Ownership

The head of the News Media Alliance, which represents almost 2,000 newspapers, told the House Oversight Committee Information Technology Subcommittee in a hearing on political ad laws that Google, Facebook and other edge players are news gatekeepers that have fueled fake news and "harmed the integrity of content and advertising." That is because the edge business model is based on "not exercising responsibility over the integrity of content of the advertising that sustains its foundation."

"It is now time that Google and Facebook be asked to make the same commitments as publishers and modernize their platforms to help stem the flow of misinformation—a problem that is largely of their own making," said David Chavern, NMA president. He said Federal Election Commission rules should require disclosures within internet ads, and that Google and Facebook should update their business models to elevate reputable content in search and news feeds.

The Federal Communications Commission eliminated the broadcast main studio rule. The Order retains the requirement that stations maintain a local or toll-free telephone number to ensure consumers have ready access to their local stations.

The main studio rule, adopted nearly 80 years ago, currently requires each AM radio, FM radio, and television broadcast station to have a main studio located in or near its local community. The rule was implemented to facilitate input from community members and the station’s participation in community activities. The Commission recognizes that today the public can access information via broadcasters’ online public file, and stations and community members can interact directly through alternative means such as e-mail, social media, and the telephone. Given this, the Commission found that requiring broadcasters to maintain a main studio is outdated and unnecessarily burdensome. Elimination of the main studio rule should produce substantial cost-saving benefits for broadcasters that can be directed toward such things as programming, equipment upgrades, newsgathering, and other services that benefit consumers. It will also make it easier for broadcasters to prevent stations in small towns from going dark and to launch new stations in rural areas.

As more and more people get at least some of their news from social platforms, this study showcases perspectives on what the increasingly distributed environment looks like in day-to-day media lives. Drawing from thirteen focus groups conducted in four cities across the United States, we sample voices of residents who reflect on their news habits, the influence of algorithms, local news, brands, privacy concerns, and what all this means for journalistic business models.

While our overall study complicates any notion of a singular audience with singular wants, it offered insights from varied perspectives that may be of value for both publishers and platforms:

• Publishers and platforms interested in rebuilding and maintaining relationships of trust with audiences should invest in media literacy that includes a) skills for verifying brands, b) algorithm literacy, and c) privacy literacy. Effectively tackling these areas will require a shift in attitude and strategy for platform companies—reluctant companies should note the risk of losing users alienated by the opacity of their operations. However, it must be noted that algorithmic transparency is required before algorithmic literacy can be achieved.
• Platforms should note that strategies to prolong engagement by exposing users to perspectives only with which they agree may backfire as some people turn away from platforms due to perceived echo chambers.
• Additional research is needed to monitor existing efforts to increase the visibility of local news on social platforms, though there is likely a need for platform companies to do more in addressing this critical element of the news ecosystem.
• Platforms and other stakeholders committed to verification should take note of public skepticism regarding quick fixes to the challenge of fake news and the nuance required to not only address “imposter content” and “fabricated content,” but also the absence or presence of partisan content.
• Publishers should approach business models such as native advertising and sponsored links with caution given their potential to jeopardize relationships of trust with readers. However, additional research and a dedicated study of audience attitudes toward journalistic business models would be valuable.

[Commentary] Some sectors have learned to exploit the explosive possibilities of digital tools, while others by and large have not. I call this the “information gap.” The upshot is that information technologies have not lost their power and can in fact lead to a productivity resurgence. These results reinforce our hypothesis that a more rapid diffusion of information technology into the physical industries, such as healthcare, education, transportation, manufacturing, and energy, could substantially boost innovation and incomes in these sectors.

Cloud computing and 5G wireless networks are thus foundational platforms to increase economic opportunity to more people in more places.

[Bret Swanson is concurrently president of Entropy Economics LLC.]

