Category: cable TV

The Adelphia Cable and Bank Settlement: Illustrating the Big Media/Telecom/Banking Nexus

Even though investment banks knew that former Adelphia exec’s–primarily the Rigas family–were using the cable giant as a personal “ATM machine”–they kept lending it money. Now, 39 banks (and the Deloitte & Touche auditing firm) have settled a bankruptcy-related lawsuit with investors–to the tune of $455 million. Neither the banks nor Deloitte admitted wrongdoing. But Citigroup, JPMorganChase, Wachovia, Bank of America and so many others have agreed to pay. The settlement, btw, is just a fraction of what investors say they lost from the cable industry shenanigans of the former Adelphia management. But so eager to make transaction fees and so sure that Adelphia’s cable subscribers would ultimately have to foot any red-ink, the banks kept lending and lending [according to the unsecured creditors complaint]. But we want to make a related point. Wall Street has helped fuel a conglomerated media and telecom culture–despite negative consequences to our democracy. Investment banks have too often operated in a self-serving and short-term focused manner when it comes to communications, We think it has had particularly negative consequences to both journalism and civic discourse. Reading the original complaint and related documents would be a perfect way to start thinking about what should be done to better protect the public.

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Online Ad and Data Collection Watch

My group has launched a new project to keep the public better informed about the latest threats to our privacy. Click here to visit Online AdWatch. It will regularly highlight new developments in the interactive ad marketplace across the PC, mobile, and digital TV platforms. Send me your favorite examples of technologies, applications and market strategies that should be included.

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NetCompetition.Org: They Have Drunk Too Much Cable/Telco Lobby Kool-Aid

We hate to focus too much on this Telco-Cable industry funded lobbying effort. But its latest [9/29] self-heralded “one-pager” attacking network neutrality proponents requires a response (we admit we may have come down with a Sen. Stevens form of `fetish’ about this lobbying site). Netcompetition’s analysis comes from a naive view of the realities of the broadband market. The paper paints a glowing picture of what it believes is emerging broadband competition. Hence, with such prospective abundance of networks and content likely, it argues that the country ignore the calls for safeguards coming from net neutrality supporters. We are, suggests Scott Cleland, experiencing “unfounded pessimism and fear about the future of broadband…”

First, we have to say that history is on our side. Despite all the talk and proclamations about bypass and competition—we haven’t had much in the multichannel and telecom sector. It’s been a sad story of consolidation and broken promises. Two, Mr. Cleland is ignoring the powerful triple/quad play now being deployed by his funders. Their networks—and content applications and partnerships—will dominate our TV, PC, and mobile experience for many years. The current state of broadband concentration–along with the emerging marketplace conditions–should be unthinkable in a democracy. Two companies control the cable industry; two will dominate the telephone market. Already, old media incumbents are swallowing new players—such as the News Corp. takeover of MySpace. There is tremendous consolidation throughout the digital content marketplace.

Hey Netcompetition. Your argument that just over the hill our digital media system is awash in a Wizard of Oz golden glow doesn’t cut it. We need safeguards now.

It’s not pessimism, but honest realism with an eye on the needs of our democracy. That’s a currency in too short supply in the nation’s capital.

Shame on the GOP and Dems in California: Gutting Community Oversight of Broadband

If we ever needed evidence about how both major political parties are in the pocket of the telecommunications industry’s very deep pockets, all we need to do is look at California. The new cable law kills the historic and critical role local governments have played in ensuring cable systems are held accountable and required to do public service. Now all franchising (the licensing of cable systems) will be governed by a single statewide agreement. Doling out these “one-size fits all, lowest common denominator” deals will be the feckless Public Utility Commission.

Democratic honcho Fabian Nunez, the Speaker of the Assembly, concocted the new law. Yesterday, GOP Gov. Arnold Schwarzenegger signed it. According to the Los Angeles Times, “AT&T spent $18 million through June lobbying and running television and full-page newspaper ads urging consumers to support the Nuñez bill — and then to thank Nuñez after it passed the Legislature.” [registration required]

The argument that Nunez and his Verizon and AT&T pals made to pass the bill was that only by gutting local oversight could California see cable competition. Boy, these folks should be ashamed. They have removed the key mechanism designed to ensure broadband networks serve local needs. There won’t be any serious competition—in either price or content. Just a few extra giants who are now free to run roughshod over both the cable TV and broadband business.

