://online.wsj.com/article/0,,SB111343624772306526,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

AD FIRMS FOLLOW CUSTOMERS AROUND THE WEB
[Commentary] A bunch of young companies increasingly are tagging, tracking=
=20
and analyzing us as we move across different Web sites. Their goal is to=20
display ads they deem relevant based partly on our surfing histories, which=
=20
they record using tiny "cookie" files stored on our computers, and other=20
technology
[SOURCE: Washington Post, AUTHOR: Leslie Walker walkerl( at )washpost.com]
http://www.washingtonpost.com/wp-dyn/articles/A51579-2005Apr13.html
(requires registration)

QUICKLY

SENATE COMMERCE COMMITTEE SUBCOMMITTEE ASSIGNMENTS
Senators Ted Stevens (R-Alaska) and Daniel Inouye (D-Hawaii), Co-Chairmen=20
of the Senate Committee on Commerce, Science, and Transportation, today=20
announced the Committee=92s Subcommittee assignments.
[SOURCE: Senate Commerce Committee]
http://commerce.senate.gov/pdf/subassignments.pdf

WEB CENSORS IN CHINA FIND SUCCESS
The Chinese government is succeeding in broadly censoring what its citizens=
=20
can read on the Internet, surprising many experts and denting U.S.=20
government hopes that online access would be a quick catalyst for=20
democratic political reform.
[SOURCE: Washington Post, AUTHOR: Jonathan Krim]
http://www.washingtonpost.com/wp-dyn/articles/A51712-2005Apr13.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.
--------------------------------------------------------------