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MASS MEDIA MOST GENEROUS TO POLITICAL CAMPAIGNS

Content is king, at least when it comes to political donations. The content industry -- broadcasting, cable, satellite, movies and music -- is the leading communications sector in campaign donations in the 2004 election cycle, according to Federal Election Commission records. The computer and Internet sector is closing fast, however, trailed by the separate sectors of telecom utilities and manufacturers. Together these 4 sectors comprise most of the $53.4 million the communications industry has given this election cycle through July 5, according to data compiled by the Center for Responsive Politics.

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Mass media companies have given $17.5 million this cycle, less than 1/2 the $40 million given in 2002 and $38 million given in 2000. The decrease has come as the Bipartisan Campaign Reform Act (BCRA) has banned soft-money donations, traditionally 1/2 of all giving by communications companies. Most of this cycle’s contributions ($14.2 million) have been in the form of individual donations, which now are capped at $2,000 per candidate in the primaries, with another $2,000 permitted in the general election. A fraction of mass media money, $3.3 million, has come from political action committees (PACs). Just under 2/3 of the donations, $11.5 million, have gone to Democrats, traditionally popular among Hollywood donors.

Time Warner has been the largest mass media donor at $1.53 million, 72% to Democrats. Next are Viacom ($819,264, 74% to Democrats), Comcast ($690,477, 55% to Republicans), NCTA ($628,696, 52% to Republicans) and Disney ($620,435, 67% to Democrats). Others in the top 20 favoring Democrats were GE (71%), News Corp. (58%), Sony (69%), Cablevision Systems (64%), Yes Network (100%), Dreamworks (94%), Saban Capital Group (97%) and ASCAP (69%). Those favoring the GOP included Clear Channel (70%), NAB (61%) and Univision (63%). MPAA has divided its $122,802 fairly evenly between the parties.

Sen. Kerry (D-Mass.) and his Presidential campaign received the most mass media dollars, $1.92 million. President Bush has received $1.1 million. Three failed Democratic Presidential hopefuls rounded out the top 5 recipients -- former Vt. Gov. Howard Dean ($702,688), retired U.S. Army Gen. Wesley Clark ($498,600) and retiring Rep. Gephardt ($431,481). Other than Bush, only 2 Republicans made the top 20. Both are moderates: Senate Commerce Committee Chmn. McCain (Ariz.) and Sen. Specter (Pa.), who weathered a tough primary fight against a conservative opponent. More GOP senators (42) than Democrats (37) received mass media donations. But those Republicans had to share $805,763, while Democrats received $4.3 million. In the House, there were again more Republican recipients (191) than Democrats (168), but the Republicans have received $1.5 million vs. $2 million for the Democrats.

The computer and Internet sector has rivaled mass media in recent election cycles in giving, but it also is down in giving for the 2004 cycle. The industry so far has given $14.8 million, down from $26.7 million for the full 2002 cycle and $39.6 million for 2000. Most of the current giving ($11.6 million) is from individuals. Unlike the mass media sector, which favors Democrats, or telecom, which favors Republicans, the computer and Internet sector balances donations. This cycle 51% has gone to Republicans. In 2002 Republicans received 52%, and in 2000 Democrats received 51%.

Microsoft is the largest donor in the entire communications industry with $1.9 million, 61% of that to Democrats. Following Microsoft among computer companies are Cisco Systems ($488,642, 53% to Democrats), Intel ($336,724, evenly divided), IBM ($331,159, 65% to Democrats) and EDS ($298,571, 74% to Republicans). Other high tech companies favoring Republicans include Siebel Systems (63%), EMC Corp. (88%), Dell (74%), Yahoo (68%) and Gateway (64%). Democrats were favored by eBay (54%), Hewlett-Packard (57%), Sun Microsystems (67%) and Oracle (63%).

Bush led recipients from this sector with $1.59 million, with Kerry 2nd at $1.23 million. Dean ($473,266), Clark ($182,876), Gephardt ($120,850) and another failed Democratic presidential hopeful, Sen. Lieberman (Conn.) ($211,120) followed. Only 6 of the top 20 recipients were Republicans. Along with Bush, high tech gave to Republicans Specter, House Govt. Reform Committee Chmn. Davis (Va.), Senate Banking Committee Chmn. Shelby (Ala.), Senate Republican High-Tech Task Force leader Ensign (Nev.) and Rep. Nethercutt (Wash.), who’s running for Senate. Spending in Congress was pretty even. In the Senate, 40 Democrats received $1.4 million, while 39 Republicans received $1.2 million. High-tech gave 185 Republicans $1.5 million, and 170 Democrats $1.9 million.

