Benton RSS Feed

** CORRECTION: We misidentified an item on=20
Friday's FCC agenda as Network Neutrality.=20
Instead, the Commission will consider a=20
Memorandum Opinion and Order concerning the=20
classification of broadband over power line Internet access service. **

BROADCASTING
Scams Use Leased Radio Time To Target Immigrant Listeners
Public Radio Goes Global Over the Web
Ads get down and dirty to grab attention

MEDIA OWNERSHIP
FCC Flooded with Comments on Media Ownership
Too Much Frenzy and Not Enough Reporting and Reflection
Meet the new boss . . . a lot like the old boss

MEDIA & ELECTIONS
Heavy coverage at midterm favors Democrats, study says
Republicans' Double Negatives

INTERNET/BROADBAND
U.N. proposes changes to Net's operation
Candidates, Parties Target Web Audience
Companies Have Broad Aims for TV on the Web
To the Media, YouTube Is a Threat and a Tool
YouTube & MySpace Pull Down Protected Content

TELECOM
Wireless Driving Profits for big Phone Carriers
Verizon Touts Broadband, Video Growth

QUICKLY -- Program Access on FCC Agenda; When Is=20
Entertainment Too Political?; Newspaper Circulation Falls Sharply

BROADCASTING

SCAMS USED LEASED RADIO TIME TO TARGET IMMIGRANT LISTENERS
[SOURCE: Wall Street Journal, AUTHOR: Jennifer=20
Levitz jennifer.levitz( at )wsj.com]
Fraudsters seeking to take advantage of=20
immigrants are finding an easy route via radio=20
stations that lease blocks of air time to anyone=20
willing to pay. Some of these stations are part=20
of major foreign-language media chains, such as=20
market leader Univision Communications Inc. Yet=20
station managers say they make little effort to=20
check the bona fides of the people they allow on=20
the air. The practice of "time brokerage" is more=20
likely to lead to deception than traditional=20
advertising because those buying the time often=20
disguise their pitches as regular programming. In=20
Kansas and New Jersey, people pretending to be=20
lawyers bought time for Spanish-language shows=20
offering immigration advice, which served as=20
promotions for their bogus law practices. Time=20
brokerage is appealing to radio-station owners=20
because they can receive $150 to $500 an hour for=20
air time with little effort. Buyers of time "come=20
in, perform their act and leave," says Bill=20
Parris, a consultant for MultiCultural Radio=20
Broadcasting Inc. The New York City company owns=20
about 45 stations whose air time is all brokered.=20
In a wave of radio industry consolidation, media=20
chains have been snapping up FM stations with=20
good signals, leaving a pool of small AM stations=20
that can still be bought for relatively little.=20
Station executives who speak only English are=20
often unaware of what is happening. At WLQY and=20
elsewhere, managers often lease time to one=20
entrepreneur who then subleases it to another, so=20
there isn't even the minimal screening normally=20
given to an advertiser or buyer of time. About=20
500 foreign-language radio stations in the U.S.=20
now engage in time brokerage, double the number=20
of a decade ago, according to David Schutz,=20
co-founder of a San Diego consulting company that=20
specializes in station acquisitions. The stations=20
draw loyal immigrant audiences who have few=20
options for news or information in their native languages.
http://online.wsj.com/article/SB116226825168008681.html?mod=3Dtodays_us_...
e_one
(requires subscription)

PUBLIC RADIO GOES GLOBAL OVER THE WORLD
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com]
Public radio stations are aggressively pushing=20
high-definition radio, live streaming of=20
programs, podcasting and other technology-driven=20
improvements -- and in the process demonstrating=20
the potential the Internet may hold for all radio=20
stations, public or commercial. Such moves have=20
helped public stations expand their audience at a=20
time when commercial broadcasters are seeing the=20
listener base shrink. But while the initiatives=20
have helped public radio stations expand their=20
reach, the bar for success is also lower. Public=20
stations rely on sponsorship and listener=20
donations and are under less pressure to make=20
money on their audience-growing online=20
initiatives, such as selling ads on their=20
podcasts. Public stations face their own unique=20
set of challenges in using technology to reach=20
national audiences. For starters, such moves=20
might undercut the local service that is central to public radio's mission.
http://online.wsj.com/article/SB116226736718508656.html?mod=3Dtodays_us_...
ketplace
(requires subscription)

