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Media trends digest – 2006

ICANN cans XXX (Mar 30)
The International Corporation for Assigned Names and Numbers (ICANN) has dropped the proposal to establish a dedicated .XXX domain for sex sites, after protests from Australia, the USA and the European Union.
ICANN said, “Several (governments) are emphatically opposed from a public policy perspective to the introduction of .xxx.”
ICANN website

People will pay for content – OPA (Mar 29)
From the Online Publishing Association in the USA: Thanks to booming entertainment spending on downloadable music, paid content online set an all-time mark of US$2 billion for all of 2005, a 15% jump from 2004. That's according to the latest paid content report by comScore Networks for the Online Publishers Association. Plus, the annual amount spent per person soared to more than US$100, another milestone for the report. Driving those numbers is music downloads, which helped push the Entertainment/Lifestyles category to the top with $573.8 million spent in 2005, up 38.8% over '04. "All signs point to very strong and steady growth for paid online content," said OPA honcho Pam Horan. "In each of the last five years, we've seen record revenues and record numbers of consumers paying for content. With only 12 percent of the total Web population purchasing online content, enormous opportunity for growth continues to exist."
OPA release

But not for news – Pew (Mar 29)
Yet another survey shows just how important the online realm is for news consumption in America. The Pew Internet and American Life Project found that 43% of broadband users turn to the Internet to get news on an average day at the end of 2005. That compares to just 26% of dial-up users who get their news online. Among broadband users, the Internet (43%) tops newspapers (38%) as a source for news. However, the AP points out that the survey shows people are unwilling to pay for news they get online. While half of Net users have registered to get free news on websites, only 6% have paid for video, articles or other news items online. "The growth of broadband penetration has now totally changed the way people are getting news," Pew's John Horrigan said. "High-powered Internet users are clearly going to the Net for news over every other media form."
Pew report

ABC loses staff board member (Mar 24)
Broadcaster Ramona Koval will be the last staff-elected member of the board of the ABC. Her term expires on June 14. The Federal Government, like many before it, has had a prickly relationship with the broadcaster over funding, content and governance.
Communication Minister Senator Helen Coonan released this: The Board of the Australian Broadcasting Corporation (ABC) will be restructured to improve corporate governance at the national broadcaster, the Minister for
Communications, Information Technology and the Arts, Senator Helen Coonan announced today.
The staff-elected Director position on the ABC Board will be abolished and legislation to give effect to this change will be introduced as early as possible.
Unlike the other national broadcaster – the Special Broadcasting Service (SBS) – the ABC Board includes a director appointed through a staff election process.
This is an anomaly amongst Australian Government agency boards that has given rise to concerns about conflicts of interest and the effective functioning of the ABC Board, including maintaining the confidentiality of Board deliberations.
“As the staff-elected Director has been elected by staff rather than appointed, there have been claims that the position creates uncertainty about accountability.
“However, there is a clear legal requirement on the staff-elected Director that means he or she has the same rights, duties and obligations as the other Directors, including to act in the interests of the ABC as a whole.
“The Government is of the view that there should be no question about the constituency that ABC Directors are accountable to,” Senator Coonan said.

Media Alliance backs push for ABC funding (Mar 23)
The Media Alliance (MEAA) has backed a political push to see that the ABC’s current funding levels are raised in real terms, during the lead-up to the next federal budget.
MEAA President Christopher Warren wrote to members, saying: “We are at a turning point in the future of a fundamental and cherished Australian institution, the ABC. The Alliance is working with getup.org.au to get our message across loud and clear in Canberra. “Right now, the Cabinet's budget committee is deciding the ABC's funding for the next three years. Their next meeting is on Tuesday.
“ As it stands, the ABC is $264 million poorer in real terms today than it was 20 years ago. The programs we rely on - from independent news and current and affairs to quality children's content - are under extreme pressure. In a very real sense, the integrity of the ABC is now at stake.
“Communications Minister Senator Helen Coonan has signalled her support for a real funding boost to the ABC. Last month she admitted that costs have escalated hugely and that the ABC not only needs funding for its new digital technology, but also to enable it to lift its game with content. But she still has to convince Treasurer Peter Costello and Finance Minister Nick Minchin.
“With just two media giants dominating Australia's news and entertainment, a strong and independent national broadcaster is more important than ever before.”
An online petition has been set up via getup.org.au at this link.
MEAA