But money and power talks—and Nunez, Schwarzenegger and company played ball. Both parties in California have helped turn over a sizeable part of the country’s broadband resources to the very same interests which eliminated network neutrality.

PS: We note in the Los Angeles Times story the generally approving comments for the bill from USC’s Jeff Cole, the executive director of its Center for the Digital Future. Cole should have said [and the reporter should have identified if he did] that his center’s “Board of Governors” includes executives from AT&T (and other interests that supported the bill). As I said, money talks—with policymakers and too many “educational” institutions.

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Glover Park Group—Rupert Murdoch’s Flack Comes Out Against Open Net/ Sen. Stevens Uses Stealth Verizon-Paid Poll to Undermine Public Interest

The folks at the Glover Park Group—who last year helped conduct a stealth campaign to aid Rupert Murdoch—are now assisting Sen. Ted Stevens wreck the U.S. electronic media system. Stevens’ Commerce Committee released a poll yesterday slamming “onerous Net Neutrality regulations.” The Verizon-paid for poll illustrates how desperate Sen. Stevens and his phone/cable monopoly allies are (nothing about Verizon’s sponsorship is cited in the release or the poll—something the Commerce Committee should apologize to the public for).

Stevens and company can’t really speak about the substantive issues involving Internet Freedom—because they lose. So Stevens and allies now appear to be hanging their argument supporting a closed Internet on a poll finding that only “very few registered voters are familiar with the issue of network neutrality.” As if the lack of public awareness about an important policy issue means something is wrong with it! Hello. Has the Senator been swallowing those tubes, instead of using them to get his talking points from the Glover Park Group flackery shop?

Now, to the “bipartisan” Glover Park Group (which did the poll with Public Opinion Strategies). Aren’t we tired of Democrats who take the big bucks and the public interest be damned? This poll was written to help phone companies scuttle policies designed to provide community oversight of electronic media. The poll should come with a warning: “this is a political tool.” That Stevens, Glover Park, and Public Opinion would hold it up as some objective measure is a sad joke. It’s a lobbying love letter for Verizon, AT&T, BellSouth and the USTA. It asks questions about network neutrality purposely designed to undermine it as an issue. Perhaps that’s why the poll doesn’t reveal who funded it. Such well-known Democratic operatives as Howard Wolfson, Joe Lockhart, and Carter Eskew run Glover Park. In 2005, the group helped Rupert Murdoch organize a campaign designed to keep bringing in extra cash for his Fox TV empire. Press reports say they also have worked for big cable companies as well.

By helping the phone lobby create a closed Internet, the Glover Park Group is undermining the country’s democracy. What great credentials alongside working for Fox.

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Democrats Wrong to Ask that 9/11 TV Movie Be Kept “Off The Air”—But They Should Be Asking Hard Questions About the Lack of Quality News and Entertainment and Media Policies

We don’t agree with the drumbeat coming from Democrats and others that this weekend’s Disney/ABC TV movie be pulled. Censoring such content is unhealthy in a democracy. ABC cannot afford to buckle under from Dem critics. The Dems pressure campaign, while helping to bring about some (much needed) editorial changes, appears self-serving. The Clinton Administration does bear some responsibility for the country’s lack of understanding about the rising tide of anger against the U.S. from abroad. The Clinton folks weren’t saints. Think what they did to the poor with welfare reform; how their egos bungled getting us national health care; or how they hailed the passage of the lobbyist-written (and media concentration giving) 1996 Telecommunications Act.

Democrats, by the way, were openly critical of CBS buckling under GOP pressure when the network cancelled its airing of “The Reagans” in 2003 (parent company Viacom eventually ran it on pay cable channel Showtime).

