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NEWS FROM THE FCC
Four Groups Settle Radio Payola Investigation
FCC Releases Cable-Franchise Order
FCC chairman: Balance is key

KIDS & MEDIA
FCC Reality Check
Rockefeller Pledges To Reintroduce Violence Bill
R-rated movies lure white teens into smoking: study

TELEVISION/RADIO
Dueling for Dollars
Public Telecommunications Facilities Program

MEDIA OWNERSHIP
Tribune foundation catches AG's eye
Forget XM/Sirius; give satellite radio to the listeners
Copyright must be respected as culture goes online

TEN YEARS AGO...
Stand-Up Synergy

QUICKLY -- Scarcity of Ads Endangers Newspapers'=20
Book Sections; More reporters embrace an advocacy=20
role; San Francisco Bay Area is Well Connected;=20
China bans new Internet cafes for a year

NEWS FROM THE FCC

FOUR GROUPS SETTLE RADIO PAYOLA INVESTIGATION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC is close to a deal with four major radio=20
station group owners to resolve a portion of the=20
commission's radio payola investigation. The=20
agreement would, in part, settle the=20
investigation that stemmed from a number of=20
consent decrees between record companies and New=20
York State over various pay-for-play radio=20
schemes. According to an FCC source, Clear=20
Channel, CBS, Intercom and Citadel have agreed=20
to pay a combined $12.5 million In a side=20
agreement, they agreed to provide air time to=20
independent artists represented by the American=20
Association of Independent Music (A2IM).
http://www.broadcastingcable.com/article/CA6421668.html?display=3DBreaki...
News
* Broadcasters Agree to Fine Over Payoffs
http://www.nytimes.com/2007/03/06/business/media/06payola.html
* Radio Makes Way for Independent Music
http://online.wsj.com/article/SB117311362456527148.html?mod=3Dtodays_us_...
ketplace
* Big Radio Settles Payola Charges
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/05/AR200703...
1286.html
* Payola pact could boost airplay for indie music
http://www.latimes.com/business/printedition/la-fi-payola6mar06,1,412111...
tory?coll=3Dla-headlines-pe-business
* Radio bigs=92 =91payola=92 punishment may help local music make waves
http://news.bostonherald.com/localRegional/view.bg?articleid=3D186603

FCC RELEASES CABLE-FRANCHISE ORDER
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Let the litigation begin! The Federal=20
Communications Commission Monday released a=20
previously adopted order that gives local=20
governments 90 days to reject or approve=20
cable-service licenses sought by phone companies=20
that already have facilities in city-controlled=20
rights of way. The FCC=92s decision to impose a=20
deadline was designed to provide a measure of=20
certainty to AT&T and Verizon Communications as=20
the two largest phone companies put billions of=20
investment dollars at risk in an effort to break=20
into local video markets. Local governments are=20
expected to appeal, claiming that the FCC lacks=20
legal authority to impose time constraints on=20
franchising authorities. The cable industry=20
hasn't committed to go to court. The FCC adopted=20
the rules in late December but needed 75 days to=20
finish and release a 68-page order that attempts=20
to justify its conclusion that in many instances,=20
franchise negotiations are taking too long and=20
frustrating competition.=20
http://www.multichannel.com/article/CA6421729.html?display=3DBreaking+News
* Cities Challenge FCC on Cable Franchise Order
http://www.tvweek.com/news.cms?newsId=3D11650
(requires free registration)
* FCC Order: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-180A1=
.doc
* FCC Eases Video Entry For Telecom Companies
"The sum total here is an arrogant case of=20
federal power riding roughshod over local=20
governments," said Commissioner Jonathan Adelstein.
http://online.wsj.com/article/SB117312789384027421.html?mod=3Dtodays_us_...
ketplace

FCC CHAIRMAN: BALANCE IS KEY
[SOURCE: The Daily Tar Heel, AUTHOR: Julia Vail]
As chairman of the Federal Communications=20
Commission, Kevin Martin said he works to find a=20
happy medium between government regulation and=20
free competition in the media marketplace. "A=20
robust competitive marketplace is the best=20
regulator and protector of public interest," he=20
said in a speech at the University of North=20
Carolina's new Center for Media Law and Policy.=20
"But that doesn't mean that government doesn't=20
have an important role to play. It sets up a=20
regulatory environment that promotes investment and competition."
http://media.www.dailytarheel.com/media/storage/paper885/news/2007/03/06...
iversity/Fcc-Chairman.Balance.Is.Key-2759031.shtml

