November 2007

MEDIA OWNERSHIP
Critics Analyze Martin's Ownership Plan
Virginia senators back Media General on newspaper/TV cross-ownership rule
Bringing diversity to the nation's media
FCC Creates Dimmer Picture for TV Stocks
Georgetown Partners Takes Sirius/XM to Task in FCC Filing

CABLE
The FCC Plays 'Monopoly'
Wall Street Analyst Refutes FCC Chairman=92s Cable Math
Specter To Martin: Sack NFL Net Plan

BROADCASTING
Who's Really Watching HDTV?
CBS=92 Early Show Clear on HDTV, Fuzzy on DTV
CBS Pays $300,000 To Settle KUTV License Challenge
WMAQ Hit With Kids Reporting Fine

DIGITAL CONTENT
Facebook Users Complain of New Tracking
ABC News and Facebook in Joint Effort to Bring=20
Viewers Closer to Political Coverage
Use Of Broadband Service To Overtake TV Viewing

QUICKLY -- WGA Lauds Democratic Candidates Their=20
Support; Reports reveal online learning's=20
successes, needs; EU agrees public funding for=20
satellite project; UK Telecoms urged to invest in=20
faster networks; Ecuador wants cell phones for the poor

MEDIA OWNERSHIP

CRITICS ANALYZE MARTIN'S OWNERSHIP PLAN
[SOURCE: Technology Daily 11/15, AUTHOR: David Hatch]
Federal Communications Commission Chairman Kevin=20
Martin is trying to satisfy two key prerequisites=20
demanded by lawmakers and watchdogs for agency=20
action on modifying media-ownership rules -- but=20
critics say his efforts fall short. They have=20
called on Chairman Martin to complete a=20
proceeding examining the amount of locally=20
originated programming aired by broadcasters and=20
to move forward on adoption of rules promoting=20
ownership of media outlets by minorities and=20
women. The FCC Chairman is under pressure from=20
Congress and advocacy groups to delay a planned=20
Dec. 18 vote on easing the ban prohibiting one=20
entity from owning a newspaper and broadcast=20
station in the same market. But Chairman Martin=20
is moving on a fast track. He has circulated=20
among his four agency colleagues a localism=20
report accompanied by proposed rules designed to=20
increase the amount of community news and=20
civic-minded fare on local television stations.
http://www.njtelecomupdate.com/2007/11/critics_analyze_martins_owners.html

VIRGINIA SENATORS BACK MEDIA GENERAL ON NEWSPAPER/TV CROSS-OWNERSHIP RULE
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
Senators John Warner (R-VA) and Jim Webb (D-VA)=20
have sent the Federal Communications Commission a=20
letter asking the agency to give "every=20
appropriate consideration" to a filing urging=20
further relaxation of the FCC's ban on=20
newspaper/broadcast station co-ownership. "In our=20
view, the Federal Communications Commission=20
should examine with close consideration the=20
impact the cross-ownership ban has had not only=20
on media companies operating in smaller markets=20
over the last thirty years since its enactment,=20
but more importantly any adverse impact it has=20
had on the quantity and quality of local and=20
community based news programming," they wrote to=20
FCC Chairman Kevin Martin on November 19th. Their=20
letter comes after a filing from the Media=20
General corporation, which supports Martin's=20
proposal to allow entities to own newspapers and=20
broadcast stations in the same city, but opposes=20
his plan to limit such cross-ownership to the top=20
20 United States markets. "To do this based on=20
some notion of market size, and then actually=20
discriminating against small and mid-sized=20
markets, should be policy anathema to the=20
Commission," Media General wrote to the FCC on=20
November 15th. "The Commission knows well that=20
small and mid-sized markets are already the most=20
at-risk for losing high quality local television=20
news." Media General owns newspapers and=20
broadcast stations in many mid-sized regions in=20
the southeast, including Virginia. These regions=20
would not be affected by Martin's proposal,=20
although language in his plan would allow the FCC=20
to set aside the market definition "if the public=20
interest, convenience, and necessity would be served."
http://www.lasarletter.net/drupal/node/514

