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Week ending December 1, 2007

egta welcomes the final adoption of the “audiovisual media services” directive - November 29, 2007

from Sheena McLoughlin/egta

Brussels, 29 November 2007 – egta, the association of television and radio sales houses, welcomes the adoption by the European Parliament of the new directive on “audiovisual media services”.

After five years of expert discussions and two years of political debate, egta is pleased that the resulting political compromise is balanced and that it translates the much needed liberalisation of television advertising rules into EU law. Viewers will be the first to benefit from broadcasters which, properly funded by advertising, will still be able to offer diverse quality programming free-of-charge to the viewers.

In Venice, where egta member sales houses met to look into the impacts of the rules established by this new EU directive, egta’s Head of Regulatory and Public Affairs, Bertrand Cazes, said “This directive is clearly a step in the right direction for the European audiovisual advertising industry but much work remains to be done so that additional regulatory hurdles are not introduced through the back-door. egta and its member sales houses will be extremely vigilant so that Member States transpose and apply the new directive in the same constructive spirit and with the same objective of rational and flexible advertising rules.

egta calls on the Member States and national regulators to consider the transposition and implementation of the new directive without further delay as a standstill would serve only to harm the competitiveness of the EU audiovisual industry.

EuroParl - New TV and product placement rules should be applied before end 2009 - November 29, 2007

from Malene Chaucheprat/EuroParl

European Parliament today approved new EU rules on TV advertising and product placement. The new directive on Audiovisual Media Services is a modernisation of the 'TV without frontiers' directive and now also covers new media services such as internet-tv and on-demand TV services. With the Parliament's approval today, the rules would have to be implemented in the Member States by the end of 2009.

The Parliaments' rapporteur Ruth Hieronymi (EPP-ED, DE) was satisfied with the Parliaments approval of the Council common position, which was a result of negotiations between Parliament and Council that took into account most of the concerns raised in Parliament's first reading in December 2006.

"The modernisation of the rules for television comes just in time," Ms Hieronymi said during the debate Wednesday, and underlined the importance of the new rules especially in view of the coming telecom-packages and recommendation on-line content.

New rules on advertising and product placement

The new rules update the 1997 Television without Frontiers directive, now to be dubbed the Audiovisual Media Services Directive, to keep pace with developments in audiovisual technology and advertising. They will apply to "TV-like services" such as web-streamed TV programmes, but not to private web sites. TV-programmes 'on-demand' from for instance the Internet will be covered by the qualitative rules concerning protection of minors and product placement - but not on the rules concerning the amount of time allowed for advertising.

One innovation is the rules on "product placement", whereby a specific product is placed in TV-programmes for commercial purposes. This would be allowed only in a limited range of programmes, and then only under strict rules. It would be prohibited in news and current affairs programmes, children's programmes, documentaries and programmes providing advice. Parliament has ensured, that signals must appear when a programme containing product placement starts, when it ends and after commercial breaks. Members states can still choose to have a ban on product placement.

Commercial breaks every half-hour

Commercial breaks will be permitted every 30 minutes in TV films, cinematographic works and news programmes. In children's programmes, commercial breaks will not be allowed unless the programmes are more than 30 minutes long. There are no insertion rules for other types of programmes, such as serials. The maximum of amount of advertising permitted under the new rules would not exceed be 12 minutes an hour, as it is in the current directive.

Furthermore, Member States and the Commission are required to encourage media service providers to develop codes of conduct towards children, for example to preclude junk food commercials aimed at children.

Parliament also ensured that a provision on access to media services for disabled people was included in the legislation itself, and not just the introductory remarks, and included an the obligation for Member states to ensure that the directive's application is overseen by independent regulatory bodies.

European works

The existing rules that oblige Member States to assure that TV broadcasters reserve a majority of their transmission time on European works (excluding the time appointed for news sports games and advertising) will remain. However with the new directive Member States shall also ensure that on-demand audiovisual media services promote European works

INSI - News Deaths Hit All-Time High - November 28, 2007

from Sarah De Jong/INSI

At least 171 journalists and other news media staff have died as a result of their work around the world so far this year, making 2007 the bloodiest year on record for the industry.

With more than a month still to go before the end of the year, the all-time high of 168 deaths recorded in 2006 was exceeded on Tuesday when at least three editorial staff were killed in Sri Lanka during a military air strike on a radio station.

"This horrible statistic should be regarded as a low point in the safety and welfare of the media profession. We need better protection for media workers worldwide," said INSI Honorary President Chris Cramer.

According to casualty records maintained by the International News Safety Institute the dead between 1 January and 28 November comprise 142 journalists and 29 support staff, such as drivers, translators and news technicians, in 35 countries.

The great majority -- 121 -- were apparently murdered, targeted because of their jobs. Fifteen died in crossfire or other random attacks, 34 were killed in road or air accidents while the circumstances of one death were unclear.

The most murderous country again was Iraq, where 64 died, taking the total news media toll since the start of the war to at least 235. Others were Sri Lanka (6 murders), Afghanistan, Mexico, India and Philippines (5 each) and Haiti, Pakistan and Somalia (4 each).

Sri Lanka's position as a highly dangerous country for the news media was confirmed when the Air Force bombed the Voice of Tigers, the official radio station of the rebel Liberation Tigers of Tamil Eelam in the northern province of Vanni. Nine people were killed, including at least three Editorial staff, according to reliable reports. All were reported to be civilians.