KIDS & MEDIA

FCC REALITY CHECK
[SOURCE: Miami Herald 3/2, AUTHOR: Editorial staff]
[Commentary] The Federal Communications=20
Commission had good intentions in levying a $24=20
million fine against Univision for not complying=20
with a federal rule mandating children's=20
programming on broadcast-television networks.=20
Unfortunately, that rule is outdated, and=20
Congress should drop it. Today, 90 percent of=20
U.S. households get cable or satellite service,=20
which now offer children's educational shows on=20
specialized channels such as Disney and=20
Nickelodeon and, in Spanish, Discovery Kids En=20
Espa=F1ol and Sorpresa. It is a shame that=20
broadcast networks are saddled with such costs=20
when they now compete directly with cable=20
networks. It is refreshing to see the FCC pay=20
attention to a Spanish-language broadcaster. But=20
forcing a network to abide by an outdated rule=20
isn't the answer. Congress and the FCC both=20
should drop the children-programming rule and up=20
date broadcasting requirements to meet the current television-market realit=
y.
http://www.miamiherald.com/454/story/28716.html
* Record FCC fine raises broadcasting questions
[Commentary] Given the questionable content of=20
plenty of other allegedly educational=20
programming, the FCC's decision to target the=20
largest Spanish-language broadcaster in the=20
United States -- and in such a large way -- is a=20
bit curious. The next largest broadcast penalty=20
is a paltry $3.6 million proposed indecency fine=20
against CBS for an episode of the crime drama=20
"Without a Trace." FCC programming standards=20
should be the same in any language.
http://www.mysanantonio.com/opinion/editorials/stories/MYSA030507.01O.te...
ovela2ed0305.26a1e72.html

ROCKEFELLER PLEDGES TO REINTRODUCE VIOLENCE BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Responding to comments FCC Commissioner Robert=20
McDowell made last week to the National=20
Association of Broadcasters in which he suggested=20
technology and marketplace forces were a better=20
governor on violent content than a government=20
attempt to come up with a definition of=20
inappropriate and violent content, Senator Jay=20
Rockefeller (D-WV) Monday reiterated his pledge=20
to give the FCC the authority to regulate violent=20
content on television and expand its authority=20
over the content on cable and satellite. Saying=20
TV violence had reached "dangerous" proportions=20
and that Commissioner McDowell's approach was=20
shortsighted, Sen Rockefeller said=20
self-regulation by the industry hadn't worked.=20
=93The broadcasters have already tried and failed=20
in their attempts at self-regulation. The bottom=20
line is, if they can't or won't do it, then the=20
federal government must step up to the plate.=94
http://www.broadcastingcable.com/article/CA6421605.html?display=3DBreaki...
News
* Rockefeller Wants FCC to Regulate TV Violence
http://www.tvweek.com/news.cms?newsId=3D11651
(requires free registration)
* McDowell Says He Does Not Oppose Violence Regs
In response to Sen Rockefeller's statement above,=20
FCC Commissioner Robert McDowell said Monday that=20
he was not opposed to a legislative effort to=20
give the FCC authority to regulate violence, but=20
that if Congress did chose to do so, it should be cautious and constitution=
al.
http://www.broadcastingcable.com/article/CA6421670.html?display=3DBreaki...
News

R-RATED MOVIES LURE WHITE TEENS INTO SMOKING: STUDY
[SOURCE: Reuters]
White U.S. teenagers who watch a lot of R-rated=20
movies or have unsupervised access to TV shows=20
appear more likely than similar black youths to=20
start smoking cigarettes, a study found on=20
Monday. Researchers found that white adolescents=20
with the most exposure to R-rated movies were=20
nearly seven times more likely to have started=20
smoking compared to those with less exposure.=20
Even after taking into account such things as=20
having a friend who smoked, lack of parental=20
guidance or doing poorly in school, those who=20
watched more R-rated movies were still three=20
times more likely to start smoking, the study found.
http://today.reuters.com/news/newsArticle.aspx?type=3DfilmNews&storyID=3...
07-03-05T215546Z_01_N05278482_RTRIDST_0_FILM-SMOKING-MOVIES-DC.XML
* White teens take smoking cues from the movies
http://www.latimes.com/news/printedition/asection/la-sci-smoking6mar06,1...
79426.story?coll=3Dla-news-a_section

TELEVISION/RADIO

DUELING FOR DOLLARS
[SOURCE: Multichannel News, AUTHOR: Linda Moss and Mike Farrell]
A long look at the retransmission consent debate.=20
Broadcasters are seeking cash for carriage of=20
their signals. That demand has added a new=20
tension and dynamic to negotiations between=20
TV-station owners and cable companies, who are=20
quarreling over payment for both analog and HDTV=20
signals. With the stakes raised, broadcasters and=20
cable companies each have an evolved arsenal of=20
weapons they can now wield in these disputes.
http://www.multichannel.com/article/CA6421302.html
* CBS=92 Moonves Still Talking Retrans Cash
http://www.multichannel.com/article/CA6421636.html?display=3DBreaking+News

