March 2008

Today's Quote 03.07.08

“The FCC should be the referee” of media concentration “but instead, it’s been shaking the pompons for more concentration.”
-- Sen. Byron Dorgan (D-ND)

Senators seek to overturn FCC media ownership rule

SENATORS SEEK TO OVERTURN FCC MEDIA OWNERSHIP RULE
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
A bipartisan group of senators led by Sen. Byron Dorgan (D-ND) on Wednesday introduced a resolution aimed at overturning a decision by regulators that loosened media ownership restrictions in the 20 biggest U.S. cities. The Senate has 60 legislative days to vote on the "resolution of disapproval." "When nearly half of the people in this country are told that in their cities and towns the media will get the green light to consolidate, they will not be happy," he said. Sen Dorgan, a critic of media consolidation, has complained that the Federal Communications Commission did not do enough to get public comment before it approved the new rules in December. At issue is a new rule, narrowly approved by FCC commissioners on December 18, that eased a 32-year-old ban on ownership of a newspaper and broadcast outlet in a single market and granted exemptions to six specific combinations that had been pending before the agency. Critics say the easing the ownership rule would lead to more consolidation in the industry, eliminate independent voices and degrade local news coverage. They also contend that it created a loophole that would let media owners combine newspapers and broadcast outlets in many smaller markets around the United States, not just the top 20 cities.
http://www.reuters.com/article/industryNews/idUSWAT00906720080305

* Dorgan Introduces ‘Resolution of Disapproval’ vs. Cross-Ownership Rules
The bill has 13 co-sponsors, according to Dorgan’s office, including Democratic presidential candidates Sens. Barack Obama (IL) and Hillary Clinton (NY), as well as Sens. Olympia Snowe (R-Maine), John Kerry (D-MA), Susan Collins (R-Maine), Chris Dodd (D-CT), Tom Harkin (D-Iowa), Maria Cantwell (D-Wash), Joe Biden (D-Del), Jack Reed (D-RI), Diane Feinstein (D-CA), Bernie Sanders (I-VT) and Jon Tester (D-Mont).
http://www.broadcastingcable.com/article/CA6538457.html?rssid=193

* Media ownership rules back into play
Like a standard bill, the resolution will be taken up by the Senate Commerce Committee. If passed, it will move on to the Senate floor for a full vote. Dorgan said he already has approval from the committee's top two leaders to proceed with the resolution. So far, no companion resolution exists in the House. And President Bush could ultimately veto the resolution, undercutting its impact. The Senate has 60 legislative days to act on the resolution. But given the reduced number of legislative days due to the election year, the deadline could extend into summer or later.
http://www.variety.com/article/VR1117981896.html?categoryid=21&cs=1&nid=...

* Dorgan: FCC Shaking Its Pom-Poms for Consolidation
Adds quotes from Free Press, Parents Television Council, National Organization of Women, the National Association of Black Journalists, the Prometheus Radio Project, the National Hispanic Media Coalition and the Leadership Conference on Civil Rights -- all in favor of resolution.
http://www.broadcastingcable.com/article/CA6538672.html?rssid=193

* NOW Supports Senate Resolution Promoting Diversity in Media Ownership
http://www.indybay.org/newsitems/2008/03/06/18483956.php

MMTC Gives FCC Thumbs Up on Minority-Related Proposals

MMTC GIVES THUMBS UP ON MINORITY-RELATED PROPOSALS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission got high marks from the Minority Media & Telecommunications Council for the raft of minority-related initiatives and proposals it released Wednesday. That's not surprising since most of them were proposed by the MMTC. "The FCC served the public interest by banning discrimination in broadcast advertising and transactions, revising the ownership-attribution rules … heightening protections against ownership fraud and authorizing several incentive programs to encourage the sale of stations to minorities," the MMTC said in praising the initiatives. It was particularly pleased with the prohibition on broadcast-advertising discrimination, which it called the "most significant new federal nondiscrimination mandate in any industry in over 30 years," adding that it "should restore to minority broadcasters the $200 million or more they lose every year due to 'no urban' and 'no Spanish' dictates."
http://www.broadcastingcable.com/article/CA6538743.html?rssid=193

