Newspaper advertising is a joke, local TV stations are struggling to get ads of their own, journalists are losing their jobs and media executives are calling 25 percent revenue declines an improvement. It sounds like something might be amiss in the U.S. media world.
But don’t take our word for it if you’re the Federal Communications Commission, and you’re about to revisit media ownership regulations and see if they need some changing. See this item from Inside Radio:
[FCC] Chairman Julius Genachowski hires internet entrepreneur and journalist Steven Waldman to lead an agency-wide initiative assessing the state of media. Waldman will lead a team to conduct what’s promised to be an “open, fact-finding process” looking at how the economy is impacting media outlets and make recommendations for policy changes.
Waldman is the co-founder and former editor of the religious website Beliefnet.com, which was bought by News Corp. in 2007. … Waldman will join the Office of Strategic Planning and serve as senior advisor to the chairman. Genachowski says, “A strong consensus has developed that we’re at a pivotal moment in the history of the media and communications, because of game-changing new technologies as well as the economic downturn.”
Yes, but let’s make extra-special sure and hire a guy to check out the situation. You never know; everything might be just fine and we’re making a big mistake saying otherwise.
Apple, Google and AT&T all filed their responsesFriday to the FCC’s requestfor more information in the Google Voice app saga. The story line thus far has been trying to determine the reasons behind Apple’s decision to reject the iPhone app. Some blamed AT&T for the thumbs down, believing that the iPhone’s exclusive U.S. carrier feared the app would provide competition for voice services on the smartphone.
But Apple said AT&T played no role in the rejection. In fact, the iPhone maker said the Google Voice app hasn’t even been rejected.
“Contrary to published reports, Apple has not rejected the Google Voice application, and continues to study it,” Apple said in its response. “The application has not been approved because, as submitted for review, it appears to alter the iPhone’s distinctive user experience by replacing the iPhone’s core mobile telephone functionality and Apple user interface with its own user interface for telephone calls, text messaging and voicemail.”
Google, in its filing with the FCC, chose to keep confidential Apple’s explanation for rejecting — or rather, failing to approve — the app.
Apple also provided some interesting tidbits on the App Store, which is now stuffed with more than 65,000 applications just over a year after its launch. Apple said it has more than 40 full-time trained reviewers, and at least two different reviewers study each app. It said 95% of applications are approved within 14 days of being submitted.
It added: “We receive about 8,500 new applications and updates every week, and roughly 20% of them are not approved as originally submitted. In little more than a year, we have reviewed more than 200,000 applications and updates.”
The US telecom regulator FCC has been looking into why Apple rejected an Internet telephony application from Google for inclusion in its iPhone application store. Responses from Google, Apple and AT&T, the exclusive U.S. iPhone carrier, are due today.
Along with Google Voice’s consumer fans, the outcome of the inquiry will be closely watched by other Internet telephone services such as eBay’s Skype. Apple approved a Skype app for iPhone but consumers can only make Skype calls when they are connected to a short-range wi-fi network and not via the AT&T cellular network.
The head of another U.S. Internet telephony provider Vonage weighed in on the topic in an interview this week. Vonage plans to offer its own mobile communications application later this year.
Marc Lefar previously served as chief marketing officer of Cingular, now AT&T Mobility, where he helped put together the mobile operator’s iPhone deal with Apple, before becoming Vonage Chief Executive last year. Taking his previous experience in the wireless industry into acccount, Lefar said it was unclear to him why the Google Voice application was rejected for iPhone.
“These apps we’re talking about, to me … seem to be reasonable to allow, relative to the range of things that have already been put into the app store,” he said.
“I think its very hard to defend a unique service and to distinguish some services in the communications space (from) others if all they do is use software to be able to provide that service,” he said.
“We’re very interested to see what the FCC comes back with. We think the inquiry is completely appropriate,” he said.
So is Lefar worried Vonage’s app will also face a tough time getting approval?
“It’s not a concern,” he said “We understand what the competitive environment is and we think there’s ample opportunity to deliver software applications that deliver some of our services across a range of devices.”
“We go into this with our eyes wide open.” said Lefar but declined comment on specific devices.