Right to recover or right to know? (Mar 23)
A case currently going through the court system in Victoria raises an interesting conflict over the right of someone to confidentiality versus the right of media to report on public figures.
The Australian Football League (AFL) has, via the Supreme Court, successfully extended a media reporting ban on the names of players who have tested positive to drug use, despite challenges from three media outlets.
Legal representatives for the AFL said the players had agreed to testing and counselling procedures on the basis of confidentiality.
News Ltd report

Japan high court protects journo sources (Mar 22)
The International Federation of Journalists (IFJ) has hailed last week’s Tokyo High Court’s decision as landmark in protecting media freedom in Japan.
On March 17, the Tokyo High Court overruled an earlier Tokyo District Court decision, by ruling that it was not illegal for a journalist to protect the confidentiality of a source even if that source was a public official.
“Journalists must be able to ensure the confidentiality of their sources,” said IFJ president Christopher Warren.
”The importance of this decision can not be underestimated as it recognises and protects journalists’ right to protect their sources,” said Warren.
On March 14, the Tokyo District Court had ordered a reporter for Yomiuri newspaper to reveal the identity of a source from an article published in October 1997 that claimed a US company and its Japanese affiliate had been required to pay tax penalties in 1997 after being investigated by both Japanese and US tax departments.
In response to the article, the implicated US company claimed their reputation had been tarnished by the US Government leaking the wrong information to the Japanese tax authority and to Yomiuri newspaper and filed suit for compensation against the US Government to the Arizona Federal District Court.
The Arizona Federal District Court then asked the Tokyo District Court to investigate the news source. The reporter then refused to reveal the identity of the source.
The Tokyo District Court ruled that journalists had no right to protect the confidentiality of their sources when their source is a public official. The Yomiuri newspaper then appealed to the Tokyo High Court.
The subsequent overturning of the decision by the Tokyo High Court follows a previous decision by the High Court to confirm the right of a Japan Broadcasting Corporation (NHK) reporter who was earlier found by a lower court not obligated to disclose a news source.
The IFJ Tokyo office expressed its regret at the earlier Tokyo District Court decision, stating that such a decision restricts press freedom and hinders the public’s right to know.
“Nobody would cooperate with journalists and provide hidden information when reporters were obliged to reveal their sources,” said the IFJ Tokyo Office.
“These two decisions by the Tokyo High Court clearly support the principle and practice of confidentiality of sources in journalism,” said the IFJ president.
Source: IFJ

Brits use web more then TV – Google (Mar 22)
From Google: Surfing the internet is one of Britain's fastest growing activities according to new research conducted by TNS and commissioned by Google.
The average British internet user now spends 164 minutes online each day for personal use, the equivalent of over 41 days each year. This compares to 148 minutes spent watching TV*, the equivalent of over 37 days each year.
Two thirds (66%) were found to have increased their time online over the past 12 months, with the biggest growth seen amongst 16 to 24 year olds. Men are still the highest Internet users with an average of 172 minutes per day compared to 156 minutes for women.
Shopping has become one of the most popular online activities, with internet users now spending an average of £446 (AU$1086) online each year.
A Google spokesperson said: "People have an insatiable thirst for information. The Internet is one of the fastest and easiest ways to access and share that information. This is a great opportunity for British business.
"The Internet enables companies to target individual consumers with specific goods and services. Search advertising makes it easy for businesses to tailor their advertisements to particular search queries, making the results directly relevant to what people are looking to buy.
"Technology now even allows businesses to target specific regions, cities and even postcodes."
A regional breakdown of the research shows that internet users in Greater London spend the most time surfing the web with an average of 183 minutes followed by Scotland (181 minutes).
The biggest online spenders were people living in London -- they spend £517 (AU$1260) on average per year.

Here’s the news and a plug (Mar 21)
From the Hollywood Reporter, via Benton: While just about every television genre has jumped on the lucrative product-placement bandwagon, news programs generally have been considered off-limits to preserve editorial integrity. But with TV stations facing increased _competition and pressure on advertising revenue, the barriers that shielded news programing from such deals are falling.
Product placement, media _and branded entertainment agencies say they are increasingly being pitched opportunities from local stations to integrate their clients' products into news programming in exchange for buying commercial time or paying integration fees. "There are more local news stations that are incorporating brands into news in innovative, cutting-edge ways," said Aaron Gordon, president of entertainment marketing firm Set Resources Inc. "The line, which has always been black and white in terms of what's news and what's commercials, is now being blurred."
Story link
Benton