ADS GET DOWN AND DIRTY TO GRAB ATTENTION
[SOURCE: USAToday, AUTHOR: Theresa Howard]
FCC rules ban profanity on broadcast radio and TV=20
from 6 a.m. to 10 p.m. It levied nearly $4=20
million in fines last year and took 327,198=20
decency complaints (vs. 233,531 in 2004). But=20
that hasn't stopped Dodge, Comcast and Volkswagen=20
from flirting with language limits, which are the=20
same for ads as for the shows in which they air.=20
They have created ads that make obvious from the=20
context that a character said a banned word --=20
particularly the =93s=94 word popular in slang -- but=20
trail off or =93bleep=94 so the actual word is not=20
heard. =93We ad people try to find ways to call=20
attention to what we're doing,=94 says ad expert=20
Suzanne Powers, chief strategy officer for agency=20
TBWA/Chiat/Day. The =93bleep is unexpected. It's an=20
interesting way to disrupt the viewer and do=20
something out of the ordinary.=94 FCC spokeswoman=20
Rosemary Kimball would not say whether there have=20
been complaints about these ads, but networks have been cautious.
http://www.usatoday.com/printedition/money/20061031/1b_curseads31.art.htm

MEDIA OWNERSHIP

FCC FLOODED WITH COMMENTS ON MEDIA OWNERSHIP
[SOURCE: Broadcast Engineering]
Before last week=92s deadline, the FCC had received=20
more than 122,000 comments on media ownership=20
with the expectation of more to come. Consumer=20
advocates and public interest organizations have=20
united to pressure Republican commissioners, who=20
hold a 3-2 majority, to retain current limits on=20
broadcast ownership. The vast majority of=20
Americans still rely on locally owned TV stations=20
and newspapers as their most important sources=20
for local news and information, according to Gene=20
Kimmelman, vice president of the Consumers Union.=20
=93Cable and Internet are no substitutes,=94 he said.=20
The groups argued that in markets with fewer=20
dominant media companies, independent and local=20
media competing against each other are more=20
likely to air diverse opinions and provide more=20
ownership opportunities for minorities. More=20
consolidation and media concentration will likely=20
result in fewer minority-owned stations and fewer=20
stations airing local news content, said Ben=20
Scott, policy director of the Free Press.
http://broadcastengineering.com/news/fcc-comments-media-ownership/index....
l?imw=3DY

TOO MUCH FRENZY AND NOT ENOUGH REFLECTION
[SOURCE: Digital Destiny, AUTHOR: Jeff Chester]
[Commentary] The New York Times business section=20
column on why concerns over newspaper-broadcast=20
ownership safeguards are =93yesterday=92s news,=94=20
illustrates how poorly informed too many media=20
beat reporters are about their own industry.=20
First, writer Richard Siklos fails to acknowledge=20
that his own employer lobbied the FCC to sweep=20
away such rules during the 2001-3 proceeding. In=20
addition, Siklos, fails to address how the=20
Internet, due to recent FCC decisions, may not be=20
able to provide a meaningfully diverse array of=20
information sources in the near future. Siklos=20
also fails to meaningfully assess how the=20
business models of so many publicly traded=20
newspapers have helped bring the industry to its=20
current crisis point. Diversity of media=20
ownership is an serious topic. It=92s about the=20
First Amendment in the digital era; open=20
broadband networks; local and national news=20
operations with the resources and commitment to=20
do a serious job covering private and public=20
power; and ownership by people now largely left=20
out -- namely everybody else other than white=20
men. Cross-ownership is an important part of the=20
=93check and balances=94 the US has relied on to=20
ensure the electronic media can serve the public=20
interest. Granted, things are changing=97but much=20
is not in the short term. Whether we have a media=20
system capable of doing the investigative=20
reporting necessary so it can stand up to a=20
future Administration wanting to go to war=20
without real documentation is part of what=92s at stake.
http://www.democraticmedia.org/jcblog/?p=3D127

MEET THE NEW BOSS... A LOT LIKE THE OLD BOSS
[SOURCE: Miami Herald, AUTHOR: Edward Wasserman]
[Commentary] Can local ownership of newspapers --=20
by "hometown rich guys" -- save the industry and=20
provide a stable business environment in which=20
journalists can serve the public with quality=20
work while returning a modest profit to owners?=20
Wasserman is skeptical. These "hard-driving,=20
fabulously wealthy individuals" made their money,=20
after all, "by cutting corners, cutting costs=20
and...cutting throats." True, Wall Street can be=20
tough -- and stupid -- but the problems the news=20
business faces aren't Wall Street's fault. They=20
derive from the need to reformulate a business=20
model that will enable news organizations to=20
sustain themselves in the Internet age so they=20
can continue to nourish the rest of us.
http://www.miami.com/mld/miamiherald/news/columnists/edward_wasserman/15...
324.htm