After much speculation and guess-work, President-elect Barack Obama has chosen his former Harvard Law classmate Julian Genachoswski as nominee for chairman of the U.S. Federal Communications Commission.
Genachowski, who has been Obama’s technology advisor, had been on most people’s guess-list for a new “chief technology officer” post with the incoming administration — though some outlets had called it last week on his FCC appointment.
So who is Genachowski? Well, most outlets believe he should understand the future of media as he’s held several posts at Barry Diller’s Internet media business IACI and he’s previously been a chief counsel for former FCC Chairman Reed Hundt, the chairman under former President Bill Clinton.
That experience will help with two big upcoming Internet-related issues. The first is Obama’s ambitious plan to invest in broadband technology expansion as part of his economic stimulus package.
The second more challenging issue is Net neutrality, the idea of an open and level Internet for all players regardless of their size. The FCC chair will be trying to manage the expectations of Internet service providers, content companies and everyday consumers.
But top of the list of his Genachowski’s to-do list will be ensuring the congressionally mandated conversion to digital television on Feb. 17 goes smoothly. Obama aides have backed an idea to delay the planned transition to avoid millions of televisions going blank.
(Photo: Reuters)
Keep an eye:
Warner Bros. seeks 10 percent cost cut, could mean layoffs - (AP)
Monster.com is taking a humorous approach in a new ad campaign (NY Times)
Golden Globes gets smallest TV audience in years - (Reuters)
It's not every day that you have a top executive in big business talk about how nice it will be to see the back of the Bush administration. Republican presidencies typically tout their adherence to free markets, unbridled capitalism and, most importantly, a smaller pile of what corporations often consider burdensome regulations. That isn't what they usually expect from Democratic administrations, even ones led by Barack Obama.
That's why we thought it so interesting that Time Warner Cable's chief financial officer, Rob Marcus, is happy for some turnover at the Federal Communications Commission. It is the FCC, after all, that has to approve some key licenses for Time Warner Cable's split from its majority owner, Time Warner Inc. For some reason, the FCC can't seem to find room on its schedule to do that, and that seems to have irked Marcus. It is, after all, preventing the two companies from separating by the time Time Warner Cable said it would.
"There's nothing substantive that has currently arisen in connection with the FCC approval. They just haven't put it on the agenda," he told the Reuters Media Summit in New York on Monday.
The FCC has made no special demands, he said. Rather, it just hasn't seen fit. He did note that Chairman Kevin Martin, a Republican, seems to be the stick in the mud, but declined to talk more about why he thinks this.
So what is he looking for from a commission where three of its five members are selected by the upcoming Obama administration?
"We're looking forward to a little more rationality."
Federal regulators and U.S. lawmakers are trying every trick in the book from Web sites to road shows to make sure Americans know that the digital television transition is coming soon — which could mean those without cable or satellite would only see black unless they buy a new television set or get a converter box.
On Thursday the Federal Communications Commission decided to take their efforts one step further — to NASCAR. The agency plans to sponsor driver David Gilliland (car #38) for three races of the widely popular spectator sport.
“I believe this sponsorship is an extremely effective way for the FCC to raise DTV awareness among people of all ages and income levels across the United States who loyally follow one of the most popular sports in America,” said FCC Chairman Kevin Martin.
Another FCC commissioner, Robert McDowell, earlier this week warned that the transition will be messy and pressed broadcasters to step up their campaign to educate the public about the Feb. 17, 2009 switch to the higher quality signals.
Some 15 percent of U.S. households use only analog sets so they would have to buy a converter box or a new set. The Government Accountability Office has warned that regulators are unprepared for an expected surge in consumer demand for help when the transition arrives.
The government has offered $40 coupons to help consumers buy converter boxes but the GAO has said there is no plan to deal with the last-minute spike in demand for them.
The U.S. Federal Communications Commission today ordered the largest U.S. cable TV operator Comcast Corp to change how it manages its broadband network. The regulator concluded that some of Comcast’s tactics unreasonably restrict Internet users who share movies and other material.