Martin: FCC’s XM-Sirius Review Still on Track for End of March

The Federal Communications Commission's review of the proposed merger of XM Satellite Radio and Sirius Satellite Radio could still be done by the end of March. That had been FCC chairman Kevin Martin's projection, and he was not ready to revise or extend those remarks at a meeting with reporters Tuesday. Chairman Martin reiterated that he thought the two satellite-radio companies had a "high hurdle" given that they were the two national providers of the service. Although the companies argued that the market is broader and includes terrestrial radio, he added, "The commission's precedent would indicate that we would consider it in a narrower context." But he also said the companies’ proposal to deliver their satellite-radio channels in a modified a la carte regime "was intriguing and could provide for additional consumer protection."
http://www.broadcastingcable.com/article/CA6538175.html?rssid=193

Deadline Nears for Weather Channel Bids

DEADLINE NEARS FOR WEATHER CHANNEL BIDS
[SOURCE: New York Times, AUTHOR: Andrew Ross Sorkin]
A half-dozen media companies have signaled that they plan to bid for the Weather Channel, which is up for auction. Suitors include NBC, CBS, the Walt Disney Company, Time Warner, the Comcast Corporation and Liberty Media. Also, a handful of private equity firms, including Bain Capital, Providence Equity Partners and Madison Dearborn, have indicated an interest, though they are unlikely to be serious bidders because of the tight credit markets. The Weather Channel, owned by Landmark Communications, a privately held company controlled by the Batten family of Norfolk, Va., has set Friday as a deadline for preliminary bids. Landmark indicated that it is hoping to sell the Weather Channel for as much as $5 billion. However, several prospective suitors have suggested that the asking price is too high and should be $4 billion at the most.
http://www.nytimes.com/2008/03/06/business/media/06deal.html?ref=todaysp...
(requires registration)

EU set to clear Google/DoubleClick merger

EU SET TO CLEAR GOOGLE/DOUBLECLICK MERGER
[SOURCE: Reuters, AUTHOR: David Lawsky]
Google is expected to receive unconditional approval from European Union regulators next week for its $3.1 billion takeover of ad firm DoubleClick, people familiar with the situation said. The approval has long been expected because the European Commission decided in January not to object formally to the transaction. The Commission, the EU's top competition watchdog, has never rejected a deal without sending formal objections. Privacy advocates have objected to the deal, saying it would give the two firms unprecedented access to information about consumers. The Commission has said privacy considerations are outside the scope of its authority over mergers. The deal would combine Internet search engine giant Google's dominance in pay-per-click Web advertising with DoubleClick's market-leading position in flashier display ads.
http://www.reuters.com/article/technologyNews/idUSL0674359620080306

* Google likely to get EU approval to buy DoubleClick (Bloomberg)
http://www.siliconvalley.com/latestheadlines/ci_8472590

Yahoo again blocks Microsoft's bid

YAHOO AGAIN BLOCKS MICROSOFT'S BID
[SOURCE: USAToday, AUTHOR: Jon Swartz]
Yahoo has thrown up another obstacle in Microsoft's bid to buy it. The Internet media giant extended a deadline for nominating candidates to its board of directors, buying it more time to find a white knight to help it stave off Microsoft's takeover bid, currently valued at $41.7 billion. The announcement Wednesday comes as Yahoo steps up discussions with Time Warner about acquiring or forming a joint venture with its AOL division, a person briefed on the discussions said Wednesday, requesting anonymity because talks are ongoing. A Yahoo-AOL combination would create a stronger advertising-driven business that could ultimately compete with Google. Yahoo also has been in discussions with media conglomerate News Corp., the person briefed on the discussions said. The original March 14 deadline could have pitted Microsoft and Yahoo in a bloody proxy battle next week. Instead, Yahoo says, the deadline would fall 10 days after it announces the date for its annual shareholder meeting, which has yet to be scheduled.
http://www.usatoday.com/printedition/money/20080306/2b_yahoo_msoft06.art...

* Yahoo buys time with Microsoft by board move
http://www.reuters.com/article/technologyNews/idUSWNAS364520080305

Working the Refs

WORKING THE REFS
[SOURCE: MediaChannel.org, AUTHOR: Rory O'Connor]
[Commentary] Hillary won this week by working the refs. By constantly complaining about coverage, and relentlessly focusing on charges that the news media has favored Barack Obama and treated him far more gently than herself, Hillary was finally able to staunch the bleeding and stage a desperately needed, last minute comeback that will keep her in the game. By mocking the media, quoting Saturday Night Live, and “practically browbeating reporters,” her campaign lived to fight another day. And fight is the operative word. Going negative against the media, as well as her opponent, saved the day for the Clintons. For the first time, Senator Obama seemed off his game instead of on top of it, and on the defensive instead of in command, allowing his own, previously potent narrative to be eclipsed by Hillary’s. The Obama camp’s surprise was telegraphed on Tuesday by the candidate himself when he told reporters, “I am a little surprised that all the complaining about the refs has actually worked as well as it has for them. This whole spin of how the press has been so tough on them and not tough on us ­ I didn’t expect that you guys would bite on that. Clearly, Tina Fey and I are going to have a conversation.”
http://www.roryoconnor.org/blog/2008/03/05/working-the-refs