MEDIA & ELECTIONS

HEAVY COVERAGE AT MIDTERM FAVORS DEMOCRATS, STUDY SAYS
[SOURCE: USAToday, AUTHOR: Peter Johnson]
Network news coverage has favored Democratic=20
candidates in the midterm election, and the page=20
scandal involving former congressman Mark Foley=20
has been the main story line, drawing almost as=20
much coverage as Iraq and terrorism combined, a=20
new study finds. An analysis by the Center for=20
Media and Public Affairs of midterm election=20
stories aired on the ABC, CBS and NBC evening=20
newscasts Sept. 5-Oct. 22 found that 2006's=20
coverage has been almost five times as heavy as=20
in the 2002 midterm elections: 167 stories,=20
compared with 35 four years ago. The study found=20
that three out of four evaluations of Democratic=20
candidates' chances of winning -- such as sound=20
bites -- were positive, compared with one out of=20
eight for Republicans. Coverage has been=20
dominated by two major themes: the effects of the=20
Foley scandal, and the impact the Bush presidency=20
is having on the party's congressional candidates.
http://www.usatoday.com/printedition/life/20061031/d_mediamix31.art.htm

REPUBLICANS' DOUBLE NEGATIVES
[SOURCE: Washington Post, AUTHOR: EJ Dionne Jr]
[Commentary] This year Republican campaigners=20
and their advocates in the conservative media=20
have crossed line after line in sheer meanness,=20
triviality and tastelessness. Conservative=20
optimism and its promise of morning in America=20
have curdled into the gloom of a Halloween=20
midnight horror show. The reason is obvious: With=20
the public turning against President Bush's=20
policies in Iraq, most Republicans would prefer=20
not to defend the war. Because most voters do not=20
see the battle in Iraq as making us more secure,=20
fear of terrorism has not worked as effectively=20
for the GOP as it has in the past two elections.=20
And the current majority can't exactly brag=20
about, say, balanced budgets or its achievements in this Congress.
http://www.washingtonpost.com/wp-dyn/content/article/2006/10/30/AR200610...
0826.html
(requires registration)
* Ad echoes GOP's =91Southern strategy'
[Commentary] =93I just think those criticisms of it=20
are wrong,=94 said Republican National Chairman Ken=20
Mehlman of a television ad that was produced with=20
money from his treasury and aired in Tennessee.=20
In the 30-second spot, a scantily clad white=20
woman appears to suggest that she and Harold Ford=20
Jr., a black Democrat, have had an intimate=20
relationship. The commercial plays to the fears=20
of whites who think interracial relationships are=20
taboo. It also conjures up memories of the awful=20
fate that befell the Scottsboro Boys, Matt Ingram=20
and Emmett Till -- blacks who were victimized for=20
simply being accused of getting too close to white women.
http://www.usatoday.com/printedition/news/20061031/opcomtues.art.htm

INTERNET/BROADBAND

UN PROPOSES CHANGES TO NET'S OPERATION
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
A top United Nations official on Monday called=20
for changes in the way the Internet is operated,=20
taking aim at "self-serving justifications" for=20
permitting the United States to preserve its=20
unique influence and authority online. Speaking=20
during opening ceremonies at a four-day U.N.=20
summit , Yoshio Utsumi criticized the current=20
rules for overseeing domain names and Internet=20
addresses, stressing that poorer nations are=20
dissatisfied and are hoping that this week's=20
meeting will erode U.S. influence. "Many of them=20
are tired of hearing 'You just don't=20
understand,'" said Utsumi, a lawyer and former=20
government official who is the secretary-general=20
of the International Telecommunication Union, a=20
U.N. agency. "Many do understand." He added: "No=20
matter what technical experts argue is the best=20
system, no matter what self-serving=20
justifications are made that this is the only=20
possible way to do things, there are no systems=20
or technologies that can eternally claim they are=20
the best." Human rights groups, however, have=20
warned that many of the nations most critical of=20
the current arrangement -- Tunisia, Cuba, Iran,=20
China -- rank among the world's most repressive.=20
The worry: If those governments have their way,=20
the current, virtually limitless amount of free=20
expression on the Internet may come to an end.
http://news.com.com/U.N.+proposes+changes+to+Nets+operation/2100-1028_3-...
0549.html?tag=3Dhtml.alert