BRINGING DIVERSITY TO THE NATION'S MEDIA
[SOURCE: Seattle Times, AUTHOR: Editorial staff]
[Commentary] America is a diverse society saddled=20
with a bland, monolithic press. This woeful=20
imbalance between who Americans are and who owns=20
the press must be part of any discussion about=20
media ownership. Sadly, the agency charged with=20
addressing such issues has shirked its duty. The=20
chairman of the Federal Communications Commission=20
recently suggested new rules for media ownership.=20
The proposal would allow for cross-ownership of a=20
newspaper and a broadcast station in the same=20
media market. The problems with the proposed=20
changes are many. The most glaring omission,=20
though, is what to do about the lack of minority=20
and female owners of news outlets. The FCC's plan=20
would only further alienate women and minorities=20
from a vital sector of American democracy. Any=20
discussion of ownership has to include diversity.
http://seattletimes.nwsource.com/html/editorialsopinion/2004031970_local...
6.html

FCC CREATES DIMMER PICTURE FOR TV STOCKS
[SOURCE: The Street, AUTHOR: Nat Worden]
For investors, new media ownership rules proposed=20
by the Federal Communications Commission are a=20
sign that TV companies have little prayer of=20
getting bigger anytime soon. That could challenge=20
Wall Street valuations that give broadcast assets=20
a premium over newspapers. In so doing, it=20
weakens the argument for media conglomerates to=20
split print assets away from TV in order to win a=20
higher stock price. Both the newspaper industry=20
and the broadcast TV business epitomize Wall=20
Street's definition of a mature industry with=20
little opportunity for growth left. Usually,=20
companies in mature industries pursue a strategy=20
of consolidation to keep their stock prices=20
moving, but TV companies that own newspapers have=20
been largely barred from such moves due to=20
longstanding ownership restrictions prescribed by=20
bureaucrats in Washington. Investors for years=20
have kept the stocks aloft under the expectation=20
that the highly politicized process will go away.
http://www.thestreet.com/s/fcc-creates-dimmer-picture-for-tv-stocks/news...
lysis/business-technology/10391150.html

GEORGETOWN PARTNERS TAKES SIRIUS/XM TO TASK IN FCC FILING
[SOURCE: Broadcasting&Cable, AUTHOR: Jon Hemingway]
Minority-owned private-equity firm Georgetown=20
Partners said Sirius Satellite Radio and XM=20
Satellite Radio misrepresented support for the=20
companies' proposed merger. Georgetown also noted=20
that there are no third-party entities on record=20
with the FCC that are opposed to Georgetown's=20
proposal to alter the terms of the merger.=20
Georgetown called for the combined company to=20
lease its broadcast infrastructure and 20% of its=20
channel capacity to a minority-controlled entity,=20
claiming that this would alleviate=20
anti-competitive effects of the merger and ensure=20
diversity of programming. Alleging that=20
Georgetown was trying to =93manipulate the=20
regulatory process for private gain,=94 Sirius and=20
XM said last week that the leasing proposal would=20
undermine the benefits of the merger and actually=20
restrict programming for consumers. The companies=20
also said the deal had support with organizations=20
representing underserved markets, particularly=20
singling out the endorsement by the NAACP.=20
Georgetown took exception to that, given that the=20
NAACP offered its support in June, months before=20
the leasing proposal was made. Georgetown=92s=20
letter also cited support for its proposal from=20
the Black Leadership Forum, a 35-member=20
organization that includes the NAACP, as well as=20
six Congressional Black Caucus members.
http://www.broadcastingcable.com/article/CA6504572.html?rssid=3D193

CABLE

THE FCC PLAYS 'MONOPOLY'
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
Federal Communications Commission Chairman Kevin=20
Martin wants to force cable companies to reduce,=20
by as much as 75%, the already regulated rates=20
they charge to lease channels to programmers. He=20
also wants to require cable operators to settle=20
carriage disputes, like the current one involving=20
the NFL Network, through an arbitration system=20
set up by the FCC. Apparently Mr. Martin, a=20
Republican appointee to the agency no less, has=20
lost faith in the free market's ability to handle=20
commercial disputes. Either that, or he has some=20
personal animus against cable. Chairman Martin=20
likes to point out that cable rates have=20
increased over the past decade, which is true.=20
But it's also true that consumers are getting=20
much more for their money. Ten years ago, the=20
average cable customer received 45 channels.=20
Today that customer receives 75. On a per-channel=20
basis, cable rates have fallen. More people also=20
subscribe to "bundles" that allow them to receive=20
cable, phone and Internet service from a single=20
provider. As a result, consumers today are paying=20
30% less than it cost to buy those services=20
separately 10 years ago. To justify his meddling,=20
Chairman Martin describes a marketplace that=20
doesn't exist. He pretends there's no DirecTV and=20
EchoStar option. He pretends that Verizon and=20
AT&T's video offerings pose no threat to Comcast=20
and Time Warner. But if the FCC Chairman is most=20
concerned about costs, the goal should be more=20
competition via different platforms. In other=20
words, he should want current trends to continue.=20
His odd and untimely proposals are more likely to retard them.
http://online.wsj.com/article/SB119603665588003451.html?mod=3Dtodays_us_...
nion
(requires subscription)
* FCC Chief Seeks Votes to Tighten Cable Rules
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
Chairman Martin is struggling to find enough=20
support from a majority of the agency=92s=20
commissioners to regulate cable television=20
companies more tightly. Commissioner Jonathan=20
Adelstein recently tried, unsuccessfully, to=20
postpone the vote on the video competition=20
report. Commissioner Adelstein complained that=20
Chairman Martin has been unfairly rushing other=20
commissioners to complete the finding. Mr.=20
Adelstein has told people involved in the=20
proceeding that he was unsure whether there was=20
an adequate basis for concluding that the cable=20
companies had become too dominant. Without=20
Adelstein=92s support, Martin=92s proposal could=20
fail. A defeat would be a major blow to consumer=20
groups and a setback for Chairman Martin.
http://www.nytimes.com/2007/11/26/business/media/26cable.html?ref=3Dtoda...
aper
(requires registration)

