March 2008

Deal Seen Coming Into Focus On Clear Channel's TV Sale

DEAL SEEN COMING INTO FOCUS ON CLEAR CHANNEL'S TV SALE
[SOURCE: Wall Street Journal, AUTHOR: Shira Ovide shira.ovide@dowjones.com]
An affiliate of Providence Equity Partners acknowledged a settlement is possible in a contentious lawsuit over a sale of Clear Channel Communications Inc.'s television stations. For nearly a month, Providence Equity, Clear Channel and Wachovia Corp. have been locked in a legal dispute over the sale of the stations. The media company has blamed the potential buyer, Providence Equity affiliate Newport Television, for delays in closing the deal, valued at more than $1 billion. Providence Equity in turn has blamed Wachovia for balking on commitments to help finance the transaction. For Clear Channel, there are advantages to ending the dispute quickly, so that it can focus on closing a bigger deal to be taken over by private-equity investors. Clear Channel has said it expects to close its $19.5 billion sale to Thomas H. Lee Partners and Bain Capital by the end of the month, but said it wants to close the TV-station sale before completion of the bigger buyout.
http://online.wsj.com/article/SB120546082307835633.html?mod=todays_us_ma...
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* Crossed Signals On Clear Channel
Looking for some clarity on whether the $19.5 billion buyout of Clear Channel Communications will go through? Maybe you shouldn't ask anyone involved, at least until they get their stories straight.
http://online.wsj.com/article/SB120546495086835951.html?mod=todays_us_mo...

NPR grapples with the prospect of a post-radio future

NPR GRAPPLES WITH THE PROSPECT OF A POST-RADIO FUTURE
[SOURCE: The Christian Science Monitor, AUTHOR: Randy Dotinga]
If you like National Public Radio's "Fresh Air With Terry Gross," you can hear it via podcast or satellite radio. But unless you're near a radio or a live online stream, "Morning Edition" and "All Things Considered" are off-limits. Public radio stations make millions from pledge drives that intersperse the two hit news shows, and NPR hasn't wanted to undercut local stations' fundraising by giving fans another way to hear the programs. But that could change, as NPR considers whether to fully embrace "new media" technology at the risk of bypassing some public-radio stations. "The fear in its raw form is that NPR will market itself directly to consumers and … and completely eclipse their local stations," says media consultant Michael Marcotte, a former San Diego public-radio news director. The debate within NPR became public last week after the network's board fired CEO Ken Stern. Mr. Stern, who'd been in charge for 18 months, had pushed NPR to offer its news through mediums other than terrestrial radio.
http://www.csmonitor.com/2008/0314/p02s06-ussc.html

For the networks, television's future is online

FOR THE NETWORKS, TELEVISION'S FUTURE IS ONLINE
[SOURCE: The Christian Science Monitor, AUTHOR: Gloria Goodale]
Predicting the death of network television is a popular pastime in Hollywood. After three decades of audience erosion to cable, the doomsaying has intensified in recent years as video-sharing websites such as YouTube and Facebook have demonstrated an audience of millions for low-budget video. But it's still not time to count the Big Five networks out yet, say media watchers. They may have stumbled in the transition to the world of digital entertainment, underestimating audience appetite for consumption in new media beyond traditional TV, but they're rapidly trying to adapt.
http://www.csmonitor.com/2008/0314/p12s02-altv.html

Bill Gates urges U.S. to free up more spectrum for Wi-Fi

BILL GATES URGES US TO FREE UP MORE SPECTRUM FOR WI-FI
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
Microsoft Corp co-founder Bill Gates urged U.S. communications regulators on Thursday to free up more vacant television airwaves to be used for wireless services such as broadband Internet access. During an appearance before a Northern Virginia technology group, Gates said the so-called "white space" spectrum between analog broadcast channels could be used to expand access of wireless broadband service using Wi-Fi technology. "We're hopeful that that will be made available so that Wi-Fi can explode in terms of its usage, even out into some of these less dense areas (of the United States) where distance has been a big problem for Wi-Fi," Gates said in response to a question from the audience. Microsoft is part of a coalition of technology companies that has been lobbying the U.S. Federal Communications Commission to allow unlicensed use of white space spectrum. The group also includes Google Inc, Dell, Intel Corp, Hewlett-Packard Co and the north American unit of Philips Electronics. However, the idea is opposed by U.S. broadcasters and makers of wireless microphones, who fear the devices would cause interference.
http://www.reuters.com/article/technologyNews/idUSN1332446720080313

* Gates: TV to Become Targeted Medium
[SOURCE: Associated Press, AUTHOR: Matthew Barakat]
In a speech Thursday, Microsoft Corp. Chairman Bill Gates offered some predictions on the future of technology and said that ''TV will be based on the Internet; it will be an utterly different thing" with viewers able to select niche content for news, sports and entertainment.
http://www.tvnewsday.com/articles/2008/03/13/daily.10/

Network Neutrality Could Divide Hollywood, Dems

NET NEUTRALITY COULD DIVIDE HOLLYWOOD, DEMS
[SOURCE: The Hollywood Reporter, AUTHOR: Brooks Boliek]
The debate over network neutrality threatens to drive a wedge between Hollywood and its traditional Democratic allies. Proponents of government action to preserve the open character of the Internet contend that the issue is nonpartisan, but it has been mostly Democrats who have pursued it. Rep. Ed Markey (D-MA) has made the issue a priority. The chairman of the House Energy and Commerce Committee's telecommunications and Internet subcommittee has introduced the Internet Freedom Preservation Act, which would ensconce the network neutrality principles into law. Meanwhile, Federal Communications Commission members Michael Copps and Jonathan Adelstein, both Democrats, have been more vocal about the need for commission action than the Republicans on the panel. MPAA chief Dan Glickman decried government regulation of the Internet during his ShoWest speech in Las Vegas on the same day that the Democrat-led House Judiciary Committee took up the issue of network neutrality. While committee chairman Rep. John Conyers (D-MI) said he doesn't think new legislation is needed, he made it clear Tuesday that net neutrality calls out for vigorous antitrust enforcement.
http://www.mediaweek.com/mw/content_display/digitaldownload/broadband/e3...

