August 2009

The Supreme Court will cut short its summer break in early September to hear a new argument in a momentous case that could transform the way political campaigns are conducted. The case, which arises from a minor political documentary called "Hillary: The Movie," seemed an oddity when it was first argued in March. Just six months later, it has turned into a juggernaut with the potential to shatter a century-long understanding about the government's ability to bar corporations from spending money to support political candidates. The case has also deepened a profound split among liberals, dividing those who view government regulation of political speech as an affront to the First Amendment from those who believe that unlimited corporate campaign spending is a threat to democracy. At issue is whether the court should overrule a 1990 decision, Austin v. Michigan Chamber of Commerce, which upheld restrictions on corporate spending to support or oppose political candidates.

[Commentary] Should broadcast journalists get involved with the government's efforts to save journalism? On the one hand, it may be a good idea for broadcasters to participate. It's a perfect opportunity for them to make the case that consolidation isn't necessarily a bad thing when it comes to journalism, and that outdated ownership restrictions must go. In fact, and somewhat paradoxically, they can argue that consolidation is good for journalism. Newspapers have done their best journalistic work since becoming monopolies or near monopolies. Flush owners are willing to trade dollars for the power and prestige that comes from operating first-rate journalistic enterprises. What's wrecking such papers is the uncontrollable invasion of competition from the Internet. They've lost their local news and classified advertising franchises and they can't get them back. By contrast, excessive competition seems to bring out the worse in journalism. In broadcasting, it leads to rundowns filled with the lowest-common-denominator reporting on crimes and fires. In cable, among the news networks, it has produced a mad race to the bottom in search of the most viewers. On the other hand, the proceedings could be a trap. Whatever benefits the government grants the legacy media are likely to come with strings. For every break the Federal Communications Commission grants TV stations it will want something in return. A larger principle is at stake here too. Journalistic organizations simply shouldn't be involved in what will surely lead to some quid pro quo or put them on an economic footing that depends on the continued beneficence of the government.

Walt Disney, Hearst and NBC Universal said on Thursday that their jointly owned A&E Television Networks group will buy Lifetime Entertainment Services for an undisclosed sum. Lifetime is a joint venture of Disney and Hearst. NBC Universal owns other women-oriented cable channels, such as Bravo and Oxygen. The companies said the move was a bid to consolidate three of the leading cable networks under the single management of AETN Chief Executive Abbe Raven. The deal, expected to close this year, includes provisions by which NBC may choose or be forced to divest its stake in the new company, leaving Disney and Hearst as equal partners.

For at least the third time this month, Apple and AT&T are being sued by a consumer complaining of being duped into believing that multimedia messaging, or MMS, was already available on the iPhone. Filed in the Northern District of Ohio on Wednesday, plaintiff Deborah Carr says Apple and AT&T misled the public into believing that the iPhone 3GS was capable of sending and receiving MMS messages on the device. The lawsuit claims that Apple's "print and video advertisements...on television, the Internet, the radio, newspapers, and direct mailers" all mention the availability of MMS on the device. Two similar cases--one in Illinois and another in Louisiana--were also filed against the companies in August. According to the latest lawsuit, first reported by InformationWeek, customers were told that MMS would be enabled on June 17, 2009, when iPhone OS 3.0 was released.