Benton's Communications-related Headlines For Tuesday April 25, 2006

To view Benton's Headlines feed in your RSS=20
Aggregator, paste=20
http://www.benton.org/index.php?q=3Dtaxonomy/term/6/all/feed into your read=
er.

** Two key hearings in the House today concerning=20
the future of telecommunications in the US: this=20
afternoon, the Telecom and Antitrust Task Force holds a hearing
on Network Neutrality -- and hours later, the=20
House Commerce Committee listens to opening=20
statements for tomorrows mark-up of Chairman=20
Barton's COPE bill. For these and other upcoming=20
media policy events, see http://www.benton.org **

LEGISLATION
Congress Poised to Kill Community TV
'Net Neutrality' Debate Heats Up As Lawmakers Return To D.C.
New group aims to 'Save the Internet'
Handicapping Senate Telecom Bill

INDECENCY
Family Groups Push Indecency Bill
Webs gearing for Supreme showdown with the FCC
Rehr To D.C.: Clarify Indecency
Entertainment Groups Target TV Indecency with Education Effort
China's top Web sites pledge stronger self-policing

BROADCASTING
Children Now Takes Issue With Waiver
Rehr Outlines Five-Point Plan
Going Up
Brokaw: No Cut and Paste For Poverty

QUICKLY -- Fox News Channel Wants $1 Per=20
Subscriber; Report: Telcos Will Pay More to Tune=20
In TV; Network Neutrality and Industry Structure;=20
Chinese DVD producer combats pirates

LEGISLATION

CONGRESS POISED TO KILL COMMUNITY TV
[SOURCE: The Nation, AUTHOR: Jeff Chester]
[Commentary] Congress is about to strike a blow=20
that would eliminate the last remaining policy=20
insuring local oversight of communications=20
companies. A GOP-led effort on behalf of the=20
telephone lobby (principally Verizon and AT&T),=20
also backed by many Democrats, is about to toss=20
in the dustbin the longstanding policy enabling=20
cities or counties to negotiate a "franchise"=20
agreement with companies that provide cable TV=20
service. A key House committee is poised to pass=20
legislation that would strip away the rights of=20
communities to have any say in how phone and=20
cable networks serve them in the digital era.=20
Little has been written in the mainstream press=20
about what the potential loss of cable=20
franchising will mean. Franchises have required=20
special networks to be built, connecting public=20
buildings with advanced communications services=20
and assisting education and public safety. All of=20
this has been possible because local authorities=20
had the power of renewing the cable franchise=20
deal every ten years or so (as well as approving=20
transfers of ownership as media giants were=20
bought and sold). It's time for progressives to=20
take a stand against the broadband banditry of=20
Congress and the cable-telecom cartel. Any=20
Internet-era telecommunications legislation=20
should insure local control, provide low-income=20
Americans with residential Internet service,=20
protect online privacy, and keep the Internet=20
open and free from the control of big cable and=20
phone companies. Such legislation should also=20
help develop a noncommercial digital commons=20
designed to promote civil society (as opposed to=20
the madcap commercialism that will run rampant on=20
the broadband networks). In that way, we can=20
honor the vision -- and the political work -- of=20
activists in decades past who strove for a=20
democratically run "community communications" system.
http://www.thenation.com/doc/20060508/congress_kills_community_tv
* CWA: Don't change franchise system
http://www.libn.com/article.htm?articleID=3D34879

'NET NEUTRALITY' DEBATE HEATS UP AS LAWMAKERS RETURN TO DC
[SOURCE: Technology Daily, AUTHOR: Drew Clark]
Leading Democrats, a more united technology=20
community and the nonprofit sector are pushing=20
for substantially new "network neutrality"=20
language in House telecommunications legislation.=20
The triple whammy of renewed opposition to the=20
current bill is likely to complicate the drive by=20
House Commerce Committee Joe Barton (R-TX) to win=20
approval. His legislation is highly favored by=20
Bell telephone companies seeking to quickly enter=20
the pay-television market on a nationwide basis.=20
It is scheduled for a Wednesday committee vote.=20
House Minority Leader Nancy Pelosi (D-CA) has=20
scheduled a Tuesday meeting with panel Democrats,=20
said Rep. Rick Boucher (D-VA) and industry=20
sources. The meeting could signal that House=20
Democrats may oppose Barton's legislation, which=20
is co-sponsored by Rep Bobby Rush (D-IL).
http://www.njtelecomupdate.com/lenya/telco/live/tb-ITZV1145903683299.html
* The Players in the Fight for Internet Freedom
http://www.mydd.com/story/2006/4/24/0579/25253
* The new politics starts with network neutrality
http://www.michaelfraase.com/index.php/hasten/the_new_politics_starts_wi...
network_neutrality/