PUBLIC TELECOMMUNICATIONS FACILITIES PROGRAM
[SOURCE: National Telecommunications and Information Administration]
PTFP is a competitive grant program to help=20
public broadcasting stations, state and local=20
governments, Indian tribes and nonprofit=20
organizations construct facilities to bring=20
educational and cultural programs to the American=20
public using broadcasting and non-broadcasting=20
technologies. Applications for a new round of grants are due April 6, 2007.
http://www.ntia.doc.gov/ptfp/attachments/whatsnew.htm

MEDIA OWNERSHIP

TRIBUNE FOUNDATION CATCHES AG'S EYE
[SOURCE: Crain's Chicago Business, AUTHOR: Steven R. Strahler]
Illinois Attorney General Lisa Madigan has taken=20
an interest in the Robert R. McCormick Tribune=20
Foundation's vulnerability to underperforming=20
Tribune Co. stock and possible role in a=20
management-led restructuring of the media=20
company. Representatives of the attorney general=20
met with foundation officials in January to=20
discuss the concentration of foundation assets in=20
company stock. Now, as Chicago-based Tribune=20
weighs a restructuring plan that could increase=20
the foundation's exposure to company fortunes,=20
the attorney general's office says it will=20
closely watch the situation. The attorney general=20
enforces laws governing Illinois charities and=20
can sue to block transactions she deems harmful=20
to charitable beneficiaries. No such action has=20
been initiated with regard to the foundation.=20
According to its latest state regulatory filing,=20
the foundation's portfolio at the end of 2005 was=20
almost exclusively devoted to Tribune shares --=20
as it has been for more than half a century since=20
the foundation was formed out of Col. McCormick's=20
estate. That portion was shaved to 75% last=20
summer when the foundation sold shares into a=20
Tribune stock buyback plan, the initial company=20
effort to deal with pressure from its biggest=20
shareholder to sell or break up the company.
http://chicagobusiness.com/cgi-bin/news.pl?id=3D24097

FORGET XM/SIRIUS; GIVE SATELLITE RADIO TO THE LISTENERS
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
[Commentary] Although Public Knowledge is=20
suggested that a merged Sirius XM reserve five=20
percent of its resources for "non-commercial=20
educational and informational programming over=20
which it has no editorial control", Lasar says=20
"let XM and Sirius die. Then turn all of=20
satellite radio into a listener supported, non-profit service."
http://www.lasarletter.net/drupal/node/373

COPYRIGHT MUST BE RESPECTED AS CULTURE GOES ONLINE
[SOURCE: Financial Times, AUTHOR: Thomas Rubin, Microsoft]
[Commentary] Imagine a world in which every=20
book, song, television programme and movie ever=20
created is instantly available online with just=20
the click of a mouse. Such a world would offer=20
enormous promise not only to consumers but to=20
artists and creators as well, who would finally=20
be able to reach audiences that have long been=20
too distant or expensive to reach before. This=20
amazing new world is almost upon us, thanks to=20
the Internet and new digital technologies for=20
scanning and distributing vast libraries of=20
books, video and music. But sharp debate has=20
broken out over how best to realize the goal of=20
such broad online access to the world=92s culture=20
without undermining the financial incentives for=20
creativity that are so essential to the=20
development of these works. We cannot succeed in=20
meeting these challenges by cutting legal corners=20
and ignoring the rights of copyright holders.=20
Rather, the technology and content industries=20
should continue to work together to create=20
consumer-friendly solutions that nurture rather=20
than undermine the incentives for creativity so=20
vital to sustaining our culture.
http://www.ft.com/cms/s/40656912-cb31-11db-b436-000b5df10621.html
(requires subscription)
* Microsoft to blast Google over copyright policy
http://www.reuters.com/article/technologyNews/idUSN0533131320070306

TEN YEARS AGO...