CANDIDATES, PARTIES TARGET WEB AUDIENCE
[SOURCE: Associated Press, AUTHOR: Will Lester]
The number of people who go online for political=20
news is rising, with more than one-third saying=20
they check the Internet for such information.=20
This group is more likely to be younger, better=20
educated and male than the population in general,=20
an Associated Press-AOL News poll found. While 35=20
percent say they check the Internet for political=20
updates about campaigns and candidates, that=20
number grows to 43 percent of likely voters - and=20
they tend to be more liberal than conservative.=20
With the Nov. 7 elections nearing, the online=20
audience is getting deluged with e-mail and=20
election updates from news, campaign and=20
political Web sites. People who use the Web point=20
to the convenience, the variety of information=20
and the range of intense emotion available online.
http://hosted.ap.org/dynamic/stories/W/WEB_POLITICS?SITE=3DVTBEN&SECTION...
HOME&TEMPLATE=3DDEFAULT

COMPANIES HAVE BROAD AIMS FOR TV ON WEB
[SOURCE: Associated Press, AUTHOR: Brian Bergstein]
Eyebrows went up when Google recently agreed to=20
spend $1.65 billion for YouTube, the most popular=20
Web site for free video clips. But that figure=20
could be blown away one day if some emerging=20
companies achieve their much broader visions for=20
the future of online TV. These companies -- like=20
Brightcove and Maven Networks -- are building=20
flexible online networks that can host content,=20
serve up ads and dish out interactive features.=20
While "viral" video-sharing sites like YouTube=20
focus on individual clips - many pirated - these=20
new Internet TV platforms are designed to host=20
full-fledged channels that content creators can control.
http://hosted.ap.org/dynamic/stories/I/INTERNET_TV?SITE=3DVTBEN&SECTION=...
OME&TEMPLATE=3DDEFAULT

TO THE MEDIA, YOUTUBE IS A THREAT AND A TOOL
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi and Sara Kehaulani Goo]
Media companies are of two minds about Internet=20
video-sharing site YouTube, which rocketed to=20
fame by letting users share homemade videos along=20
with copyrighted clips from movies, TV shows and=20
music videos. They are unsure of whether YouTube=20
is a friend or a foe -- a threat that could=20
siphon off their TV audiences and ad dollars or a=20
powerful promotion machine that could generate=20
buzz for the shows. While users have had=20
virtually unfettered freedom to post and watch=20
whatever clips they want, big media companies are=20
starting to reassert control by seeking removal=20
of some shows. If all or most of the bootlegged=20
content disappears from YouTube, some users=20
wonder whether YouTube can live up to the promise=20
Google Inc. saw when it agreed to buy the site=20
for $1.65 billion in stock this month.
http://www.washingtonpost.com/wp-dyn/content/article/2006/10/30/AR200610...
1198.html
(requires registration)

YOUTUBE & MYSPACE PULL DOWN PROTECTED CONTENT
[SOURCE: C-Net|News.com/Reuters, AUTHOR: Candace Lombardi]
YouTube is removing from its site all copyrighted=20
content from the Comedy Central Network after=20
receiving a request to do so. Meanwhile News=20
Corp.'s MySpace.com on Monday said it had=20
licensed a new technology to stop users from=20
posting unauthorized copyrighted music on the=20
social networking Web site and oust frequent violators of its policy.
* YouTube takes down Comedy Central clips
http://news.com.com/YouTube+takes+down+Comedy+Central+clips/2100-1030_3-...
0868.html?tag=3Dnefd.top
* MySpace to block illegal use of copyrighted music
http://today.reuters.com/news/newsArticle.aspx?type=3DtechnologyNews&sto...
D=3D2006-10-30T172630Z_01_N30364442_RTRUKOC_0_US-MEDIA-MYSPACE.xml&WTmodLoc=
=3DTechNewsHome_C1_%5bFeed%5d-2

TELECOM

WIRELESS DRIVING PROFITS FOR BIG PHONE CARRIERS
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
Wireless continues to be a saving grace for big=20
phone companies, which face increased competition=20
from cable companies adding voice communication=20
to their bundles of services. Verizon=20
Communications said Monday that revenue from its=20
stake in Verizon Wireless helped boost profits=20
during the third quarter of 2006. Meanwhile,=20
Verizon dealt with increasing pressure from cable=20
companies that ate into the company's profits.=20
The news comes just days after AT&T and=20
BellSouth, which jointly own Cingular Wireless,=20
reported strong profit gains that they attributed=20
to increased wireless revenue. Meanwhile, AT&T=20
executives also acknowledged pressure on=20
traditional phone and high-speed Internet growth=20
from increased cable competition. In total,=20
Verizon profits were up only slightly, 2.8=20
percent to $1.92 for the quarter ended Sept. 30.=20
That compares with a profit of $1.87 billion=20
during the same quarter a year earlier. Revenue=20
increased 26 percent to $23.25 billion, up from=20
$18.49 billion last year. Verizon Wireless,=20
jointly owned by Verizon and European phone=20
company Vodafone Group, increased revenue 19=20
percent to $9.87 billion. The mobile operator=20
added 1.9 million new customers, bringing its=20
total to 56.7 million. Cingular, its closest=20
rival, finished the quarter with 58.7 million=20
customers, and reported revenue of $9.55 billion in the third quarter.
http://news.com.com/Wireless+driving+profits+for+big+phone+carriers/2100...
36_3-6130688.html?tag=3Dnefd.top