WALL STREET ANALYST REFUTES FCC CHAIRMAN'S CABLE MATH
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Wall Street cable analyst Craig Moffett told a=20
Federal Communications Commission official last=20
week that it was not =93mathematically possible=94=20
that cable penetration of U.S. households is 70%=20
or higher. Moffett, a cable analyst at Sanford C.=20
Bernstein & Co., provided his analysis in a Nov.=20
21 letter to FCC Democrat Jonathan Adelstein.=20
Adelstein became the third FCC member to seek an=20
outside data after FCC chairman Kevin Martin=20
infuriated the cable establishment by declaring=20
that cable TV operators had breached the 70%=20
barrier, triggering a legal provision that gives=20
the FCC expansive new powers to regulate cable.=20
Moffett, based on a review of Securities and=20
Exchange Commission filings and other publicly=20
available data, concluded there are 63.5 million=20
U.S. cable subscribers, which means the total=20
number of homes passed would have to be 90.7=20
million or fewer to achieve 70% penetration. But,=20
Moffett said, such a result could not be possible=20
because =93the eight publicly trade cable=20
companies=94 alone have reported passing 94.2=20
million homes. The eight MSOs have 48.4 million=20
subscribers. After looking at the total number of=20
cable subscribers and the total number of homes=20
passed by all cable companies, and after=20
adjusting to exclude vacant households, Moffett=20
determined that cable penetration was no higher than 60.5%.
http://www.multichannel.com/article/CA6504793.html?rssid=3D196

SPECTOR TO MARTIN: SACK NFL NET PLAN
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Sen. Arlen Specter (R-PA) is opposing the=20
possible adoption of rules by the Federal=20
Communications Commission that would likely give=20
the NFL Network a leg up in negotiations with=20
cable TV operators Comcast and Time Warner Cable.=20
=93The only possible outcome would be higher costs=20
to consumers,=94 Sen Specter said in a letter to=20
FCC chairman Kevin Martin, who is supporting the=20
NFL Network in a dispute between the sports networks and major cable operat=
ors.
http://www.multichannel.com/article/CA6504396.html?rssid=3D196

BROADCASTING

WHO'S REALLY WATCHING HDTV?
[SOURCE: Broadcasting&Cable, AUTHOR: Glen Dickson]
A review of research from such groups as the=20
Consumer Electronics Association (CEA), TV=20
ratings giant Nielsen Media Research, TV=20
programmers and analysts indicates that in late=20
2007, there are still wide differences of opinion=20
on the size of the HDTV viewing audience. Despite=20
the uncertainty two things seem clear: HDTV=20
viewing is not quite yet a mass-market=20
phenomenon, with less than 20% of Nielsen's 112.4=20
million U.S. TV households watching HDTV=20
today=97perhaps 18 million homes in total. And a=20
significant portion of HDTV set-owners still=20
aren't watching HDTV programming, either because=20
they simply bought them to watch DVD movies in=20
widescreen, or because they think they're getting=20
HDTV when they're not. That suggests that the=20
HDTV audience could quickly double if cable and=20
satellite operators are successful in up-selling=20
subscribers to their high-definition services.=20
One of the ironies of current HDTV penetration=20
research is that no one seems to have a good=20
estimate of the number of households watching=20
HDTV via over-the-air signals, although it is=20
broadcasters' switch to a new digital television=20
standard that started the industry's overall move=20
to HDTV. Leichtman estimates that 4% (perhaps 1.1=20
million) of HD households are watching HD through over-the-air broadcasts.
http://www.broadcastingcable.com/article/CA6504745.html

