Media Regulation

What the Media Reformistas Really Want

by Adam Thierer on August 10, 2008 · 33 comments

Over at Reason’s “Hit and Run” blog, Matt Welch has penned a piece pointing out how it is impossible to make the anti-media activists happy. Welch notes that radical activist groups like Free Press go around demonizing media moguls like Rupert Murdoch because he supposedly symbolizes the fact that will live in an age of media monopolists who puppeteer all our news and entertainment from on high. It’s all 100% B.S., of course, as we have shown here again and again.

But even when confronted by the rise of alternative owners and ownership models, the Free Press fanatics show their true colors by saying that won’t work for them either. Walsh notes, for example, that the skake-up of the old Tribune empire and the emergence of Sam Zell as an independent owner of the Trib — and an owner hellbent on downsizing the old empire, no less — should be exactly what Free Press wants:
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Day 505: The XM-Sirius Circus Is Finally Over

by James Gattuso on August 7, 2008 · 9 comments

It’s over. The FCC, which voted to approve the merger between satellite radio firms XM and Sirius two weeks ago, finally released its formal report on the case on Tuesday, ending the drama 505 days after the firms submitted their application to the Commission.

The episode was not the FCC’s finest hour. The agencies once-vaunted “shot clock” — by which the FCC pledged to decide on mergers within 180 was left in shreds, with the counter going around almost three times before the circus finally ended. Even at that, XM and Sirius managed to claw their way to approval only by making an (ever-longer) series of “voluntary” commitments: including offering “a la carte” programming, capping prices for 36 months, making 8% of its capacity available to others to non-commercial and other entities, and extending service to Puerto Rico. Even more was being considered when the music stopped, including a proposal to require all satellite radio receivers to have built-in HD broadcast tuners as well. (Apparently, there was concern that broadcasters would be frozen out of the audio market, in which they hold a market share of about 96 percent).

This regulatory free-for-all contrasts with the approach taken by the Department of Justice, which — after a fact-specific inquiry, approved the merger – without conditions – five months ago. Continue reading →

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FCC Hammers Comcast For Deception and Unreasonable Internet Practices

by Drew Clark on August 1, 2008 · 13 comments

WASHINGTON, August 1 – The Federal Communication Commission’s enforcement action against Comcast can be seen either as a limited response to a company’s deceptive practices, or a sweeping new venture by the agency into regulating internet policy.

In ruling against Comcast on Friday, the agency ordered the company to “disclose the details of its discriminatory network management practices,” “submit a compliance plan” to end those practices by year-end, and “disclose to customers and the [FCC] the network management practices that will replace current practices.”

At issue in the decision was whether Comcast had engaged in “reasonable network management” practices when it delayed and effetively blocked access to users of BitTorrent, a peer-to-peer software program.

Although BitTorrent had already settled its complaints with Comcast, FCC Chairman Kevin Martin said that FCC action was necessary because the complaint had been brought by Free Press and Public Knowledge, two non-profit groups. The FCC did not impose a fine.

Martin said that he viewed the agency’s decision to punish the cable operator as a quasi-judicial matter: a “fact-intensive inquiry” against a specific company that it found to have “selectively block[ed]” peer-to-peer traffic.

[Continue reading “FCC Hammers Comcast For Deception and Unreasonable Internet Management“]

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From the FCC, DrewClark.com is Live…

by Drew Clark on August 1, 2008 · 5 comments

…to cover the hearing at which Comcast is expected to be punished for violations of Network Neutrality. Fortunately, the Federal Communications Commission did not start on time. The great thing about the Kevin Martin FCC is that you never have to worry about being late. For example, we’re live at the FCC for the 9:30 a.m. meeting:

The FCC, 9:49 a.m.

I’ll be live-Twittering the event, so check back on DrewClark.com (look at the column on the right – or just go to Twitter and “follow” me) for the latest updates. Later in the day, I’ll be posting a story about the event at BroadbandCensus.com.