The 3 to 2 decision supported by two Democrat commissioners and the Republican chairman, is precedent-setting. It could kick-start a long-simmering ‘net neutrality’ debate between advocates, who believe Internet access should always be open without interference, and some Internet service providers, who believe they should be allowed to manage Internet delivery in order to provide the best service to all users. The FCC seemed to support the former group.
“Subscribers should be able to go where they want, when they want, and generally use the Internet in any legal means,” FCC Chairman Kevin Martin said in a statement.
Here are some reactions:
We are disappointed in the Commission’s divided conclusion because we believe that our network management choices were reasonable, wholly consistent with industry practices and that we did not block access to web sites or online applications, including peer-to-peer services. We also believe that the Commission’s order raises significant due process concerns and a variety of substantive legal questions. We are considering all our legal options and are disappointed that the commission rejected our attempts to settle this issue without further delays.
Sena Fitzmaurice, Comcast senior director, Government Affairs
I believe today’s FCC action sends a strong message to the industry that the Commission intends to take Internet freedom principles seriously and will act to protect the integrity and openness of Internet commerce and communications. Vigilance by regulators and policymakers, coupled with a commitment to act when necessary, is vital to thwart the emergence of new bottlenecks to competition and innovation. I commend Chairman Martin, as well as Commissioners Copps and Adelstein, for their recognition of this fundamental tenet of realistic telecommunications policymaking.
Rep. Edward Markey (Democrat), chairman of the House Subcommittee on Telecommunications and the Internet.
Today’s order makes it clear that there is nothing reasonable about restricting access to online content or technologies. Moving forward, this bellwether case will send a strong signal to cable and phone companies that such violations will not be tolerated. But the fight is far from over. A duopoly market — where phone and cable companies control nearly 99 percent of high-speed connections — will not discipline itself. We look forward to working with the FCC and Congress to ensure proactive measures keep the Internet open and free of discrimination, and accessible to all Americans.
Josh Silver, executive director of Free Pres (Free Press was one of two parties that brought the complaint against Comcast)
No one has seriously questioned the right of network operators to reasonably manage their networks. They will continue to do so after this Order. But, there is nothing reasonable about the use of techniques that indiscriminately target applications or protocols, regardless of their use. This is something that anyone who cares about the free and open Internet should be concerned about. Equally important, all free markets require transparency in order to be effective.
Gilles BianRosa, Chief Executive Officer Vuze Inc. (Vuze was the other party to bring the complaint against Comcast)
There is no longer any doubt that ISPs have the right to use network management tools to address unlawful activity - including the theft of copyrighted music. We applaud Chairman Martin’s clear affirmation that ISPs may use technology to prevent the theft of copyrighted works. There is a crystallizing consensus among governments around the globe that ISPs should be taking affirmative steps to address piracy on their networks. It is our hope and expectation that ISPs here will accelerate their efforts to work with us to address online piracy.
Mitch Bainwol, Chairman of Recording Industry Association of America.
The FCC should be careful what they wish for. If network operators can’t manage traffic loads one way, they’ll need to do it another. By banning discrimination based on application or content, the FCC - and Net neutrality proponents more broadly - are pushing network operators closer and closer to what is increasingly their only viable alternative option - Usage Based Pricing. UBP might just be the best thing that ever happened to the network operator crowd. And it might be the worst thing that ever happened to applications and content.
The U.S. Federal Communications Commission is likely to vote today to uphold a network complaint against Comcast Corp, the largest U.S. cable television operator, which was accused of violating open-Internet principles by blocking peer-to-peer traffic on its network.
The FCC chairman Kevin Martin and two Democrat commissioners have already voted in favor of a reprimand, according to a source. That makes it three out of five votes and even following last-minute protests from the Bush administration officials and the top House Republican as this Wall Street Journal story says it’s likely to go through.
Comcast Chief Executive Brian Roberts spoke up in defense of his company’s network management practices at its quarterly annual meeting on Wednesday.
We disagree with the FCC’s apparent finding by three commissioners. We believe our network management choices were reasonable, consistent with industry practices and we have never blocked any websites or any applications as some of the articles have suggested.
FCC’s decision today could finally kick start the long-simmering ‘net neutrality’ debate. Comcast and other ISPs are not likely to walk away with their tails between their legs.
