January 2006

In the global village, where is 'the public square'? Find out Friday=20
(http://www.benton.org/index.php?q=3Dnode/1023). For this and other upcomin=
g=20
media policy events, see http://www.benton.org

BROADCASTING
Groups Caution Against Rubber-Stamp Renewals
KHOU Pulls DeLay Ad

FUTURE OF MEDIA
Future of Internet TV Is Coming Into View
TV coming to in-flight Internet service
Why Media Stars are Moving from Free to Fee Media
Will the FCC Ignore Media History and Further Undermine
the Public Interest?
Futurist: Cable Needs =91Agility=92

OWNERSHIP
Redstone Predicts More Corporate 'Divorces'
Online Music Deals Probed
Buy Newspapers

POLICYMAKERS
Ex-FCC Commissioner Named to CA PUC
PBS' Mitchell To Head TV/Radio Museum

QUICKLY -- Think you can beat media analysts in predicting 2006?; Current=
=20
Taps Viewers for Content; Big media and the "holy" grail; Most online=20
buyers happy; Telco Dereg Bill Advances In Indiana; A New Color in Brazil=
=20
TV; Japan eyes media and telecoms reforms; German Media Deal;=20
Dollar-per-pixel ad site nets student $1million; Study to learn power of=20
smart grids, appliances; So What ... About Copyright

BROADCASTING

GROUPS CAUTION AGAINST RUBBER-STAMP RENEWALS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Campaign Legal Center, Benton Foundation, and the United Church of=20
Christ have written FCC Chairman Kevin Martin cautioning the FCC against=
=20
"rubber stamp" license renewals. The groups argued that the eight-year=20
"post-card" renewal process is already of "diminishing credibility." They=
=20
pointed to recent petitions to deny renewals filed by Iowans for Better=20
Local Television, Milwaukee Public Interest Coalition, and Chicago Media=20
Action, and said it would be "irresponsible for the FCC to further=20
'streamline' [the] process."
http://www.broadcastingcable.com/article/CA6298778?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
See more at: http://www.benton.org/index.php?q=3Dnode/1078

KHOU PULLS DELAY AD
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton ]
Belo's KHOU-TV Houston has pulled an ad that leveled allegations of=20
corruption against beleaguered former House Majority Leader Rep. Tom Delay=
=20
(R-TX). After airing the ad once, the station received a letter from Rep=20
DeLay's attorney claiming some allegations in the ad were not true. While=
=20
the letter did not overtly threaten a lawsuit, it cited case law supporting=
=20
a defamation suit by a candidate against a station and said that "because=
=20
the ad is false, we demand that you refuse or otherwise cease airing the=20
advertisement so as to avoid any legal liability," according to KHOU=20
General Manager Peter Diaz.
http://www.broadcastingcable.com/article/CA6298813?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

FUTURE OF MEDIA

FUTURE OF INTERNET TV IS COMING INTO VIEW
[SOURCE: Washington Post, AUTHOR: Leslie Walker]
[Commentary] I want my IPTV! Internet protocol TV allows multiple layers of=
=20
video, pictures and text to be mixed with video feeds in ways viewers can=
=20
control with their remotes. It's the old interactive TV vision -- point=20
your remote at an actress on screen and up comes her name, prior credits=20
and perhaps a "buy me" button for her blue sequined dress. Major telecom=20
players such as AT&T and Verizon are slowly rolling out IPTV services over=
=20
high-speed broadband networks. Trials are underway around the country.=20
Microsoft showed off some IPTV software in Las Vegas, and some start-up=20
companies displayed systems for delivering Internet video streams to home=
=20
computers, bypassing traditional networks owned by cable and satellite=20
companies. At the same time, Hollywood studios announced new deals to=20
distribute TV shows over the Internet in a mix of new pay-per-view and=20
subscription offerings. And Google and Yahoo, the Web's top search=20
providers, jumped in with new services they hope will give them central=20
roles in helping people find all this Internet-delivered video. In fact, so=
=20
many new IPTV services and technologies were displayed or announced at the=
=20
Consumer Electronics Show that it was hard to make sense of them all.
http://www.washingtonpost.com/wp-dyn/content/article/2006/01/11/AR200601...
2134.html
(requires registration)