Telecom is divided in this compilation into 2 categories, (1) utilities, including ILECs and CLECs, and (2) equipment manufacturers and wireless companies and satellite operators. The utilities have given $5.8 million this cycle, but unlike mass media or computer donors, most ($4.2 million) has been from PACs. This cycle’s giving is down significantly from 2002’s $16.7 million or 2000’s $1.9 million. Donations are heavily skewed to the GOP (61%), about the same ratio as the past 2 election cycles.

Bells make up the top 3 donors and CLECs the next 3. SBC has given $1.66 million (66% to Republicans), BellSouth $1.03 million (58% to Republicans) and Verizon $925,794 (63% to Republicans). AT&T is 4th at $481,628 (55% to Republicans), followed by MCI with $391,350 (55% to Democrats) and Sprint with $369,950 (62% to Republicans). Others favoring the GOP were USTA (66%), Time Warner Telecom (62%) and Cincinnati Bell (100%). Democrats were favored by CenturyTel (65%) and Telephone USA (100%). Three donors were fairly balanced in giving, NTCA (52% to Republicans, 48% to Democrats), CompTel (53% to Democrats, 47% to Republicans) and Allegiance Telecom (52% to Republicans, 47% to Democrats).

Bush dwarfed all other recipients from telecom utilities with $458,530, with Senate Minority Leader Daschle (D-S.D.) a distant 2nd at $78,800. Kerry was 3rd at $74,500. The large amount of money to Bush skews utilities donations to the GOP, but congressional giving is more balanced. Ten Democrats and 11 Republicans make up the top 20 list (there’s a tie for 20th). The politician receiving the most utilities PAC money was House Telecom Subcommittee ranking Democrat Markey (D- Mass.), $45,500. In the Senate, 41 Republicans received $439,895 and 35 Democrats shared $512,464. In the House, 209 Republicans were given $1.88 million vs. 186 Democrats receiving $1.16 million.

The telecom service and equipment sector -- which includes cellular networks and satellites -- was the smallest sector. It has traditionally been led by Loral Chmn. Bernard Schwartz, who has donated millions in recent years. This cycle the sector has given $4.5 million, about 1/2 each from individuals and from PACs. That’s down dramatically from $13 million in 2002 and $18.2 million in 2000. About 55% in the 2004 cycle has gone to Republicans -- a shift from the last 2 cycles, when Democrats were favored by about 10 percentage points. One factor in that shift: Schwartz can no longer give soft-money donations to his favorite Democrats.

Schwartz’s Loral was the largest giver in 2002 at $2.4 million and trailed only Global Crossing in 2000 with $1.5 million. In 2002, 99% of Loral’s money went to Democrats, 98% in 2000. But in the 2004 cycle Loral has dropped to 4th with a mere $237,100; Democrats are still favored, receiving 93% of the hard-money donations. Qwest leads the way this cycle with $527,610, 63% to Republicans (CRP doesn’t classify Qwest as a utility). EchoStar was 2nd with $260,000 (51% to Republicans), followed by Qualcomm at No. 3 with $250,833 (60% to Democrats) and Motorola with $209,354 (68% to Republicans). Among those favoring Republicans were Cingular (60%), CTIA (59%), AT&T Wireless (54%), Corning (69%), Alltel (69%), Lucent (57%), Western Wireless (74%), T-Mobile (53%) and Avaya (54%). Democrats received more donations from Level 3 (68%) and Nortel Networks (56%).

Bush was the runaway leader in this category, too, receiving $278,424, compared to 2nd place Kerry at $181,790. Sen. Wyden (D-Ore.) ($93,650), Daschle ($82,255) and former House Commerce Committee Vice Chmn. Burr (R-N.C.) ($53,781) round out the top 5. The top 20 is evenly divided between the parties. Markey tops the list for PAC recipients in this category as well, with $47,500. Fewer overall Senate and House candidates received donations from this sector. Overall, 37 Senate Republican candidates received $438,537, while 32 Democrats shared $794,895. In the House, 166 Republicans received $903,626, while 123 Democrats received $537,996.