March 2014

[Commentary] If President Barack Obama really wants to end the bulk collection of Americans’ telephone records, he doesn’t need to ask the permission of Congress, as he said he would do. He can just end it himself, immediately.

That’s what Senator Patrick Leahy (D-VT), the chairman of the Judiciary Committee, urged him to do. “The president could end bulk collection once and for all on Friday by not seeking reauthorization of this program,” Chairman Leahy said. Ending bulk collection now wouldn’t undermine Obama’s proposal to Congress. In fact, if his promise is matched by the final details (which are not yet available), it could be an important and positive break from the widespread invasion of privacy secretly practiced by the National Security Agency for years. Getting a law to create strong judicial oversight of data collection would be a check on the ambitions of future presidents. But once the question is tossed into the maelstrom of Congress, where one party routinely opposes anything the president wants, the limits could be delayed, or diluted, or just killed. And while lawmakers wring their hands, the invasion of privacy will continue. Continuing the current surveillance program while lawmakers argue is not the way to begin winning back the country’s trust.

A year ago, the State of the News Media report struck a somber note, citing evidence of continued declines in the mainstream media that were impacting both content and audience satisfaction. Many of these issues still exist; some have deepened and new ones have emerged. Still, the level of new activity this past year is creating a perception that something important, perhaps even game-changing, is going on.

If the developments in 2013 are at this point only a drop in the bucket, it feels like a heavier drop than most. The momentum behind them is real, if the full impact on citizens and our news system remains unclear. This year’s Annual Report set out to examine these shifts -- in revenue, in jobs, in technology, in content, in consumer behavior. It is structured a bit differently than in the past -- to account for the widening of the industry, the growing influence of technology and new ways of sharing of our data.

This year’s report includes four original research reports and two graphical presentations, along with key findings and a searchable database of all the statistics gathered in past years. From these reports, six major trends emerge:

1. Thirty of the largest digital-only news organizations account for about 3,000 jobs and one area of investment is global coverage.
2. So far, the impact of new money flowing into the industry may be more about fostering new ways of reporting and reaching audience than about building a new, sustainable revenue structure.
3. Social and mobile developments are doing more than bringing consumers into the process -- they are also are changing the dynamics of the process itself.
4. New ways of storytelling bring both promise and challenge.
5. Local television, which reaches about nine in ten U.S. adults, experienced massive change in 2013, change that stayed under the radar of most. Nearly 300 full-power local TV stations changed hands in 2013 at a price of roughly $8 billion.
6. Dramatic changes under way in the makeup of the American population will undoubtedly have an impact on news in the US, and in one of the fastest growing demographic groups -- Hispanics -- we are already seeing shifts.

[Commentary] The thought of Facebook getting into virtual reality might have you questioning Mark Zuckerberg's grip on reality. But it actually makes a ton of sense. Here's why.

From the moment Facebook was born, the service was always an addition to your social life. Stalking an ex? Look to Facebook. Reviewing job candidates? Investigate their Facebook profile. Casual online games? Facebook, Facebook, Facebook. The Oculus Rift, a virtual reality headset that turns video games into 3D experiences, has potential to define next-generation Facebook games. But Zuckerberg has his sights set on a much grander idea about social interaction. He doesn't want Facebook to be an app you use to socialize with people while they're out of physical range. He wants Facebook to become the app you use to have actual, real-life social interactions. It's hard to imagine a future in which Facebook is even more dominant over our social lives than it already is. Still, Facebook needs to show that it's still the visionary product it was when it all began a decade ago.

America's moviegoing audience shrank yet again in 2013, and theater owners are considering a radical idea to turn the tide: cutting ticket prices. Well, at least some of the time.

A report from the Motion Picture Association of America said that domestic movie box-office sales rose to $10.9 billion last year, from $10.8 billion in 2012. But the increase was the result of higher ticket prices, not attendance. Indeed, the number of tickets sold slipped yet again, this time 1.5% to 1.34 billion from 1.36 billion. That extends a longstanding trend: The number of tickets sold fell nearly 11% between 2004 and 2013, according to the report, while box office revenue increased 17%. The average US movie ticket price in 2013 increased to $8.13, up from $7.96 the year prior, according to the National Association of Theatre Owners, the industry group representing North American cinemas. And in some cities, a movie ticket is well over $10, with 3-D and IMAX movies surcharges bringing them closer to $20 a pop. Now, the nation's movie theaters want to try their hand with cheaper movie tickets. The theater owners association is in early talks with theater chains and movie studios to experiment with a program that would discount ticket prices on one yet-to-be-determined weekday, officials said.