Media news digest archive for August 2005

Fairfax lifts profits despite ad losses (August 31)
John Fairfax Holdings yesterday announced a 24 per cent rise in annual pre-tax profit after overcoming the loss of property and motor vehicle advertising revenues to the internet. Outgoing Chief Executive Fred Hilmer also announced Fairfax was close to finalising negotiations for an online investment in a new media business. Online dating agency RSVP.com.au was acquired by Fairfax last month for $38.9 million.
Australia's second-largest newspaper group reported advertising gains in employment, national/retail and other published inserts as it posted a 6 per cent rise in revenues in 2005. Full-year earnings before interest and tax rose from $347.7 million in 2004 to $429.8 million in 2005. The company declared a special 5c dividend, on top of an 11c final dividend. Net profit fell 6 per cent to $259.7 million due to a one off tax gain the previous year. Fairfax shares dropped 5c, or 1.2 per cent, to $4.28 on the back of the announcement.
Company figures show that classifieds advertisements in the SMH and Age have dropped by more than 20 per cent over the past five years, but the online venture, Fairfax Digital (pictured), yesterday reported its first profit before interest and tax of $4.6 million, after a $2 million loss last year.
Changes in cross media ownership laws may see Fairfax as a potential takeover target, although Mr Hilmer believes Australia's oldest newspaper group should be safe. “Media companies will not make hostile bids for anyone else,” he told The Australian newspaper, “What will happen will be consensual, with the agreements of the boards.”
Rob Stewart
Fairfax Holdings
The Australian home page; News story

Google talks up its media cred (August 31)
Google has added weight to its widely declared intentions to be a future media giant by releasing its instant messaging and voice communication service for windows computers. Google Talk will be linked to Google's new Gmail service, currently in public testing. Gmail customers will be able to make free internet phone calls to other Gmail users anywhere in the world.
"At Google, we're continually investing in areas where we can make technological change, and we recognize the importance of efficient instant communications and information exchange," said Georges Harik, director of Product Management
The technology is not especially groundbreaking, with talk and video conferencing already available from MSN and Yahoo, but Google states that its service will have better sound quality and be easier to access and use, whilst allowing communication with users of other portals. As Google signs up people for its free telephone service, it will have a greater audience in which to sell a broader range of products such as home entertainment and other multimedia services. This convergence theory is becoming more of a reality for companies like Google. Potential rewards are massive with online advertising becoming the fastest growing segment of the advertising market, worth upwards of $US15 billion worldwide last year. Google took the majority of paid-for search advertising, making $US3.2 billion in revenues.
Last week, Google executive Georges Harik told the New York Times the company now saw its corporate mission as one of organising, making accessible and communicating all of the world's information.
Rob Stewart
Google statement

Chinese media puzzle gets tougher (August 30)
From the New York Times via the Benton service: The long-held optimism of Western media companies about venturing into the Chinese market has suffered several setbacks recently. At the beginning of the month, as part of an effort to tighten control over cultural products, China's Propaganda Department, the Ministry of Culture and four other regulators published new rules that further restricted what foreign filmmakers and television companies can do in China. Last week, the News Corporation's plan for a new television channel to be co-owned with a Chinese company was quashed by the government. The question facing Western media companies is how long the newly tightened restrictions will hold.
New York Times home page; News item
Benton news service

Beeb TV goes broadband (August 29)
In what may be a precursor to local experience, the BBC has flagged far more aggressive development its web services in the very near future, with plans to run a simulcast of one of its main TV channels via broadband, while offering video clips and music downloads for portable players through a customised software suite called MyBBCPLayer.
"We believe that on-demand changes the terms of the debate, indeed that it will change what we mean by the word 'broadcasting'," said Mark Thompson, Director General of the organisation.
"Every creative leader in the BBC is wrestling with the question of what the new technologies and audience behaviours mean for them and their service," he added.
The broadcaster was pleasantly surprised earlier in the year when it offered performances of nine of Beethoven's symphonies as free downloads on the web, and scored requests for a staggering 1.3 million files.
BBC home page; News story