TV COMING TO IN-FLIGHT INTERNET SERVICE
[SOURCE: Associated Press, AUTHOR: Elizabeth M. Gillespie]
Airline passengers will soon be able to watch live television on their=20
laptops through Connexion by Boeing's in-flight Internet service. Beginning=
=20
Jan. 23, passengers who buy blocks of Internet access on the nine foreign=
=20
airlines that currently offer Connexion's service will also be able to=20
watch programs broadcast on BBC World, CNBC, Eurosportnews, and either=20
EuroNews or MSNBC. Airlines like JetBlue Airways and Frontier Airlines=20
offer similar programming viewable on TV screens on the backs of=20
passengers' seats. Under new pricing announced Wednesday, access to=20
Connexion's high-speed Internet service will cost $26.95 for up to 24 hours=
=20
beginning Jan. 31. Connexion currently charges $29.95 for six hours of=20
Internet access or more. The TV service will not cost passengers any extra.
http://www.mercurynews.com/mld/mercurynews/business/technology/13603015.htm

WHY MEDIA STARS ARE MOVING FROM FREE TO FEE MEDIA
[SOURCE: CNN|Money, AUTHOR: Marc Gunther, Fortune]
Howard Stern, Ted Koppel and Maureen Dowd have very little in common, but=
=20
there is this -- whereas once they were available for free, people now will=
=20
have to pay to hear what they have to say. Radio, broadcast television and=
=20
newspapers, all of them declining businesses, are squeezing costs. So it's=
=20
no wonder that some stars are going elsewhere -- or that, in the case of=20
the Times, the newspaper is attempting to use its star writers to bring in=
=20
new revenues. The moves allow the stars more creative freedom. But each of=
=20
these moves has a significant cost: Stern, Koppel and the Times=20
opinion-makers will reach smaller audiences than they once did.
http://money.cnn.com/2006/01/11/news/companies/pluggedin_fortune/index.htm

WILL THE FCC IGNORE MEDIA HISTORY AND FURTHER UNDERMINE THE PUBLIC INTEREST?
[SOURCE: Center for Digital Democracy]
[Commentary] With the release of its "Notice of Proposed Rulemaking to=20
Ensure Reasonable Franchising Process for New Video Market Entrants," the=
=20
FCC is poised to alter the basic rules that have long governed the business=
=20
of delivering multi-channel video to cities across the country. At stake=
=20
is whether communities will still have the ability to help determine how=20
their residents can benefit from advanced communications networks. That the=
=20
FCC is even considering the fanciful notion proffered by the telephone=20
companies that the =93local franchising process is serving as an unreasonab=
le=20
barrier to entry=94 shows how it is under the political thumb of media=20
lobbyists. The Commission should instead be focusing on an inquiry into=20
how the phone company plans for TV will fail to provide for new video-based=
=20
public interest programming services. Public comments on the FCC's NPRM=20
are due by 13 February (with replies due by 14 March). There will also be a=
=20
Senate Commerce Committee hearing on video franchising in late=20
January. But while public comments and Congressional hearings on the=20
importance of local franchises are important, it=92s also time for FCC=20
Commissioners Copps and Adelstein to forcefully decry this entire=20
proceeding for what it really is -- another attempt to foster the corporate=
=20
goals of media consolidation, further weakening the public=92s First=20
Amendment rights in the process. And while they're at it, perhaps the two=
=20
commissioners can offer Chairman Martin a history lesson in this regard.
http://www.democraticmedia.org/news/washingtonwatch/FCCNPRM.html

