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The number of Americans who pay for cable-like TV products is declining, says a research forecast that claims subscriptions peaked at nearly 101 million in 2011 but will decline to less than 95 million by 2017. The stats come by way of research group TDG. While a five percent decline is hardly earth-shaking, TDG describes the end of cable TV’s growth as a tipping point with ”long-term tectonic implications.”


Pay TV will shrink for first time in history, study says cable watching peaked in 2011 Streaming Video Delivers Blow To Paid Cable (MediaPost)
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[Commentary] In Las Vegas this week, approximately 150,000 consumer electronics manufacturers, retailers, content providers and creators, broadband developers, wireless carriers, cable and satellite TV providers, installers, engineers, corporate buyers, government leaders, financial analysts and the media gathered for the International Consumer Electronics Show (CES) to see and showcase new and upcoming products. Writing in the Washington Post, Hayley Tsukayama asked a provocative question: why bother? You see, CES gets a bad rap these days — and there are a lot of reasons why. Major companies pull out of the show to set their own announcement agendas (see: Apple, Microsoft). And many of the show’s “hot products” of the year don’t always pan out in the real world, have super limited appeal, or simply never come out at all. In many ways, CES has earned its reputation as a disconnected confab and echo chamber. The most-pointed criticism is that CES is a hardware show in a software world. Innovation is increasingly coming from the software side of things, from content partnerships and novel applications of technology, which make gadget-driven news a little less interesting. So we ask this week, ‘Why should public interest advocates care about CES?’


Why Should I Care About CES?
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In simpler times, when donors were donors and PACs were PACs, campaign spending was easy to follow. A review of a politician’s campaign donations—recorded by the same agency in the same place—would provide the lowdown on all of his or her biggest backers. But in the brave new world of campaign finance, this basic question has become more complicated.

Citizens United and related Supreme Court decisions have given rise to super PACs and political “social welfare” groups, entities that spend unlimited amounts on elections with varying degrees of disclosure. Campaign 2012 is now over, obviously. But as a new Congress begins its session and the last bits of campaign finance data from late last year become available, journalists around the country have another opportunity to introduce their audiences to the donors and special interests that helped put their elected representatives in office. To provide a complete picture of who is bankrolling elections, though, reporters and citizens now must consider a broader landscape. They need to review records of different types, kept in different places. There is currently no single, easy-to-use source where all campaign spending on behalf of a candidate is gathered in one place. This article explains how to examine and disclose the campaign money—both traditional donations and outside spending—behind a candidate for federal office.


Following the cash behind the new Congress

In Las Vegas this week, approximately 150,000 consumer electronics manufacturers, retailers, content providers and creators, broadband developers, wireless carriers, cable and satellite TV providers, installers, engineers, corporate buyers, government leaders, financial analysts and the media gathered for the International Consumer Electronics Show (CES) to see and showcase new and upcoming products.

Writing in the Washington Post, Hayley Tsukayama asked a provocative question: why bother? You see, CES gets a bad rap these days — and there are a lot of reasons why. Major companies pull out of the show to set their own announcement agendas (see: Apple, Microsoft). And many of the show’s “hot products” of the year don’t always pan out in the real world, have super limited appeal, or simply never come out at all. In many ways, CES has earned its reputation as a disconnected confab and echo chamber. The most-pointed criticism is that CES is a hardware show in a software world. Innovation is increasingly coming from the software side of things, from content partnerships and novel applications of technology, which make gadget-driven news a little less interesting.

So we ask this week, ‘Why should public interest advocates care about CES?’

Tsukayama’s answer is that CES is still one of the best places to see what’s coming down the pike and what companies are dreaming up. And, to be sure, we’ve relayed this week in Headlines some of the product announcements – like GoSafe, a new personal emergency response system that will get you help wherever you are. In fact, it will know whether you've fallen and will summon help if you don't respond, whether you're at home or out and about.

The convention offers a space to examine trends that are bigger than just consumer electronics. The devices on display indicated that wireless carriers aren't just for smartphones anymore. The carriers are directing customers to other devices that connect to the network, such as those that control a home's energy use. The move is meant to increase the carriers' reach into customers' lives, enabling the company to sell buckets of data and making it harder for subscribers to switch providers.

CES still has “big name” drawing power: former President Bill Clinton made a presentation for Samsung in which he stressed that efforts to get smartphones into the hands of people in impoverished rural areas should be a priority in world humanitarian efforts. For many, the cellphone is the first — and only — point of entry to having a bank account, or to standardize commodity food prices across their particular region.

