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CLEAR CHANNEL GIVES TATE TALKING POINTS AGAINST XM-SIRIUS MERGER
[SOURCE: Center for Public Integrity, AUTHOR: Brendan McGarry and Ben Welsh]
Federal Communications Commissioner Deborah Tate has received talking points against the proposed satellite radio XM-Sirius merger from Clear Channel Radio, one of the country's biggest radio broadcasters and an ardent opponent of the deal. Clear Channel Vice President Thomas English gave Tate three possible responses – each written in the first-person – in an attempt to help the commissioner reconcile her previous statements in favor of relaxing media ownership limits with the broadcasters' position against the satellite radio merger. "The responses below were composed by our Government Affairs folks so they might be a little skewed toward our specific goals (imagine that) but I hope you find them helpful," English wrote Tate in an enclosure to an ex parte notice dated April 12 and posted electronically Friday morning. By law, anyone who wishes to communicate with the FCC in a formal proceeding must file what is called an ex parte presentation, which documents outside parties' communication with the agency. In his letter to Tate, English poses the question: "How do you reconcile your past recognition of all the entertainment options like iPods, Internet radio, satellite radio, etc. available to consumers as one of the reasons for relaxing local radio ownership rules with your present concerns with a merger of XM and Sirius being a monopoly?" Then, like a speechwriter, he writes three answers in paragraph form in the first-person: "My position opposing the XM-Sirius merger and supporting a significant relaxation of local radio ownership rules is completely consistent with my primary guiding principal: avoid government action that seriously distorts the marketplace," states the opening line of the first answer. The second answer begins, "My main concern is how can free radio survive when a combined XM-Sirius would control more spectrum in every market in the country than the entire AM/FM band combined?" Spectrum refers to the radio frequencies held by a satellite radio company, or a broadcaster or cellular carrier. The third answer reads, "It is really quite simple -- I consistently oppose a regulatory system that would disadvantage free, terrestrial broadcasting -- the only platform that is free to listeners and operates in the public interest."
http://www.publicintegrity.org/telecom/telecomwatch.aspx?eid=2816

TIME WARNER TO EXPLORE REDUCING CABLE STAKE
[SOURCE: Wall Street Journal, AUTHOR: Matthew Karnitschnig matthew.karnitschnig@wsj.com]
Inside Time Warner, senior executives are considering what was once unthinkable: whether the world's biggest media company should substantially reduce its cable-TV holdings over time. Cable has been a core part of the company and its precursors for decades and is now the biggest contributor to profits. But the long-term future of cable, as the Internet emerges as a viable venue for watching TV, is murky. Some within Time Warner wonder whether the company wouldn't be better off if it were to get out of cable and double down on the Web -- where it already owns AOL -- by buying another major Internet company, just as News Corp. acquired MySpace and Google Inc. bought YouTube. To be sure, a complete exit is the least likely course to be adopted, people involved in the debate say. More likely is that Time Warner will decide to gradually reduce its 84% stake in Time Warner Cable Inc., possibly through acquisitions, while still maintaining a significant interest. Getting rid of a big chunk of its cable holdings would transform the nature of Time Warner, making it more reliant on its role as a provider of filmed entertainment and print and Web content.
http://online.wsj.com/article/SB117677751918872216.html?mod=todays_us_ma...
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WEBCASTERS ARE DENIED REHEARING ON ROYALTIES
[SOURCE: Associated Press]
Internet radio broadcasters were dealt a setback Monday when a panel of copyright judges threw out requests to reconsider a ruling that hiked the royalties they must pay to record companies and artists. A broad group of public and private broadcasters, including radio stations, small start-up companies, National Public Radio and major online sites like Yahoo Inc. and Time Warner's AOL, had objected to the new royalties set March 2, saying they would force a drastic cutback in services that are now enjoyed by 50 million people. In the latest ruling, the Copyright Royalty Board judges denied all motions for a rehearing and also declined to postpone a May 15 deadline by which the new royalties will have to be collected. However, they did grant leniency on one point, allowing the webcasters to calculate fees by average listening hours, as they had been, as opposed to the new system of charging a royalty each time every song is heard by an online listener. That exemption counts for last year and this year. After that, the new per-song, per-listener fee structure goes into effect.
http://www.latimes.com/business/printedition/la-fi-radio17apr17,1,534978...
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FOR TELECOM FIRMS, WIRELESS STRENGTH TO OFFSET LINE LOSSES
[SOURCE: Wall Street Journal, AUTHOR: Roger Cheng roger.cheng@dowjones.com]
Wireless strength and the strategy of bundling multiple services together helped U.S. telecommunications-service providers moderate the erosion of their customer base in the first quarter. The industry's core business -- fixed telephone service -- continues to erode as consumers cancel their lines in favor of cellphones or cheaper Web-based service. For the two biggest players -- AT&T and Verizon -- the loss is partially offset by their control of the top two wireless carriers. The remaining Baby Bell, Qwest, lacks a wireless arm, but has become partners with Sprint Nextel to offer the service in its bundle. Qwest looks to continue its momentum after last year posting its first full year of profitability since 2003. Further pressuring the phone companies are the cable providers, which offer Internet-phone service bundled with their television and high-speed Internet offerings. While the losses have moderated in the past few quarters, they may get worse throughout the year.
http://online.wsj.com/article/SB117677668374072200.html?mod=todays_us_ma...
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