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It is the police procedural that has network executives scratching their heads this season: The Case of the Disappearing Viewers. Across the television landscape, network and cable, public television and pay cable, English-language and Spanish, viewing for all sorts of prime-time programming is down this spring — chiefly among the most important audience for the business, younger adults.

In the four television weeks starting March 19, NBC lost an average of 59,000 viewers (about 3 percent) in that 18-to-49 age category compared with the same period last year, CBS lost 239,000 (8 percent), ABC lost 681,000 (21 percent) and Fox lost 709,000 (20 percent). The losses could not have come at a worse time for the networks, which are about to enter the television upfronts, the traditional season when advertising dollars are committed for the fall season. Though there seems to be no one reason for the decline, many executives say they are concerned that long-term changes in watching habits are taking a significant toll on viewership. The broadest explanation is the time of year. Each spring, viewership tends to decline because of factors like daylight saving time, which hurts the 8 p.m. shows especially because outdoor light discourages indoor viewing. And many television research executives said “nice weather” this spring may be encouraging people to spend more time outdoors.


Prime-Time Ratings Bring Speculation of a Shift in Habits
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The robots are watching us.

They’re announcing to the world that we just looked at Eames chairs on Pinterest and that we’ve listened to Taylor Swift and Conway Twitty on Spotify. They’re sending us ads labeled “Being Conservative in South Carolina” simply because we checked our e-mail in Charleston. They’re broadcasting the fact that we just read an article called “How to Satisfy Your Partner in Bed.” They’re trumpeting — with an undue amount of enthusiasm — that we just scored 6 points on Words With Friends for making the word “cat.” When Facebook bought Instagram, the social photo app for iPhone and Android devices, on April 9, a chorus of concern emanated from the Twittersphere: Facebook would have access to Instagram users’ uploaded photos. Would that photo of Aunt Letty in her bathing suit suddenly show up in an ad for embolism stockings? Granted, some of these invasions of privacy are the result of our not having correctly wrangled an app’s privacy control settings. But when did privacy become a choice rather than a given? And why does slogging through a new app’s voluminous terms of service or figuring out how to activate a site’s privacy control settings sometimes feel as if it requires a graduate degree in tiny print? Yes, the Obama administration has rallied for a privacy bill of rights that would give consumers more control over the online data that is collected about them, and many people in the tech industries support a do-not-track mechanism that would let users opt out of having some, but not all, companies keep data about our online activities. But the slightly creepy, Big Brother-like invasions of our privacy continue apace. You can’t sunbathe nude in this backyard without constantly looking over your shoulder.


Watching Every Click You Make
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[Commentary] 'I don't think you understand. We can't treat newspapers or magazines any differently than we treat FarmVille." With those words, senior Apple executive Eddy Cue stuck to his take-it-or-leave-it business model of a 30% revenue share payable for transactions through the iTunes service. Despite my arguments to Cue in Apple's offices last year on behalf of news publishers seeking different terms, to him there was no difference between a newspaper and an online game. It was a sobering reminder that traditional media brands have no preferred place in the new digital world. It also should be the defense's Exhibit A in the Justice Department's antitrust case against Apple and book publishers: The 30% revenue-share model is Apple's standard practice, not, as alleged by the government, the product of a conspiracy. Whether it's news, games, apps or books, Apple's position is the same. The market determines the price, and Apple gets 30%.


Justice Department Bites Apple
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[Commentary] The United States is vulnerable to cyberattacks by unfriendly nations and nonstate actors. Attacks through the Internet are now stealing billions of dollars of intellectual property from American businesses. Internet attacks can also bring down such critical infrastructure as the electricity supply, the air-traffic system and the stock market. Congress can and should act to protect us from this widespread and increasing danger.

While ordinary manufacturing and service companies that are not part of the critical infrastructure should decide for themselves how much they want to spend to protect their computer systems, we all have a stake in protecting the critical infrastructure. A failure of the electric grid or the stock market computers or the railroads would hurt us all. The infrastructure companies should be required to meet a high standard of protection and to cooperate with government agencies in preventing incoming malware. But the cost of doing that should be born by the country as a whole, just as we pay for the military or other public goods like the weather service. If necessary, funds should be diverted to cyberdefense from other areas of the military budget. Protecting the nation from cyberattacks that steal technology and that can disrupt our daily lives should be at the top of the government's agenda.


Everyone Should Pay for Cyber Defense
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The Justice Department has come under criticism since filing an antitrust lawsuit against Apple and five publishers, accusing them of colluding to fix e-book prices. But many experts say that under antitrust law, the department didn't have much choice. And even if it did, antitrust experts say, it is far from clear that doing nothing would have been wise.