TV movies have always been confabulated affairs. Granted, Disney/ABC should have hired writers who are politically independent. And they should have stuck to the “script” of the actual 9/11 Commission report. But the real problem is that our media consolidated, ratings and right demographic audience targeted TV system isn’t focused at all on providing the public with a steady and serious examination of the world. TV lives in a fantasyland so it can better generate profits from advertisers. The networks and stations have no real public interest responsibilities, thanks to years of scuttling FCC rules. Congress keeps giving the TV networks everything they want, such as billions of free airwaves. Both Democrats and Republicans in Congress and at the FCC over the years have given permission for the TV industry to engage in ever-lowering standards. Except for Newt Minow’s sharp retort back in 1961 that television was giving the public a “vast wasteland,” broadcasters and cable companies have been given high-fives from a Congress satisfied with the system (meaning lots of campaign contributions and little analytical coverage of what’s really going on).

Rather than ask Disney to drop this docudrama, it would better if the Democrats called for a serious national debate about the quality of TV in the U.S. I’m not saying censorship. But they should be asking the TV industry to provide the public with more in-depth news and analysis—locally and nationally. No more 22 minute evening news broadcasts or countless headlines repeated on cable TV. We require serious investigative reports and more time overall spent on examining the country’s myriad problems—and what can be done about them. The networks should be urged to produce TV movies and series that are derived from (dare I say it) literature. TV should be asked to embrace young writers and other creators from diverse perspectives and backgrounds to develop programming that changes the dumbing down formula of television. [Are they coming to take me away yet!].

The Dems—and the GOP—should also call for public policies that ensure the public can receive a more diverse stream of content. They means network neutrality for the Internet, along with new rules that prevent the broadcast, cable, and satellite business from being TV gatekeepers. The TV conglomerates must be required to pass thru to viewers and users all news and public affairs programming–especially in this era of interactive digital media (such as video on demand, etc).

Ultimately, we need a more informed U.S. public if we are to better understand the real path to 9/11, so many other critical issues, and what we must do to address them. That should be the drumbeat of the DNC and others.

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Business for Social Responsibility: At Annual Conference, Guest Speakers Feature Anti-Internet Freedom and Obesity Boosting CEOs.

The Business for Social Responsibility (BSR) group has an ad touting its annual conference in today’s New York Times business section [the Times Co. is a BSR “media sponsor”]. Featured as keynote speakers are Time Warner CEO Richard Parsons and Coca Cola’s chair and CEO Neville Isdell. The conference is supposed to help executives “learn about the best practices in corporate social responsibility (CSR) today — and what lies ahead.” The program has panels with titles as “Being Green is Glorious,” “Replicating Better Factories Cambodia,” and “Strategic Decision-Making on Climate Change: Exploring Voluntary and Regulatory Approaches.” H-P, Altria (Philip Morris), GE, McDonalds and many other heavyweights are sponsoring the conference. NGO’s also appear to play a role at BSR, as evidenced by the session entitled “Strategies for Improving Business Impact on Poverty: Unilever and Oxfam Look Ahead.”

But the idea of featuring keynotes from Parsons and Isdell, who are positioned as some kind of global corporate role model, is absurd. Parsons leads a company fighting against Internet Freedom in the U.S. Time Warner, as we know, is opposed to broadband network neutrality. Instead of being honored, Dick Parsons should be scolded. Parsons was also the key executive helping his former boss Gerry Levin and eventual partner Steve Case fool shareholders and investors (including pension funds) when they engineered the AOL-Time Warner deal [Washington Post may require registration]. Parsons was a key leader of the Time Warner effort to further media consolidation in the cable TV business—despite its consequences to freedom of expression and ownership diversity.

Now, Time Warner is working with AT&T, Verizon, Comcast and other allies to thwart the passage of network neutrality safeguards. Instead of being honored, Parsons should be roundly criticized for his lack of real corporate social responsibility.

As for Mr. Isdell. Well, let’s just say that Coca-Cola is actively promoting a digital media-saturated global youth obesity epidemic. Take a look here.

Among the funders of BSR include the Ford Foundation, the Hewlett Foundation, the (get ready for this!) U.S. Department of State, and the U.S. Environmental Protection Agency. I think we should ask for a taxpayer refund and also urge those charitable foundations to press for some serious change at BSR. [The confence has one breakout session titled “The Internet, Freedom of Expression and Privacy.” It should be made a plenary event with both Parsons and Isdell required to listen to real leaders fighting for social justice, including an open and democratic Internet].