But perhaps the most obvious reason to care about CES is that scattered about the displays and launches of new hi-def televisions, cutting-edge tablets and more is a sea of federal lawmakers and regulators, many of whom return home leery to learn there’s a gap between the new tech on display and the laws that are supposed to govern their use.

The conference is a gathering at which to talk about the big policy developments of the past year. Ambassador David Gross and Federal Communications Commission member Robert McDowell were at CES to talk about the International Telecommunications Union meeting in Dubai last month – and efforts by the United Nations’ body to extend its reach to the Internet.

The in-car computers populating the show floor may woo audiences. But they also should remind regulators there’s work to do to ensure the old rules of the road — literally — apply to cars that are as much computers as they are engines. And the explosion of start-ups — many of which aren’t device manufacturers but app makers — represents the front lines of many debates over spectrum, e-health policy, venture capital and more now happening on Capitol Hill.

It’s in some ways the battlefield in the implicit war between Silicon Valley and Washington over the need for new regulation in the digital age — a fight that often can have serious political consequences.

CES is run by the Consumer Electronics Association, an active player in Washington (DC). This year, the issues topping CEA’s wish list are high-skilled immigration reform and a return to the patent debate to stop the smartphone wars. And there’s an even stronger push by CEA CEO Gary Shapiro and his group to see many of the proposed changes to start-up investor rules — byproducts of the Jumpstart Our Business Start-ups Act — implemented more quickly. Rep. Zoe Lofgren (D-CA), a newcomer to CES, said she and many others are working on both sets of issues — keeping an eye on venture funding, which is “not as robust as people would like,” and immigration, an area in which Rep Lofgren is a key voice. She said she has her eye on reform, while she’s “urging the Administration to make changes they can make within the law.” Rep Lofgren has been aggressively trying to get a meaningful, comprehensive immigration bill passed for many years. She said that if the Republicans have any hope of regaining the White House in four years, they must reach out to a broader slice of the population. And immigration reform could be a big winner if they play their political cards right.

FCC Chairman Julius Genachowski was interviewed by CEA’s Gary Shapiro in an event that stressed the industry’s and the Administration’s common goal: freeing up spectrum for mobile services. Shapiro went as far as dubbing Genachowski the “spectrum chairman.” Chairman Genachowski used the occasion to announce that the FCC will soon kick-off a government-wide effort to increase speeds and alleviate Wi-Fi congestion at major hubs, such as airports, convention centers and large conference gatherings. Chairman Genachowski said that the FCC will take the first steps next month to unleash up to 195 megahertz of spectrum in the 5 gigahertz band. This would be the largest block of unlicensed spectrum to be made available for expansion of Wi-Fi since 2003. The idea is to free up the unlicensed spectrum available for ultra-high-speed, high-capacity Wi-Fi - known as “Gigabit Wi-Fi” - by up to 35 percent. This effort will enable higher data speeds and greater capacity – most notably, improved high definition video distribution capability. Because the 5 gigahertz band is already used for other purposes by both federal and non-federal users, the effort will require significant collaboration with other federal agencies. The FCC announcement even garnered praise from the Republican leadership of the House Communications and Technology Subcommittee.

Chairman Genachowski and others also addressed the FCC’s major effort to free up spectrum currently reserved for television broadcasting for mobile services. A law passed last year allows the FCC to conduct auctions so broadcasters will be reimbursed for relinquishing their spectrum licenses. The FCC is currently collecting public comment on how best to implement these “incentive auctions.” Chairman Genachowski noted that once the incentive auctions are completed and the broadcast spectrum is repackaged, there would continue to be space between broadcasters. These white spaces will open up opportunities to free up additional spectrum, he said. Former FCC Chairman Reed Hundt, who oversaw the first spectrum auction, said Genachowski is doing "a great job." Hundt conceded that one had to be a "game theorist" rather than a "mere lawyer" to understand all the intricacies of the incentive auction -- which is a double-sided auction. But he said the main thing was that it was not difficult to bring about profound change if "you really focus on it." The FCC wants to hold the auctions in 2014 and some involved say that’s possible, but others claim there are too many complications and details that must be worked out to make sure the very complicated process goes smoothly. FCC Commissioner Robert McDowell told the CES audience: “So, while I hope it’s 2014 … folks just need to realistically understand that history tells us that these things can take longer than you hope or expect, especially when you have literally the most complicated spectrum auction in world history.” National Association of Broadcasters lobbyist (and former FCC staffer) Rick Kaplan said that the success of the auctions could hinge on not "rushing" before resolving border issues with Canada and Mexico.

