March 2008

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GOVERNMENT & COMMUNICATIONS
House Steers Its Own Path on Wiretaps

ELECTIONS & MEDIA
Media Admire Clinton=92s Resilience, Question Obama=92s Toughness
Pennsylvania Stations May Get $40 Mil in Campaign Ads
Most Americans don't read political blogs
The Red Phone in Black and White

POLICYMAKERS
FCC chief hasn't lost focus on cable

MEDIA OWNERSHIP
Flood of Filings Challenges FCC=92s Cross-Ownership Decision
G.E. Chairman Rejects Talk of NBC Sale

CABLE
Judge Sides With Programmers -- For Now -- In A La Carte Case

INTERNET/BROADBAND
House Panel To Vet Net Neutrality
California Communities Need Broadband Action

QUICKLY -- Study: Kids Are Master Multitaskers On=20
TV, Web, Mobile; News Corp will not fight=20
Microsoft for Yahoo; Wireless Spectrum for the Masses?

GOVERNMENT & COMMUNICATIONS

HOUSE STEERS ITS OWN PATH ON WIRETAPS
[SOURCE: New York Times, AUTHOR: Eric Lichtblau]
In continued defiance of the White House, House=20
Democratic leaders are readying a proposal that=20
would reject giving legal protection to the phone=20
companies that helped in the National Security=20
Agency=92s program of wiretapping without warrants=20
after the Sept. 11 attacks. Instead of blanket=20
immunity, the tentative proposal would give the=20
federal courts special authorization to hear=20
classified evidence and decide whether the phone=20
companies should be held liable. House Democrats=20
have been working out the details of their=20
proposal in the last few days, officials said,=20
and expect to take it to the House floor for a=20
vote on Thursday. President Bush has been=20
insisting for months that Congress give=20
retroactive immunity to the phone companies,=20
calling it a vital matter of national security.=20
The Senate gave him what he wanted in a vote last=20
month that also broadened the government=92s=20
eavesdropping powers. But House Democratic leaders have balked at the idea.
http://www.nytimes.com/2008/03/11/washington/11fisa.html?ref=3Dtodayspaper
(requires registration)
* Radio Fear America
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] President Bush used his radio=20
address on Saturday to try to scare Americans=20
into believing they have to sacrifice their=20
rights and their values to combat terrorism. This=20
is not the first time that Mr. Bush has misled=20
Americans on intelligence-gathering and=20
antiterrorism operations, and it may not be the=20
last. It will be up to the next president to restore the rule of law.
http://www.nytimes.com/2008/03/11/opinion/11tue2.html?ref=3Dtodayspaper
(requires registration)

ELECTIONS & MEDIA

MEDIA ADMIRE CLINTON'S RESILIENCE, QUESTION OBAMA'S TOUGHNESS
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
Sen Clinton turned back the clock on the media=20
narrative for the Democrats last week. For=20
several weeks running, the press had cast Sen=20
Obama as a clear frontrunner, one perhaps on the=20
verge of finishing off his rival. Almost=20
instantly after Texas and Ohio, that narrative=20
returned to where it was through the decidedly=20
mixed Feb. 5 Super Tuesday results -- speculating=20
about a hopelessly deadlocked contest decided by=20
superdelegates. And embedded in that in the media=20
coverage last week was a months-old question: Was=20
Obama =93tough=94 enough to win a nomination fight=20
with a determined foe. In many ways, even in a=20
strong week for Clinton, the narrative turned on=20
questions about Obama. As a significant or=20
dominant newsmaker in 60% of campaign stories,=20
Clinton narrowly won the competition for media=20
exposure from March 3-9, a period that began a=20
day before the Texas, Ohio, Vermont and Rhode=20
Island primaries and ended a day after the=20
Wyoming caucus. For Clinton -- credited with=20
engineering another comeback in this roller=20
coaster race by aggressively attacking Obama --=20
that was her highest level of 2008 coverage. At=20
58%, Obama dropped 11 points from the previous=20
week. And in a difficult stretch of coverage, he=20
found himself facing questions about the need to=20
make strategic and tactical changes in his=20
campaign. In the week that the GOP race was=20
formally decided, the Democrats dominated=20
coverage over the Republicans by the lopsided=20
margin of about four-to-one (70% to 18%), a margin similar to the week befo=
re.
http://www.journalism.org/node/10106