Should sport umpires become media properties? (August 29)
Former Australian Football League (AFL) umpire and media commentator Derek Humphrey-Smith believes the AFL umpires must be allowed to use the media to defend themselves. His comments follow two weeks of controversy in the AFL regarding the men in white and their performances in crucial games.
A furore has developed over match decisions and inflammatory comments said to have been made by an umpire. The AFL held an investigation and cleared the person involved, but Humphrey-Smith believes the AFL should have done more. “The AFL should have called an immediate press conference and made the umpire available to the media to answer questions,” he wrote in the Herald Sun newspaper.
AFL umpires have a provision in their contracts restricting interviews and the idea of turning them into media properties has some interesting ramifications for any sporting code.
Rob Stewart
Herald Sun football section
AFL

Time for change – ACCC Chair (August 27)
Australian Competition and Consumer Commission Chairman Graeme Samuel made a speech at yesterday’s Melbourne Press Club journalism conference, saying that the now is the time for review of media regulation.
"There’s no doubt this is an exciting time for those of us with a passionate interest, either professional or personal, in the media," he said.
"Media convergence and possible changes to media regulation open up many exciting possibilities. Perhaps the Herald Sun could merge with Channel Ten, make Andrew Bolt host of Big Brother, and he could just throw everyone out of the house in the first episode..."
"Relative to most industries, the Australian media is highly regulated. Protection of the free-to-air television networks is the cornerstone of this regulation, on the grounds that it ensures diversity in the services available to Australians at large...
"But these protective regulations are dependent not only on continuing government support, but on the maintenance of the existing top down structure of the Australian media, and it’s now clear the environment is ripe for change."
ACCC website
Graeme Samuel’s speech

Media buyer urges relaxing of media laws (August 26)
The largest buyer of media advertising in Australia has declared foreign and cross-media ownership laws are no longer applicable in today's ever-changing technology landscape and should be totally relaxed. Harold Mitchell, who runs Mitchell Media (web site pictured), said even the big media owners now realised the rules were no longer relevant.
His comments follow recent statements by Communications Minister Helen Coonan that indicate a major shift in policy on the rules blocking mergers between media companies. Senator Coonan said previous attempts to prevent mergers has had a negative impact on the industry. This opens the door for future partnerships in the media and may allow television stations and major newspapers to join forces.
Relaxation of the rules could lead to a wave of media acquisitions next year as rumours persist about Channel Ten's willingness to get together in some form with John Fairfax Holdings. Mr Mitchell says although there will be a frenzy of activity; he doubted it would end up as a repeat of the 1980s, where mergers among media outlets were rampant throughout the industry. He told the Herald Sun newspaper that despite the predicted merger activity, he doubted there would ever be a fourth commercial television network in Australia, but rather he envisaged “a widening in the availability of television networks offering greater diversity in the media".
by Rob Stewart
Mitchells media agency
Herald Sun home page; News story

Mixed results in reader survey (August 26)
The latest Roy Morgan survey has shown that more than half of the 20 most popular magazines recorded readership gains during the past year to June, but in the newspaper categories, once again the results were a mixed bag.
The Australian Women's Weekly continues to be the number one read magazine in the country, posting a 10.7 per cent rise for the year to June, taking its readership to 2.9 million. Magazines in the top 20 list that performed strongly in this survey included Street Machine, House & Garden, Cosmopolitan, New Idea and Dolly. Those on the list to show a downturn in readers included Woman's Day, Better Homes and Gardens, TV Week, That's Life, Australian Good Taste and Burke's Backyard.
Other strong performers in the survey were Home Beautiful, Gardening Australia, Delicious, Donna Hay, Fresh and Girlfriend. In the general news and business category, many well known publications were down. Readership declined for Time, The Bulletin, Business Review Weekly and Money magazine (ACP). Fairfax's Shares, which will be merged with Personal Investor to create a new title, AFR Smart Investor, dropped 17per cent of its readers.
Newspaper readership grew strongly in NSW where The Sunday Telegraph and Saturday's The Daily Telegraph recorded increases, the latter achieving the highest readers ever for the masthead. The Sydney Morning Herald also posted a gain, but its Saturday paper was down 3.9 per cent.
Across the country Saturday newspapers were hard hit, with most recording falls. The exceptions to the general trend were The Advertiser in Adelaide and Rural Press's Canberra Times. Other newspaper results saw the Sunday Mail newspapers in Queensland and South Australia rise, while Melbourne's Sunday Herald Sun fell slightly despite reaching nearly 40 per cent of the Victorian population. Melbourne's free afternoon newspaper MX added 10,000 readers, up 7.3 per cent.
by Rob Stewart
Roy Morgan Research