* Swing in momentum may alter media's focus
[SOURCE: Boston Globe, AUTHOR: Peter S. Canellos]
http://www.boston.com/news/nation/articles/2008/03/05/swing_in_momentum_...

For Political Reporters, A Never-Ending Story

FOR POLITICAL REPORTERS, A NEVER-ENDING STORY
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
In a rerun of a very familiar movie, the media establishment was too quick to crank out the obituaries for a former first lady who keeps bouncing back against Barack Obama. While some commentators are not exactly Hillary fans or have been dazzled by Obama, most say the race is now simply a matter of math -- that Clinton, after getting blown out in states from South Carolina to Wisconsin, faces an insurmountable gap in pledged delegates. "I don't think it's only because of what her supporters see as Hillary-bashing," Dickerson says. "All the sniping between her aides is a telltale sign of a campaign in distress. We're not making this up." Many voters have tuned in only recently, but campaign reporters and analysts have been on the beat since before Clinton and Obama kicked off their candidacies back in January 2007. They originally had to chase 18 presidential candidates, and by now have covered or commented on 20 Democratic debates. "Everyone is toasted," says NBC anchor Brian Williams, "but they just keep waking up the next morning and doing it again." Sometimes, as the correspondents and pundits ricochet from late-night coverage to early-morning duty, the fatigue starts to show.
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/05/AR200803...
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* Is the media sold on Obama?
Cal Thomas, a conservative columnist, AND Bob Beckel, a liberal Democratic strategist, have a mini-debate.
http://www.usatoday.com/printedition/news/20080306/commonlede.art.htm

* On the Web, Obama Is the Clear Winner
Senator Hillary Clinton (D-N.Y.) has another place where she needs to catch up: the Web. Long before Senator Barack Obama (D-Ill.) began his impressive winning streak in the Democratic primaries, he was trouncing his opponents in their online efforts.
http://www.businessweek.com/technology/content/mar2008/tc2008035_280573....

* Hillary's resurgence extends to online fundraising
After reaching such financial straits that she made a $5 million loan to her campaign last month, Sen. Hillary Clinton has had a resurgence with the support of hundreds of thousands of small online donors. The change in emphasis to small donors mirrors the tactics of her deep-pocketed rival for the Democratic presidential nomination, Sen. Barack Obama, and shows the necessity for candidates to use the Internet to compete.
http://www.poconorecord.com/apps/pbcs.dll/article?AID=/20080305/PRIMARY/...

FBI chief: Lack of legal shield won't halt telecom spy partnerships

FBI CHIEF: LACK OF LEGAL SHIELD WON'T HALT TELECOM SPY PARTNERSHIPS
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
As Congress debates whether to wipe out lawsuits accusing telephone companies of allegedly illegal wiretaps, the Bush administration has argued such cooperation is key to keeping Americans safe from terrorists. FBI Director Robert Mueller continued that push on Wednesday, but he wouldn't go so far as to say those "private partners" would stop installing requested wiretaps unless certain legal protection is granted. To some extent, Mueller is stating the obvious: Federal law requires telephone and Internet companies to comply with lawful wiretap court orders or lawful certifications from the attorney general, with stiff penalties for noncompliance. But Mueller said in various ways that he was concerned that lack of retroactive liability protection would harm the government's "relationships" with telephone companies -- which seems to leave in doubt whether all of the administration's requests were legal.
http://www.news.com/8301-10784_3-9886461-7.html?part=rss&subj=news&tag=2...

* Wiretapping focus shifts to e-mail communications
For months, the debate has centered around immunity for telecom companies including AT&T, Verizon, and Sprint. The primary focus has been on the warrantless wiretapping of the phone calls made by millions of Americans. In comments made at a public meeting on Tuesday, Assistant Attorney General for National Security Kenneth Wainstein made clear that the FISA fight is not about foreign-to-foreign calls, but actually about Internet data.
http://www.cnet.com/8301-13739_1-9886766-46.html?part=rss&subj=news&tag=...