PENNSYLVANIA STATIONS MAY GET $40 MILLION IN CAMPAIGN ADS
[SOURCE: TVWeek, AUTHOR: ]
Six to seven weeks of massive political=20
advertising spending are headed to Pennsylvania.
Political observers say Sen. Hillary Clinton=92s=20
victories over Sen. Barack Obama in the Ohio and=20
Texas Democratic primaries last week could prompt=20
the wildest ad-spending battle yet in a=20
presidential campaign in which spending continues=20
to exceed the most optimistic predictions. Evan=20
Tracey, chief operating officer of TNS Media=20
Intelligence=92s Campaign Media Analysis Group,=20
suggests that if the candidates can raise the=20
cash, more than $40 million could be spent in=20
Pennsylvania in the weeks leading up to the April=20
22 primary. Of course, any decision by Florida or=20
Michigan to rerun their Democratic primary could=20
divert some of that money. As of last week, more=20
than $210 million had been spent on presidential=20
campaign advertising through 2007 and 2008,=20
according to CMAG, exceeding the $64.5 million of=20
four years ago. Just weeks ago, projections had=20
the campaigns spending at least $50 million less.
http://www.tvweek.com/news/2008/03/political_campaigns_may_spend.php
(requires free registration)

MOST AMERICANS DON'T READ POLITICAL BLOGS
[SOURCE: Reuters, AUTHOR: Ellen Wulfhorst]
A majority of Americans do not read political=20
blogs, the online commentaries that have=20
proliferated in the race for the U.S. presidency,=20
according to the survey conducted by Harris=20
Interactive. Only 22 percent of people responding=20
to the poll said they read blogs regularly,=20
meaning several times a month or more. Despite=20
the attention blogs can get, the poll said 56=20
percent of Americans say they never read blogs=20
that discuss politics. Another 23 percent read=20
them several times a year, the survey showed.=20
While blogs are largely considered the realm of=20
young people who are most Internet-savvy, only 19=20
percent of people ages 18 to 31, and 17 percent=20
of those ages 32 to 43, regularly read a=20
political blog, the poll said. The generation=20
most likely to read such blogs are those age 63=20
or older, 26 percent of whom said they do so.=20
Also, 23 percent of those ages 44 to 62 read them, the poll said.
http://www.reuters.com/article/technologyNews/idUSN1048067620080310
* Political blogs are definitely long tail, survey says
http://www.news.com/8301-10784_3-9890339-7.html?part=3Drss&subj=3Dnews&tag=
=3D2547-1_3-0-5

THE RED PHONE IN BLACK AND WHITE
[SOURCE: New York Times, AUTHOR: Orlando Patterson, Harvard University]
[Commentary] Watching Hillary Clinton=92s recent=20
=93It=92s 3 a.m.=94 advertisement, Patterson is=20
reminded of D. W. Griffith=92s =93Birth of a Nation,=94=20
the racist movie epic that helped revive the Ku=20
Klux Klan, with its portrayal of black men=20
lurking in the bushes around white society. The=20
danger implicit in the phone ad =97 as I see it =97=20
is that the person answering the phone might be a=20
black man, someone who could not be trusted to=20
protect us from this threat. The message: our=20
loved ones are in grave danger and only Mrs.=20
Clinton can save them. An Obama presidency would=20
be dangerous =97 and not just because of his lack=20
of experience. In my reading, the ad, in the=20
insidious language of symbolism, says that Mr.=20
Obama is himself the danger, the outsider within.
http://www.nytimes.com/2008/03/11/opinion/11patterson.html?ref=3Dtodaysp...
(requires registration)

