Some 5.6 million telephone subscribers in 13 states have made clear their wish not to receive calls from telemarketers by placing their home phone numbers on state “no-call” telemarketing lists. Wis. last week became 14th state to enact statewide no- call list law, while similar bills in Cal. and Mich. have advanced out of their chamber of origin and are pending in opposite chamber’s committees.
Employment in TV station newsrooms reached record 35,061 in 2000, up 45% from 1994, according to survey for RTNDA by Robert Papper and Michael Gerhard of Ball State U. In direct contrast, in same period typical radio newsroom staffs fell to 1.95 persons from 4.5. Nonnetwork affiliated TV stations showed largest gain in newsrooms since 1994, with employees increasing 157.9%, while affiliates showed only 28.9% gain. In 1999-2000 span, 38% of TV newsrooms showed increase in staffers, 25% had decrease and 37% remained same, survey said. In same year, radio news staffs remained same at 66% of stations, while 25% had increase and 9% had decrease or weren’t sure. Survey was conducted in 4th quarter of 2000, using questionnaires sent to all 1,387 commercial, nonsatellite TV stations and random sample of 1,193 radio stations. RTNDA expressed doubt “whether these strong employment numbers hold [in 2001]” in light of “economic tightening,” with most of economy fall-off occurring since TV stations filled out questionnaire last fall.
FCC rejected complaint by Paxson Chicago License Inc. that sought to compel cable operators to replace analog service with digital. Commission affirmed FCC Cable Bureau ruling that TV stations that broadcast in both analog and digital, such as Paxson’s WCPX (Ch. 38, Chicago) couldn’t assert digital carriage rights until issue had been resolved by pending proceeding. AT&T Broadband opposed Paxson on issue. Cable Bureau is examining responses from cable operators to voluntary survey on channel capacity. Commission said that although must-carry issue was pending, no current rule entitled TV stations to mandatory carriage of both analog and digital signals or entitled stations broadcasting in both to elect mandatory carriage of digital content. “While we commend those broadcasters already on the air with digital television… we have no basis for concluding that the statute requires dual carriage,” ruling said.
When broadband deployment began to accelerate in late 1990s, market research companies flooded market with predictions promising dramatic growth for DSL but cooling in popularity of cable modem offerings. Some analysts forecast number of DSL subscribers would be twice as high as it actually is today. Others thought DSL would gain lead over cable by 2001, although cable modem subscribers still outnumber DSL subscribers by 2 to 1. In our examination of accuracy of market research studies in period (CD Aug 14 p4, Aug 13 p1), we encountered many explanations from analysts as to where their predictions went wrong but found little acknowledgment of any fundamental problems. One analyst claimed 34% error was “slight,” while another said no one could be expected to accurately predict deployment rate of new technology, even though his company and others sold their projections for up to $3,500 and more and rely on them to generate consulting relationships.
EchoStar CEO Charles Ergen continued to face questions Mon. about his company’s ability to get regulatory approval for its $32 billion bid for Hughes Electronics, including DirecTV. If accepted, offer would reduce number of multichannel TV competitors in most local markets to 2 from current 3 -- 2 DBS providers plus cable. Hughes officials had no comment.
Stacy Robinson, ex-Skadden, Arps, Slate, Meagher & Flom, named mass media adviser to FCC Comr. Abernathy… George Watson retires after 38 years with ABC News, including post of vp- Washington bureau chief… Rebecca Marks promoted to senior vp, NBC Entertainment Publicity, West Coast, succeeding Shirley Powell, now with Turner Bcstg… Changes at DirecTV: Bill Casamo resigns as exec. vp-sales and mktg. and pres.-merchandising; Larry Chapman named acting exec. vp-mktg. and advertising; Bob Meyers, exec. vp-CFO, named acting exec. vp-customer satisfaction… Eric Zahler, pres.-COO, Loral Space & Communications, elected to board.
