Subject: [Benton's Communications-related Headlines] April 11, 2007 (Internet NOT Dead)

From: Kevin Taglang <[email-masked]>
Date: Wed, 11 Apr 2007 07:21:02 -0500

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY APRIL 11, 2007
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INTERNET/BROADBAND
	Reported Death Of The Internet Greatly Exaggerated
	Economics 101: Web Giants Rule 'Democratized' Medium

MEDIA OWNERSHIP
	DirecTV Hits Back at HITN

BROADCASTING/PAY SERVICES
	Martin Floats DTV Carriage Plan
	Lagging Online, TV Stations Get Moving
	Opinions Rise on XM-Sirius Plan

ADVERTISING
	Imus Struggling to Retain Sway as a Franchise
	Marketers create their own shows

TELECOM
	FTC Wants More Authority Over Communications Companies
	Senators mull new taxes to fund 911 Net upgrade
	Vonage, emergency responders support 911 bill

LABOR
	Writers Guild President Starts the Countdown Toward Contract's End

QUICKLY -- Small radio's big appeal; China Conveys 'Regret' Over 
Trade Complaints; Was that Kevin or Steve Martin?

INTERNET/BROADBAND

REPORTED DEATH OF THE INTERNET GREATLY EXAGGERATED
[SOURCE: TechDirt]
[Commentary] Remember a few months back when there was a Deloitte & 
Touche report that was misread by some folks against network 
neutrality rules to mean that the push to keep net neutrality was 
going to kill the Internet? Someone decided to do a little digging 
further into the Deloitte & Touche report, and while D&T wouldn't 
provide any more details about their predictions, the reporter went 
straight to the folks who manage the systems D&T predicted would run 
into trouble -- and those people flat out denied that they're going 
to run into any capacity problems any time soon. Basically, capacity 
keeps growing and even though usage is growing faster than capacity 
right now, there's plenty of room to spare, and plenty of time to 
increase capacity should things look like they're getting tight. So, 
basically, the reports of the Internet's impending destruction due to 
things like YouTube or net neutrality supporters has been greatly exaggerated.
http://www.techdirt.com/articles/20070405/190255.shtml

ECONOMICS 101: WEB GIANTS RULE 'DEMOCRATIZED' MEDIUM
[SOURCE: AdAge, AUTHOR: Abbey Klaassen]
When it comes to online-advertising riches, the short tail is getting 
shorter. A recent number crunch from consultancy group Marketspace 
indicates the 10 biggest Internet players nabbed a whopping 99% of 
gross online-ad revenue last year. If that's not enough to startle, 
consider: That's up from 95% in 2005. The growth is notable by any 
standard in any business, but particularly surprising in a medium 
whose potential for fragmentation, at least audience-wise, is 
seemingly limitless. It means the majority of the sites on the web 
are left fighting over the remaining 1% of online ad revenue. Of 
course, that's gross online ad revenue. On a net ad-revenue basis, 
Marketspace estimates the Big Four of online sales -- Google, Yahoo, 
AOL and MSN -- nab about 57% of total online ad outlays and the Big 
10 about 70%. EMarketer estimates the Big Four will pull in about 66% in 2007.
http://adage.com/digital/article?article_id=115986

MEDIA OWNERSHIP

DIRECTV HITS BACK AT HITN
[SOURCE: Multichannel News, AUTHOR: Linda Moss]
DirecTV plans to drop the Hispanic Information & Telecommunications 
Network, a Spanish-language public-interest channel, June 30, 
according to the direct-broadcast satellite provider. DirecTV 
disclosed its plans to replace HITN with another Spanish-language 
service in comments Monday to the Federal Communications Commission 
in a 23-page filing regarding Liberty Media's proposed $11 billion 
acquisition of News Corp.'s 38.4% stake in the nation's largest DBS 
provider. DirecTV has carried HITN as part of its public-interest 
obligation as a DBS provider, under federal law, to set aside part of 
its channel capacity, 4%, exclusively for noncommercial programming 
of an educational or informational nature. HITN is among a group of 
companies, including EchoStar Communications, which have filed 
separate comments with the FCC opposing the Liberty-DirecTV deal. 
According to DirecTV, it is in negotiations with V-me, a 
Spanish-language multicast channel that debuted in March and airs 
original programming, U.S. TV premieres and acquisitions. Educational 
Broadcasting -- which holds the license for public broadcaster WNET 
in New York -- is a minority investor in the network. The rest of the 
network partnership is made up of private investors, including The 
Baeza Group and Syncom Funds. V-me is getting a carriage boost in 
part via a 2005 agreement between the National Cable & 
Telecommunications Association and the Association of Public 
Television Stations, which ensured that at least one local public TV 
analog signal, plus four digital channels, would be carried by each 
of the major cable operators.
http://www.multichannel.com/article/CA6432508.html?display=Breaking+News