MEAA & Press Council make up (August 26)
The Media, Entertainment and Arts Alliance (MEAA) has rejoined the Australian Press Council after a 19-year self-imposed exile from the print self-regulation body. MEAA represents journalists across the country, along with entertainers and other media workers.
Its reunion with the Press Council membership allows the MEAA to refer most complaints to that body, rather than handling them through its own judiciary, which has only received 26 complaints in the past four years. The Press Council has fielded more than 700 complaints in a single year. MEAA Federal Secretary Christopher Warren conceded to the Australian newspaper the council had taken the mantle as the primary self-regulator.
Both parties gain from the reaffiliation. The Press Council advertises its processes and decisions through its member newspapers and magazines, whereas the MEAA does not. The MEAA also gains a seat at the table with publishers through the reunion with the council. During the past 19 years the council has appointed independent journalist members to fill the journalists' positions, but will expand its membership to 21 to accommodate the union representative. The Press Council will be able to add weight to its voice as a free press lobby group and allow it to claim it represents the entire print media industry, through the MEAA's membership.
by Rob Stewart
Media Alliance
Press Council
The Australian newspaper

Captain Kirk takes over enterprise (August 26)
The Fairfax newspaper and internet business, which owns titles such as The Age, Sydney Morning Herald and Australian Financial Review has appointed New Zealander David Kirk as its CEO after a search lasting over a year. The trained medical practitioner and former captain of the All Blacks rugby team will replace Fred Hilmer.
Meanwhile, Melbourne businessman Ron Walker will take over the role of Chairman from Dean Wills, in a widely-expected move.
The appointments come at an interesting time for the company, shortly after its has undergone a massive (and some feel expensive) expansion in New Zealand and not long before Australia is to announce new cross media and foreign ownership laws.
Fairfax bios of Kirk and Walker
Fairfax corporate site

The long, hard road to revenge (August 25)
Alternet’s Molly Ivins reports: SLAPP suits (for "strategic lawsuits against public participation") are a serious menace to free speech. The latest example is a real prize: The USA Consumers Union, publisher of Consumer Reports, has already spent $10 million defending itself against a lawsuit filed by Isuzu Motors because, eight years earlier, it rated the Isuzu Trooper "not acceptable" for safety reasons. The case has not yet reached trial. And that is the real menace of SLAPP suits. It's not that corporations win them, but that they cost critics so much money that they are silenced.
Guidomedia notes that much can depend on the media outlet. In our experience, the withdrawal of corporate advertising is more often the weapon of choice against corporate-owned mags.
Alternet home page; SLAPP story – click here.

Local journos face contempt charge (August 24)
From the Media Alliance: Two Herald Sun journalists will be formally charged with contempt after refusing to name their source before the Chief Judge Michael Rozenes of the Melbourne County Court. The Alliance condemns this attack against press freedom.
The Director of Public Prosecutions is expected to formally charge Herald Sun journalists Michael Harvey and Gerard McManus within 48 hours. The hearing is expected to be held in a fortnight.
During yesterday's hearing of the prosecution of Desmond Patrick Kelly for leaking Government information, the two Canberra-based journalists refused to provide information that would reveal the identity of their source. "It is yet another overt attempt by the Government to save face by intimidating journalists and whistle blowers," said Alliance federal secretary Christopher Warren.
"Journalists have an ethical obligation to protect their sources. Without this protection potential whistleblowers would not leak vital information in the public interest.
"In this particular case there is no threat to national security. It is just a case of the Government trying to minimise its embarrassment."
In February last year Harvey and McManus exposed Government plans to reject a promised $500 million boost to war veterans' pension benefits.
Following the article's publication, Kelly was charged under the Commonwealth Crimes Act. In the preliminary hearing McManus refused to answer when asked whether he knew Kelly on the grounds it could incriminate him. The prosecution agreed to grant the pair immunity, thus setting them up for contempt charges if they failed to give evidence in yesterday's hearing.
Media Alliance
Herald Sun home page; News story