FUTURIST: CABLE NEEDS 'AGILITY'
[SOURCE: Multichannel News, AUTHOR: Matt Stump]
Author and futurist Jim Carroll urged engineers at the Society of Cable=20
Telecommunications Engineers=92 Emerging Technologies conference to watch=
=20
consumer behavior in order to determine the future direction of=20
cable-technology implementation. Whether telcos or cable will win market=20
share in the future, he said, is the wrong question. Rather: How well will=
=20
cable adapt and deliver platforms and services consumer want? He urged=20
cable companies not to make the mistake the music industry did and go to=20
war with their own consumers over how they obtain content.
http://www.multichannel.com/article/CA6298674.html?display=3DBreaking+News
(requires subscription)

OWNERSHIP

REDSTONE PREDICTS MORE CORPORATE 'DIVORCES'
[SOURCE: Broadcasting&Cable, AUTHOR: Ben Grossman]
Viacom and CBS Chairman Sumner Redstone, speaking Tuesday night at a Museum=
=20
of Television & Radio event in Beverly Hills, encouraged competition=20
between the two companies and his top lieutenants, CBS CEO Leslie Moonves=
=20
and the new Viacom CEO Tom Freston. Whether in television, film or=20
elsewhere, Redstone acknowledged there could be substantial crossover. And=
=20
on the subject of companies splitting, Redstone said he expects to see more=
=20
ahead. =93As I've said before, the age of the conglomerate is over. I've al=
so=20
said, as some of my friends know, divorce is sometimes better than=20
marriage. Not every company has the assets to divide as we did, so it will=
=20
depend on the nature of the company. More divorces are coming.=94 Redstone=
=20
also spoke about courting the Hispanic market, which he says they will do=
=20
via current assets as opposed to acquisition. =93We did bid on Telemundo, a=
nd=20
we were outbid, fortunately, because they are losing money,=94 he said. =93=
We=20
have talked to Univision many times. But today we couldn't buy Univision=20
for a number of reasons, both technical and otherwise. So our strategy is=
=20
simple: Do it with our own networks.=94
http://www.broadcastingcable.com/article/CA6298754?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)
* Redstone Still Covets CNN
http://www.broadcastingcable.com/article/CA6298786?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

ONLINE MUSIC DEALS PROBED
[SOURCE: Los Angeles Times, AUTHOR: Dawn C. Chmielewski and Charles Duhigg]
Eliot Spitzer's probe of the recording industry's dealings with online=20
retailers is focusing on contract terms that guarantee competing labels get=
=20
the same prices for their music. Critics of the labels' practices said they=
=20
threatened the legitimate market for online music just as it was taking=20
off, potentially raising the familiar 99-cent price customers pay for their=
=20
tunes. The New York attorney general last year issued subpoenas to major=20
record labels as part of an investigation into whether they colluded to set=
=20
prices for the music they sell online. Several people familiar with the=20
probe said Spitzer was examining "most-favored nation" clauses in the=20
labels' contracts with online music services. The head of the trade group=
=20
for Internet music retailers said that the labels' insistence on pricing=20
guarantees threatened the legitimate online music market just as consumers=
=20
were beginning to buy, rather than steal, music online.
http://www.latimes.com/business/printedition/la-fi-labels12jan12,1,22515...
story?coll=3Dla-headlines-pe-business
(requires registration)

BUY NEWSPAPERS
[SOURCE: MarketWatch, AUTHOR: Thomas Kostigen]
Newspapers, despite all the commentary and seeming evidence to the=20
contrary, are good investments. They are the biggest purveyors and=20
producers of content, and their profit margins are big. Newspapers have=20
profit margins that average between 20% and 30%. A report by the Newspaper=
=20
Association of America points out that those numbers are "a bit less than=
=20
Microsoft and Dell but higher even than pharmaceuticals." This is important=
=20
to remember as people get inundated by the fanfare that the Internet is the=
=20
future of growth and the slayer of all things print. Online news outlets=20
are mature enough to be called distinct and separate businesses. Newspapers=
=20
are still relevant, indeed even resilient. Wrappers aside, newspapers may=
=20
even be fueled by the rise of technology. As George Soros may exemplify in=
=20
his rumored purchase of the Dreamworks movie library -- and as Yahoo and=20
Google are announcing with their news and entertainment alliances --=20
content reigns king. Newspapers aren't yet valued on their archives,=20
essentially libraries of their articles, or on the prospects of their=20
earnings streams. These could be giant assets whose potential will be borne=
=20
out by what we're seeing now as models at The New York Times and ESPN.com=
=20
-- paid-for premium content. If Google believes it can garner income from=
=20
people willing to pay for second-run television shows shown on their PCs or=
=20
hand-held devices, is it so far-fetched to believe people will pay for=20
articles, columns and special reports?
http://www.marketwatch.com/news/story.asp?guid=3D{0B759CFE-DBAA-4E8B-B762-8=
14A3ACF798C