NEW GROUP AIMS TO 'SAVE THE INTERNET'
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Days before a congressional committee is set to=20
vote on an overhaul of the nation's=20
telecommunications policy, a broad coalition of=20
media, consumer and Internet groups has organized=20
behind a dramatic tagline: "Save the Internet."=20
Dozens of organizations ranging from the=20
conservative-to-libertarian Gun Owners of America=20
to the liberal group Moveon.org to the American=20
Library Association, have just launched a Web=20
site under the "Save the Internet" banner. During=20
a Monday press conference call, supporters of the=20
newly minted group at times adopted the tone of a=20
pep rally. "The fight for Internet freedom is=20
now being waged in earnest," said Tim Karr,=20
campaign director for Free Press, a media reform=20
organization that opposes large media companies=20
and organized the coalition. "On one side you=20
have the public...on the other side you have the=20
nation's largest telephone and cable companies,=20
who have aligned with some in Congress to strip=20
the Internet of the First Amendment." At issue=20
is a concept known as Net neutrality, also called=20
network neutrality. It's a philosophy supported=20
by Internet content providers such as Google,=20
Microsoft and Amazon.com that would prohibit=20
broadband providers from prioritizing certain=20
types of Web traffic--such as streaming video or their own preferred conten=
t.
http://news.com.com/New+group+aims+to+save+the+Internet/2100-1034_3-6064...
.html
* Save The Internet. Why? And For Whom?
http://gigaom.com/2006/04/23/save-the-internet-why-and-for-whom/

HANDICAPPING SENATE TELECOM BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
There is no timeline for the Senate's markup of=20
an omnibus telecommunications reform bill, though=20
it can be expected to be considered in the next=20
two or three weeks. Senate staffers were busy=20
working on draft language of its version over the=20
Easter break. Issues likely to be addresses in=20
the bill include video franchising=20
reform, network neutrality language, municipal=20
broadband, universal service, and allowing=20
unlicensed wireless devices in so-called "white=20
spaces" in the broadcast band. "Possibles" are a=20
broadcast flag digital content-protection scheme,=20
protection of kids from Internet content, and=20
DTV-related items that had to be stripped from=20
DTV hard date legislation that passed earlier in=20
the year, like cable's downconversion of a DTV=20
signal and the outlines of a consumer education=20
campaign on the Feb. 17, 2009 switch to a digital TV transmission standard.
http://www.broadcastingcable.com/article/CA6327594?display=3DBreaking+News

INDECENCY

FAMILY GROUPS PUSH INDECENCY BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Parents Television Council, Concerned Women=20
For America, Focus on the Family, and the Family=20
Research Council have scheduled a conference call=20
for Tuesday to push for a Senate bill that would=20
boost indecency fines by at least 10 times. The=20
family groups say they want to "curb the deluge=20
of indecent programming that=92s already flooding=20
the living rooms of families across the U.S."=20
Elsewhere, the Christian Coalition is also=20
pushing for action Tuesday. It put out an alert=20
to members telling them to contact their=20
legislators Tuesday and demand passage of the=20
Senate bill, pointing out that it has been a year=20
since the House passed the version introduced by=20
House Telecommunications Subcommittee Chairman=20
Fred Upton (R-MI). The coalition is calling on=20
Majority Leader Bill Frist (R-TN) for an=20
immediate Senate floor vote on the House bill,=20
which would avoid having to conference the=20
already-passed House bill with a Senate version=20
that had differences in, say, the amount of the fine.
http://www.broadcastingcable.com/article/CA6327455?display=3DBreaking+News