Private lives versus public interest (August 24)
The Australian Communications and Media Authority (ACMA) yesterday released a booklet called Privacy Guidelines for Broadcasters.
“The core notion found in the privacy provisions of the various broadcasting codes of practice is this - that material relating to a person's private affairs should not be used without the person's consent, unless there is an identifiable public interest reason for the material to be broadcast,” said ACMA Acting Chair Lyn Maddock.
The guidelines cover issues including the difference between public and private conduct, the use of publicly available personal information, the position of public figures and what constitutes the public interest.
“It is often difficult to achieve a balance between respect for an individual's privacy and the media's role of reporting matters of public interest. We expect the guidelines to make a real contribution to helping broadcasters avoid potential problems when they are trying to negotiate this balance. We also expect the guidelines will contribute to raising the level of public awareness about privacy matters and the electronic media,” said Maddock
ACMA home page; Guidelines download page.

New digital order (August 23)
From Benton: The 2005 edition of investment banker Veronis Suhler Stevenson's annual Communications Industry Forecast concludes that the industry has effectively reached a "new order" that shifts power to consumers from advertisers, and to new media from traditional media. The report estimates that new media accounted for 16.7 percent of all advertising spending last year--up from only 10.3 percent in the report's baseline year, 1999. Ad spending in the new media -- which VSS defines as cable and satellite television, satellite radio, business-to-business e-media, consumer Internet, movie screens, and video games -- is growing at double-digit rates, while traditional media are rising only at single-digits. As a result, VSS projects that new media will account for 26.3 percent of all ad spending by 2009 -- an estimate some new media pundits might find conservative, given the rapid shifts in digital technologies. VSS says the forces driving change are clear: the expansion of digital media technologies, the shift toward consumer control of media--especially media supported primarily by consumer spending--and a shift toward greater return on investment in marketing that is driving advertisers to use greater shares of new media.
Media Post home; article

Jail for journalist who criticises media? (August 22)
Thai journalist Supinya Klangnaron is facing a possible jail sentence and a fine of up to $10 million if she is convicted of a libel claim made by a local media company, Shin Corporation. Klangnarong is secretary general for the Campaign for Popular Media Reform in Thailand.
Shin Corp is Thailand's largest media enterprise. Owned by billionaire Prime Minister Thaksin Shinawatra's family, it runs print, television, radio and internet outlets. The libel claim was made in 2003 after Ms Klangnarong reported that Shin Corp was promoting government policies through its own media.
The International Federation of Journalists (IFJ), is crying foul over the libel action. It sees the claims as part of a conspiracy to obliterate freedom of speech in the south-east Asian country. “The charges against Supinya Klangnarong are part of a campaign to intimidate journalists across the country, which is part of a broader trend to wind back press freedom in Thailand,” said IFJ President Christopher Warren, who also heads the Australian Journalists Association.
by Antonia Magee
IFJ report

Internet link to Mars (August 19)
From Benton: NASA launched the Mars Reconnaissance Orbiter last Friday, in part to lay the foundation for an Internet in outer space. Besides conducting basic science research, NASA officials say, the orbiter will become part of a high-speed telecommunications link between Earth and the Red Planet. After the orbiter approaches Mars in 2006, it will join the Mars Global Surveyor and Mars Odyssey to create a three-node network, which could become a component of the InterPlanetary Internet. The InterPlanetary Internet is NASA's solution to the speed-of-light delay in data transmission that has hung up space communications, NASA scientists say.
Benton media alerts
Federal Computer Week article -- click here

