Benton's Communications-related Headlines for 4/12/05

For upcoming media policy events, see http://www.benton.org/calendar.htm

BARTON, BARTON, BARTON
Barton Pushes Broad Telecom Overhaul
Barton Wants DTV Tuners Sooner
Barton Wants to Delay Indecency Legislation for Cable, Satellite

OWNERSHIP
FCC Dem Spurs Hollywood to Fight Mergers
Gannett CEO: Media Ownership Ruling May Take Two Years

BROADCASTING
Broadcast TV Networks Rattled by DVR Inroads
Study: Digital Audio to Surge

LOBBYING
Defend Local Access
TeleCONSENSUS

FROM THE BLOG-O-SPHERE
Verizon Lies = Media Truths
Unmuddling The Metaphysical

QUICKLY -- New Lawsuits from Media Companies; Florida Injunction Against
Spammers; Six Firms Charged with eRate Fraud

BARTON, BARTON, BARTON

BARTON PUSHES BROAD TELECOM OVERHAUL
Addressing the Federal Communications Bar Association Tuesday, House
Commerce Committee Chairman Joe Barton said that Internet technology and
broadband distribution require an entirely new regulatory model: "I believe
that the best thing to do is just start from scratch." Wow, that sounds
like a major undertaking... we'll have months of public hearings and a
broad, democratic debate, right? Not so much. Rep Barton said he's
negotiating details on a bill with Reps. Fred Upton (R-MI), John Dingell
(D-MI) and Edward Markey (D-MA). Rep Barton wants to introduce a bill in a
couple of weeks, move it through the Commerce Committee sometime this
summer and get it ready to go to the Senate before the August break. Sounds
peachy.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA516900.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

BARTON WANTS DTV TUNERS SOONER
House Commerce Committee Chairman Joe Barton would like everyone to pick up
the pace. He's already asked that the deadline for the transition to all
digital television broadcasting be moved up to the end of 2006. Tuesday he
asked TV set manufacturers to chip in, too. Currently, all DTV sets
13-inches and larger must have the tuners by July 1, 2007; Rep Barton now
wants the deadline move up to "late 2005 or early 2006." He says an
accelerated equipment deadline is needed in order for broadcasters to go
all-digital by Dec. 31, 2006, as current law recommends, but does not mandate.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA516897?display=Breaking+News&...
http://www.multichannel.com/article/CA516957.html?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

BARTON WANTS TO DELAY INDECENCY LEGISLATION FOR CABLE, SATELLITE
In what could be a major break for cable TV, Rep. Joe Barton (R-TX) said
Tuesday he wants to put off until at least next year consideration of any
legislation that would subject cable and satellite TV to indecency
regulation. He wants Congress to focus first on an indecency bill that
addresses over-the-air broadcasting only. That bill, approved by a 389-38
vote in the House in February, would increase fines for off-color
broadcasting from $32,500 to $500,000. It focuses exclusively on
broadcasting, continuing to exempt cable and satellite programming. The
prospects of cable and satellite avoiding indecency regulation are expected
to rise dramatically if they aren't included in the broadcast bill, because
most of the legislative momentum on the issue is expected to dissipate with
the broadcast bill's passage.
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=7631
(requires free registration)

* Who is Joe Barton, you ask? Check info out from Project Vote Smart:
http://www.vote-smart.org/bio.php?can_id=H3831103

OWNERSHIP

FCC DEM SPURS HOLLYWOOD TO FIGHT MERGERS
The Federal Communications Commission's Michael Copps urged Hollywood
guilds and activists not to become complacent in their battle to curb media
consolidation during an address at the Caucus for Television Producers,
Writers & Directors dinner Sunday night, saying it is "all up for grabs
right now" and that renewed action on regulation will likely occur in the
next year. Commissioner Copps noted that the industry's creative talent
needs to deliver "a collective message." They must remain vigilant because
major media companies are reluctant to cover the implications of
deregulation. He also reiterated his support for a 25% to 35% set-aside of
the primetime schedule for independent producers to promote a diversity of
voices in production.
[SOURCE: Variety, AUTHOR: Brian Lowry]
http://www.variety.com/index.asp?layout=story&articleid=VR1117920915&p=0...

GANNETT CEO: MEDIA OWNERSHIP RULING MAY TAKE TWO YEARS
Gannett chief executive Doug McCorkindale predicted Tuesday that it will
take 18-24 months to ease the FCC's restrictions on television-station and
newspaper ownership. He added that uncertainty about the rules has had a
"dampening effect" on merger-and-acquisition discussions "where there are
overlaps" with Gannett, which owns USA Today and 101 other daily newspapers
in the U.S., as well as broadcast television stations. McCorkindale said
he's encouraged by the appointment of Kevin Martin as FCC Chairman.
[SOURCE: DowJones, AUTHOR: Janet Whitman janet.whitman( at ) dowjones.com]
http://money.excite.com/jsp/nw/nwdt_rt.jsp?section=news&news_id=dji-0006...