POLICYMAKERS

EX-FCC COMMISSIONER NAMED TO CA PUC
[SOURCE: Reuters]
Gov. Arnold Schwarzenegger on Wednesday appointed Rachelle Chong, a former=
=20
member of the Federal Communications Commission, to fill a vacancy on the=
=20
California Public Utilities Commission. Chong, a Republican, has a=20
background in telecommunications law and policy. She was a member of the=20
FCC from 1994 to 1997, during which a major overhaul was implemented with=
=20
the Telecommunications Act of 1996. Most recently she operated her own=20
business as a mediator, arbitrator and expert witness in telecommunications.
http://www.latimes.com/business/printedition/la-fi-puc12jan12,1,1754807....
ry?coll=3Dla-headlines-pe-business
(requires registration)

PBS' MITCHELL TO HEAD TV/RADIO MUSEUM
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
PBS President Pat Mitchell will join the Museum of Television & Radio March=
=20
15 as president and CEO. Mitchell, a former journalists, teacher, producer=
=20
and media executive, has headed PBS since 2000, including through rocky=20
times with threatened budget cuts by Republicans and the high-profile moves=
=20
by former CPB Board Chairman Ken Tomlinson to add more- conservative shows=
=20
to the service. She was the first woman and first TV producer to head the=
=20
organization. Her credits include the PBS Foundation, which solicits major=
=20
gifts and endowments, as well as digital kids and public service=20
initiatives. Mitchell's contract with PBS was up in June, but she told B&C=
=20
that the search committee expected to have a candidate to replace her by=20
the PBS board meeting in February.
http://www.broadcastingcable.com/article/CA6298753?display=3DBreaking+Ne...
referral=3DSUPP
(free access for Benton's Headlines subscribers)

QUICKLY

THINK YOU CAN BEAT MEDIA ANALYSTS IN PREDICTING 2006?
[SOURCE: USAToday, AUTHOR: David Lieberman]
You read about media policy everyday (in theory) -- Here's your chance to=
=20
match your soothsaying skills for 2006 against the experts. This contest is=
=20
open to readers, industry players (such as executives, consultants,=20
journalists and stars) and other Wall Streeters. The deadline is Jan. 31,=
=20
and there are three ways to enter.
http://www.usatoday.com/printedition/money/20060112/2006_media_contest.a...
htm

CURRENT TAPS VIEWERS FOR CONTENT
[SOURCE: Multichannel News, AUTHOR: R. Thomas Umstead]
Upstart Current TV is slowly becoming a channel programmed for and by young=
=20
people, with more than 30% of its content generated from nonprofessional=20
filmmakers. The network has even reached into the Hollywood community to=20
help train would-be film directors. Actors Sean Penn and Robert Redford=20
have lent their expertise to a free online how-to filmmaking program on=20
Current's Web site (www.current.tv). The =93VC2 Survival Guide=94 area will=
=20
provide on-camera celebrity interviews discussing what story techniques=20
work and why.
http://www.multichannel.com/article/CA6298131.html?display=3DBreaking+News
(requires subscription)

BIG MEDIA AND THE 'HOLY' GRAIL
[SOURCE: CNN|Money, AUTHOR: Paul R. La Monica]
[Commentary] Sure, sex and violence still sell in mainstream media. But=20
increasingly, people want to see more than just scantily clad women and=20
loud explosions. They want to find religion.
http://money.cnn.com/2006/01/11/commentary/mediabiz/index.htm