Telstra sale to alter media landscape (August 18)
To the surprise of no-one, the Federal Government yesterday announced it will sell its 51 per cent shareholding in national telecommunications provider Telstra. It's a move which will have far-reaching consequences for the development of Australian media, particularly in the light of upcoming changes to foreign and cross-ownership legislation.
Telstra already has an interesting range of media properties, including the major telephone directories, Big Pond web service, individual sites such as WhereIs.com.au, the Trading Post classified print titles and an interest in pay TV. Full private ownership and fairly deep corporate pockets might see that expand considerably.
The exact form and date of the sale are yet to be announced, but late 2006 is the expected timing. It's possible the company will be broken into two businesses -- one consisting of the national communications network as a wholesaler and the other a retailer of services.
As part of the package, Communications Minister Senator Helen Coonan announced a major upgrade of some services, particularly broadband internet. The latter has been subject to ongoing criticism for being expensive, slow and too limited in its reach when compared with international practice.
Senator Coonan's statement

News continues web march (August 17)
News Corp continues its march into the web with the latest target for acquisition said to be Blinkx.com -- a search engine which concentrates on video and podcast material. It claims to use a technology which allows it to 'view' or 'listen to' content, to ensure the search is effective.
An interesting twist is that users can set up folders which allow the search engine to keep working, and collecting material, even when the computer is switched off. A desktop search tool is also offered.
News Corp is using a significant war chest (said to be as much as US$2 billion) to buy a patch of turf on the internet, via its recently-formed Fox Interactive Media division.
If it goes ahead, the partnership has wider implications, given the interest Google and Yahoo have recently shown in online video properties. (See the story below.)
Blinkx.com
For our earlier story on Fox Interactive Media, click here

BBC goes ultra-local (August 17)
The BBC in the UK has decided to run a nine-month trial of ultra-local news services, in the hope it will eventually expand to 60 locations.
David Holdsworth, project manager for the pilot, said, "It's been our strategic aim for a number of years to make our services as local as possible -- all the research suggests that audiences are most interested in news and events from their own areas.
"Until now, technology has made it impossible for us to provide any sort of local TV news service on top of the one dictated by regional transmitters.
"This pilot gives us the chance to provide news on demand (on broadband) or once an hour (on digital satellite)."
The areas chosen for the pilot are very small and raise some interesting questions about what a broadcaster might regard as a viable audience. They are: Birmingham and the Black Country; Coventry and Warwickshire; Herefordshire and Worcestershire; Stoke and Staffordshire; and Shropshire.
BBC home page
BBC news release

TV looks to the internet model (August 16)
Amid a battle to rule the living room of the future, cable television and phone companies are ripping a page from playbooks written by Google Inc and Yahoo Inc to help navigate through the thousands of shows made possible by next-generation TV. Rather than passively flipping through a conventional electronic program guide much in the same way they would a print TV Guide, viewers are more likely to actively search for programs as they would on a Web site. These search capabilities become more important as pay television services fill up advanced services such as video-on-demand and digital video recorders (DVR) with more programming.
Supplied by Benton
Article by Reuters
Click here for the full story

No fourth TV network -- Coonan (August 15)
Federal Communications Minister Senator Helen Coonan has confirmed the government has no intention of licensing a fourth free-to-air television network. According to the Age newspaper: "Having another replica of that kind of free-to-air model probably isn't warranted in our market," she said.
The Age home page
The Age news article

10 years for ABC (August 13)
The ABC, like the Sydney Morning Herald and Amazon.com, celebrates ten years on the web this year. Click here to see its dedicated site.