STAND-UP SYNERGY
[SOURCE: New York Times, AUTHOR: Frank Rich]
[Commentary] Our culture's new rulers are the=20
people who run the handful of new conglomerates=20
that now own most of mass culture -- our TV and=20
cable and radio networks, movie and recording=20
studios, magazines and book publishers and theme=20
parks. As first became clear when ABC's ''Day=20
One'' and CBS's ''60 Minutes'' quailed at costly=20
legal threats by tobacco companies, there is=20
reason to fear that these mammoth companies may=20
put their ever-expanding corporate interests=20
ahead of news. Don't hold your breath waiting for=20
networks to investigate human rights abuses in a=20
big market like China. Yet it's not only=20
journalism that may be softened by the=20
concentration of media ownership. If we're left=20
with only Disney/ABC, G.E./ NBC, Time=20
Warner/Turner, Westinghouse/CBS and Rupert=20
Murdoch -- all of which want the largest=20
audiences possible -- isn't American=20
entertainment, comedy included, also destined to pull its punches?
http://select.nytimes.com/search/restricted/article?res=3DF00916FA38540C...
CDDAA0894DF494D81
(requires TimesSelect subscription)

QUICKLY

SCARCITY OF ADS ENDANGERS NEWSPAPERS' BOOK SECTIONS
[SOURCE: Wall Street Journal, AUTHOR: Jeffrey A.=20
Trachtenberg jeffrey.trachtenberg( at )wsj.com]
Sometime this spring, the Los Angeles Times is=20
expected to announce that it is folding its=20
highly esteemed Sunday book review into a new=20
section that will combine books with opinion=20
pieces. That would reduce to five the number of=20
separate book-review sections in major=20
metropolitan newspapers still published=20
nationwide, down from an estimated 10 to 12 a=20
decade ago. The reason: not enough ads. Book=20
publishers in recent years have moved away from=20
buying ads in standalone book-review sections in=20
favor of paying to stack mounds of books in the=20
front of chain bookstores. Some small literary=20
publications, such as the New York Review of=20
Books, are showing growth, but the book review as=20
a separate section is endangered not only at the=20
Los Angeles Times but at other major newspapers=20
like the Washington Post, Chicago Tribune, San=20
Francisco Chronicle and San Diego Union-Tribune.=20
The New York Times Book Review is an exception.
http://online.wsj.com/article/SB117314450821127664.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

MORE JOURNALISTS EMBRACE AN ADVOCACY ROLE
[SOURCE: USAToday, AUTHOR: Peter Johnson]
The "social journalism" that made Oprah Winfrey=20
an international fairy godmother is the new rage=20
in network and cable news, and it's expanding to=20
other media. Increasingly, journalists and=20
talk-show hosts want to "own" a niche issue or=20
problem, find ways to solve it and be associated=20
with making this world a better place, as Winfrey=20
has done with obesity, literacy and, most=20
recently, education by founding a girls school in=20
South Africa. Experts say the competitive=20
landscape, the need to be different and to keep=20
eyeballs returning, is driving this trend, along=20
with a genuine desire from some anchors and=20
reporters to do good. In the process, some are=20
becoming famous. And they're allowing news=20
organizations to break away from the pack, as old=20
and new media fight for viewers and readers, says=20
Tom Rosenstiel of the Project for Excellence in=20
Journalism. "News outlets have found they can=20
create more momentum and more identity by=20
creating franchise brands around issues or around a point of view," he says.
http://www.usatoday.com/printedition/life/20070306/d_jcover06_journalist...
rt.htm

SAN FRANCISCO BAY AREA IS WELL CONNECTED
[SOURCE: San Francisco Chronicle 3/5, AUTHOR: Tom Abate]
Bay Area residents are better connected to the=20
Internet than the average American, more likely=20
to have DSL than cable modem service, and eager=20
to see wireless technologies deployed over the=20
entire region, according to a survey released by=20
the Bay Area Council. More than three-fourths of=20
Bay Area households surveyed had home computers.=20
Of these computer-owning households, 84 percent=20
had high-speed, or broadband, Internet access.=20
That works out to a broadband penetration rate of=20
62 percent for the region, outstripping the 42=20
percent national average reported by the Pew=20
Internet & American Life Project in 2006, the council said.
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2007/03/05/BUG1NOE...
1.DTL&type=3Dtech

CHINA BANS NEW INTERNET CAFES FOR A YEAR
[SOURCE: Reuters]
Fearful of soaring Internet addiction and=20
juvenile crime, China has banned the opening of=20
new Internet cafes this year. The notice said=20
Internet cafes that had received planning=20
approval would need to be completed by June 30,=20
2007. The notice comes as lawmakers at China's=20
annual session of parliament, the National=20
People's Congress, called for stricter=20
regulations to keep teenagers away from Internet=20
cafes, which are often seen in China as hotbeds=20
of juvenile crime. There are currently about=20
113,000 Internet cafes and bars in China
http://www.reuters.com/article/internetNews/idUSPEK24407720070306
--------------------------------------------------------------
Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
--------------------------------------------------------------