New technology prompted change – Coonan (Mar 16)
Senator Helen Coonan recently delivered a speech outlining the government’s reasoning behind its proposed new media regulation environment.
She said, in part: “Traditional media services are being challenged by new digital technologies and this is resulting in the emergence of new players, new content, new services and new platforms.
"For the consumer, this means an ever-increasing number of new sources of information and entertainment. For the media sector, while this evolution poses challenges as audiences are attracted away from traditional media sources, it also presents significant opportunities to embrace new ways of doing business.
"For the Government, the impact of digital technologies means the current regulatory settings, which are largely designed for an analogue world, require review.
"To date, media policy has traditionally closely controlled who may enter the market and what services they may offer. The regulated settings for old media – commercial TV broadcasting, print and radio – assumed a settled and steady media landscape.
"But the global conversion to digital means we can no longer rely on traditional structures to deliver consumers the services they need and demand.
"In a converged environment the lines are blurring.
"The traditionally distinct telecommunications, broadcasting, print and IT sectors are delivering an increasingly common range of services, and as we move towards a digital world it will become increasingly difficult to regulate the emergence of new players and new services.”
Click here to see the full text

Plus…
The very rapid growth of the local broadband market (an estimated 4.3 million subscribers and climbing rapidly) has become one of the significant drivers behind policy change, as pay TV operators complain fast internet services represent hot competition to their offerings – particularly when combined with peer 2 peer offerings such as Limewire.
Here is some of the recent discussion:
Internet ‘threat to pay TV’ -- The Australian
Coonan plan prepares to usher in the digital age --  The Australian
The Australian home

Media reform up for debate (Mar 14)
The Federal Minister for Communications, Information Technology and the Arts, Senator Helen Coonan today released discussion papers for upcoming media reform -- rather than the expected set policy. It sets out the government’s position on a number of areas, including:
* relaxation of media ownership rules, including a loosening-up of foreign and cross-media regulations;
* Conversion from analogue TV to digital to be put back to 2010-2012;
* The moratorium on new TV licences, which ends this year, to be left in place. This opens the way for a fourth national network;
* Licensing of new digital services – though the exact format is up for debate;
* Allowing existing broadcasters to multi-channel with the switchover from analogue;
* Introducing a “use it or lose it” antio-siphoning policy for TV sport, from 2007;
Whether the consultation period is serious or window dressing will no doubt be debated by media commentators over coming days. The deadline for submissions  is April 18, and you can find full details at this dedicated page.
A copy of the reform discussion paper can be downloaded here. (270k PDF)

Slim pickings for web buyers (Mar 14)
From the New York Times, via Benton: Digital-era media companies like Yahoo and Google, as well as traditional media companies, including those with deep roots in television and print, continue to scour the Internet for emerging content and technology companies. But the pickings of obvious acquisition candidates, while hardly exhausted, are slimming, according to financiers, entrepreneurs and industry analysts who follow the sector. That leaves the media companies trying to figure out -- as they did with far less discipline during the dot-com boom -- which of the emerging generation of Web sites have lasting business models or, at least, can continue to build traffic.
New York Times story

Blueprint for digital content growth (Mar 13)
The Federal Ministers for Communication and Industry, Senator  Helen Coonan and Ian McFarlane, have launched a report into Australia’s digital content industry, which they say identifies opportunities to double its production over the next decade.
“This report will help the industry direct its efforts to generate new opportunities to benefit the Australian economy,” Senator Coonan said. “New digital platforms and services are emerging and the rapid consumer adoption of broadband, wireless and digital broadcasting technologies provide exciting industry development opportunities.”
Australia 's digital content industry is estimated to employ 300,000 people and contribute $21 billion annually – almost 3.5 per cent of gross domestic product – to the economy.
The report can be downloaded here (1.1mb pdf)