BROADCASTING/PAY SERVICES

MARTIN FLOATS DTV CARRIAGE PLAN
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
In advance of next week's broadcaster convention in Las Vegas, 
Federal Communications Commission chairman Kevin Martin is 
circulating a plan that would allow TV stations to demand both 
digital and analog carriage from cable operators starting in early 
2009. In the same proposal, Martin would allow cable operators to 
drop the analog format if all subscribers had the necessary reception 
equipment to view local DTV signals. Few cable operators, however, 
are expected to be all-digital in time to take advantage of the dual 
carriage exemption. Without Martin's proposal, a DTV station that 
elected must carry after Feb. 17, 2009 would be seen in cable homes 
with digital set-top boxes and cable-ready DTV sets, but not in cable 
homes that continued to rely on analog equipment. If the analog 
cutoff came today, DTV stations without analog carriage rights would 
lose access to 45% of cable homes.
http://www.multichannel.com/article/CA6432632.html?rssid=108

LAGGING ONLINE, TV STATIONS GET MOVING
[SOURCE: Wall Street Journal, AUTHOR: Brooks Barnes 
[email-masked] and Emily Steel]
Local TV stations are launching a blitz of Internet initiatives as 
they race to catch up online. Once considered a license to print 
money, TV stations have suffered body blows from the Web. Lucrative 
11 p.m. newscasts are sinking in the ratings as more viewers go to 
the Internet for cable channels to get weather and sports 
information. Viewers no longer have to tune in to catch shows such as 
ABC's "Lost" because networks are making programming available all 
over the Web. And key TV advertisers such as auto manufacturers are 
moving cash toward online campaigns. While newspapers have had 
success building heavily trafficked Web sites, "people still don't 
automatically think to visit a TV-station Web site," says Brent 
Magid, chief executive officer of media consultancy Frank Magid 
Associates Inc. "Stations need to do something online to get 
noticed." Complacency and greed are two reasons station operators 
have fallen so far behind, say media analysts and consultants. The 
majority of local stations enjoyed 40% profit margins as recently as 
the mid 1990s (compared with 25% to 30% today) because they had 
little competition. Many didn't see a need to invest in their Web 
operations as a result, says Magid. Some were leery of moving too 
quickly online after getting burned when the dot-com bubble burst. 
Others resisted building up their Web sites for fear of giving 
viewers a reason to switch off the TV set.
http://online.wsj.com/article/SB117625938629265960.html?mod=todays_us_marketplace
(requires subscription)

OPINIONS RISE ON XM-SIRIUS PLAN
[SOURCE: Washington Post, AUTHOR: Sam Diaz]
Industry experts and consumers are starting to chime in on the 
proposed merger of the nation's two satellite radio companies, using 
research studies to try to sway opinion in Washington, where Congress 
will hold another hearing on the matter next week. One of the studies 
-- by research firm Carmel Group hired by the National Association of 
Broadcasters and released last week -- said a merger would harm 
consumers, citing the potential for higher prices and less content. 
But late Monday, an independent report by TMF Associates, another 
research firm, blasted that study, referring to some of its arguments 
as "ludicrous." As the Senate Committee on Commerce gears up for the 
fourth Capitol Hill hearing on the merger since it was proposed in 
February, the companies and their opponents are pressing arguments in 
support of their positions on the state of audio competition. Both 
sides are pointing to blogger debate on the issue, as well as expert 
opinions that take their sides. Such regulators as the Department of 
Justice and the Federal Communications Commission must decide whether 
Internet radio, MP3 players and traditional AM and FM radio compete 
with satellite radio, and whether a single satellite radio provider 
would harm consumers.
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/10/AR2007041001591.html
(requires registration)