Murdoch blocks Liberty (August 12)
From the New York Times: Rupert Murdoch gave the cold shoulder to his largest shareholder, John C Malone, yesterday by extending a poison pill that blocks Malone's Liberty Media Corporation from buying more shares of Murdoch's News Corporation. The shareholder rights plan, or poison pill, was put in place for a period of one year last November, but was extended by the News Corporation's board for two more years.
NY Times home page
NY Times Murdoch story

Melbourne Writers Festival (August 12)
From the organisers: In its 20th year, the Age Melbourne Writers Festival continues to offer something for everyone -- the devotees of literature, young readers, fans of crime writing, those who enjoy a good laugh and everyone who enjoys a good read. Writers from across the world will come to Melbourne to take part in this premier literary event to be held from August 19 to 28 at the CUB Malthouse, Melbourne Town Hall and other venues around Melbourne. See this link.

See more, know less (August 12)
British journalist Phillip Knightly recently celebrated 50 years in the game by delivering a speech providing a less than rosy portrait of the current state of investigative journalism. Addressing the International Consortium of Investigative Journalists, he said, “Is the media, particularly TV, in the business of 'the mass production of ignorance'? Is it possible that the more TV news we watch, the less we know? There is a case to answer on both counts.” See this link for the full speech.

Too much junk on the web (August 12)
Leslie Walker of the Washington Post complains, “The search engine ad industry appears to have touched off a moneymaking frenzy only slightly less intense than the original dot-com boom. But I can't help but think that this new wave is generating too many useless link directories designed to provide no value to site visitors, while making money the same way Google and Yahoo do, by showing links to sites that pay each time someone clicks on them.”
Washington Post home page
Washington Post web column

Looking for the GAS (August 11)
To celebrate a decade on screen, the ABC's Australian Story program is running a competition with a three-month internship as a prize. Open to university students and tagged the Great Australian Story, the competition requires entrants to produce a five-minute Aus-story-style video. See this link.

$7 million spam (August 11)
Microsoft and the New York Attorney General have seen the conclusion of a two-year legal pursuit of one of the world's top three spammers -- Scott Richter of OptInRealBig.com -- with the two sides agreeing on a $7 million settlement.
According to a company statement, Microsoft will direct $5 million of the settlement to expand the company's Internet safety partnerships with governments and law enforcement worldwide through technical training, investigative and forensic assistance, and the development of new technology tools. The company has pledged an additional $1 million to provide many community centres in New York state broader access to computers for underprivileged children and adults through Microsoft's Unlimited Potential Program.
Brad Smith (pictured), the firm's legal counsel, said in an open letter, “It has taken time to build the legal framework needed to fight spam. In January 2004, federal anti-spam legislation took effect with a clear definition of spam and clear enforcement guidelines. This law has enabled Microsoft and others to target a number of top spammers and file for worldwide damages.”

Images up for debate (August 10)
A national committee of attorneys-general has released a discussion paper proposing tighter regulations on photographic images, particularly when published on the internet.
The key issues identified by the paper are:
(1) Should the taking of unauthorised images of children be restricted,
giving consideration to the competing interests of privacy versus freedom to take photographs in public places? and
(a) If so, what form would those restrictions take; and
(b) What exceptions, if any, would be required?
(2) Should the use or publication of unauthorised photographs/ images taken in public places be regulated?; and
(a) If so, what is it about the use that makes it worthy of regulation? and
(b) What types of use should be regulated?
(3) Should consent be required for photographs used for particular purposes?
(4) In the event that an offence to deal with unauthorised photographs on the Internet is considered necessary, what features should it contain?
(5) Should there be some enforceable civil right in relation to the use of your image? If so, on what basis?
Use this link to download a copy of the paper (size=420k). The deadline for submissions is October 14.

Web fails on diversity (August 10)
Business commentator Alan Kohler argues in today's Melbourne Age newspaper that the web has done little to promote diversity in media. Instead, it is the usual suspects -- such as Fairfax, News and PBL -- which are fighting over the territory and successfully dominating it. He suggests that the battle between the established media players and the likes of online giants such as Google, Yahoo and eBay will be most influential in the future of the medium. Telstra, via its Sensis publishing arm, will be a significant wildcard. “It means an important period is ahead for Australian media,” writes Kohler, “but what it doesn't mean is media diversity.”
The Age
Alan Kohler's column