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Product Placement in Historical Context

by Adam Thierer on July 30, 2008 · 23 comments

Last month I posted a tongue-and-cheek piece thanking policymakers for taking steps to save us from loud TV ads and product placements. The whole thing just strikes me as the height of absurdity; it’s a stupid way for regulators to spend their time and it’s a complete waste of taxpayer dollars. Backers of such regulations assume that we in the public are little more than ignorant sheep whose minds will be subliminally programmed to want to drink certain colas or drive certain cars just because they saw them in a TV show. Absurd.

The other thing that kills me about this debate is how some people seem to imagine that product placement has somehow come out of nowhere recently and taken over broadcast TV and radio to an unprecedented extent. That’s either revisionist history or ignorance of it. The fact is, broadcasting has been filled with product placement for years. Media guru Jack Myers points this out in a good piece on the issue this week:

Those old enough to recall the early days of television news recall that Camel cigarettes and Timex sponsored the NBC News with John Cameron Swayze. On-set signage was prominent. Local radio personalities have always used their relationships with consumers to advance their sponsors’ interests.

But it goes way beyond that. For God’s sake, has everyone forgotten about the “Texaco Star Theater“? It was the top-rated show of the 1950s, pulling in a stunning 61.6 rating in 1950-51 alone. How did the show begin? Here’s how the Wikipedia entry describes it:

On television, continuing a practice long established in radio, Texaco included its brand name in the show title. When the television version launched, Texaco also made sure its employees were featured prominently throughout the hour, usually appearing as smiling “guardian angels” performing good deeds of one or another kind, and a quartet of Texaco singers opened each week’s show with the following theme song:

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Local Web Ads and the Future of Newspapers

by Adam Thierer on July 22, 2008 · 6 comments

As we’ve discussed here before, newspapers are struggling. We all know that. The question is what, if anything, will save them? Most pundits tend to point to a two-fold solution: (1) get serious about leveraging the natural local advantages newspapers hold; (2) and find away to do so online as quickly as possible before they lose the bulk of the local online ad market to other competitors. This is why there’s a lot of talk these days about turning traditional papers into “hyper-local” web portals for their communities. Of course, there’s no guarantee that will work, especially in light of changing attitudes about “media localism.”

But let’s assume that that is indeed the best path forward. Will it really save newspapers? As eMarketer reports in today’s newsletter on “Can Local Web Ads Save Newspapers,” it’s a bit of a good news–bad news story:

The good news is that newspaper site ad revenues are growing along with other online ad spending, especially for local news sites. Local newspaper online ad revenues are predicted to reach $3.7 billion this year, according to eMarketer calculations based on Borrell Associates data.

The bad news is that this spending will not make up for print ad losses for some time, according to Lisa Phillips, senior analyst at eMarketer. Ms. Phillips noted that advertisers still pay more for print readers than for online readers. “This is a transition that will take several years,” she said. “Local advertisers are paying attention to the shift in reader behavior, but it will take a while for everyone to adjust.”

And so we will have to wait to see how it all plays out. But I am highly skeptical that traditional newspapers operators will be able to make up anywhere near the amount of revenue online that they are hemorrhaging over on the print side of the business. There’s just too much other competition out there online already for our eyes and ears. The age of “protectable scarcity” is dead and that means newspapers just don’t have the lock on local or regional markets they once did.

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Primer on Mobile TV Market

by Adam Thierer on July 20, 2008 · 10 comments

Progress & Freedom Foundation released a new report this week entitled “A Primer on the US Mobile Television Market,” by Joseph S. Kraemer, Ph.D., who is an Adjunct Fellow at PFF and a Director at Law and Economics Consulting Group. It’s not a policy piece; it just focuses on the projected growth of the mobile television marketplace over the next few years. Kraemer explains why “mobile video is forecasted to explode over the next four or five years.” He notes that it is the logical evolution of the television marketplace:

mobile digital television is a logical extension of the digitally-driven development of television from passive entertainment to an interactive, high value, versatile medium. Each stage builds upon the set of earlier stages. “Personal television” adds functionality and value to “web TV” which did the same to “digital television” which, in turn, did the same to “analog broadcast television.” The development process is additive and cumulative. Although critically important, mobile television is just one aspect of the evolving “personal television” stage.