WEBS GEARING UP FOR SUPREME SHOWDOWN WITH THE FCC
[SOURCE: Variety, AUTHOR: Michael Learmonth]
Ten days ago, all four broadcast networks, their=20
800 affiliated stations and the Hearst-Argyle=20
station group walked in rare lockstep and filed a=20
challenge arguing that three specific FCC=20
indecency decisions are unconstitutional and=20
inconsistent. The appeals involve a guest on CBS'=20
"The Early Show" referred to someone as a=20
"bulls****er, ABC's drama "NYPD Blue" and Fox's=20
"Billboard Music Awards" in which Nicole Richie=20
said, "have you ever tried to get cow s*** out of=20
a Prada purse? It's not so f***ing simple." The=20
challenge, expected to be heard by a court of=20
appeal in the next few months, could end up=20
reining in the agency that critics claim is=20
exceeding its authority. It could also set the=20
stage for a Supreme Court showdown -- the first=20
consideration of the government's role in=20
policing broadcast content since 1978. Given the=20
entertainment industry's dearth of friends on=20
Capitol Hill, it's no surprise broadcasters turned to the courts for relief.
http://www.variety.com/article/VR1117941849?categoryid=3D14&cs=3D1&nid=3...
96
* the End of "live" TV
http://www.dtgeeks.com/index.php/blogs/community_comment/the_end_of_live...

REHR: TO DC: CLARIFY INDECENCY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In his first major speech as the new president of=20
the NAB, David Rehr said Monday that the=20
broadcast media have to emphasize parental=20
control and defend the First Amendment, but he=20
also said they have "no objection to playing by=20
the decency rules" so long as Congress and the=20
FCC will draw the lines more clearly. "The FCC's=20
recent indecency fines [a package of proposed=20
fines and findings against TV shows for language=20
and sexual situations] did little to clarify=20
these rules," he said. "We need clearer guidance=20
from the FCC and Congress on where the lines are=20
drawn." While Rehr told an NAB opening-session=20
crowd that they "cannot forget the importance of=20
the First Amendment," and that NAB will "defend=20
it wholeheartedly," he also threw in a caveat=20
saying: "No one should imply that protecting the=20
First Amendment is tantamount to promoting the=20
right to be obscene." The distinction between=20
obscenity and indecency, however, is that the=20
media have no protection from obscenity, which is=20
illegal, while indecency is protected speech,=20
though currently channeled to times of day when=20
the FCC considers kids least likely to be tuning in (10 p.m. to 6 a.m.).
http://www.broadcastingcable.com/article/CA6327626?display=3DBreaking+News

ENTERTAINMENT GROUPS TARGET TV INDECENCY WITH EDUCATION EFFORT
[SOURCE: Associated Press, AUTHOR: Gary Gentile]
A coalition of entertainment groups will launch a=20
$300 million educational campaign next month to=20
urge parents to control what their children watch=20
on television, the groups said Monday. The effort=20
by TV networks, cable and satellite television=20
companies, local broadcasters and Hollywood=20
studios is an attempt to forestall government=20
control of content by demonstrating that a=20
voluntary program can work. Jack Valenti, former=20
head of the Motion Picture Association of=20
America, announced the effort Monday during his=20
keynote speech to the National Association of=20
Broadcasters. "We want to tell American parents=20
that they, and they alone, have total power to=20
control every hour of television programming,"=20
Valenti said. He said the groups would enlist the=20
not-for-profit Ad Council to develop advertising=20
that cable systems, networks and local stations=20
have agreed to air in what Valenti termed an=20
"avalanche of messages." The material will also=20
be distributed to churches and advocacy groups.=20
The group will also work with the Consumer=20
Electronics Association to raise awareness about=20
the presence of V-chips in TV sets that allow the blocking of some programm=
ing.
http://sfgate.com/cgi-bin/article.cgi?f=3D/n/a/2006/04/24/financial/f100...
D03.DTL