Senate to block White House recess appointments

SENATE TO BLOCK WHITE HOUSE RECESS APPOINTMENTS
[SOURCE: The Hill, AUTHOR: Manu Raju]
The Senate will move into pro forma sessions this month after Senate Majority Leader Harry Reid (D-Nev.) and the White House failed to reach an accord on moving a slew of stalled nominees. The pro forma sessions, during which the Senate is in session for less than a minute, will take place periodically over the two-week recess. By technically staying in session, President Bush will not be able to use his constitutional authority to install executive branch and judicial nominees during Senate recesses.
http://thehill.com/index.php?option=com_content&task=view&id=72105&Itemi...

Get elected to Congress and get rich: study

GET ELECTED TO CONGRESS AND GET RICH: STUDY
[SOURCE: Reuters, AUTHOR: Kevin Drawbaugh]
The personal wealth of members of the U.S. Congress has soared in recent years, leaving lawmakers on average far more well-to-do than most Americans as of 2006, said a study. The median net worth of senators was estimated at $1.7 million and House of Representatives members at $675,000, said the Center for Responsive Politics, a Washington watchdog group that monitors the influence of money on government. The center released a report saying that until the recent economic slowdown, lawmakers "enjoyed an extraordinary run in their personal investments and other finances." The report said, "Members of Congress, who are now paid about $169,000 annually, saw their net worths soar 84 percent from 2004 to 2006, on average."
http://www.reuters.com/article/domesticNews/idUSN1330776120080313

Appalling Spread of False Information Requires Stronger Media Accountability

APPALLING SPREAD OF FALSE INFORMATION REQUIRES STRONGER MEDIA ACCOUNTABILITY
[SOURCE: AlterNet, AUTHOR: Mark Weisbrot]
[Commentary] "A free press is supposed to function as our democracy's immune system against . . . gross errors of fact and understanding," wrote Al Gore in his book, The Assault on Reason. But it doesn't - as Gore explains -- and that is what makes the mass media one of the most important obstacles to social and economic progress in the 21st century. Here in Washington, when one raises the issue of media responsibility, a common response - from policy analysts, political operatives, and journalists - is that the problem is with the American people, that they are just stupid. Interestingly, however, when one strays a bit from their own area of expertise or concentration, it appears that these professionals also believe a number of falsehoods on important issues -- apparently from having heard these things repeated in the media. Of course the best counterweight to the media's transgressions is an informed and active citizenry. Part of the reason that the media treats Barack Obama more fairly than it treats Social Security is that Obama has millions of active supporters who would raise hell if the media were to engage in serious abuses of him or his candidacy. Over the long run, we will need to subject the privately owned mass media to more competition. This will come increasingly from the Internet, but real competition will also require an expanded and better quality public media sector. But until this competition gets a lot bigger, it will be up to the citizenry to hold our highly concentrated media accountable as best we can.
http://www.alternet.org/mediaculture/79465/

Cell phones to ring up sales even in time of recession

CELL PHONES TO RING UP SALES EVEN IN TIME OF RECESSION
[SOURCE: Chicago Tribune, AUTHOR: Wailin Wong]
Even with fears of a recession looming, the cell phone has become an item that most Americans can't seem to forgo. Eighty percent of the population carries a mobile device, according to industry figures. "If a true recession hit the U.S. economy, clearly it would delay people from upgrading their devices," said Robert Laikin, chief executive of cell phone distributor Brightpoint. "But, in my opinion, there would be a lot of other things people would give up before upgrading their devices." Growth rates for the industry are slowing in the U.S., mostly because the base of potential new customers has shrunk. According to Citigroup, North American handset shipments are expected to increase 5 percent this year, decelerating from 7 percent in 2007 and 10 percent before that. This trend indicates "a more mature cycle in North America," said Citigroup analyst Jim Suva. The two-year contract cycle in the U.S., coupled with a typical handset life span around four years, effectively guarantees a steady flow of subscribers buying new phones. But wireless carriers and handset manufacturers will have to fight harder to win customers, or convince existing ones to spend more money. Analysts say they expect carriers to offer even bigger phone rebates if they sense a slowdown in disposable income. This would be positive for cell phone-makers and consumers.
http://www.chicagotribune.com/business/chi-thu-cellphones-iphone-lg-motm...

NCTA Sues FCC Over Leased-Access Rules

NCTA SUES FCC OVER LEASED-ACCESS RULES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In what has become a parade of legal challenges to Federal Communications Commission rules, the National Cable & Telecommunications Association asked the D.C. Court of Appeals to throw out the FCC's decision to lower leased-access rights and tighten the rules. Like similar suits filed recently against the FCC's cable-ownership cap, newspaper-broadcast cross-ownership rules, profanity findings and more, the NCTA called the decision arbitrary and capricious and a violation of procedure, but also threw in “unlawful burden on speech" (First Amendment) and an unconstitutional "uncompensated taking of private property" (Fifth Amendment).
http://www.broadcastingcable.com/article/CA6540624.html

* FCC’s Leased Access Rules Trigger Appeals
http://www.multichannel.com/article/CA6540548.html?nid=4262