Media Notebook (Nov 15, 2007)

Collected and Edited by Rick Kaempfer






Highlights and links to the big stories in the news this week about the media. This column appears twice a week at http://medianotebook.blogspot.com

Report: Martin Seeks to Modify Cross-Ownership Ban
(Radio Online) In an opinion article published by the New York Times, FCC Chairman Kevin J. Martin says the Commission should modify only one of the four rules under review -- the cross-ownership ban that bars ownership of both a newspaper and a broadcast TV or radio outlet in a single market. He feels the rule should be modified only for top 20 markets, while all other ownership rules should stay the same. Martin makes the point that in "many towns and cities, the newspaper is an endangered species" and he notes that at least 300 daily papers have stopped publishing over the past 30 years. "Those newspapers that have survived are struggling financially," he wrote, adding "Newspaper circulation has declined steadily for more than 10 years. Average daily circulation is down 2.6% in the last six months alone." He proposes that a company that owns a newspaper in one of the 20 largest cities should be permitted to purchase a broadcast outlet in the same market. But a newspaper would be prohibited from buying one of the top four TV stations in its community, and each must keep its editorial independence. Martin says that newspapers have been hurt by significant cuts in ad revenue, and he feels if the agency doesn't act to improve the health of the newspaper industry, "we will see newspapers wither and die. Without newspapers, we would be less informed about our communities and have fewer outlets for the expression of independent thinking and a diversity of viewpoints," Martin concludes.


Rick's analysis of new FCC proposal (from above story): I'm not sure I follow the logic here. The FCC is stepping in because the only thing that will save newspapers is buying broadcast outlets? That's just ridiculous. This is to save the companies that have already done so. I know the Tribune is in trouble, but let's be honest, those are self inflicted wounds. They bought those broadcast outlets in flagrant violation of the rules, hoping the FCC would change them. On the other hand, the people that made that fatal mistake have already parachuted out of the Tribune with millions of dollars in their personal accounts. The Tribune employees own the company now, and I do have some sympathy for their plight. Keep reading. Other people don't...


Martin Plan 'A Wolf In Sheep's Clothing'
(Radio Ink) The two Democratic FCC commissioners speak up... "This is portrayed as a moderate proposal, but it is a wolf in sheep's clothing," said FCC Commissioners Michael Copps and Jonathan Adelstein in a joint statement about FCC Chairman Kevin Martin's proposed revision to the media-ownership rules. "Don't let the wool be pulled over your eyes." Martin's proposal would lift the broadcast-newspaper cross-ownership ban in the top 20 markets if certain conditions are met and if the single TV station allowed in any proposed combination is not rated in the top four. But Copps and Adelstein say, "The proposal could repeal the ban in every market in America, not just the top 20. Any city, no matter how small, could be subjected to newspaper-broadcast ownership combinations under a very loose standard." And even as it stands, they say, "The top 20 markets account for over 43 percent of U.S households. Even on its face, this proposal directly affects over 120 million Americans." Copps and Adelstein complain about how easy it will be for media companies to obtain waivers in smaller markets, adding that the lower-rated stations covered in the plan are those most likely to be independently owned and the most accessible to minorities and women trying to enter the industry. "Chairman Martin's rule pretty much reserves these outlets for the big guys," say the Commissioners.


Dorgan Vows To Stop Martin's 'Rush To Judgment'
(Radio Ink) Senators of both parties don't seem to be buying it either..."Sen. Byron Dorgan (D-ND) said FCC Chairman Kevin Martin's proposal to lift the broadcast-newspaper cross-ownership ban in the top 20 markets under certain conditions "only adds a greater sense of urgency" to Dorgan's and Sen. Trent Lott's (R-MS) efforts to pass a law delaying any changes to the media-ownership rules. "[Martin] is specifically proposing to allow further concentration in the top 20 markets in the U.S., allowing the newspaper and a broadcast television station to be owned by the same company," Dorgan said. "But he has yet to make the case for why any further media consolidation is necessary." Dorgan said Martin is "relying on an assumption that newspapers are doomed," adding, "I believe this is not the case. He has also failed to make the case that cross-ownership will be beneficial to local communities -- that requires an understanding of how ownership affects local coverage." Dorgan continued, "Sen. Lott and I have introduced legislation that would address Chairman Martin's rush to judgment on this question. We believe it is important that the public is heard and that facts guide these decisions. The proposal from Chairman Martin today only adds a greater sense of urgency to our effort to enact our legislation."

And if you want a really good laugh, read the comments of Mel Karmazin in the Tribune this past weekend. This is the man, who more than anyone else in the country, pushed for the last deregulation. Read what he says now.

Mel Karmazin: "Nobody ever asked me if it was good for consumers."
(Chicago Tribune) Phil Rosenthal spoke with Mel Karmazin. He writes: "While he was an advocate of radio consolidation that followed the Telecommunications Act of 1996 -- 'Strictly for business reasons. No one asked me if it was good for consumers' -- he blames then-rival Clear Channel for changing the business by clustering station management and sales, which would become the industry standard. 'It totally homogenized radio ... and, surprise, surprise, the revenue was affected,' Karmazin said. 'That's why you're seeing terrestrial radio not growing. It's very similar, pardon the expression, to the newspaper business. It's a very good business. It throws off a lot of cash. But it's not growing ... and once it's not growing, then they started cutting costs and letting Howard Stern and other talent get away.'"


In other media news....