At CES 2011, the Stop Online Piracy Act (SOPA) was a major topic of discussion and consternation. Content companies used to getting their way on Capitol Hill got humbled last January when an unprecedented wave of public protest shut down the SOPA proposal that would have regulated online copyright. Now that the public has been awakened to the issue, those interested in a more balanced copyright system are thinking over their strategy. "Everything is on the table, including copyright terms," said Gigi Sohn, the president of Public Knowledge. "Let's put it to those who want greater, longer, stronger CR enforcement... why shouldn't we have some balance? Let's turn the clock back and think about the original need for copyright." This year, says Sohn, will be the year "we push our own, affirmative, agenda."

On January 9, Senator Ron Wyden (D-OR) offered his ideas to tackle the big challenges that he sees down the field – he called his agenda guaranteeing innovators the Freedom to Compete. The freedom to compete in the marketplace, he said means:

  1. Access to the Internet: Internet Service Providers – wired or wireless – must be barred from practices that discriminate against specific content. The Open Internet order established by the FCC is a good start but it doesn’t go far enough because, in reality, it is not comprehensive. If a provider wishes to slow consumers’ Internet connections in order to discriminate against a provider of content, Wyden’s view is that they should face the anti-trust laws. He and Senator Al Franken (D-MN) are working on legislation to do just that -- to strengthen the anti-trust laws in order to ensure that the major ISPs cannot use their market dominance to pick online winners and losers.
  2. Limiting broadband data caps: There is a case for data caps that manage congestion – manage a scarcity of bandwidth – but they shouldn’t be used to create scarcity in order to monetize data. He highlighted his legislation, first introduced in the last Congress, that would establish disciplines on data caps that give innovators and entrepreneurs the to compete.
  3. A Congressional review of software patents’ contribution to the economy: The acquisition of these patents appears less about deploying innovation and more about employing a legal arsenal. The patent system should not operate as a tax on innovation, as it does now. How are you promoting innovation if you stand behind a law that enables a few lines of code to be patentable for 20 years? Software is different than a new invention. It is a building block -- a new set of instructions -- that should be continually built upon and improved.
  4. Privacy: it is particularly troubling that the documents Americans leave lying around their kitchen counter receive more privacy protections than the content Americans store in the cloud. A rewrite of the Electronic Communications Privacy Act should address this imbalance.
  5. Balanced Approach to Cybersecurity: addressing the vulnerability of critical infrastructure to cyberattack without creating a cyber-industrial complex that would produce an endless, losing, cat-and-mouse game in which nimble hackers win all the time. Cybersecurity should not used in a way that exposes the electronic communication of every American to government and corporate snoops.
  6. Copyrights and Patents: what chills the sharing of ideas and collaboration is the maximalist approach to copyrights and patents. Rights-holders are too eager to use their power to scare off challenges to the status quo, and this perpetuates stagnation. Protecting intellectual property is important – the balance between providing rights-holders a monopoly and promoting competition and innovation is just as important. Members of Congress are going to file legislation that would penalize false representations, strengthen Fair Use, and provide real due process and for seizures of property.
  7. International Trade: countries are increasingly imposing barriers to digital goods and digital services for non-competitive purposes. It’s anti-competitive protectionism. The Obama Administration needs clear, statutory negotiating instructions that require it seek open Internet disciplines in all trade discussions.

[Our friends at Public Knowledge have been blogging extensively about Sen Wyden’s speech. To learn more, see Data Caps Undermine the Freedom to Compete , Wyden Calls for Copyright Reform at CES, Protecting the Freedom to Compete by Reforming Competition Law, and Wyden Calls for Trade Agreements that respect Open Internet Principles]

Finally, two months ago, AT&T petitioned the FCC to plan for the retirement of traditional phone networks and transition to what AT&T sees as an inevitability: the all-IP telco. This petition and, perhaps, legislative efforts along the same vein could be the key telecommunications issue on 2013. At CES, Hank Hultquist, vice president of AT&T's federal regulatory division, shared the company’s pitch to regulators. "This telephone network we've grown up with is now an obsolete platform, or at least a rapidly obsolescing platform," Hultquist said. "It will not be sustainable for the indefinite future. Nobody's making this network technology anymore. It's become more and more difficult to find spare parts for it. And it's becoming more and more difficult to find trained technicians and engineers to work on it." Although going all-IP signals the death of traditional telephone networks, Hultquist believes Internet Protocol-based networks will give voice calls a higher quality and greater importance. He looks forward to the integration of voice throughout the Web, something that is already happening with the likes of Skype on Facebook and Google Hangouts. Currently, AT&T is proposing testing all-IP networks by allowing telephone companies to retire their legacy networks in specific cities or regions. The FCC is taking public comments on AT&T's proposal.