iTunes rockets in Japan (August 9)
Pent-up demand in Japan has enabled Apple Computer’s online music store, based on its iTunes software, to rocket to 1 million songs sold in just four days. Worldwide, the company claims it has sold over half a billion tracks.
The Japan store had over 90 per cent of its songs available for 150 Yen, or under AU$2.00.
“iTunes has become Japan’s number one online music store in just four days,” said Steve Jobs, Apple’s CEO. “iTunes has sold twice as many songs in just four days as all the other online music services in Japan sell in one month.”
This success will be watched closely by Sony, which has been trying to compete in the same MP3 market, without matching Apple’s volumes. Business Week reports that, in the interim, Sony Music has refused to sign on as a music supplier to Apple.
The company has yet to open an Australian music store.
Apple.com
Business Week report

Change is coming, with or without blessing (August 8)
Federal Communications Minister Senator Helen Coonan signalled that imminent media regulation reform will not necessarily depend on the blessing of existing media players, in an interview with Alan Kohler on the ABC TV Inside Business program yesterday.
Nevertheless she did not give much detail away, preferring to stick to broad statements of principle. “We have had an amazing convergence of platforms where you can get news and information in many different ways over many different platforms. That has I think necessitated us to look at what are the synergies between the move to digital across digital platforms, what kind of transition is necessary,” she told the program.
She indicated the disappointing uptake of digital TV may delay shutting off the current analogue service -- a trend similar to what has been happening in the UK and USA markets. Click here for a transcript of the interview, which also discussed the potential privatisation of Telstra.

News swallows Scout (August 5)
News Corp's recently heightened interest in online media has resulted in the company taking over specialist sports publisher Scout Media (pictured), via Fox Interactive.
The company said, “Launched in 2001 and backed by former NFL quarterback Bernie Kosar, his brother Brian and their investment company, Kosar Investments LLC, Scout Media's network of more than 200 local, team-focused websites and 47 publications deliver exclusive content focusing on professional, college and high school team sports from some of the most seasoned sports reporters in the country. With a subscription base of over 200,000 and a total of 2.4 million unique visitors per month, Scout has quickly become the leader in independent online sports news. It's also earned a reputation as the most trusted source of college and professional sports recruiting and scouting coverage on the Internet, producing more than 1000 player and team content pieces each day, regardless of season.”
The move happens a month after News established Fox Interactive Media as a separate division. Its first acquisition was Intermix Media (which runs MySpace.com) for US$580 million.
News Corp statements
Scout Media
Intermix
Formation of Fox Interactive Media

Rosy outlook for global media (August 5)
Business consultancy PriceWaterhouseCoopers has released a report on the future of global media from this year to 2009 and, overall, paints a rosy picture. It estimates the sector will experience a 7.3 per cent per year compound growth over that period.
The media statement says: "The entertainment and media industry continues to display an extraordinary ability to reinvent itself and create new revenue streams through innovative offerings that barely existed as recently as 2000," said Wayne Jackson, global leader of PricewaterhouseCoopers' Entertainment & Media Practice. "Online and wireless video games, online film rental subscriptions, licensed digital distribution of music, and the rapid adoption of ring tones and mobile music downloads are becoming critical components of the industry and driving significant revenues across all regions," Jackson added.
Asia/Pacific will remain the fastest-growing region during the next five years, led by powerful growth in China, which is on track to overtake Japan as the region's biggest market by 2008. Spending growth in China will be the highest in the world, at a 14.2 percent CAGR excluding Internet access spending, and 25.2 percent after accounting for the explosion in Internet access spending. Growth in the region will be led by double-digit increases in the Internet, video games, casino gaming, TV distribution and recorded music segments. Click here for a copy of the full statement.

Information anything but free (August 5)
A full bench of the Federal Court has dismissed a long-running case brought by The Australian newspaper, in a two to one decision. The newspaper explains, “The case arose after The Australian attempted to gain access under Freedom of Information laws to documents showing the true value of income tax cuts delivered by the Government and the use of the federal Government's first-home buyers scheme by wealthy individuals.”
Now documents can escape a freedom of information request if the government issues a certificate and finds a senior public servant to be prepared to give evidence saying release of the material is not in the public interest.
The Australian has spent a considerable amount of money pursuing the case and now faces a decision on whether the dissenting opinion in the judgment is enough encouragement to continue on to the High Court. See this link.