MOST ONLINE BUYERS HAPPY, SURVEY SAY
[SOURCE: USAToday, AUTHOR: Lorrie Grant]
Online retail spending from Nov. 1 through Dec. 31 totaled $19.6 billion, a=
=20
25% surge from $15.7 billion the same period in 2004, according to ComScore=
=20
Networks. It estimates that non-travel online sales now account for 6% of=
=20
retail spending, excluding cars, gasoline and food. For the year, Internet=
=20
spending rose 22% to $143.2 billion. And websites satisfied about=20
three-quarters of online buyers.
http://www.usatoday.com/printedition/money/20060112/net_satisfaction12.a...
htm

TELECOM DEREG BILL ADVANCES IN INDIANA
[SOURCE: Technology Daily, AUTHOR: Michael Martinez]
The Indiana Senate Homeland Security, Utilities and Public Policy Committee=
=20
advanced a sweeping proposal to deregulate the state's telephone market.=20
The bill would let telephone companies set their own prices by 2009 and=20
hike their rates by $1 each month until that date, if they provide=20
high-speed Internet services to more than half of their customers in areas=
=20
with increased prices. The legislation would empower the state with=20
franchising authority for video programming and would create strict rules=
=20
for municipalities seeking to deploy broadband networks. Speaking on behalf=
=20
of the Indiana Association of Cities and Towns, Linton Mayor Tom Jones and=
=20
Bluffton Mayor Ted Ellis, said the proposal's stringent requirements for=20
municipal broadband projects would deny citizens access to developing=20
technologies. Linton is one of two Indiana cities with its own broadband=20
network. "It sets up unreasonable hoops and barriers so that it's basically=
=20
impossible for municipalities to take this matter into their own hands,"=20
association spokeswoman Andrea Johnson said. "For years there were places=
=20
the telecom industry hasn't invested and haven't deemed it's worth their=20
while."
http://www.njtelecomupdate.com/lenya/telco/live/tb-DJBG1137014237355.html

A NEW COLOR IN BRAZIL TV
[SOURCE: Los Angeles Times, AUTHOR: Henry Chu]
Blacks make up nearly half the population, but they were a rarity on=20
screen. Now there's a channel for them -- one critics decry as racist. By=
=20
singling out blacks as its target audience and insisting on putting=20
nonwhite faces before the camera as presenters and protagonists, TV da=20
Gente contributes to racial division in Brazil, detractors contend. "If I=
=20
put a 'TV for whites' on air, I'd have a thousand lawsuits on my back,"=20
read a typical posting on one of several blogs and cyber-forums debating=20
the merits of TV da Gente, which airs on a UHF channel. "I'm white; I'm not=
=20
racist in any way. But I will not watch a single program on this channel=20
because it's practicing explicit racism." The channel's founder and=20
principal backer, Jose de Paula Neto, is disturbed by such reactions.
http://www.latimes.com/news/printedition/front/la-fg-blacktv12jan12,0,70...
83.story?coll=3Dla-headlines-frontpage
(requires registration)

JAPAN EYES MEDIA AND TELECOMS REFORMS
[SOURCE: Financial Times, AUTHOR: Michiyo Nakamoto]
Japan needs to reform outdated business practices and revamp regulation in=
=20
the telecoms and media industries if it is to regain its edge in these=20
markets, according to Heizo Takenaka, Minister for Internal Affairs and=20
Communications and architect of the privatization of Japan=92s postal syste=
m.=20
Mr Takenaka has now asked a special taskforce to develop recommendations on=
=20
reforming business practices and regulation by the end of June. He believes=
=20
outmoded business practices, vested interests and regulatory obstacles are=
=20
preventing the full development of goods and services that take advantage=
=20
of new technology and the Internet. In some areas of Japan people still=20
have only a few terrestrial TV channels, even though available broadband=20
technology would allow them to receive more.
http://news.ft.com/cms/s/df877fb0-82c8-11da-ac1f-0000779e2340.html
(requires subscription)