When asked at CES, Vint Cerf, co-creator of the Internet, said he is troubled by the prospect of companies like AT&T avoiding government regulation after the transition from traditional phone technology to all-IP networks. Already, he said, competition was decimated when the Internet moved from dial-up providers to cable companies and telcos. He said:

My first observation is that it is vital that we maintain openness and neutral access to the Internet's capabilities. The fact that you can carry voice over the Internet is almost incidental to the fact that you can carry any digital content over the Internet. I would not wish to see the question of regulation turn on the notion that Voice over IP is [public switched telephone network] or is a replacement for PSTN. It is a replacement for almost everything we can do, all of the old network functions can be done on the Internet.

If no regulation leads to your loss of choice of access to applications and content, then that is not an acceptable outcome. If that's what the telcos are trying to accomplish, I am opposed. If all they're trying to accomplish is to make sure the Internet stays as widely open as possible, and they are willing to provide competitive access and give us choice, that's another story.

I have to tell you that in the 1990s there were 7 or 8,000 Internet service providers because the Internet was provided through dial-up. If you wanted to switch you just changed the telephone number you call. When broadband came along the number of choices you had telescoped down to one or two: either a telco or cable company or both, and so competition evaporated. There isn't enough of it. Getting access to competition to discipline the market and give you choice is still an important consideration.

So why should you care about CES? Well, because what happens in Las Vegas at the annual Consumer Electronics Show certainly doesn’t stay in Las Vegas, at least not as far as Washington is concerned. Sen Wyden went so far as to suggest throwing out the old adage ‘What happens in Vegas, stays in Vegas.’ “Instead, he said, “let’s establish that ‘What innovation is demonstrated in Vegas, needs to be disseminated around the world.’”



January 11, 2013 (Derecho Report)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, JANUARY 11, 2013

Privacy and Emergency Access on today’s agenda http://benton.org/calendar/2013-01-11/


EMERGENCY COMMUNICATIONS
   Impact of the June 2012 Derecho on Communications Networks and Services - Report and Recommendations - press release
   FCC Publishes Proposed Text-to-911 Rule

WIRELESS/SPECTRUM
   FCC Announces Tentative Agenda for January 2013 Open Meeting
   Incentive Auction Is Coming, But When?
   Border Issues Key Among Auction Concerns - analysis [links to web]
   Hundt: Genachowski Doing Great Job on Incentive Auctions [links to web]
   Reps Walden, Latta Welcome Progress on Efforts to Increase Unlicensed Spectrum - press release [links to web]
   Wireless Carriers Move Beyond Smartphones [links to web]
   Verizon: Almost 50% of data traffic now goes over LTE network [links to web]
   Amtrak is upgrading its on-train Wi-Fi service [links to web]

PRIVACY
   California Attorney General Issues Guidance on How Mobile Apps Can Better Protect Consumer Privacy - press release
   Maybe “Being the Product” Isn’t So Bad: Why Data Harvesting Doesn’t Have to be a Nightmare - analysis
   President Obama signs bill to let Facebook users share Netflix videos [links to web]

CONTENT
   Hollywood's take on White House gun summit
   Consumers are stuck between ISPs and content giants in the battle for online video - analysis
   Vice President Biden Meets with Groups to Discuss Violence Prevention [links to web]
   TCA: Netflix looks to join TV big leagues [links to web]
   Chasing Netflix, Intel, AT&T, Verizon & others lose their collective mind - analysis [links to web]
   All The News That's Fit To Read, Watch, Listen To And Touch [links to web]
   Amazon’s New Deal: Buy a CD and Get the Digital Album for Free [links to web]
   Don’t hold your breath waiting for Amazon to give you Kindle copies of your books [links to web]
   Tag, Share, And Set Your Life To Music With SoundTracking [links to web]

OWNERSHIP
   Motorola Mobility and Google; Analysis of Proposed Consent Order to Aid Public Comment - public notice
   Justice Department Files Suit Against Bazaarvoice’s Acquisition of PowerReviews - press release [links to web]
   FTC Announces Revised Thresholds for Clayton Act Antitrust Reviews for 2013 - press release [links to web]

INTERNET/BROADBAND
   Why the UN’s push to control the Internet isn’t over [links to web]
   Protecting the Freedom to Compete by Reforming Competition Law - analysis [links to web]
   Sen Wyden Calls for Trade Agreements that respect Open Internet Principles - analysis [links to web]
   Google Fiber Captivates Kansas City [links to web]
   Rise of the next digital divide: Women and the web [links to web]
   New White House petition seeks to legitimize DDoS attacks [links to web]