ADVERTISING

IMUS STRUGGLING TO RETAIN SWAY AS A FRANCHISE
[SOURCE: New York Times, AUTHOR: Jacques Steinberg]
That Don Imus can be abrasive and offensive is undeniable, but he is 
also one of the most successful and influential pitchmen in the 
history of radio, if not broadcasting. His program generates in 
excess of $20 million in annual revenue for CBS Radio, his primary 
employer, and his flagship New York station, WFAN. When advertising 
revenue for affiliates and MSNBC, which simulcasts the program, is 
included, the figure exceeds $50 million. But yesterday, the third 
day Mr. Imus spent asking for forgiveness for a racially disparaging 
remark about the Rutgers women's basketball team, he demonstrated 
that the brand he was having the hardest time selling was his own. As 
CNN broadcast pictures of the players arrayed on a stage behind their 
coach, their faces long and at times streaked with tears, several 
prominent advertisers announced plans to distance themselves from the 
talk show host. In the wake of the firestorm over his remark, Mr. 
Imus has pledged to purge the most offensive humor from his program.
http://www.nytimes.com/2007/04/11/business/media/11imus.html?ref=todayspaper
* Imus flap a matter of black, white and green
http://www.usatoday.com/printedition/news/20070411/1a_cover11_dom.art.htm
* Don Imus, Suspended, Still Talking
Don Imus was suspended. But it looked as though NBC had suspended the 
suspension. This scandal-harried radio host and MSNBC star was free 
to appear on "Today" yesterday and explain himself again and again: 
His interview with Matt Lauer and his debate with the Rev. Al 
Sharpton, their second, were shown simultaneously on the MSNBC show 
"Imus in the Morning."
http://www.nytimes.com/2007/04/11/arts/television/11watc.html
(requires registration)
* Advertisers Pull Out of Imus Show
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/10/AR2007041000656.html
* Imus's Enablers
Why do all those prominent journalists and politicians go on his show 
knowing that they will be featured along with degrading and allegedly 
humorous one-liners about blacks, gays, Jews and women?
http://online.wsj.com/article/SB117625954738765969.html?mod=todays_us_opinion
* No One to Talk To?
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/10/AR2007041001861.html
* Don Imus: the good-natured racist
http://www.latimes.com/news/printedition/opinion/la-oe-rice11apr11,1,3170155.story?coll=la-news-comment

MARKETERS CREATE THEIR OWN SHOWS
[SOURCE: USAToday, AUTHOR: Laura Petrecca]
Problem: TV watchers don't want their shows interrupted by ads. 
Solution: Make the show the ad. That's one approach being used by 
marketers as they try to keep consumers' attention. Gillette is 
producing an ABC prime-time reality series starring the group of 
NASCAR drivers -- dubbed the "Young Guns" -- who are featured in its 
TV ads and online. Gillette is a NASCAR sponsor for each driver and 
his race team. Gillette's ad agency, BBDO New York, came up with the 
idea for a reality show in which the pro drivers would teach 
celebrities how to race cars. The result: Fast Cars and Superstars: 
Gillette Young Guns Celebrity Race, in which stars such as William 
Shatner and Jewel will compete in time-trial driving tests. The 
program -- akin to Dancing with the Stars but with race cars -- will 
begin June 7. Gillette paid ABC for the air time and pulled in TV 
production experts and a talent agency to create the show. The unit 
of Procter & Gamble won't say what the time cost or what it's paying 
the drivers or celebrities.
http://www.usatoday.com/money/advertising/2007-04-10-gillette-usat_N.htm

TELECOM

FTC WANTS MORE AUTHORITY OVER COMMUNICATIONS COMPANIES
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Trade Commission Chairman Deborah Platt Majoras and the other 
commissioners unanimously endorse giving the FTC authority over 
common carriers. That came in response to a question from Sen Byron 
Dorgan (D-ND) at an FTC oversight hearing in the Senate Commerce 
Committee Tuesday, a hearing at which Sen Dorgan urged the FTC to 
better enforce its regulations. Chairman Majoras said that with 
communications companies increasingly bundling broadband and 
traditional phone service, the exemption of FTC oversight from the 
latter is problematic. With the converging of media, the 
commissioners agreed the exemption was an anachronism and an artifact 
of a 70-year-old regulatory regime. Majoras raised the hypothetical 
of the commission wanting to look at a potentially deceptive 
broadband-delivered ad but being stymied by the bundling of that 
service with phone.
http://www.broadcastingcable.com/article/CA6432324.html
* For more on the hearing see 
http://commerce.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_ID=1839

SENATORS MULL NEW TAXES TO FUND 911 NET UPGRADE
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
Americans may face new taxes on their phone bills to help finance a 
potentially expensive overhaul of the 911 emergency system to an 
Internet-based network.  During a hearing on Tuesday, U.S. senators 
said it's still unclear how this transition will work in practice. 
But they indicated it may be necessary to levy new charges on all 
telephone bills--including landlines, mobile and Internet phones--to 
help public safety officials cover the costs. "I don't think we can 
go into a markup to pass a bill that has no future unless you have 
money," Sen. Daniel Inouye (D-Hawaii) said at a Senate Commerce 
hearing here about the future of 911 systems. Inouye was referring to 
a bill that would encourage the switchover but allocates no tax 
dollars to pay for it. Sen. Ted Stevens (R-Alaska) called for 
suggestions on how to ensure the cost of the upgrades is spread out 
as broadly as possible, which could sweep in categories of phones 
such as voice over Internet Protocol, or VoIP. (Vonage, for instance 
collects 911 fees in 23 states and says it does so voluntarily 
because no law requires it.)
http://news.com.com/Senators+mull+new+taxes+to+fund+911+Net+upgrade/2100-1028_3-6175018.html?tag=nefd.top