CHINA'S TOP WEB SITES PLEDGE STRONGER SELF-POLICING
[SOURCE: Reuters]
China's top Web portals, including Sina Corp. and=20
Tom Online, have agreed to rid their sites of=20
"unhealthy" content, amid a broader Beijing=20
campaign to clean up the Internet. Other major=20
players in the self-policing drive include=20
Sohu.com Inc., NetEase.com Inc., Baidu.com Inc.=20
and Yahoo Inc.'s China Web portal, according to=20
the text of a pledge by 14 companies posted on=20
Sina's Web site. The firms' pledge states that=20
the Internet has become an important source of=20
information and entertainment in China, now the=20
world's second-biggest market with over 100=20
million surfers. "At the same time as the Web=20
develops quickly, certain sites are transmitting=20
unhealthy news ... and uncivilized voice=20
services, including pornographic content that can=20
be harmful to society," said the pledge, which=20
was dated earlier this month in a posting on=20
Sina's Web site. To combat such issues, the group=20
of 14 -- under the name the Beijing Association=20
of Online Media -- committed themselves to a=20
number of steps involving self-policing of such content.
http://today.reuters.com/news/newsArticle.aspx?type=3DinternetNews&storyID=
=3D2006-04-25T094226Z_01_SHA66300_RTRUKOC_0_US-MEDIA-CHINA-INTERNET.xml

BROADCASTING

CHILDREN NOW TAKES ISSUE WITH WAIVER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Allbritton, McGraw-Hill, and Media General are=20
among the broadcast groups who planned to file=20
comments with the FCC by close of business=20
Monday--when public comments were due--asking for=20
the waiver for DTV public interest channels --=20
news, weather, politics. They argue that the FCC=20
was simply choosing one type of public interest=20
-- kids -- over another, and suggested kids shows=20
might break up the flow of those channels.=20
Children Now's Christy Glaubke counters: "Not=20
only do broadcasters have the ability under the=20
rules to program their children=92s educational=20
shows on any of their digital channels as long as=20
they have carriage, but there is no reason to=20
believe that a mere three hours per week of=20
children=92s educational programming would harm a=20
public interest channel. Some broadcasters, such=20
as NBC, are actually using this rule as an=20
opportunity to create shows for kids about the=20
weather or news. These programs will add=20
much-needed diversity to the educational=20
programming that is currently being offered to=20
kids and may even create a new audience for=20
weather and news programming. Finally, it is=20
important that kids get something in return for=20
the billions of dollars worth of spectrum that=20
broadcasters are receiving for free."
http://www.broadcastingcable.com/article/CA6327740?display=3DBreaking+News

REHR OUTLINES FIVE-POINT PLAN
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
National Association of Broadcasters new=20
President and CEO David Rehr outlined Monday five=20
areas where broadcasters "can go on offense=20
immediately": 1) Broadcasters' future hinges on=20
their ability to exploit every new technology --=20
on every new platform. Content is still king --=20
but distribution is key. 2) Broadcasters must=20
promote the benefits of digital television and=20
digital radio. 3) Broadcasters must promote=20
greater competition among cable, satellite and=20
telecom companies. Competition means consumers=20
will have more choices -- and it also means=20
broadcasters will have more revenue streams from=20
the content they provide. 4) Concerning=20
indecency, the NAB will take a leading role in=20
empowering parents to control what comes into=20
their homes. 5) The NAB is moving away from using=20
the word "lobbyist=94 -- which has been defensive=20
and reactive -- and adopting the word=20
"advocacy=94 which conveys positive offense in=20
framing the debate. The NAB needs you to be=20
advocates for our industry, not just in=20
Washington, but at home. We intend to step up=20
our grassroots activism of local broadcasters to=20
educate Members of Congress, the FCC and their=20
staffs =96 about the realities of our=20
business. Rehr called on broadcasters to "be=20
more involved in electing Members of Congress who=20
oversee the future of our business. We must have=20
more pro-broadcaster Members of Congress. In=20
fact, we must elect more broadcasters to=20
Congress! It is with this goal in mind that I=20
encourage you to support the NAB Political Action committee."
http://www.broadcastingcable.com/article/CA6327604?display=3DBreaking+News
* NAB=92s Rehr Expects Cable Cash
http://www.multichannel.com/article/CA6327569.html?display=3DBreaking+News
* US TV stations seek share of networks' new revenue
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-04-24T220820Z_01_N24304804_RTRUKOC_0_US-MEDIA-NETWORKS-REVENUE.xml=
&archived=3DFalse
* NAB's Rehr: Deal-Bass Won't Pass
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
A House amendment designed to strengthen the hand=20
of cable and satellite companies in carriage=20
negotiations with TV stations across the country=20
will go down to defeat in the Commerce Committee=20
later this week, predicted National Association=20
of Broadcasters President David Rehr Monday.
http://www.multichannel.com/article/CA6327117.html?display=3DBreaking+News