HEALTH
   In 2nd Look, Few Savings From Digital Health Records

POLICYMAKERS
   Obama’s Chief of Staff Pick Is Said to Be Down to 2

STORIES FROM ABROAD
   Brussels takes tough stance on Google
   Chinese Newspaper Protests End, but Battle Over Censorship Is Unresolved
   Tim Cook: China will be Apple's top market [links to web]
   Visit by Google Chairman May Benefit North Korea [links to web]
   UK editors resist press regulation plan

MORE ONLINE
   How tablets are changing desktop computers [links to web]

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EMERGENCY COMMUNICATIONS

DERECHO REPORT
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
The Federal Communications Commission announced plans to launch a rulemaking to strengthen the reliability and resiliency nationwide of our country’s 9-1-1 communications networks during major disasters. Widespread outages and disruptions to 9-1-1 services in the Midwest and mid-Atlantic regions – impacting more than 3.6 million people – led to an in-depth FCC inquiry into what went wrong, and what steps should be taken to better ensure public safety. The inquiry, conducted by the FCC’s Public Safety and Homeland Security Bureau, included in-depth investigation, public comment and analysis. In the report issued today, the Bureau noted that a significant number of 9-1-1 systems and services were partially or completely down for several days after the derecho – from isolated breakdowns in Ohio, New Jersey, Maryland, and Indiana to systemic failures in northern Virginia and West Virginia. In all, seventy-seven 9-1-1 call centers (known as public safety answering points or “PSAPs”) serving more than 3.6 million people in these six states lost some degree of connectivity, including vital information on the location of 9-1-1 calls. Seventeen of the 9-1-1 call centers, mostly in northern Virginia and West Virginia, lost service completely, leaving more than 2 million residents unable to reach emergency services for varying periods of time.
Unlike hurricanes and superstorms, which are generally well-forecast, derechos are more like earthquakes, tornados, and man-made events for which there is little-to-no advance notice and opportunity to prepare. As such, the derecho provided a snapshot of the reliability and readiness of a portion of the Nation’s communications infrastructure in the face of unanticipated disasters – and it revealed considerable flaws in the resiliency planning and implementation of the primary 9-1-1 network providers in the affected region. In most cases, the disruptions would have been avoided if the communications network providers that route calls to 9-1-1 call centers, had fully implemented industry best practices and available industry guidance.
The Bureau outlined specific suggestions to address the primary causes of the derecho-related outages and to promote the reliability and resiliency of 9-1-1 communications networks during disasters. Chief among these, the Bureau recommended that the Commission consider actions in the following areas to ensure that communications providers:
Maintain adequate central office backup power
Have reliable network monitoring systems
Conduct periodic audits of 9-1-1 circuits
Notify 9-1-1 call centers of problems
benton.org/node/143143 | Federal Communications Commission | read the report | Commissioner Rosenworcel | Commissioner Pai | The Hill
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FCC PUBLISHES PROPOSED TEXT-TO-911 RULE
[SOURCE: nextgov, AUTHOR: Joseph Marks]
The Federal Communications Commission published a proposed rule requiring all wireless carriers to support text messages to 911 in addition to standard phone calls to the emergency number. The agency said it planned to publish the new rule Dec. 12 and announced a deal with the nation’s four largest wireless carriers to support the service December 7. Publication now starts the clock ticking for wireless carriers, emergency responders and other interested groups to comment on the proposed rule before the FCC votes on a final regulation. The comment period on the proposed rule closes Jan. 29.
benton.org/node/143132 | nextgov | see Federal Register notice
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WIRELESS/SPECTRUM

FCC ANNOUNCES TENTATIVE AGENDA FOR JANUARY OPEN MEETING
[SOURCE: Federal Communications Commission, AUTHOR: Press release]
Federal Communications Commission Chairman Julius Genachowski announced that the following items will be on the tentative agenda for the next open meeting scheduled for Thursday, January 31, 2013:
Expanding Opportunities for Spectrum Experimentation Report and Order: The Commission will consider a Report and Order to revise and streamline its rules to modernize the Experimental Radio Service by creating a more flexible environment to accelerate innovation and promote the introduction of new products, including medical devices, to the marketplace.
Expanding Broadband Access and Spectrum Availability for Healthcare: The Commission will hear a presentation on the agency’s ongoing work to expand broadband access and spectrum availability for health care uses.
benton.org/node/143154 | Federal Communications Commission
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INCENTIVE AUCTION WHEN?
[SOURCE: TVNewsCheck, AUTHOR: Andrew Dodson]
The Federal Communications Commission wants to do the spectrum incentive auction in 2014 and some involved say that’s possible, but others claim there are too many complications and details that must be worked out to make sure the very complicated process goes smoothly. FCC Commissioner Robert McDowell told a CES audience: “So, while I hope it’s 2014 … folks just need to realistically understand that history tells us that these things can take longer than you hope or expect, especially when you have literally the most complicated spectrum auction in world history.”
benton.org/node/143114 | TVNewsCheck
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PRIVACY