Keep an eye on:
Go for the fireworks, not the action at Yahoo’s annual meeting. (Reuters)
Ex AOL Chief Jon Miller: martial artist, venture capitalist. (LATimes)
Federal regulators have cleared the last remaining hurdle for Sirius Satellite Radio’s proposed acquisition of XM Satellite Radio Holdings, a deal that will combine rivals in the nascent U.S. pay-radio market.
The U.S. Federal Communications Commission reached an agreement to conditionally approve the deal on Thursday, four months after the Department of Justice gave its blessing, and 18 months after XM and Sirius agreed to combine. Experts say that new services from a combined company could come in a few months, but suggest their holiday subscription growth may be hurt by the delayed deal closing.
Here are are some important dates in the history of the satellite radio industry.
* Jan 2006 - Sirius starts broadcasts of Howard Stern.
* Feb 2007 - Sirius and XM propose merger; Deal requires approval of their respective shareholders, the U.S. Federal Communications Commission and the U.S. Justice Department. Sirius CEO Mel Karmazin to be CEO of new company, XM Chairman Gary Parson to become Chairman.
* July 2007 - CEO Hugh Panero says he is stepping down in August; COO Nate Davis to become Interim CEO.
* Mar 2008 - The Justice Department approves the deal.
* June 16, 2008 - FCC Chairman Kevin Martin announced his recommendation to approve the merger with conditions.
* June 30, 2008 - Sirius ends the second quarter with 8.9 million subscribers, up 25 percent from a year earlier. XM had 9.65 million subscribers at the end of June, up 17 percent from a year earlier.
* July 25, 2008 - FCC Commissioners approve the deal with conditions, clearing the way for a deal that will leave just one U.S. satellite radio service. Analysts expect the deal to close within days or weeks of the regulatory approval.
(Sources: XM, Sirius, Hoover’s, Reuters)
(Top picture: A Russian Proton with a satellite for Sirius Satellite Radio is lifted into place at its launching pad at the Baikonur Cosmodrome, Kazakhstan, on September 1, 2000, while (L to R) Bob Prevaux, Program Director for Space Systems Loral talks with Rob Briskman, Executive Vice President for Sirius Satellite Radio and Ted Sitek, Mission Manager for International Launch Services. (Reuters/Karl Ronstrom))
If it wasn’t sufficiently clear that Ford is paying for those Mustangs on TV, or who’s supplying all that Coca-Cola to the American Idol judges, the Federal Communications Commission may make everyone involved in this obfuscation ‘fess up.
According to the Wall Street Journal, the FCC is expected to launch a formal proceeding this week to consider rules for proper disclosure of what the industry calls product placement: the frequently annoying inclusion of brand names into scripts for TV shows, movies and, according to some, novels.
Some ideas under consideration include requiring TV shows to put up a notice similar to the ones used by political candidates in their campaign ads. The Journal says U.S. advertisers, who are already shelling out several billion dollars a year on these stealth ads, are opposed to the idea.
We can’t help but question whether such notices would effectively become a second plug for a product, at least in the minds of consumers. Or does the explicitness of it all reduce any potential “cool” factor of having your vacuum cleaner featured in a Saturday Night Live skit?
Keep an eye on:
Beatles representatives are in talks with both Activision and MTV Games to create a Beatles-themed video game in a move that could pave the way for a broader licensing of the Fab Four’s catalogue. (Financial Times)
MySpace is STILL worth more than Facebook, according to a TechCrunch analysis.
Oh, and even more executives have defected from Yahoo than even they originally thought. (TechCrunch)
The growing influence of the Web to distribute news, video and other content, combined with the lingering economic malaise, have left many media executives and investors uncertain about where to make their next bets. Full Article
As U.S. consumers compile their holiday shopping lists, Motorola's Droid smartphone is expected to feature prominently, at the expense of the Pre and BlackBerry. Full Article
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Newspaper advertising is a joke, local TV stations are struggling to get ads of their own, journalists are losing their jobs and media executives are calling 25 percent revenue declines an improvement. It sounds like something might be amiss in the U.S. media world.