Flying tram causes disbelief (Mar 11)
In what was arguably a gross misuse of its gazetting powers under the act which has enabled the Commonwealth Games, the Victoria state government has banned media from revealing details of preparations for the opening ceremony, on pain of receiving a $240,000 fine and removal of their event accreditation.
The situation arose when a Channel 9 TV camera (in a helicopter) snapped images of a centerpiece of the ceremony – a tram with wings. Staff working for the games were so outraged that a later pass revealed no tram, but a clear message on the ground, saying “F*** U”.
Already under siege for ticket sales that were less buoyant than expected, Games Minister Justin Madden also copped an earful from Radio 3AW broadcaster, Neil Mitchell.
Neil Mitchell: Can you describe to me what freedom of the media means?
Justin Madden: Freedom of the media, Neil, means that you can continue to report on all the important issues..
Neil Mitchell: Who decides whether they’re important. You? You as a bloody minister in a government decides what’s important enough for the media to report. For God's sake, I can’t believe this.”
Some time later, a compromise of sorts was worked out, where media outlets were to receive pre-packaged snippets of opening ceremony rehearsals. However the issue, and the suspicion it has caused, is one that is likely to simmer in the background for some time to come.

Why we should engage bloggers (Mar 9)
From the Financial Times, via Benton: While media companies are catching up with the demand for “personalisation”-- receiving the news they want when and where they want it -- our audiences have moved on dramatically. Now they are consuming, creating, sharing and publishing their own content online. It is important to understand what has changed. Bloggers, after all, have always been a part of history ­ read Daniel Defoe, Samuel Pepys or James Boswell. The same is true for citizen journalists: just check out first-hand accounts of any big historical event. The difference now is the scale of distribution and the ability to search. Because of this, we in the media industry face a profound challenge, as significant and transformational as Internet 1.0. So how should we respond to and control content fragmentation in this era of two-way flow? First, media companies need to be “seeders of clouds”. To have access to high-value new content, we need to attract a community around us. To achieve that we have to produce high-quality content ourselves, then display it and let people interact with it. If you attract an audience to your content and build a brand, people will want to join your community. This is as true for traditional “letters to the editor” as for MySpace.com. Second, we need to be “the provider of tools”. This means promoting open standards and interoperability, which will allow a diverse set of consumer-creators to combine disparate types of content. Third, we must improve on our skills as the “filter and editor”. Media have always had these functions. The world will always need editing: consumers place value in others making decisions about what is good and what is not.
Financial Times story (requires subscription)
Benton

China's wild, wild, web (Mar 9)
From the New York Times (pictured), via Benton: By some estimates, there are more than 30,000 people patrolling the Web in China, helping to form one of the world's far-reaching Internet filtering systems. But while China's huge Internet police force is busy deleting annoying phrases like "free speech" and "human rights" from online bulletin boards, specialists say that Wild West capitalism has moved from the real economy in China to the virtual one. Indeed, the unchecked freedoms that exist on the Web, analysts say, are perhaps unwittingly ushering in an age of startling social change. The Web in China is a thriving marketplace for everyone, including scam artists, snake oil salesmen and hard-core criminals who are only too eager to turn consumers into victims. Chinese entrepreneurs who started out brazenly selling downloadable pirated music and movies from online storefronts have extended their product lines — peddling drugs and sex, stolen cars, firearms and even organs for transplanting. Much of this is happening because Internet use has grown so fast, with 110 million Web surfers in China, second only to the United States. Last year, online revenue — which the government defines more broadly than it is in the United States — was valued at $69 billion, up around 58 percent from the year before, according to a survey by the China Internet Development Research Center. By 2010, Wall Street analysts say China could have the world's leading online commerce, with revenue coming from advertising, e-commerce and subscription fees, as well as illicit services. The authorities have vowed to crack down on illegal Web sites and say that more than 2,000 sex and gambling sites have been shut down in recent years. But new sites are eluding them every day.
New York Times story
Benton

China establishes its own Internet name reg (Mar 8)
In the wake of international debate over the censorship of internet access provide to Chinese residents via Google and Yahoo comes the news the country is bypassing the US-centred world wide web name registration with its own network. Exactly how this will work in practice has yet to be seen.
The announcement came via the government-owned People’s Daily a few days ago, which said:
China's Ministry of Information Industry (MII) has made adjustment to China's Internet domain name system in accordance with Article 6 of China Internet Domain Names Regulations.
After the adjustment, "MIL" will be added under the top-level domain (TLD) name of "CN".
A new Internet domain name system will take effect as of March 1 in China.
Under the new system, besides "CN", three Chinese TLD names "CN", "COM" and "NET" are temporarily set. It means Internet users don't have to surf the Web via the servers under the management of the Internet Corporation for Assigned Names and Numbers (ICANN) of the United States.
The new regulations stipulate that under "CN", two types of second-level domain names, namely categorized domain names and those for administrative regions.
There'll be seven categories: "AC" for research institutions; "EDU" for Chinese educational institutions; "GOV" for Chinese government departments and "MIL" for Chinese defense departments.
There'll be 34 domain names for the organizations of China's provinces, autonomous regions, municipalities directly under central government, and special administrative regions. They are mainly composed of the first letters of the Romanized spelling of the names of the regions, for example Beijing's domain name is "BJ" and Shanghai's is "SH".
Canadian academic Michael Geist says:
“China' s ability to implement its own IDN system without ICANN support is likely to serve as a model for many other countries around the world.  In the months ahead, look for countries in South America, the Middle East, and other parts of Asia to emulate the Chinese lead by establishing their own national IDNs.”
People’s Daily home page
Michael Geist