CALIFORNIA GUIDANCE ON MOBILE APP PRIVACY
[SOURCE: State of California Department of Justice, AUTHOR: Press release]
California Attorney General Kamala Harris issued recommendations for mobile application (app) developers and the mobile industry to safeguard consumer privacy. The report provides guidance on developing strong privacy practices, translating these practices into mobile-friendly policies, and coordinating with mobile industry actors to promote comprehensive transparency. The report, Privacy on the Go: Recommendations for the Mobile Ecosystem, is the result of an outreach effort that compiled input from stakeholders throughout the mobile industry. Its purpose is to serve as a template for the mobile industry to develop mobile-friendly privacy policies and practices that will improve consumer privacy without stifling innovation. To accommodate the smaller screens of mobile devices, the report recommends the use of special notifications such as icons, or pop-up notifications to inform consumers about how personally identifiable information is being collected and shared.
benton.org/node/143101 | State of California Department of Justice | read the report | LATimes | Washington Post | NY Times | San Jose Mercury News
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MAYBE BEING THE PRODUCT AIN’T SO BAD
[SOURCE: Wall Street Journal, AUTHOR: Liz Gannes]
[Commentary] The often-cited expression “When something online is free, you’re not the customer, you’re the product” is compelling and smart and seems to sum up the problem of living in an advertising-supported online world. But it also stops too short. People trot out this line to advocate disengaging from a world of personalization and privacy scandals. The thing is, you can’t. In this day and age, avoiding security cameras and credit-card tracking and traffic pattern analysis and mobile location data would require a massive bulletproof signal-blocking hermit-crab shell. What you can do is actually get value from being tracked — while holding companies to a high standard of responsibility, of course. We give up massive amounts of personal data on a daily basis. In my opinion, it’s darn well time for these services to give back to us by making good use of the data to give us better experiences.
benton.org/node/143121 | Wall Street Journal
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CONTENT

HOLLYWOOD’S TAKE ON WHITE HOUSE GUN SUMMIT
[SOURCE: Politico, AUTHOR: Brooks Boliek, Steve Friess]
Film, TV and cable sector lobbyists met with Vice President Joe Biden to discuss efforts to curb gun violence, but it was unclear what more Washington could do to force the entertainment industry to temper the blood and guts. The 2 ½-hour meeting included presentations from companies and trade associations about how they already self-regulate or provide parents the tools to protect children from violent or racy content — such as voluntary ratings systems for movies and TV shows. “The entertainment community appreciates being included in the dialogue around the Administration’s efforts to confront the complex challenge of gun violence in America,” the attendees said in a joint statement. “This industry has a longstanding commitment to provide parents the tools necessary to make the right viewing decisions for their families. We welcome the opportunity to share that history and look forward to doing our part to seek meaningful solutions.” Signing on to the statement were representatives of the Directors Guild of America, Independent Film & Television Alliance, Motion Picture Association of America, National Association of Broadcasters, National Association of Theatre Owners, and National Cable & Telecommunications Association.
benton.org/node/143173 | Politico | The Hill | Variety | Politico
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STUCK BETWEEN ISPs AND CONTENT GIANTS
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
The trouble is that technology has enabled us to break up the process of getting a movie or TV show into many different pieces controlled by different service providers. But as we do this, we’ve have also taken out any accountability, which puts the consumer in the middle of any disputes over service quality. It’s a well-known secret in the peering world that ISPs sometimes choke the traffic coming in from large content companies as a reason to charge them more money for the privilege of interconnecting to them. That’s suspected of happening with Free in France, and has triggered an investigation by the French telecoms authority. It’s also happened in the US, although most of the arguments on the issue are solved by negotiation rather than a government probe.
benton.org/node/143135 | GigaOm
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OWNERSHIP

FTC SEEKS PUBLIC COMMENT
[SOURCE: Federal Trade Commission, AUTHOR: Richard Donohue]
The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices or unfair methods of competition. The attached Analysis of Proposed Consent Order to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent order -- embodied in the consent agreement -- that would settle these allegations. Comments must be received on or before February 4, 2013.
benton.org/node/143171 | Federal Trade Commission
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HEALTH