POLICYMAKERS

FCC CHIEF HASN'T LOST FOCUS ON CABLE
[SOURCE: USAToday, AUTHOR: Paul Davidson]
If Federal Communications Commission Chairman=20
Kevin Martin is smarting from bruising battles=20
last year with fellow commissioners, Congress and=20
the cable industry, he's showing no signs of it.=20
=13Last November, commissioners of both political=20
parties accused him of concealing key information=20
that undercut his push for a finding that could=20
have led to sweeping regulation of the cable TV=20
industry. Following other complaints that Martin=20
doesn't give commissioners enough time to vote on=20
certain proposals, a House committee launched an=20
investigation into whether the agency conducts=20
its business openly and fairly. Generally known=20
as a shrewd consensus-builder, Chairman Martin=20
seems undaunted by the ruckus. And he still has=20
the cable industry in his sights. In an=20
interview, he said he's determined as ever to do=20
something about soaring cable TV prices. And he=20
says the agency doesn't need to pass new rules to=20
crack down on Comcast if it determines the cable=20
giant unfairly impedes Internet traffic. As for=20
criticism about his communication style, Martin,=20
whose tenure could be in its final months with a=20
new president taking office next January, says=20
he's not "doing anything differently than what=20
any other chairman has done." On his agenda for=20
the next year: 1) a la carte cable TV pricing, 2)=20
Network Neutrality, 3) the transition to=20
digital-only television broadcasting, 4)=20
completing the recent spectrum auction, and 5)=20
reforming the Universal Service Fund, which=20
subsidizes phone service for rural customers and=20
has jumped 33% in the past three years to $7.2 billion.
http://www.usatoday.com/printedition/money/20080311/fcc_martin.art.htm
* Significant FCC actions during Martin's tenure
http://www.usatoday.com/printedition/money/20080311/martin_accomplishmen...
art.htm
* FCC Chair warns ISPs against making "arbitrary distinctions"
[SOURCE: Ars Technica, AUTHOR: Matthew Lasar]
http://arstechnica.com/news.ars/post/20080310-fcc-chair-warns-isps-again...
making-arbitrary-distinctions.html
* Rush Is On to Cement Regulations
[SOURCE: Wall Street Journal, AUTHOR: Elizabeth Williamson]
Industries from agriculture to power are pressing=20
for the Bush administration to act on a slew of=20
pending regulations, betting they will do worse=20
no matter who wins the White House in the fall.=20
As chairman and ranking member of the Senate=20
Commerce Committee, Sen. McCain pushed the cable=20
industry to allow consumers to pay for single=20
channels rather than a package of services, and=20
he fought with broadcasters to return valuable=20
transmission spectrum so it could be used for police and fire departments.
http://online.wsj.com/article/SB120519968810526201.html?mod=3Dtodays_us_...
e_one
(requires subscription)

MEDIA OWNERSHIP

GE CHAIRMAN REJECTS TALK OF NBC SALE
[SOURCE: New York Times, AUTHOR: Bill Carter]
Looking to squelch persistent rumors, Jeffrey R.=20
Immelt, the chairman of General Electric, plans=20
to make his most definitive statement yet about=20
his company=92s chief media asset, NBC Universal.=20
=93Should we sell NBCU? The answer is no!=94 Mr.=20
Immelt writes in a message for investors in=20
G.E.=92s 2007 annual report, to be released=20
Wednesday. =93I just don=92t see it happening. Not=20
before the Olympics, not after the Olympics. It=20
doesn=92t make sense.=94 The statement is clearly=20
meant to address the most prevalent of the recent=20
rumors, which is that G.E. will wait until after=20
the Beijing Olympics in August, which will be=20
televised on NBC and its cable channels, before=20
deciding whether to unload the division.
http://www.nytimes.com/2008/03/11/business/media/11nbc.html?ref=3Dtodays...
er
(requires registration)

FLOOD OF FILINGS CHALLENGES FCC'S CROSS-OWNERSHIP DECISION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
According to a letter from the FCC to the=20
Judicial Panel on Multidistrict Litigation of=20
Multicircuit Petitions for Review, more than=20
one-dozen lawsuits were filed against the rules=20
from both anti-consolidation activists that said=20
it went too far to broadcasters that said it=20
didn=92t go far enough. Media Access Project=20
president Andrew J. Schwartzman, who filed one of=20
them, said the number is closer to 20, including=20
dual filings by petitions taking two legal routes=20
to essentially the same challenge, as well as=20
ones that didn=92t make the FCC=92s 10-day cutoff for=20
reporting to the panel -- essentially a group of=20
judges who will decide what court will hear the=20
case. The challenges were filed in at least five=20
separate circuits. Broadcasters stuck with the=20
D.C. Circuit, though, to be friendlier to their=20
consolidation cause, while media activists filed=20
in various circuits -- Ninth, Sixth, First --=20
while saying that the appeals should all be=20
funneled to the Third Circuit, which remanded the=20
FCC=92s deregulatory 2003 rules back to the commission for better justifica=
tion.
http://www.broadcastingcable.com/article/CA6539888.html