SPRINGER AGREES TO OFFLOAD PRO7
[SOURCE: Financial Times, AUTHOR: Gerrit Wiesmann]
Axel Springer, the Berlin-based newspaper publisher, has offered to sell=20
one of ProSiebenSat1=92s four television channels to secure approval from t=
he=20
federal cartel office for its planned take-over of Germany=92s second large=
st=20
commercial broadcaster.
http://news.ft.com/cms/s/1d8050fa-82d6-11da-ac1f-0000779e2340.html
(requires subscription)

DOLLAR-PER-PIXEL AD SITE NETS STUDENT $1 MILLION
[SOURCE: Financial Times, AUTHOR: James Fontanella]
An inspired idea to host micro-advertisements on a single web-page turned a=
=20
cash-strapped student into a millionaire in under six months. The site,=20
which started out as blank space divided into 10x10 pixel squares, was=20
picked up by bloggers and transformed into an Internet advertising=20
phenomenon. On Wednesday Alex Tew, a 21-year-old entrepreneur, sold the=20
final 1,000 pixels on his site for $38,100 on eBay auction -- a handsome=20
increase on the starting price of $1,000 -- reaching his goal of earning a=
=20
million dollars. Tew created milliondollarhomepage.com in August 2005 to=20
cover his fees for a course in business management. Mr Tew=92s initial=20
investment was =A350 to buy web space and a domain name. He divided the bla=
nk=20
homepage into 10,000 squares of 100 pixels each. Each pixel was worth $1,=
=20
minimum purchase: $100. The =93million dollar homepage=94 expanded without =
an=20
established brand name or target audience. The site went live on August=20
26, 2005, and three days later Mr Tew sold his first 400 pixels. Through=20
word of mouth, chain e-mails and ever-growing media coverage, the website=
=20
built a name for itself and gained popularity and interest from web=20
surfers. Within a month Mr Tew had earned some =A320,000 ($37,000) =96 =93e=
nough=20
pixels to cover the entire cost of my forthcoming three years at=20
university,=94 Mr Tew said.
http://news.ft.com/cms/s/d4edefe0-82ae-11da-ac1f-0000779e2340.html
(requires subscription)

STUDY TO LEARN POWER OF SMART GRIDS, APPLIANCES
[SOURCE: Reuters, AUTHOR: Bernie Woodall]
Within 10 years, "smart" power grids passing information back and forth=20
with "intelligent" home appliances may save enough energy during peak=20
electricity demand to keep utilities from building expensive substations=20
and major transmission lines, say backers of a year-long experiment that=20
begins this month. Hooked up by wireless connections with home computers=20
and by broadband with local utilities, hot water heaters, air conditioners,=
=20
dryers and other appliances in the study will shut off or limit power use=
=20
depending on demand on the wider power grid.
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-01-12T053049Z_01_YUE201793_RTRUKOC_0_US-ENERGY-UTILITIES-TEST.xml

SO WHAT... ABOUT COPYRIGHT
The Empowering Creators Project, sponsored by Public Knowledge, has=20
released the primer: =93So What =85 About Copyright?=94. The primer, in pla=
in and=20
accessible language, provides the creator with an overview of copyright law=
=20
=97 from a historic understanding of copyright law as conceived by the=20
Framers of the U.S. Constitution to current policy issues that may affect=
=20
you, as an artist, and your work. =93So What =85 About Copyright?=94 is a s=
eries=20
of essays written with the artist in mind. This book presents the basics on=
=20
copyright, trademark, fair use, and the public domain. Chapters for=20
filmmakers, visual artists, and writers explain how creators can best=20
understand, benefit from, and follow copyright and trademark laws.
http://www.publicknowledge.org/resources/artists/so-what-about-copyright
The primer is also available online:
http://static.publicknowledge.org/pdf/so-what-about-copyright.pdf
--------------------------------------------------------------
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.
--------------------------------------------------------------