RAND’S NEW LOOK AT DIGITAL HEALTH RECORDS
[SOURCE: New York Times, AUTHOR: Reed Abelson, Julie Crewell]
The conversion to electronic health records has failed so far to produce the hoped-for savings in health care costs and has had mixed results, at best, in improving efficiency and patient care, according to a new analysis by the influential RAND Corporation. Optimistic predictions by RAND in 2005 helped drive explosive growth in the electronic records industry and encouraged the federal government to give billions of dollars in financial incentives to hospitals and doctors that put the systems in place. Officials at RAND said their new analysis did not try to put a dollar figure on how much electronic record-keeping had helped or hurt efforts to reduce costs. But the firm’s acknowledgment that its earlier analysis was overly optimistic adds to a chorus of concern about the cost of the new systems and the haste with which they have been adopted.
benton.org/node/143172 | New York Times
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POLICYMAKERS

OBAMA’S NEXT CHIEF OF STAFF
[SOURCE: New York Times, AUTHOR: Jackie Calmes]
Having nominated White House Chief of Staff Jacob Lew to move next door to the Treasury Department, President Barack Obama for the fifth time must choose the aide who will be the Oval Office gatekeeper for every problem and person, domestic and foreign, that come before the President, and who is often the last to speak to President Obama before he makes a decision. The title of White House chief of staff hardly conveys the reach of the officeholder; responsibility extends far beyond the White House, throughout the departments and agencies of the executive branch and to relations with Congress. “It is the first person and the last person the president talks to, outside the vice president,” said Rahm Emanuel, Obama’s first and at 20 months his longest-serving chief of staff, and now the mayor of Chicago. “And it is both a chief — meaning top dog — but it is also staff.” “I would argue that they are the second-most-powerful person really in the free world, behind the president and occasionally a vice president like Dick Cheney,” said David B. Cohen, a political scientist at the University of Akron who is writing a book on White House chiefs of staff. “It is the most powerful unelected position. Chiefs of staff are responsible for everything — I mean everything — that comes into the White House.” For some weeks, associates say, President Obama has been considering just two other men to succeed Mr. Lew: Denis R. McDonough, the current deputy national security adviser in the White House, and Ronald A. Klain, former chief of staff to Vice President Joseph R. Biden Jr., and before that to Al Gore.
benton.org/node/143164 | New York Times
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STORIES FROM ABROAD

BRUSSELS TAKES TOUGH STANCE ON GOOGLE
[SOURCE: Financial Times, AUTHOR: Alex Barker, Richard Waters]
Google will be forced to change the way it presents search results in Europe or face antitrust charges for “diverting traffic” to its own services, the European Union’s competition chief has said, laying out a sharply different approach from his US counterparts. In contrast to the Federal Trade Commission, which has given the all-clear to Google’s search engine, Joaquín Almunia vowed to prevent Google distorting choices for consumers and taking business from rivals. “We are still investigating, but my conviction is [Google] are diverting traffic,” Commissioner Almunia said, referring to Google’s preferential treatment of its own vertical search services. “They are monetizing this kind of business, the strong position they have in the general search market and this is not only a dominant position, I think – I fear – there is an abuse of this dominant position,” Europe’s antitrust enforcer said. His words mark a direct ultimatum to Google as talks on a pre-charge settlement enter a critical phase. They offer the most detailed public explanation of Brussels’ concerns and hint at the likely shape of any deal, which would mark the first time Google has bowed to regulatory pressure on its core business.
benton.org/node/143141 | Financial Times | Wall Street Journal
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CHINESE NEWSPAPER PROTESTS END
[SOURCE: New York Times, AUTHOR: Edward Wong, Chris Buckley]
The demonstrations have died down, and the reporters and editors are back to work at China’s most prominent weekly newspaper. Its latest issue was published more or less on schedule. But the paper, Southern Weekend, is sure to remain a crucial battleground over Communist Party censorship. Southern Weekend has been a weather vane for restrictions on news organizations in China since its founding 29 years ago, and its journalists say their frustration with those constraints has been building for years, turning their relationship with provincial party officials into something of a cat-and-mouse battle. The restrictions have tightened since last summer, leading to the protests that erupted at Southern Weekend’s offices last week over a rewritten New Year’s editorial, one of the sharpest outbreaks of friction so far. The newspaper appeared on newsstands on Jan 10, after protesting journalists accepted a compromise in which provincial propaganda officials promised to loosen some of the more intrusive censorship controls. The police in Guangzhou, the capital of Guangdong Province, moved to quell any new demonstrations at the offices of the Nanfang Media Group, which owns the paper.
benton.org/node/143163 | New York Times
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UK EDITORS RESIST PRESS REGULATION
[SOURCE: Financial Times, AUTHOR: Robert Budden]
The latest UK government proposals for regulation of the press have met with resistance from newspaper editors who fear Cabinet Office minister Oliver Letwin’s plan could pave the way for state intervention in the press. Editors are pushing ahead with their own proposal – a charitable trust to rubber stamp a new press watchdog. Unlike Letwin’s plan for a Royal Charter, a trust would not need to be backed by statute, a crucial sticking point for many newspapers. “There is a sense that what Letwin is starting to kick around could be worse than statute,” said one newspaper executive who attended a meeting of editors and executives held in central London. Letwin has been taking the lead on behalf of the government to thrash out proposals for future regulation of the press as Labour MPs pledge to enact in full the recommendations put forward last month by Lord Justice Leveson. But pressure is mounting on the government amid fears that Labour and the Liberal Democrats could join forces in a Commons vote later this month to adopt Labour’s draft bill, which backs statutory underpinning.
benton.org/node/143158 | Financial Times
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Film, TV and cable sector lobbyists met with Vice President Joe Biden to discuss efforts to curb gun violence, but it was unclear what more Washington could do to force the entertainment industry to temper the blood and guts.