CABLE

JUDGE SIDES WITH PROGRAMMERS -- FOR NOW -- IN A LA CARTE CASE
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
A consumer lawsuit, filed in Los Angeles=20
challenging the lack of availability of a la=20
carte pay TV programming, is still alive but only=20
if the plaintiffs' attorneys can convince a=20
federal court judge that the actions of major=20
media companies offering programming only in=20
packages violates anti-trust laws. U.S. District=20
Court Judge Christina A. Snyder ruled on behalf=20
of cable, satellite and programming providers on=20
their motion to dismiss a potential class action=20
suit, but gave opponents 11 days to amend their=20
lawsuit against the providers. Vertically=20
integrated programming providers compel cable and=20
satellite distributors to buy all of a seller's=20
channels, then those distributors turn around and=20
sell the bundles to consumers. Cable operators=20
and programmers=92 chief defense is that=20
competition among programmers for distribution,=20
as well as competition among distributors for=20
paying subscribers, ensures that no one is=20
required by law to sell channels a la carte just=20
because they have the means to do so.
http://www.multichannel.com/article/CA6539973.html?nid=3D4262

INTERNET/BROADBAND

HOUSE PANEL TO VET NET NEUTRALITY
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
The House Judiciary Committee Antitrust Task=20
Force on Tuesday will hear conflicting testimony=20
on whether Congress needs to regulate cable and=20
phone companies to prevent discriminatory=20
behavior against Internet-based content and=20
applications. Some witnesses will voice support=20
for passage of a network neutrality law, pointing=20
to allegations against cable, wireless and=20
traditional phone companies as ample=20
justification for close supervision of their network management practices.
http://www.multichannel.com/article/CA6539995.html?nid=3D4262

CALIFORNIA COMMUNITIES NEED BROADBAND ACTION
[SOURCE: San Diego Business Journal, AUTHOR: John=20
M. Eger, San Diego State University]
[Commentary] California should act now on the=20
recommendations of the California Broadband Task=20
Force. 1) The state=92s General Services Department=20
or the chief information officer can start by=20
aggregating demand =97 every state agency for=20
telecommunications services and perhaps other=20
local and federal agencies to join forces with it=20
=97 and begin creating a statewide Internet=20
service. 2) The Public Utilities Commission can=20
set statewide policies that support and encourage=20
municipal efforts. Cities not only need to know=20
that it=92s all right to begin planning the new=20
information infrastructure for their region, they=20
need the economic and political incentive to do=20
so. 3) The electric utilities play a large and=20
promising role in developing an alternative=20
supplier. Here too, clarity from the PUC, the=20
administration and the Assembly would do much to=20
provide that support and guidance.
http://www.sdbj.com/article.asp?aID=3D122912&link=3Dperm

QUICKLY

STUDY: KIDS ARE MASTER MULTITASKERS ON TV, WEB, MOBILE
[SOURCE: OnlineDailyMedia, AUTHOR: Tanya Irwin]
About 64% of kids go online while watching=20
television, and nearly half of U.S. teens (49%)=20
report that they do so frequently -- anywhere=20
from three times a week to several times a day.=20
Multitasking on the Internet, cell phones and MP3=20
players suggests that companies must respond with=20
much more creative, multimedia marketing=20
campaigns for their messages to penetrate. 73% of=20
TV-online multitasking kids are engaged in=20
"active multitasking," defined as content in one=20
medium influencing concurrent behavior in=20
another. This trend represents a 33% increase in=20
active multitasking since 2002. While kids are=20
using more media, their attention primarily and=20
overwhelmingly is focused on their online activities.
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.san&s=...
8118&Nid=3D40221&p=3D368626

NEWS CORP WILL NOT FIGHT MICROSOFT FOR YAHOO
[SOURCE: Reuters, AUTHOR: Kenneth Li]
Rupert Murdoch said on Monday his News Corp would=20
not get into a fight with Microsoft Corp over=20
Yahoo Inc, confirming what most industry and Wall=20
Street observers suspected. Murdoch's company has=20
been in talks with Yahoo over a transaction to=20
combine News Corp's MySpace Internet social=20
network and other Internet assets with Yahoo.
http://www.reuters.com/article/technologyNews/idUSWEN440320080310

WIRELESS SPECTRUM FOR THE MASSES?
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
Spectrum Bridge claims to be the world=92s first=20
online, real-time marketplace where buyers and=20
sellers can trade wireless airwaves, used for=20
providing wireless services. If this idea takes=20
off, it could be a game-changer for the wireless=20
industry. Since the 1990s, when the Federal=20
Communications Commission began auctioning off=20
wireless spectrum, the majority of the airwaves=20
had gone to large telecom companies, able to=20
shell out billions for them. Most chunks of the=20
spectrum they=92d bought were expensive and large,=20
covering the whole of the Northeast, or a major=20
city. But what if you just want to buy a piece of=20
the airwaves around your house?
http://www.businessweek.com/the_thread/techbeat/archives/2008/03/wireles...
pectr.html?campaign_id=3Drss_blog_blogspotting
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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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