VONAGE, EMERGENCY RESPONDERS SUPPORT 911 BILL
[SOURCE: InfoWorld, AUTHOR: Grant Gross, IDG News Service]
Emergency dispatchers and VoIP provider Vonage on Tuesday urged U.S. 
senators to pass a bill intended to ensure that all VoIP customers 
can dial the emergency 911 service. About 5 percent of Vonage's 
customers do not have access to 911 service, even though the Federal 
Communications Commission voted in May 2005 to require it from most 
VoIP providers. The problem is that Vonage can't get access to the 
911 facilities controlled by competitors or because some dispatch 
centers are worried about legal liability if VoIP 911 calls fail, 
said Sharon O'Leary, executive vice president and chief legal officer 
for Vonage. But the IP-Enabled Voice Communications and Public Safety 
Act, introduced in January by Senator Bill Nelson, would fix those 
problems, O'Leary said. The bill would fix problems out of VoIP 
providers' control by requiring telecom companies that control 911 
facilities to connect to VoIP providers and protecting dispatch 
centers from legal liability. The bill would also require VoIP 
providers to give a clear and conspicuous notice to customers who 
cannot receive 911 service.
http://www.infoworld.com/cgi-bin/redirect?source=rss&url=http://www.infoworld.com/article/07/04/10/HNvonagesupports911bill_1.html

LABOR

WRITERS GUILD PRESIDENT STARTS THE COUNTDOWN TOWARD CONTRACT'S END
[SOURCE: New York Times, AUTHOR: Michael Cieply]
Patric Verrone -- president of the Writers Guild of America West -- 
his union and its East Coast counterpart will begin what are expected 
to be exceedingly difficult negotiations with the conglomerates that 
own the networks and studios. Whether the entertainment business 
continues to operate as usual over the next year will depend in no 
small part on how he handles the encounter. Hollywood's last extended 
shutdown occurred in 1988, when the writers began a five-month 
walkout over residual payments for the foreign sale of television 
shows, among other issues. The sides now face a potentially deeper 
dispute. The main areas of contention are the expansion of nonunion 
work by units of large media conglomerates like Viacom and News 
Corporation, and the way artists will be compensated for their work 
for the Web, mobile devices and other technologies still falling into 
place. Company executives have argued that it is impossible to devise 
pay formulas for systems that are still in flux. But Mr. Verrone is 
clearly intent on pinning down as much as possible now -- and on 
avoiding the kind of arrangements (like the one regarding home video) 
that many in Hollywood's creative world believe deprived them of 
rightful gains in the past.
http://www.nytimes.com/2007/04/11/movies/11guil.html
(requires registration)

QUICKLY

SMALL RADIO'S BIG APPEAL
[SOURCE:  Los Angeles Times, AUTHOR: Alana Semuels]
Each Mapleton station has a unique identity, allowing it to stand out 
in an industry that's criticized for a uniform sound. Mapleton  is 
California's second-largest radio group after Clear Channel.
http://www.latimes.com/business/printedition/la-fi-radio11apr11,1,5782447.story?coll=la-headlines-pe-business
(requires registration)

CHINA CONVEYS 'REGRET' OVER TRADE COMPLAINTS
[SOURCE: New York Times, AUTHOR: Keith Bradsher]
The Chinese government expressed "deep regret and strong 
dissatisfaction" on Tuesday with the Bush administration's decision 
to file two complaints against China with the World Trade 
Organization. Facing criticism from Congress that more should be done 
to address the widening United States trade deficit with China, the 
Bush administration announced Monday that it would file complaints 
with the W.T.O. The complaints, which were lodged at the 
organization's headquarters in Geneva on Tuesday, accuse China of 
tolerating widespread violations of trademarks and copyrights and of 
unfairly limiting the importation of books, journals, movies, videos 
and music to state-owned companies. Wang Xinpei, a Commerce Ministry 
spokesman, denied the American allegations, saying that "the Chinese 
government has always been firm in protecting intellectual property." 
He added that until now, China and the United States had been "in 
good communication and consultation with each other over access to 
the Chinese publication market."
http://www.nytimes.com/2007/04/11/business/worldbusiness/11yuan.html
(requires registration)

WAS THAT KEVIN OR STEVE MARTIN?
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
[Commentary] Armed with a top 10 list--actually top seven--a la David 
Letterman and a phone answering machine bit -- shades of that other 
Button-down guy, Bob Newhart -- FCC Chairman Kevin Martin took gentle 
aim at himself and his critics at the annual Federal Communications 
Bar Association's chairman's dinner last night in Washington.
http://www.broadcastingcable.com/blog/1380000138/post/780008278.html
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Communications-related Headlines is a free online news summary 
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Headlines are compiled by Kevin Taglang [email-masked] -- we 
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Editor, Communications-related Headlines
Benton Foundation
Communications in the Public Interest
1625 K Street, NW 11th Floor
Washington, DC 20006
headlines AT benton DOT org 

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