House Internet Caucus Co-Chmn. Boucher (D-Va.) Thurs. vowed to introduce updated version of broadband open access bill that languished last year in House Judiciary Committee. Open access legislation “is still necessary, perhaps more necessary than ever,” Boucher said in wake of 4th U.S. Appeals Court, Richmond, Va., ruling that affirmed states had no authority to impose open access (see separate story, this issue). Boucher spoke at 3rd Congressional Internet Caucus lunch this year on broadband, and his approach was endorsed by Simon Strategies Pres. Greg Simon and Consumers Union Washington Office Co-Dir. Gene Kimmelman. But lunch also had opponents of open access, as well as some divided opinions on merits of tax credits to spur broadband deployment. Meanwhile, 3 American Enterprise Institute (AEI) scholars took 3 different approaches to broadband policy, specifically Bell- friendly HR-1542, at an AEI forum Thurs. Diversity of opinions reflected stubborn broadband policy divide that has prevented passage of legislation.
Verizon cut Del. rates $430,000 as annual adjustment under Del. price cap indexing formula. It reduced residential Touch- Tone to 38 cents monthly from 42 cents and eliminated business Touch-Tone charges altogether. It also cut intrastate access charges slightly. Rate changes will show up on bills for July. This is 4th straight year that cap adjustment produced rate cuts. This adjustment brings total reductions to $3.3 million since 1998.
TV and radio ads and direct mail made up largest percentage (38%) of soft money political expenditures in 2000, while percentage of total expenditures for party-building activities (8.3%) ranked fifth, according to Brennan Center study. Despite “scare tactics” of antireformers, who claim that proposed restrictions on soft money would gut party spending, analysis indicated that drop in funds devoted to party-building efforts had “coincided” with rise in electioneering issue ad expenditures. For example, soft money spending between 1992 and 2000 increased to $487.5 million from $86.1 million while party spending on issue ads “skyrocketed” to 52% from 3% of soft money expenditures as state party expenditures on party building dropped to 10% from 14%, Center’s Democracy Program Dir. Nancy Northrup said: “Soft money ushered in the era of political party as TV ad producer. Closing the soft money loophole will refocus parties on the activities for which they are uniquely equipped, [such as] voter registration and get-out-the-vote drives, broad message development and agenda setting.” Legislation (S-27) by Sens. McCain (R-Ariz.) and Feingold (D-Wis.), which Senate passed earlier this year, and recently reintroduced bill (HR-2356) by Reps. Shays (R-Conn.) and Meehan (D-Mass.), would shut that loophole, she said. Spokeswoman told us that Center had plans to publish book that would integrate current findings with joint research (CD March 22 p2) that Center and U. of Wis. performed earlier this year. Study showed that: (1) 99.8% of party- sponsored ads funded with soft money mentioned candidates while only 8% mentioned parties. (2) Corporations and unions helped fund those ads, which advocated defeat or election of candidates, despite federal prohibition against such organizations’ attempting to influence elections. (3) More than half (54%) of ads purchased by parties in last 2 months of election season were attack ads.
American Tower issued warning on its expected 2nd quarter net loss per common share, indicating it was likely to hit range of 52-58 cents compared with guidance of 38-45 cents in March. American Tower, which has 14,000 tower sites, also said it planned to take “impairment charge” on its $22 million investment in US Wireless. US Wireless develops technology for Enhanced 911 solutions and American Tower is only preferred stockholder in company. Drop in US Wireless market valuation “appears to be other than temporary,” American Tower said. It also revised revenue outlook in 2nd quarter for Verestar, subsidiary that connects satellite and terrestrial networks. In May, American Tower said it expected 2nd quarter revenue for that unit to hit $68-$73 million range but revised that Thurs. to $56-$58 million. American Tower attributed downward projections to difficulties Verestar had faced in integrating new acquisitions and new hardware problems. Company also cited “a slowing in demand in specific business segments and geographics.” American Tower Chmn. Steve Dodge said he expected Verestar to return to positive cash flow in 3rd quarter. American Tower affirmed revenue projection of $25-$27 million for 2nd quarter.