Imus is back
(NY Observer) Felix Gillette writes: "Redemption! Since the dark days of April, Mr. Imus, 67--a denizen of Central Park West, and one of the paradigmatic radio heroes of the 90’s--has accomplished the beginnings of a media resurrection. Last month, he siged a 5-year deal with Citadel Broadcasting, through which he’ll return to the radio on December 3rd, as the host of a morning drive time show on the company’s WABC, the top-ranked AM radio station in New York City. The agreement, which will end Mr. Imus’ six-month sabbatical, is reportedly worth between $5 and 8 million annually—a pay-cut from Mr. Imus’ $10 million annual salary at CBS."


Judith Regan sues Rupert Murdoch's News Corp
(The Smoking Gun) Judith Regan, the volcanic publishing industry figure who sought to publish O.J. Simpson's "I Did It" (and trysted with Bernard Kerik in an apartment overlooking Ground Zero) today sued Rupert Murdoch's media conglomerate for defamation, claiming that she was unjustly tarred as an anti-Semite when fired last year. In a blistering $100 million lawsuit filed today in New York State Supreme Court, Regan, 54, accuses several defendants, including Murdoch's News Corporation and HarperCollins Publishers, of orchestrating a smear campaign that was intended to advance the Murdoch political agenda and protect "Rudy Giuliani's presidential ambitions."


An interview with Melissa Forman
(Chicago Radio Spotlight) This past weekend I interviewed the morning and afternoon personality at WLIT-FM, Melissa Forman. She talked about her unusual dual role, the unusual circumstances about her return to the morning show, and offers excellent advice to broadcasters about the value of leaving a job graciously. This coming weekend: an interview with Roe Conn of WLS.


Funniest AP retraction/correction ever
GAUHATI, India (AP) - In a Nov. 13 story, The Associated Press incorrectly reported that Paris Hilton was praised by conservationists for highlighting the problem of binge-drinking elephants in northeastern India. Lori Berk, a publicist for Hilton, said she never made any comments about helping drunken elephants in India.


Screenwriters seek bigger slice of half-eaten pie
(NY Times) Michael Cieply writes: "As Hollywood digs in for a second week of a strike, the screenwriters might want to send a few angry picketers over to Will Smith’s place. Or Steven Spielberg’s. And maybe the studio executives should think about joining them on the line. As it turns out, the pot of money that the producers and writers are fighting over may have already been pocketed by the entertainment industry’s biggest talent. That is the conclusion of a surprisingly bleak new assessment of financial dynamics in the movie industry titled “Do Movies Make Money?” The researchers’ answer: not any more. The report, prepared by the research company Global Media Intelligence in association with its partner Merrill Lynch, concludes that much of the income — past and future — that studios and writers have been fighting about has already gone to the biggest stars, directors and producers in the form of ballooning participation deals. A participation is a share in the gross revenue, not the profit, of a movie."


CBS newswriters mull strike, ABC showdown looms
(Broadcasting & Cable) Marissa Guthrie writes: "While thousands of drama and comedy writers hit the picket lines in New York and Los Angeles this past week, 500 employees at CBS News represented by the Writers Guild of America East were preparing to take a strike vote of their own. News writers for CBS News TV and radio operations in New York, Chicago, Washington, D.C., and Los Angeles have been working without a contract since April 2005. Members overwhelmingly rejected the company’s contract proposal in November 2006. On Thursday, Guild employees will vote on whether to authorize a strike, and WGA leadership predicted a landslide on that ballot, as well. An affirmative strike vote doesn’t mean that CBS News employees will strike -- only that they authorize their leadership to call a strike...A labor stoppage on the news side could not come at a worse time for CBS, which, like ABC and NBC, will rely increasingly on its news division to fill schedule holes left by the WGA work stoppage on the entertainment side. There is also a showdown brewing at ABC News, where the WGA represents about 200 people at ABC’s local and national bureaus in New York and Washington. WGA members at ABC News also have been working without a contract since 2005."


New way of counting radio ratings may decrease ad income
(New York Times) Brian Stelter writes: "The test of a new method for measuring radio audience in New York showed big ratings declines for stations appealing to blacks and Hispanics last week, causing considerable consternation among station owners and programmers. Arbitron, which measures ratings for the radio industry, has been testing a new electronic measurement tool that monitors exposure to radio stations throughout the day. The results of the so-called personal people meter in New York followed the pattern set by two earlier tests, in Houston and Philadelphia, in which stations appealing to minorities also fell." (Rick's note: This ratings method is coming to Chicago in '08)


Martha Raddatz, putting herself in the thick of things
(Washington Post) Howard Kurtz writes: "ABC's Martha Raddatz was taping a stand-up report in Islamabad last week when a Pakistani police officer grabbed the arm of a top lawyer organizing anti-government protests and began leading him away. When Raddatz walked over to investigate, the officer dropped the man's arm and police insisted that he was not being detained. Raddatz has a knack for showing up at the right moment. Although she is a White House correspondent, she has also made 14 trips to Iraq, the last of which coincided with a secret visit by President Bush. Last week Raddatz was making a stop in Pakistan on the way to Afghanistan with a top U.S. military official, but decided to stay behind when it became clear that President Pervez Musharraf was about to impose a state of emergency. 'She's just gritty, without sacrificing any femininity -- more comfortable in fatigues than in mufti,' says ABC anchor Charlie Gibson. 'She really is a wonderful hybrid correspondent. She brings a sensibility and sensitivity to these [Middle East] issues that is tough for a male correspondent to match. . . . One thing I believe in most is original reporting, and she does a lot of it.'"






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