Heart [less] Institute: Part of the Telecom/Cable Lobby Support System

The Heartland Institute is one of the never-ending series of groups that attempt to place the interests of big phone and cable monopolies before those of the average American. Ideology shapes the findings of this group. If it had a MySpace page, its “friends” would include the Progress and Freedom Foundation, American Enterprise Institute, the Heritage Foundation, Cato, and the Pacific Research Foundation. They are a well-connected and networked web of organizations used to advance the narrow, monopoly-building agendas of Comcast, AT&T, Verizon, and a few others.

Now with a yearly budget in the millions, the Heartland Institute is keeping up a steady attack on the public interest campaign to restore online freedom [net neutrality] and broadband competition for the U.S. Internet. Take its most recent IT&T newsletter [no. Not named after the infamous super-conglomerate and scandalous company. It stands for Info Tech & Telecom News. But we think Heartland’s Freud must have slipped a lot when it chose that acronym]. In the September 2006 issue of IT&T, managing editor Steven Titch defends the upcoming mega-merger between AT&T (formerly SBC) and BellSouth. “This merger should be allowed to proceed,” he writes, because AT&T will provide “new investment and a growth strategy.” He attempts to make the case that poor BellSouth needs a government-approved mega-buyout to save its declining revenues. But Heartland’s analysis is distorted, designed to help out AT&T. So ignored, for example, is what Bell South told the SEC—and investors– in its 2005 10K report (before the pending merger helped shaped what it now claims). “We are a Fortune 100 company with annual revenues of over $20 billion. Our core business is wireline communications and our largest customer segment is the retail consumer. We have interests in wireless communications through our ownership of approximately 40% of Cingular Wireless (Cingular), the nation’s largest wireless company based on number of customers. We also operate one of the largest directory advertising businesses in the United States. We have assets of approximately $60 billion and employ almost 63,000 individuals…During 2004, we realigned our assets towards domestic wireless and increased investment in broadband to better position the company for the future. Specifically, our wireless joint venture, Cingular Wireless, purchased AT&T Wireless in October 2004, causing Cingular to become the largest wireless company in the United States and increasing the percentage of our revenue from wireless operations on a pro forma basis to approximately 40%. To further this realignment in strategy, we sold our Latin American operations to Telefónica Móviles in transactions that closed in late 2004 and early 2005…. As use of the Internet grows and as corporate data applications increase in sophistication and scope, the market for broadband and data services is expanding and evolving. BellSouth will continue to expand its capabilities in order to maintain a leadership position in the broadband and data communications market. Investment in service infrastructure is strategically managed to enable delivery of services offering increasing capacity and functionality. In parallel, we continue to use new advances in digital technology to bolster the broadband capabilities of our entire network. The emergence of high-performance broadband and digital infrastructure offers the ability to use these networks for real-time communications including voice and video using various technologies such as softswitches (software-based switching platforms) and voice over Internet protocol (VoIP).”

Doesn’t sound like a corporate version of the Titanic to me.

What Heartland and its big telecom-supported “think tank” minions want is a system where the public has no rights. An AT&T—in Heartland’s view—should be able to do what it wishes, regardless of the costs to our democratic society. Journalists and consumers beware. Heartland has constructed an artificial view of the world based on fantasy spun from corporate lobbyist’ playbooks.

Hey, Big Spender: Telco’s and Cable Buy Favor on the Hill

The National Journal’s excellent David Hatch has kept his journalistic eye on all the telecom/cable lobbying money flowing in to Congress. Millions are being spent to keep lawmakers favorably disposed against net neutrality and other broadband safeguards. The majority of AT&T’s giving (67%) has gone to the GOP. Other big spenders include Comcast, BellSouth, Verizon and Time Warner (the latter should spend less on lobbying and more on privacy. But, of course, they really don’t want to).

Read David’s article. See how Speaker Hastert, House Commerce chair Joe Barton and many others have done well for themselves. And then follow the money when the voting on network neutrality comes this fall.

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Why the Phone and Cable Industries Fear the Net

Verizon, AT&T, Comcast, Time Warner and others oppose network neutrality because they fear competition: from the Internet. In this piece I wrote for The Nation magazine, online, I discuss what their plans are for our broadband futures. Read it and fight (on) for a more democratic, diverse, and even perhaps competitive digital media system.