GOING UP
[SOURCE: Broadcasting&Cable, AUTHOR: Mark Fratrik, BIA Financial Network]
[Commentary] During the past six months, several=20
large television groups have become even larger.=20
With LIN Television, Grey Television, and SJL=20
Communications acquiring most of the Emmis=20
television stations, Raycom TV Broadcasting=20
acquiring the Liberty stations, and Media General=20
recently acquiring some of the mid-market NBC=20
stations, transaction activity has risen to a=20
level not seen since the late 1990s and early=20
2000s. These acquisitions are prime examples of=20
groups' responding to competitive challenges by=20
logically merging assets to improve revenue and=20
cash-flow performance. It's also a show of their=20
commitment to the television business. However,=20
without further relaxation of FCC ownership=20
rules, there will be fewer opportunities for=20
these groups to continue such rapid growth.=20
Specifically, groups with properties in midsize=20
and smaller markets recognize tremendous=20
opportunities in acquiring other stations in=20
their markets, but they cannot move forward=20
because of continuing regulatory rules. Nearly=20
three years after the FCC proposed ownership=20
regulatory relief for TV stations in these=20
markets, no final action has been taken, and the=20
outlook for quick action remains bleak.
http://broadcastingcable.com/article/CA6327136.html?display=3DSpecial+Re...
* Top 25 Station Groups at a Glance
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins and George Winslow]
B&C's annual list of the top owners of local TV=20
stations in the US. The top 10 are CBS, Fox, Ion=20
Media Networks (Paxson), NBC, Tribune, ABC,=20
Universal, Gannett, Trinity Broadcasting and=20
Hearst-Argyle. See the URL below for the entire=20
list and a look at the deals that have shaped it.
http://www.broadcastingcable.com/article/CA6327137.html?display=3DFeatur...
eferral=3DSUPP

BROKAW: NO CUT AND PASTE FOR POVERTY
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
While mobile devices, the Internet and cable TV=20
make information more accessible, "these are=20
merely tools that are an extension, not just of=20
business plans, but of hearts and minds," former=20
NBC Nightly News anchor Tom Brokaw said Monday at=20
the NAB convention in Las Vegas. "There will be=20
no delete button for hate and understanding, no=20
cut and paste for poverty, no hold button for=20
natural disasters. The success of our industry=20
will continue to depend on not how we deliver the=20
news, but what we deliver." Former CBS anchor Dan=20
Rather said that technological innovation is=20
necessary, but should not alter journalists'=20
mission. "What I hope will not change is the=20
understanding that news needs to serve the public=20
interest as its primary goal. That is its=20
greatest calling, to keep freedom and independence alive, and keep it hones=
t."
http://www.broadcastingcable.com/article/CA6327672?display=3DBreaking+News

