September 2013

Sinclair To Acquire New Age Stations

Sinclair Broadcast Group has agreed to acquire the New Age station group for $90 million.

The eight stations include WOLF-WQMY-WSWB Wilkes-Barre/Scranton, WTLH-WTLF Tallahassee, and WGFL-WNBW-WMYG Gainesville. The deal is subject to regulatory approval. To comply with Federal Communications Commission ownership rules, Sinclair expects to sell the license and certain related assets of WSWB Wilkes-Barre/Scranton, WTLH Tallahassee and WNBW Gainesville to Cunningham Broadcasting Corporation, and WTLF to Deerfield Media, which Sinclair also has an operating relationship with. Sinclair will continue to provide sales and other non-programming support services to these stations, as well as to WTLH, pursuant to shared services and joint sales agreements.

FCC expected to propose dropping UHF discount from TV ownership caps

The Federal Communications Commission is expected to propose eliminating a key component of its television ownership rules that could have significant implications for broadcasters.

Under review is the value the FCC puts on a UHF signal compared to a VHF signal when determining whether a broadcaster is in compliance with the regulatory agency's television station ownership rules. Currently, FCC rules prohibit a broadcaster from owning television stations that reach more than 39% of the United States. However, in determining reach, a UHF signal -- which is allocated to channels higher than 13 -- is valued at 50% of a VHF signal. For example, a VHF signal in Los Angeles counts as 4.92% toward the national cap while a UHF signal counts for just 2.46%. If the FCC does eliminate the UHF discount, it would probably slow the fast rate of consolidation in the television industry. Without the discount, some broadcasters would already be over the FCC's caps and others pushing up against it and would probably be unable to buy more TV stations without exceeding the limit.

Mignon Clyburn’s making her mark as acting head of FCC

Mignon Clyburn, the first woman to head the Federal Communications Commission and the first black woman to serve on the panel, is determined to make her time in the top spot count.

Since the departure of Chairman Julius Genachowski in May, Chairwoman Clyburn has pushed through rules to lower the cost of prison phone calls, engineered a deal that allows the wireless gadgets used by smaller carriers to operate on the larger carriers’ networks in a critical set of frequencies, set an auction for a valuable slice of the airwaves and approved a major merger. “We made a commitment not only to keep the trains moving but ensuring that we complete the tasks and the missions the American public expect of us,” she said. “You know, especially in August, it’s usually a sleepy time in D.C. — but we did not have that luxury.” The job of an acting chair can be a balancing act with certain unwritten rules, said former FCC Commissioner Michael Copps, who took on the role of acting chairman in 2009. “There are constraints,” Copps said. “You know you’re not setting long-term policy, but you can set stuff in motion.” That doesn’t mean the job is inconsequential. “You don’t run out of things to do, and the commission is responsive to you,” Copps said. “They don’t say, ‘To hell with you; you’re only going to be a chairman for little bit.’” Chairwoman Clyburn said she knows the rules — but also that she believes government officials need to speak for the voiceless whether it is lowering the cost for prison phone calls, making it possible for small wireless operators to get fancy new gadgets or ensuring that phone calls reach rural customers.

Who pays if L.A. Unified students lose or break iPads?

Another issue in the Los Angeles Unified School District's $1-billion effort to equip every student with an iPad surfaced : Are parents liable if their child breaks or loses the tablet?

The question emerged after revelations that 300 or so students at Roosevelt High School skirted security measures on the device and visited unauthorized websites. In response, the district suspended all home use of the Apple tablets, which have gone out to about two dozen schools so far. Ultimately, officials want the iPads used at home — that's considered a key element of their educational value. But their dollar value also became a concern at a meeting of a district committee overseeing technology efforts. Senior district officials acknowledged that they haven't decided on consequences if the $700 iPads are lost or broken.

Copyright law and This Charming Charlie

What do you get when you replace the original dialogue from classic Peanuts comic strips with lyrics from songs by the beloved British indie-rock band The Smiths? A wry and clever blog that a major record company tries to shut down.