The 2 ½-hour meeting included presentations from companies and trade associations about how they already self-regulate or provide parents the tools to protect children from violent or racy content — such as voluntary ratings systems for movies and TV shows. “The entertainment community appreciates being included in the dialogue around the Administration’s efforts to confront the complex challenge of gun violence in America,” the attendees said in a joint statement. “This industry has a longstanding commitment to provide parents the tools necessary to make the right viewing decisions for their families. We welcome the opportunity to share that history and look forward to doing our part to seek meaningful solutions.” Signing on to the statement were representatives of the Directors Guild of America, Independent Film & Television Alliance, Motion Picture Association of America, National Association of Broadcasters, National Association of Theatre Owners, and National Cable & Telecommunications Association.


Hollywood's take on White House gun summit Film, TV groups 'look forward' to seeking gun violence solutions (The Hill) VP Biden meets with biz reps, seeks ideas on gun violence (Variety) Movie, TV reps headed to White House to talk guns with Biden (Politico)
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The conversion to electronic health records has failed so far to produce the hoped-for savings in health care costs and has had mixed results, at best, in improving efficiency and patient care, according to a new analysis by the influential RAND Corporation.

Optimistic predictions by RAND in 2005 helped drive explosive growth in the electronic records industry and encouraged the federal government to give billions of dollars in financial incentives to hospitals and doctors that put the systems in place. Officials at RAND said their new analysis did not try to put a dollar figure on how much electronic record-keeping had helped or hurt efforts to reduce costs. But the firm’s acknowledgment that its earlier analysis was overly optimistic adds to a chorus of concern about the cost of the new systems and the haste with which they have been adopted.


In 2nd Look, Few Savings From Digital Health Records
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The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices or unfair methods of competition. The attached Analysis of Proposed Consent Order to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent order -- embodied in the consent agreement -- that would settle these allegations. Comments must be received on or before February 4, 2013.


Motorola Mobility and Google; Analysis of Proposed Consent Order to Aid Public Comment
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[Commentary] As the Federal Communications Commission moves ahead with plans for its spectrum auction, many details of what happens after it’s completed remain to be sorted out, none more important than how to coordinate new frequencies for stations along the Canadian and Mexican borders. With comments due later this month and replies due in March, TV broadcasters, their viewers, communities and others need to provide the FCC with opinions, information and proposed solutions to potential problems.


Border Issues Key Among Auction Concerns
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Amazon caused a stir when it announced a two-for-one policy that will give a free digital album to anyone who buys a CD. The policy applies to past purchases — even if you bought the CD 10 years ago — which touched off a flurry of speculation that Amazon might do the same for books. In this perfect world, Amazon would add free Kindle copies for every book people have ordered through the website, giving loyal customers a digital version of their home library. Alas, the chance of this happening is about as good as 50 Shades of Grey winning the Pulitzer prize.

  • First, Amazon has sold far more books than it has CD’s, meaning the cost of providing matching digital versions is likely prohibitive.
  • And second, Amazon doesn’t have a big strategic incentive to do so. Unlike music, where it lags behind Apple and Google, the company is already dominant in digital book retailing and doesn’t need to fight for market share. While the company will do anything it can do to preserve its advantage in books, the more pressing task for Amazon is to keep muscling in on cloud-based music and entertainment services.

Don’t hold your breath waiting for Amazon to give you Kindle copies of your books