QUICKLY

FOX NEWS CHANNEL WANTS $1 PER CUSTOMER ANNIVERSARY GIFT
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint joe.flint( at )wsj.com]
The Fox News Channel, nearing its 10th=20
anniversary, is aiming to triple the fees it=20
charges cable operators to carry the channel. It=20
wants an increase to $1 dollar per month per=20
subscriber, from the 25 cent to 35 cent=20
subscriber fee the network currently earns. CNN=20
gets an average of about 50 cents per subscriber;=20
MSNBC takes in between 30 and 35 cents. Only a=20
handful of cable networks are able to command=20
such a high fee, most notably Walt Disney Co.'s=20
ESPN, which takes in over $2.50 per subscriber.=20
Like ESPN, these channels pay huge sports-rights=20
expenses and get compensated for them. Other=20
channels that command high distribution fees=20
include Time Warner's TNT, which carries Nascar=20
and the National Basketball Association and gets=20
90 cents, and the Disney Channel, which doesn't=20
sell advertising and gets about $1. While=20
posturing is a big part of these negotiations and=20
industry executives think Fox News doesn't really=20
expect to land a dollar per-subscriber, network=20
executives insist they aren't just bluffing. Fox=20
News has more viewers than any other cable news=20
channel with a prime-time audience of about 1.5=20
million viewers this year, according to Nielsen=20
Media Research. CNN's prime-time audience this=20
year is about 700,000 viewers while MSNBC has=20
been averaging 350,000 viewers. Fox News's=20
ratings are high enough to make it a top-10 cable=20
network. Fox News is banking that it is now one=20
of the handful of channels which can play=20
hardball with cable and satellite operators if=20
negotiations stall. Like Viacom's Nickelodeon and=20
Disney's ESPN, Fox News has rabid fans who would=20
howl if it wasn't part of their basic cable=20
package. Its mix of news and talk has struck a chord with conservative view=
ers.
http://online.wsj.com/article/SB114592788791534833.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

REPORT: TELCOS WILL PAY MORE TO TUNE IN TV
[SOURCE: Multichannel News, AUTHOR: Karen Brown]
A new report from Citigroup Research indicated=20
that cable-TV-content owners, including Time=20
Warner and Cablevision Systems, could actually=20
benefit to the tune of $3.8 billion in=20
incremental value from the entry of major telcos=20
into the television space. That benefit stems=20
from the cable operators=92 network-content=20
holdings and the fact that telcos entering with=20
smaller subscriber counts will be paying more in=20
programming fees, according to the report. The=20
big winners will include The Walt Disney Co.,=20
Time Warner, Cablevision and Viacom, with lesser=20
benefits to players including Comcast, News Corp.=20
and Scripps Networks. Citigroup estimated that=20
most cable-network owners will see gains of=20
0.5%-1.7% in their overall equity values because=20
of the telcos=92 entry into video.
http://www.multichannel.com/article/CA6327575.html?display=3DBreaking+News

NETWORK NEUTRALITY AND INDUSTRY STRUCTURE
[SOURCE: Phoenix Center, AUTHOR: George S. Ford,=20
Thomas M. Koutsky and Lawrence J. Spiwak]
One of the most heated debates in the current=20
efforts to re-write the Communications Act has=20
been whether the federal government should impose=20
Network Neutrality requirements on broadband=20
service providers. While the authors argue=20
neither for nor against the need for Network=20
Neutrality legislation, their analysis claims to=20
shows that policymakers should avoid Network=20
Neutrality mandates that have the intent or=20
effect of =93commoditizing=94 broadband=20
access since such a policy approach is likely to=20
deter facilities-based competition, reduce the=20
expansion and deployment of advanced=20
communications network networks, and increase=20
prices. Given the economic characteristics of=20
local communication networks, policies that=20
promote commoditization of broadband access could=20
lead to the monopoly provision of advanced=20
broadband service in many markets. This outcome=20
would harm consumers substantially.
http://www.quote.com/qc/news/story.aspx?symbols=3DPRNEWS:100&story=3D200...
241659_PRN__DCM049

CHINESE DVD PRODUCER TO PUT PIRATES IN A SPIN
[SOURCE: Financial Times, AUTHOR: Mure Dickie]
Zoke Culture Group, China=92s biggest legitimate=20
DVD producer, combats rampant piracy with rapid release and aggressive pric=
ing.
http://news.ft.com/cms/s/2ded5f44-d3f0-11da-b2f3-0000779e2340.html
(requires subscription)
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Communications-related Headlines is a free online=20
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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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