Where to now for middle-east media? (Mar 7)
Business website AME Info says: The oil boom years of the early 21st century have been accompanied by a flourishing media sector, with more liberal attitudes and a boom in advertising encouraging a proliferation of new titles and satellite television channels. But is the sector now overblown and entering a period of consolidation and rationalization?
Full story
Dubai Media City

Sedition laws to be reviewed (Mar 7)
From the Media Alliance: The Australian Law Reform Commission has announced the terms of reference for its inquiry into sedition clauses that were passed last year as part of the federal government's Anti Terrorism (No 2) Act. The Attorney General foreshadowed the independent review after media groups and a Senate inquiry said that the sedition laws would impinge on freedom of expression. The Alliance is campaigning for sedition to be removed entirely. See this link
Plus…
The Australian Industrial Relations Commission certified the new agreement at Fairfax Community Newspapers Victoria last month. Members won a pay increase of 11.5 per cent over three years - one of the highest that has been negotiated within print media over the past couple of years. Union membership at FCN dramatically increased during the campaign.
Media Alliance

Women’s weeklies top international growth (Mar 6)
From the International Federation of the Periodical Press: The women’s weekly magazine market was 2005’s biggest growth sector according to new ABC figures for the UK, the USA and Australia.
In the UK, celebrity appeal boosted Natmag’s Reveal (pictured) a massive 44% year-on-year while competitor Emap’s titles Closer and Heat posted increases of 14.7% and 4.2% respectively. The men’s weekly sector also fares well with IPC’s Nuts up 11.4% and Emap’s ZOO also up 8.4%
In the USA, Bauer Publishing USA’s In Touch Weekly grew 15.5% thanks to a massive 41.3% growth in subscriptions and 14.8% growth in copy sales.
Star from American Media reported a 10% increase in average paid circulation while US Weekly from Wenner Media grew 12.7% to nearly 1.7 million in average paid circulation. People by Time Inc rose 1.1% to achieve a total 3.7 million circulation.
Australia’s ABC figures for the six months to December 2005 report that in the weekly women’s segment, six of the nine titles boosted average net paid sales (Australia only) on the previous period and year-on-year: notable success stories were Woman’s Day, New Idea and Take 5. Women’s lifestyle titles Cleo and Madison drove period-on-period growth in the segment, up 1.4% to 198,081 and 5.6% to 95,002 respectively.
Other segments posting the strongest circulation performances included entertaining/food, homemaker, men’s/sport and motoring. Helen Kingsmill, Magazine Publishers of Australia’s executive director said; ”Magazine sales overall are growing, driven by some strong performances by established titles, especially in the dynamic weekly magazine segment, and robust results for the new entrants to the category in 2005.
“The metrics for magazines were extremely solid in 2005 with many segments posting increased circulations and rising readership levels. Advertisers responded by increasing their investment in the category by nine percent in 2005. Magazines engage their readers, target audiences efficiently and provide relevant environments for advertising -- they are in a very strong position going into 2006.”
FIPP web
MPA
Top 100 mags – 30k PDF download

Fear and loathing for media – Bush (Mar 2)
From the Benton files: President George W Bush, who has acknowledged failings in the federal response to Hurricane Katrina, said on Tuesday that the media had better details about the catastrophe than the government did. "There was no situational awareness, and that means that we weren't getting good, solid information from people who were on the ground, and we need to do a better job," Bush told ABC News. "In many cases we were relying upon the media," he said.
Benton
Reuters story
Plus…
President Bush, for the first time, is hailing the rise of the alternative media and the decline of the mainstream media, which he now says “conspired” to harm him with forged documents.
Drudge Report

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