VERIZON TOUTS BROADBAND, VIDEO GROWTH
[SOURCE: Broadcasting&Cable, AUTHOR: Glen Dickson]
Verizon posted revenues of $23.3 billion for the=20
third quarter, a 25.8% jump from the previous=20
year, and earnings of $1.9 billion compared with=20
$1.9 billion in the third quarter 2005. The=20
company pointed to the initial success of its=20
fiber-based FiOS video and data network and said=20
the FiOS additions are helping to offset its=20
gradually eroding business in providing=20
traditional phone service. The telco had 118,000=20
FiOS TV customers at the end of Q3, an average=20
10% penetration for the markets where it's=20
available. It added 147,00 FiOS Internet=20
customers in the quarter for a total of 522,000=20
customers using the fiber network for their data services.
http://www.broadcastingcable.com/article/CA6386703.html?display=3DBreaki...
News

QUICKLY

PROGRAM ACCESS ON FCC AGENDA
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
The Federal Communications Commission is making=20
plans to review its program-access rules, which=20
generally require cable operators to sell their=20
satellite-delivered networks to DirecTV, EchoStar=20
Communications and other pay TV providers. The=20
FCC last looked at the rules in 2002, one decade=20
after program-access provisions were enacted as=20
part of the Cable Television Consumer Protection=20
and Competition Act of 1992. Congress imposed=20
forced-sale mandates on cable to ensure that the=20
satellite-TV providers could gain access to cable=20
channels that were too expensive for new entrants=20
to duplicate. Four years ago, the FCC examined=20
the cable-programming market and concluded that=20
it would not use its discretion to allow the=20
cable-exclusivity ban to sunset. Instead, the=20
commission extended the ban until October 2007,=20
setting up the review it has nearing the launch=20
pad. The Commission has two open meetings planned=20
in November: the first is Friday followed by a second meeting November 9.
http://www.multichannel.com/article/CA6386692.html?display=3DBreaking+News

WHEN IS ENTERTAINMENT TOO POLITICAL?
[SOURCE: AdAge, AUTHOR: Ira Teinowitz]
As the hubbub mounts over negative political ads,=20
another controversy is emerging over what should=20
count as political advocacy on TV and what is=20
entertainment. Just this week, a Democratic=20
candidate for governor of California challenged=20
an appearance by Gov. Arnold Schwarzenegger on=20
"The Tonight Show" as being akin to a political=20
ad, and broadcast networks rejected an ad for a=20
documentary film about the Dixie Chicks for being too political.
http://adage.com/mediaworks/article?article_id=3D112814

NEWSPAPER CIRCULATION FALLS SHARPLY
[SOURCE: New York Times, AUTHOR: Katharine Seelye]
The circulation of the nation=92s daily newspapers=20
plunged during the latest reporting period in one=20
of the sharpest declines in recent history,=20
according to data released yesterday. The slide=20
continues a decades-long trend and adds to the=20
woes of a mature industry already struggling with=20
layoffs and facing the potential sale of some of=20
its flagships. Over all, average daily=20
circulation dropped by 2.8 percent during the=20
six-month period ended Sept. 30, compared with=20
the period last year, according to an industry=20
analysis of data released by the Audit Bureau of=20
Circulations. Circulation for Sunday papers fell=20
by 3.4 percent. The figures appear to be the=20
steepest in any comparable six-month period in at=20
least 15 years. Newspaper executives also=20
attribute some of the decline to deliberate=20
strategies to eliminate so-called bulk sales to=20
third-party sponsors that offer papers free in=20
places like hotels. Advertisers view them as=20
having little value because the readers getting them did not pay for them.
http://www.nytimes.com/2006/10/31/business/media/31paper.html
(requires registration)
--------------------------------------------------------------
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.
--------------------------------------------------------------