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Three months after Big Machine, the record company behind Taylor Swift, signed a historic deal with Clear Channel Communications establishing, for the first time, a royalty for labels and recording artists when their songs are played on the radio, the company has signed a similar deal with another broadcaster, Entercom Communications, which operates more than 100 stations in 23 markets in the United States. The label gave few details about the agreement, but as with the Clear Channel deal it will involve Entercom’s paying the label a royalty derived from its advertising revenues when it plays Big Machine acts on the air; in exchange, Big Machine will be paid a lower royalty for online streams than the fees that govern most Internet and satellite radio, which are set by federal statute.


Big Machine, Taylor Swift’s Record Label Continues Its Online-Offline Royalties Experiment
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A state superior court judge refused to force YouTube to remove a 14-minute video that has incited deadly violence in the Muslim world, rejecting a request by an actress who claims she was tricked into participating in the film.

Cindy Lee Garcia of Bakersfield (CA) filed a lawsuit, claiming fraud and slander, against Nakoula Basseley Nakoula, the producer of “Innocence of Muslims,” an anti-Muslim video that last week prompted protests and killings at United States Embassies in the Middle East. The suit, citing death threats to Garcia, sought an injunction against YouTube’s continued distribution of the video, which parodies the Prophet Muhammad. Judge Luis A. Lavin of Los Angeles County Superior Court declined to take action against YouTube, citing technical grounds and a federal law that protects third parties from liability for content they disperse. YouTube blocked the video in a handful of countries on its own volition after the violence broke out but has declined to remove it altogether after determining that its content — while incendiary — does not violate the company’s terms of service regarding hate speech.


Judge Rejects Request by Actress That YouTube Remove Anti-Muslim Video
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The New York Times is drawing “a clear line” against the practice of news sources being allowed to approve quotations in stories after the fact. The practice, known as quote approval, “puts so much control over the content of journalism in the wrong place,” the executive editor Jill Abramson said. “We need a tighter policy.”

A memorandum says that “demands for after-the-fact quote approval by sources and their press aides have gone too far.” “The practice risks giving readers a mistaken impression that we are ceding too much control over a story to our sources,” it says. “In its most extreme form, it invites meddling by press aides and others that goes far beyond the traditional negotiations between reporter and source over the terms of an interview.” It includes this firm directive: “So starting now, we want to draw a clear line on this. Citing Times policy, reporters should say no if a source demands, as a condition of an interview, that quotes be submitted afterward to the source or a press aide to review, approve or edit.” Abramson said that she never wants to put obstacles to news-gathering in front of reporters but that “anodyne or generic quotes that are scrubbed or changed don’t add anything” to stories.


In New Policy, The Times Forbids After-the-Fact ‘Quote Approval’

Big cable companies have gotten bigger in recent years by buying smaller operators, but don’t expect the trend to continue, cable executives said. “We frankly would rather buy back stock” rather than buy smaller players said Comcast CFO Michael Angelakis.


Comcast CFO Says Big Cable Deals Thing of the Past
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Under rising pressure from Wall Street to show it can make money, Facebook will soon begin charging businesses to target users with special offers and deals. Facebook Offers is a program that lets businesses target their Facebook fans with deals. It launched earlier this year as a free service. But in coming weeks, Facebook will begin requiring businesses to create an ad to promote their special deal to fans and friends of fans in their News Feeds. The total cost of the paid ad will depend on how large a fan base the business has.


Facebook to begin charging businesses to target users with offers
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A proposal to require campaigns in California to report when they pay bloggers for favorable mention will be scaled back to exclude instances when campaign workers informally blog or tweet their own views on the side, the head of the state ethics agency says. Ann Ravel, chairwoman of the state Fair Political Practices Commission, said she was responding to criticism at a public hearing as well as in the blogosphere that her original proposal was too broad. The proposal has united bloggers of different ideological bents who see the regulation as unenforceable and a violation of the right to free speech.


Cal State ethics czar to scale back proposed disclosure rules on blogs

James Murdoch is being lined up to take direct responsibility for News Corp’s US television businesses, even as his record in the UK was attacked by media regulator Ofcom. The Financial Times has learned that News Corp is preparing to expand Murdoch’s role to include responsibility of the Fox Networks Group. Under the role being discussed between News Corp and Murdoch, Peter Rice, the Los Angeles-based head of News Corp’s Fox Networks Group, will report directly to Murdoch, currently the deputy chief operating officer at the company. Fox Networks includes the national Fox network, as well as cable channels such as FX and National Geographic. It does not include News Corp’s Fox News Channel.


James Murdoch eyes expanded US role
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Lawyers for News Corp investors asked a U.S. judge to force the media company's board to face a lawsuit over a phone hacking scandal, while a defense lawyer said board members should be protected from second-guessing by shareholders.

News Corp shareholders argue that Chief Executive Rupert Murdoch and the board of directors, including two of his sons, should be held responsible for damage from the scandal. In their lawsuit, the investors say the board refused to investigate the hacking allegations because the directors sought to protect Murdoch's interests. The investor lawsuit was filed in Delaware's Court of Chancery, the forum for many U.S. shareholder legal disputes. The board of News Corp, which owns the Wall Street Journal as well as the Fox TV and studio business, wants an early dismissal of the case before the defendants are required to provide evidence to shareholders.


News Corp investors press to keep hacking lawsuit alive
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The Federal Energy Regulatory Commission (FERC) established a division to mitigate cyber threats on the electric grid, but noted it still lacks many of the enforcement capabilities it needs from Congress. The office will let FERC set best practices and communicate with private-sector firms about cyber vulnerabilities through “existing statutory authority,” the regulator said. Joseph McClelland will leave his post as director of electric reliability to head the new division. While FERC Chairman Jon Wellinghoff said forming the new Office of Energy Infrastructure Security is unrelated to developments on Capitol Hill and in the White House, he has consistently lobbied Congress to give a federal agency more enforcement and monitoring power on the electric grid.


Electric grid regulator creates cybersecurity office
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Broadcasters celebrated the ceremonial launch of mobile digital television at a Capitol Hill kick-off event complete with legislators praising broadcasters newly-minted mobility and pointing out that mobile DTV could be a way for wireless customers to avoid data caps by viewing video over mobile broadcast rather than using their wireless data plans. There was actually no official launch -- mobile DTV is already up and running on 130 stations in 50 markets, with more coming online in the fall - but was instead a way to let Capitol Hill know, before Congress exits at the end of this week that there was a mobile video service up and running that provided news, sports, entertainment and life-saving info without straining data plans or pocketbooks.


House Members: Mobile DTV Could Be Data Cap Video Solution