CBS Digital bypasses cable for broadband video (August 4)
From the Online Publishers Association in the USA: Like News Corp, Viacom and its CBS subsidiary have been slow and steady online, letting rivals such as MSNBC.com and CNN.com grab the early lead in traffic, while Dow Jones bought out CBS MarketWatch. But that could be changing, as CBS Digital hired former MarketWatch honcho Larry Kramer, who helped unveil a revamped CBSNews.com site that will include a "Public Eye" ombudsman-type blog, and more streaming video. Much more video. ClickZ reported that CBS Digital would be expanding its ad network to include all its online properties, and would push into text and video RSS feeds as well. Plus, if news pre-empts TV shows on CBS, the CBS.com site would offer the entire pre-empted show on demand. Hollywood Reporter reported that it didn't take long for the new CBSNews.com to spring into action, posting a 4-minute video segment on the Supreme Court nominee one hour before he was announced by President Bush.
CBSNews.com Launches Far-Reaching Ad Network (ClickZ)
CBS to launch 24-hour digital news net (MarketWatch)
CBS Sites to Show Pre-Empted Programs (MediaWeek)

Product placement – that’s advertainment (August 2)
The spread of technologies that allow an audience to edit out advertising from their daily media fare is driving producers to look much harder at product placement for an alternative source of revenue. In the USA, the trend has become strong enough to attract the attention of federal regulators.
From CNN, via Benton: In 2004, the value of television product placements (a product or brand name inserted for marketing purposes into entertainment fare) increased by 46.4 percent over the year before, to $1.88 billion. Not that "advertainment" is limited to television. Video games, novels, movies, pop songs, music videos, Broadway plays -- every nook and cranny of the culture, it seems, comes preinstalled with product plugs. See this link.

Interesting times for News Corp (August 2)
The recent resignation of Lachlan Murdoch from his executive (but not board) positions in News Corp has raised a broad debate over the company’s future and how succession should be handled when patriach Rupert Murdoch decides to retire. Some of the debate centres around if a public company of this nature can expect to have another Murdoch at the helm – which seems unlikely in the current circumstances.
There is also speculation over the future of the family trust and how it will deal with the children of Murdoch senior’s third wife, Wendi Deng.
Meanwhile a third stream of debate has been sparked by the not entirely benign interest of Liberty Media, controlled by John Malone. That company has raised its stake in News to 18 per cent, second only to the 29.5 per cent Murdoch family stake.
The Age newspaper article: click here
The Australian newspaper article: click here
New York Times article: click here

Boomers on air (August 1)
Radio Vega starts in earnest in the Sydney market today, and a test transmission from Melbourne. The brand, owned by DMG, is pitched primarily at baby boomers, or a 40-60 year old market.
“There are a lot of people in this age group who flick between a wide range of highly specialised radio stations. This is a huge audience and one that has not, until now, been entirely satisfied by any one station,” claims Chief Executive Paul Thompson.
On-air hosts include Angela Catterns, Wendy Harmer and Francis Leach.
DMG home page

Radio station in the front line (August 1)
From the Wall Street Journal via Benton: Radio Almahaba is Iraq's only radio station dedicated to women's issues. With policymakers debating just how many legal protections women should enjoy in the country's new constitution, the United Nations-funded station finds itself on the frontlines of a bitter showdown over women's rights. Several employees have been threatened with death for working at the station, although no one has been attacked. Many Shiite clerics have ordered their followers to boycott it. The station has responded by shifting from simply covering the raging debate over Iraqi women's political and legal standing to actively participating in it.
See also the Chicago Tribune article: click here
Radio Almahaba: click here

PR convention for ACT (August 1)
The Media Alliance has announced it will be running its sixth annual public affairs (PR) convention in Canberra on September 6 to 8. See this link for details.

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