[Commentary] Many Democrats have decried this Federal Communications Commission decision benefiting Sinclair, a conservative broadcaster with ties to Breitbart News. And while some conservatives are cheering the deal, the implications of FCC actions are troubling for most. The nonsensical decision to reinstitute the UHF discount will also open the door for NBC, CBS, ABC and Fox to buy local TV stations reaching more than 70 percent of US homes. Anyone who understands how these big media companies operate can see the danger. By owning local stations, the New York-based media networks could dictate local news coverage. With the planned elimination of the local studio rule, they will have a green light to do so.

Before approving the Sinclair merger, the FCC has a duty to engage in a comprehensive and open media-ownership proceeding — one that seeks public comment and input from Congress. Anything less raises questions about impartiality and jeopardizes the integrity of the commission. Eliminating ownership rules that have served us well for more than 30 years is a momentous change. The American people must play a role in that decision.

[Christopher Ruddy is chief executive of Newsmax Media.]

Facebook, Google and Amazon bolstered their lobbying spending in the past three months as Washington has taken a closer look at the market power of some of America's biggest tech companies. Facebook spent $2.85 million lobbying the federal government in the third quarter, up 41 percent from the same period in 2016, according to disclosure reports made public Oct 20. Part of that amount was dedicated to lobbying officials in Congress and the White House on “online advertising, content and platform transparency efforts.”

The lobbying comes as the social network, along with Google and Twitter, faces a new bipartisan push on Capitol Hill that would force Internet companies to disclose more information about political ads sold and distributed on their platforms. Google’s X lab, the company's testing ground for its most ambitious projects, is now hiring its first outside lobbyists, too. Of any corporation in or out of the tech industry, Google spent the second-highest amount. AT&T topped everyone, at $4.43 million.

AT&T and Time Warner are extending the deadline for their pending merger as they wait for approval from the Department of Justice. Both companies agreed to an extension “for a short period of time to facilitate obtaining final regulatory approval required to close the merger,” according to a filing AT&T made with the Securities and Exchange Commission on Oct 23.

The $85 billion deal had received approval on Oct 18 from Brazil, one of the last countries AT&T and Time Warner need to complete the deal. The deal has already been cleared by regulators in Mexico, Chile and Europe. AT&T still expects the deal to be completed by the end of the year but is waiting to receive clearance from the DOJ. Experts say the agency is likely to approve the deal because of its proclivity to clear vertical mergers between companies in different industries.

The long-rumored and much-anticipated merger of T-Mobile and Sprint merger may be happening soon. Both companies have decided to forego the investor question-and-answer sessions that typically take place after the carriers release their quarterly earnings.

T-Mobile struck first Oct 23 releasing its third-quarter earnings a day earlier than expected and, instead of a live Q&A with telecommunication analysts, the No. 3 wireless carrier opted for a video blog starring CEO John Legere. "With all the rumors and speculation out there we decided that we wanted to make sure you all saw and focused on our Q3 results," he said in the video. Also on Oct 23, two days before its own second-quarter results are released, Sprint said it will not host a conference call Wednesday.

You can’t trust the media, according to President Donald Trump — unless the media happens to tell you that many people don’t trust the media. In that case, you can trust that the media is reporting trustworthy information about the public’s distrust of the media.

President Trump claimed in a tweet Oct 22 that almost half of Americans believe major news outlets fabricate reports about him. He didn’t cite his source, perhaps because it was Politico, which he has consistently called unreliable. "It is finally sinking through. 46% OF PEOPLE BELIEVE MAJOR NATIONAL NEWS ORGS FABRICATE STORIES ABOUT ME. FAKE NEWS, even worse! Lost cred," the President tweeted.

Facebook is testing a major change that would shift non-promoted posts out of its news feed, a move that could be catastrophic for publishers relying on the social network for their audience. A new system being trialled in six countries including Slovakia, Serbia and Sri Lanka sees almost all non-promoted posts shifted over to a secondary feed, leaving the main feed focused entirely on original content from friends, and advertisements.

The change has seen users’ engagement with Facebook pages drop precipitously, by 60% to 80% . If replicated more broadly, such a change would destroy many smaller publishers, as well as larger ones with an outsized reliance on social media referrals for visitors.