So did the Antitrust Division get the law backward? Antitrust scholars say no and that some of the criticism is based on basic misperceptions of the law. US antitrust law doesn't seek to protect little companies against big ones, or even struggling ones against successful ones. Companies can grow as large as they want, as long as they do it through lower prices, better service or niftier innovations. Companies can even become monopolies, as long as they don't get there illegally or try to extend their power by unlawfully stifling competition. Companies under pressure from a more successful rival can't band together to protect themselves, whatever their size. "Price fixing is kind of the first-degree murder of antitrust violations," says Herbert Hovenkamp, law professor at the University of Iowa. "They don't have discretion to just walk away from what appears to be a strong set of facts that, if true, are one of the most central of antitrust violations."


Critics of E-Books Lawsuit Miss the Mark, Experts Say

Though television may be losing viewers to online video, it has been holding on to advertisers. But with online-video outlets this week making their most organized push yet for ad dollars, that may be starting to change.

Early expectations are that TV networks will win an increase in total ad commitments for the fall season in the coming weeks of negotiations with advertisers known as the upfront. Yet, some big marketers, including General Motors Co. and Samsung Electronic Co.'s mobile arm, say they are planning to shift some of their TV budgets to the Web. "Online-video sites are becoming a legitimate alternative to cable and network TV options for reaching consumers," said Craig Atkinson, chief digital officer of PHD, a media-buying unit of Omnicom Group Inc. Even so, TV is expected to attract a little more money from advertisers than last year.


Online Video Turns Up Heat
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Carriers may be mad as hell at Apple, but they're going to keep taking it.

Verizon finance chief Francis Shammo took a shot at the iPhone-maker last week, saying the telecom carrier wants to promote Microsoft's Windows Phone platform as a third mobile ecosystem alongside Apple's iOS and Google's Android. He also said Verizon would cut more costs to offset the burden of subsidies from selling smartphones. Apple sells a standard iPhone to carriers for around $600, but consumers pay only $200 when they sign a two-year contract. The difference is the carrier subsidy. One option for carriers is to push other devices in stores. An Android device from Samsung, say, or the new Nokia Lumia running Windows, is more profitable for them than selling an iPhone. But don't expect the carriers to hurt Apple's lucrative mobile-phone franchise any time soon. That is because consumers still want iPhones. The best way for carriers to reduce iPhone sales would be to make them noticeably pricier than rival devices. But Apple's device is so popular that the company has significant power to set the price at which carriers sell the phone.


Carrier Trade Is Still In Apple's Favor
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A US-based Web site that has aggressively covered China’s biggest political scandal in decades was the victim of a disruptive attack that was accompanied by threats to the service that registers its domain name, the site’s manager said.

The site was rendered inaccessible for much of April 19, depriving readers of coverage of the latest developments in the downfall of Chinese Communist Party official Bo Xilai, said Watson Meng, 47, who runs the Chinese-language site from Durham (NC). Chinese viewers are able to gain access through proxy servers that get them around China’s Internet firewall, which the government uses to block certain content. Meng said he believes some element of the government ordered the disruption, but said he has no forensic proof. The site, Boxun, has been targeted previously while publishing material considered sensitive by the Chinese government.


US Web site covering China scandal disrupted by cyberattack
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A new service that grades how each of Facebook's top third-party apps respects consumers' privacy was released y by research firm PrivacyChoice. The free tool, Privacyscore for Facebook, spells out privacy policies and tracking practices of more than 200 top Facebook apps, including games, work-related programs and sharing apps.


Facebook apps rated on privacy protection
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The phenomenal performance of a single superstar overshadowed an otherwise mixed year for Silicon Valley's 150 biggest companies in 2011, as Apple surged past Hewlett-Packard to become the valley's dominant financial powerhouse.

Apple's ascendance in the SV150 marked a sea change for the Silicon Valley tech industry: The company's popular iPhones and iPads are revolutionizing the way consumers and workers share information around the world, prompting analysts at Barclays Capital to call Apple "the most disruptive force in tech." With nearly $128 billion in annual sales, Apple became the valley's biggest company by revenue for the first time in 2011. That distinction was previously held by HP in every year since this newspaper began ranking local companies in 1986. Apple also ranked first for net income, racking up a mind-boggling profit of nearly $33 billion. Essentially, Apple accounted for $1 of every $5 in sales reported by the SV150 as a whole, and nearly $1 of every $3 in combined SV150 profit. And as its stock price blew past $600 a share in March, Apple ended last month with a market capitalization of $558 billion. That was nearly a third of the market cap for the combined SV150. And although its stock dipped slightly this month, it is still the most valuable company in the world.


Apple's big year outshines mixed result for Silicon Valley