The case of This Charming Charlie, a blog that features Peanuts characters uttering lines by The Smiths, is a good example of the collateral damage caused by copyright holders struggling to protect their works against the onslaught of piracy online. The problem for the music and movie industries and their artists is so vast, they've had to speed up and automate the process of detecting infringement and bringing enforcement actions. That haste has led them to challenge some creative uses of their works that are wholly legitimate. It's been 15 years since Congress set up rules for the use of copyrighted material online; it's past time for lawmakers to overhaul them so that they work better for both copyright holders and those who make fair use of their works.

Bewkes: HBO Open To Broadband-Only Play

Time Warner Inc., chairman and CEO Jeff Bewkes said his Home Box Office would consider a broadband-only service, but would be reluctant to offer the premium channel to customers without an existing pay TV connection.

He said offering its HBO GO online service as a bundle with a cable high-speed data service would create a product "you can't refuse," adding that such an offering could give the premium channel an inroad into the 70 million households that subscribe to pay TV but not HBO, not just the 5 million to 6 million that don’t have a pay TV service.

San Jose libraries seek decades of funding amid digital upheaval

In Silicon Valley where readers are more apt to download an e-book than pick a paperback off the shelf, voters still overwhelmingly agreed to fund public libraries for another two decades even as some question the centuries-old institution's future in the digital age.

On the heels of the Santa Clara County public library system's successful parcel tax renewal, San Jose leaders are now preparing to ask voters to renew theirs as well, anywhere from 10 to 20 years. Critics wonder whether libraries will outlive their new taxes and bonds in a world where paper books are fast giving way to versions you can download to a Kindle or iPad. Jill Bourne, San Jose's new head librarian who was hired earlier this year from San Francisco, isn't worried about libraries' relevance in the digital age. "Libraries are about connecting information to people," Bourne said. "The book is just a technology. At the time it came out it was radical. Before that, it was scrolls, and before then, stone tablets."

AT&T’s European Expansion Seen as Perilous Growth Strategy

AT&T, which is considering an expansion across the Atlantic, faces the same realities that undermined European deals a decade ago: Doing business in the region is costly, complicated and highly regulated.

Phone companies have tried and failed to reap benefits from global networks, said Craig Moffett, founder of researcher MoffettNathanson LLC. In Europe, AT&T would have to contend with a fragmented, price-sensitive market, with a patchwork of governments hampering efforts to create a regional network. “There simply aren’t sufficient economic benefits to global scale,” said Moffett. “Anyone who has tried it has learned the hard way that the economic benefits never materialize.” AT&T wants to take its experience building out a fourth-generation U.S. network and apply it to Europe, where the adoption of speedier services promises to bring a surge of data use, said people familiar with the company’s thinking, who asked not to be identified because the plans are confidential.

US officials woo tech companies in new push for cybersecurity law

Senior US officials sought to mend fences with the technology industry as they renewed their pleas for legislation to increase the flow of information about cyberattacks between federal agencies and private companies. A plan to protect companies from privacy lawsuits if they turn over data on electronic intrusions was a central feature of the administrations cybersecurity agenda in 2012, but legislation containing it failed to pass and it has not gained momentum during this Congressional session.

The previous bill brought opposition from privacy advocates who feared too much data would end up in the hands of the National Security Agency, which is aligned the with military and generally charged with spying overseas. Those arguments resonate more now that documents leaked by Edward Snowden showed that the NSA collects domestic calling records and that big Internet companies provide information on thousands of overseas customers. "If we thought that information-sharing was moving slowly before, now it's moving even more slowly," a senior administration official said in an interview granted on condition of anonymity. The White House task would be easier with technology companies' support, but some are reluctant to endorse anything that would exacerbate the negative publicity from Snowden's documents. NSA Director Gen. Keith Alexander said the White House wants security legislation that would minimize data on Americans and limit what the NSA could do with that data. In the meantime, federal agencies are working to share more information with each other more rapidly and automatically where feasible, and officials are expanding a program to use secret data about emerging threats to protect private companies that are critical to the country's economic health.