CBS' EARLY SHOW CLEAR ON HDTV, FUZZY ON DTV
[SOURCE: Broadcasting&Cable, AUTHOR: Staff]
David Gregg -- senior editor of Behind the Buy, a=20
Web site for "non-techie, time starved, curious=20
consumers" -- had some misinformation for a=20
recent CBS "Early Show" audience on the transition to digital television.
http://www.broadcastingcable.com/article/CA6504728.html?rssid=3D193

CBS PAYS $300,000 TO SETTLE KUTV LICENSE CHALLENGE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
CBS has agreed to pay $300,000 to settle a=20
license challenge to KUTV(TV) Salt Lake City over=20
its airing of "Without a Trace." CBS admitted it=20
had =93inadvertently=94 failed to comply with an=20
earlier consent decree wiping out a raft=20
of indecency complaints including against the=20
same episode of the CBS drama. According to that=20
decree, CBS was supposed to launch an=20
investigation and suspend employees if the FCC=20
concluded a broadcast had been indecent, which it=20
did to the tune of a record $3.6 million fine=20
against CBS=92 owned stations for the repeat airing=20
of "Without a Trace." The company has now=20
promised to take steps going forward to insure=20
compliance with the original consent decree. The=20
consent decree entered into with the FCC does not=20
wipe away that proposed $3.6 million fine. It=20
applies to KUTV and to a license challenge filed=20
by the Parents Television Council, as well as to=20
any other CBS stations that similarly did not take remedial actions.
http://www.broadcastingcable.com/article/CA6504781.html?rssid=3D193

WMAQ HIT WITH KIDS REPORTING FINE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission has=20
proposed fining NBC-owned WMAQ-TV Chicago $10,000=20
for failing to publicize the =93the existence and=20
location=94 (though the first would seem to=20
presuppose the second) of its children=92s TV=20
programming reports. The station had volunteered=20
as part of a 2005 license renewal application=20
that it had inadvertently failed to announce the=20
information, but had since rectified the situation.
http://www.broadcastingcable.com/article/CA6504782.html?rssid=3D193

DIGITAL CONTENT

FACEBOOK USERS COMPLAIN OF NEW TRACKING
[SOURCE: Associated Press 11/21, AUTHOR: Anick Jesdanun & Rachel Metz]
Some users of the online hangout Facebook are=20
complaining that its two-week-old marketing=20
program is publicizing their purchases for=20
friends to see. Those users say they never=20
noticed a small box that appears on a corner of=20
their Web browsers following transactions at=20
Fandango, Overstock and other online retailers.=20
The box alerts users that information is about to=20
be shared with Facebook unless they click on "No=20
Thanks." It disappears after about 20 seconds,=20
after which consent is assumed. Users are given=20
a second notice the next time they log on to=20
Facebook, but they can easily miss it if they=20
quickly click away to visit a friend's page or check e-mail.
http://www.redorbit.com/news/technology/1153440/facebook_users_complain_...
new_tracking/index.html?source=3Dr_technology
* Web advertising to come under EU scrutiny
[SOURCE: Reuters, AUTHOR: Astrid Wendlandt]
Targeted online advertising is set to face=20
increased scrutiny from European Union regulators=20
concerned about invasion of privacy, threatening=20
the growth of a potentially big online revenue-booster for media companies.
http://www.reuters.com/article/internetNews/idUSL229260820071123

ABC NEWS AND FACEBOOK IN JOINT EFFORT TO BRING=20
VIEWERS CLOSER TO POLITICAL COVERAGE
[SOURCE: New York Times, AUTHOR: Brian Stelter]
Facebook, the popular social networking site, has=20
become a full-fledged platform for communicating,=20
sharing and advertising. ABC News is betting that=20
it will become a platform for political coverage,=20
as well. ABC News and Facebook have formally=20
established a partnership =97 the site=92s first with=20
a news organization =97 that allows Facebook=20
members to electronically follow ABC reporters,=20
view reports and video and participate in polls=20
and debates, all within a new =93U.S. Politics=94=20
category. To underscore their collaboration, the=20
two organizations will announce today that they=20
are jointly sponsoring Democratic and Republican=20
presidential debates in New Hampshire on Jan. 5,=20
three days before the primary election there.
http://www.nytimes.com/2007/11/26/technology/26abc.html?ref=3Dtodayspaper
(requires registration)