BROADCASTING

BROADCAST TV NETWORKS RATTLED BY DVR INROADS
Although the broadcast networks publicly play down the impact of
ad-skipping technologies, TV moguls see the spread of digital video
recorders as a serious threat to their ad base. How will they combat it? 1)
Live programming -- sports, news, events -- that people tend to skip less.
2) Get consumers to pay directly for content, such as with video-on-demand
services and DVDs. 3) Network ad departments will work more closely with
advertisers to provide them with branded entertainment sponsorship deals or
product integrations.
[SOURCE: Ad Age, AUTHOR: Claire Atkinson]
http://adage.com/news.cms?newsId=44754

STUDY: DIGITAL AUDIO TO SURGE
By 2010, more than 20.1 million households will be hooked to satellite
radio, up from 4.5 million subscribers at the end of 2004, market research
firm Forrester predicted in a report released on Monday. Also by that time,
nearly 12.3 million households will use MP3 players to listen to podcasts,
it forecasted. Streaming audio is also expected to grow significantly as
players like America Online and Yahoo, along with traditional broadcasters,
shift or step up their online programming, the research firm said. By the
end of the decade, online radio will reach 30 percent of all U.S.
households and about half of homes that have broadband connections.
[SOURCE: C-Net|News.com, AUTHOR: Dinesh C. Sharma]
http://news.com.com/Study+Digital+audio+to+surge/2100-1025_3-5667524.htm...

LOBBYING

DEFEND LOCAL ACCESS
Free Press has launched a new tool to support those fighting franchise
renewal fights -- as well as to support those working to counter industry
efforts to take away community control over communications needs.
[SOURCE: Free Press]
http://www.freepress.net/defendlocalaccess/http://www.freepress.net/defe...

TELECONSENSUS
The United States Chamber of Commerce along with the National Association
of Manufacturers, the National Black Chamber of Commerce and other business
organizations, launched a new coalition on telecom issues. The
TeleCONSENSUS coalition is calling on Congress to update telecommunications
laws in order to create jobs, spur investment, foster innovation, expand
consumer choice, enhance efficiency, and increase productivity. All sectors
of the U.S. economy will benefit from modernized telecommunications laws,
according to the Chamber. TeleCONSENSUS supports legislation based on the
principle that telecommunications markets should be driven by consumer
demand, advances in technology, and competition between telecommunications
companies, rather than by government regulation. Investment and employment
in the telecommunications industry have fallen dramatically. From March
2000 to July 2004, market capitalization in the telecommunications industry
dropped from $1,135 billion to $375 billion, a decline of 67
percent. Between March 2001 and May 2004, the industry lost 380,500 jobs
and continued to shed jobs in the first quarter of 2005. TeleCONSENSUS will
educate Congress, the business community, and the public about the
importance of telecommunications and broadband to the U.S. economy. Over a
five-year period, modernizing the nation's telecommunications laws has the
potential to generate more than 212,000 jobs, create $58 billion in new
capital spending, and increase the GDP by $634 billion.
[SOURCE: US Chamber of Commerce Press Release]
http://www.uschamber.com/press/releases/2005/april/05-58.htm

FROM THE BLOG-O-SPHERE

VERIZON LIES = MEDIA TRUTHS
Verizon has seeded the media with their own "covert propaganda." This time
it takes the form of memos quietly forwarded by Verizon's external
communications department to trade journalists and congressional offices.
What's clear is that Verizon hopes that spreading lies about municipal
broadband will turn media and politicians against citizens-powered efforts
to provide access at a price more Americans can afford. Verizon is building
an argument out of hot air. Sadly, it's enough to float many in the media.
[SOURCE: MediaCitizen, AUTHOR: Tim Karr]
http://mediacitizen.blogspot.com/2005/04/verizon-lies-media-truths.html

UNMUDDLING THE METAPHYSICAL
Report after report catalogues the rapid increase in cable rates over the
last few years. Some say as much as six percent a year. My own cable bill
was $45 one month and mysteriously became $50 the next. Just like that, a
9% increase. Then you look at the report Dick Treich and Garth Ashpaugh did
on Comcast and you find out that Comcast charges way too much for
installations and equipment. Next is the passing on to customers what it
costs them to upgrade their systems, which in my opinion should be absorbed
by the companies themselves, and you could easily arrive at the conclusion
that we all should be paying $20 to $30 dollars less per month. It all
could drive a guy crazy.
[SOURCE: Riedel Communications, AUTHOR: Bunnie Riedel]
http://www.riedelcommunications.blogspot.com/

QUICKLY

MEDIA COMPANIES TARGET TRADING ON RESEARCH NETWORK
Record label and movie studio investigators said on Tuesday they plan to
sue more than 400 college students who used Internet2 to copy songs and
movies. Designed for academic research, Internet2's extremely fast speed
allows users to download a movie in 5 minutes or a song in less than 20
seconds. Existing cable or DSL broadband networks usually take an hour to
download a movie and 2 minutes to download a song.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml;jsessionid=OVUZZXKQGDGNKCRBAE0C...

FLORIDA WINS FIRST INJUNCTION AGAINST SPAMMERS
The state of Florida won its first victory against "spam" when a judge
granted an injunction against two men accused of running mass emailing
operations.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=OVUZZXKQGDGNKCRBAE0C...

SIX FIRMS CHARGED WITH ERATE FRAUD
Six more companies have been indicted on allegations of defrauding the
eRate, the $2.25 billion-a-year federal program that subsidizes Internet
access in the nation's schools and libraries. The Hall of Shame includes
Howe Electric Inc.; Sema4 Inc.; Digital Connect Communications; Expedition
Networks Ltd.; and ADJ Consultants Inc., and its owners, Allan and Judy Green.
[SOURCE: eSchool News]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=5619
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------