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Felten on The Decline of Localist Broadcasting Policies

by Adam Thierer on July 18, 2008 · 9 comments

Terrific piece here from Ed Felten on how new technologies and cultural trends are undermining traditional conceptions of “media localism.” It’s a theme I have written on at length, most recently in this essay on “Our Continued Wishful Thinking about ‘Media Localism‘.” Anyway, as Felten correctly notes in the conclusion of his essay:

New technologies undermine the rationale for localist policies. It’s easier to get far-away content now — indeed the whole notion that content is bound to a place is fading away. With access to more content sources, there are more possible venues for local programming, making it less likely that local programming will be unavailable because of the whims or blind spots of a few station owners. It’s getting easier and cheaper to gather and distribute information, so more people have the means to produce local programming. In short, we’re looking at a future with more non-local programming and more local programming.

That’s exactly right. As Grant Eskelsen and I argue in Chapter 6 of our new Media Metrics book:

The decline of “localism” in media is a much-lamented but quite natural phenomenon as citizens gain access to news and entertainment sources of broader scale and scope. Although it is impossible to scientifically measure exactly how much “local” fare citizens demand—and defining the term is another challenge—we know that they still receive a wealth of information about developments in their communities. However, it is also evident that, left to their own devices, many citizens have voluntarily flocked to national (and even international) sources of news and entertainment. […]

[But] the demise of “localism” has been greatly exaggerated. The relative decline in local media is simply a natural development resulting from the voluntary choices made by millions of American citizens, but the tools for producing, distributing, and acquiring local content are more robust than ever.

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Newspaper Deathwatch?

by Adam Thierer on July 18, 2008 · 628 comments

Over at Technology 360, Dennis Haarsager points out that there’s probably too much gloom-and-doom out there in the blogosphere regarding the future of various media platforms. He did phrase searches “to see how the media stacked up in the death department.” He got back the following results:

> “death of television”, 13,000 results
> “death of TV”, 28,200 results
> “death of radio”, 227,000 results
> “death of newspapers”, 331,000 results
> “death of blogs”, “death of the blogs”, “death of the blog”, 81,400 results
> “death of the web”, 215,000 results
> “death of the net”, 746,000 results
> “death of the internet”, 1,910,000 results

No doubt—as Mark Twain might have said—the rumors of the death of media have been greatly exaggerated. And, as Mike Mansick of TechDirt points out, not all papers or media outlets are facing gloom and doom scenarios.

Nonetheless, many traditional media sectors and providers do find themselves in troubled waters today as tsunami of creative destruction tears through their markets. In our new “Media Metrics” report, Grant Eskelsen and I show how two sectors in particular—radio broadcasting and newspapers—are getting hammered particularly hard by a sort of “media perfect storm”:

* loss of protected markets or “protected scarcity” = there’s just no guaranteed audience anymore
* rapid technological change = the way media is created and transmitted has been completely transformed
* massive inflow of new competitors / platforms = no way to stop the deluge of new voices, including user-generated content
* loss of consumer confidence and allegiance = people have plenty of other places to turn their attention
* loss of advertiser confidence and allegiance = advertisers have plenty of other places to promote their goods and services (including direct-to-consumer appeals and ‘word-of-mouth’ marketing efforts)
* loss of investor confidence and allegiance = shareholders have lots of other places to invest their capital today

The results have been particularly grim for newspaper in recent months as various reports have noted.
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CWA Wants Better Broadband Data, As Does Internet for Everyone

by Drew Clark on July 17, 2008 · 5 comments

WASHINGTON, July 17 – Communications Workers of America this past week teamed up with a group of telecommunications companies, cable operators and non-profit groups to push for Congress to pass broadband data legislation.

In a Friday letter and a Monday press release, the groups wrote “to express [their] strong support for Congressional action to promote greater availability and adoption of broadband high-speed Internet services.”

They want “a national policy” to encourage more broadband deployment, and they cite economic statistics about broadband’s potential.

And, as a first step, these companies and CWA want Congress to pass the Broadband Census of America Act, H.R. 3919, or the Broadband Data Improvement Act, S. 1492.

Curiously, last month another large coalition announced a similar campaign. They call themselves Internet for Everyone.

Continue reading “CWA Wants Better Broadband Data, As Does Internet for Everyone“