USE OF BROADBAND SERVICE TO OVERTAKE TV VIEWING
[SOURCE: OnlineMediaDaily, AUTHOR: Mark Walsh]
InStat predicts that within the next three years=20
more than 16 million US households will use their=20
broadband service more than they use their TV=20
sets. Up to 30% of viewers will drop subscription=20
TV and use the Internet for watching TV. More=20
than 40% say they aren't getting enough=20
international news and information from their=20
current TV service, despite having hundreds of channels to choose from.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.san&s=...
1303&Nid=3D36546&p=3D368626

QUICKLY

WGA LAUDS DEMOCRATIC CANDIDATES THEIR SUPPORT
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
On the eve of Thanksgiving, the Writers Guild of=20
America East Wednesday thanked the three leading=20
Democratic Presidential candidates for their vow=20
not to cross strike picket lines. TV and film=20
writers went on strike Nov. 5, and their union=20
said it was =93thrilled=94 with the support it has=20
gotten from Sen. John Edwards, who is opting not=20
to appear on ABC=92s The View next week due to the=20
strike. In addition, the WGA lauded Edwards, Sen.=20
Hillary Clinton and Sen. Barack Obama for saying=20
they won't cross picket lines if CBS News=20
employees go on strike. The CBS employees, also=20
WGA members, have voted to authorize a strike.
http://www.multichannel.com/article/CA6504704.html?rssid=3D196

REPORTS REVEAL ONLINE LEARNING'S SUCCESSES, NEEDS
[SOURCE: eSchool News, AUTHOR: Laura Devaney]
Online learning continues to grow at a rapid=20
pace, with 30 states -- six more than last year=20
-- now offering state-led programs or=20
initiatives, according to the latest report from=20
the North American Council for Online Learning=20
(NACOL). But the group warns that more oversight=20
of online learning programs is needed if this=20
growth is to continue, and it urges=20
administrators to make sure their online courses=20
are equally accessible to all students.
http://www.eschoolnews.com/news/top-news/?i=3D50614;_hbguid=3D6c7e3d93-f...
-41e4-941c-c83e6b4c7793

EU AGREES PUBLIC FUNDING FOR SATELLITE PROJECT
[SOURCE: Reuters, AUTHOR: Paul Taylor and Jeff Mason]
European Union nations clinched a deal late on=20
Friday to fund an ambitious satellite navigation=20
project to rival the U.S. Global Positioning=20
System using unspent cash from the EU budget.=20
Ministers agreed to finance a 2.4 billion euro=20
($3.55 billion) shortfall in start-up costs of=20
the Galileo system by redeploying unspent money=20
for farm subsidies and competitiveness projects.
http://www.reuters.com/article/technologyNews/idUSN2333673020071123

TELECOMS URGED TO INVEST IN FASTER NETWORKS
[SOURCE: Financial Times, AUTHOR: Maija Palmer]
The British government will on Monday put renewed=20
pressure on telecoms companies to invest in=20
ultra-fast broadband networks, warning that the=20
UK economy could suffer if they do not. Stephen=20
Timms, the competitiveness minister, has called=20
companies including BT, Virgin Media, BSkyB,=20
Vodafone and Carphone Warehouse to a summit=20
meeting on Monday to discuss building a network=20
that would allow consumers to download music,=20
films and other material over the Internet at=20
much higher speeds than today. Virgin Media, the=20
cable operator, is expected to add to the=20
pressure on other telecoms companies =96=20
particularly BT =96 by announcing plans to roll out=20
broadband access at 50 megabits per second=20
starting next year. This is more than twice the=20
current top speed of 20 megabits per second=20
available on its network. Virgin says it plans to=20
make the high-speed service available to 70 per=20
cent of its customers by the end of 2008.=20
However, Virgin Media only covers about 50 per=20
cent of the UK population, and the government is=20
also keen to see BT, whose network reaches almost=20
all the population, build a higher-speed network.
http://www.ft.com/cms/s/8f441d56-9bad-11dc-8aad-0000779fd2ac.html
(requires subscription)

ECUADOR WANTS CELL PHONES FOR THE POOR
[SOURCE: Reuters]
Ecuador has contacted foreign mobile firms to=20
negotiate new contracts that would impose higher=20
penalties over operational errors and push=20
companies to create a fund that would provide cell phone service to the poo=
r.
http://www.reuters.com/article/technologyNews/idUSN2227023320071122
--------------------------------------------------------------
Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
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