Journalists are protected as civilians in a war zone and the deliberate targeting of civilians not taking a direct part in hostilities is a war crime under the Geneva Conventions.

The United States ranked second after Iraq in the total number of journalists who have died this year trying to cover the news, but all but one of the casualties were as a result of an air or road accident. Four died when two news helicopters collided while trying to cover a police car chase in Phoenix last July. Nigeria also has a questionable overall safety record with six dead in a single accident last May.

"The news media death toll around the world has risen almost every year since the millennium -- each year worse than the one before," said INSI Director Rodney Pinder. "This is despite international calls for an end to the murder of journalists and other news professionals and an end to impunity for their killers. It is far beyond time for nations and the international community to back up these calls with action.

"Far too many news media also die in road or air accidents. It is time for many news organisations to take more seriously their duty of care, for staff and freelancers alike. Proper training and observance of good safety practice often can avoid needless deaths," he added.

Analysis of casualty data by INSI shows at least 1,200 news media staff died covering the news around the world between 1996 and mid-2007. Two-thirds were murdered and in nine out of 10 cases no one was brought to justice.

Following two years of campaigning by INSI, the International Federation of Journalists and the European Broadcasting Union, the UN Security Council last December unanimously passed Resolution 1738 on the protection of journalists in conflict zones and on the need to end impunity for their killers. The Council of Europe passed Resolution 1535 in January of this year on the safety of journalists in peacetime as well as war.

"We call on governments everywhere to respect these resolutions in the letter and the spirit and take determined, effective action to stem the bloodshed," Pinder said.

Details of all fatal incidents recorded by INSI in 2007 and previous years can be obtained from http://www.newssafety.com/casualties/2007.htm

The International News Safety Institute is a unique coalition of news organisations, journalist support groups and individuals exclusively dedicated to the safety of news media staff working in dangerous environments. It is a non-profit charity, supported by membership contributions which are channelled back into safety work.

As a safety organisation, INSI records all causes of death, whether deliberate, accidental or health-related, of all news media staff and freelancers while on a news assignment or as a result of a news organisation being attacked because of its work.

Arbitron to delay commercialization of the Portable People MeterTM radio ratings service in New York, Los Angeles, Chicago, San Francisco and Dallas - November 26, 2007

from Thom Mocarsky/Arbitron

Company Revises Financial Guidance For 2007

Arbitron Inc. (NYSE: ARB) announced today that it will delay the commercialization of its Portable People Meter (PPM) radio ratings service in nine markets. New York, Nassau–Suffolk and Middlesex–Somerset–Union will be delayed by nine months; Los Angeles, Riverside and Chicago by six months; and San Francisco, San Jose and Dallas by three months.

In these nine markets, the Company will extend the use of the paper and pencil diary system that has been serving the industry since 1965. During the delay, Arbitron will continue to work with customers, the Media Rating Council®, other industry organizations and community groups on the research and business issues related to the Portable People Meter radio ratings service in local markets.

“We remain confident in the audience estimates that the Portable People Meter service is producing. However, over the past three weeks, feedback from our customers, the Media Rating Council and other constituencies has led us to conclude that the radio industry would be better served if we were to delay further commercialization of the PPM in order to address their issues,” said Steve Morris, chairman, president and chief executive officer, Arbitron Inc.

“We already have a number of initiatives in the pipeline for implementation in the first quarter of 2008 that we believe will improve the performance of our PPM samples. Our intention is to expand significantly this list of improvement initiatives by working closely with customers, industry organizations and community groups. We expect that the Media Rating Council will be a particularly valuable source of guidance and advice on the more technically oriented aspects of this review and improvement process and we intend to work closely with the members of the MRC over the next several months,” said Mr. Morris.

“We also plan to use the additional time to work closely with community leaders to review the workings of the Portable People Meter service and to gather their insights as to how we might improve compliance among persons 18-34, including ethnic young adults, across the diverse communities of New York, Los Angeles, Chicago and subsequent markets,” said Mr. Morris.
Arbitron intends to introduce the Portable People Meter service in Atlanta, Detroit, Washington D.C. and in subsequent markets, as originally scheduled.

The ratings for the September 2008 PPM survey month (August 21 – September 17) are scheduled to be delivered to customers on October 8, 2008. The first “currency” survey month in Los Angeles, Riverside, Chicago, San Francisco and San Jose will be preceded by two “pre-currency” monthly PPM reports in July and August. In Dallas, the two “pre-currency” months will be October and November 2008. The first “currency” month in Dallas will be the December PPM survey month (November 13 – December 10) scheduled to be released on December 31, 2008.

New York, Nassau-Suffolk and Middlesex-Somerset-Union “pre-currency” data will continue to be released through August 2008 but only as monthly reports for research and evaluation purposes, and not in a format that can be used by software systems that have a scheduler module which is used for the buying and selling of radio station advertising.

This decision does not impact the Portable People Meter radio ratings services currently in operation in Houston and Philadelphia. Monthly and weekly ratings reports based on the currently installed PPM panels in these two markets will continue to be issued to radio stations, agencies and advertisers as scheduled for their use in the buying and selling of radio station advertising.

Revised Financial Guidance for 2007 and Outlook for 2008
As a result of its decision to delay further implementation of the Portable People Meter service, the Company is updating its previously issued guidance to reflect the resultant financial impact. Earnings per share (diluted) for 2007 are currently estimated to be between $1.30 and $1.35 as compared to its previously issued earnings per share guidance of $1.35 to $1.45.

In addition, the Company currently estimates the impact of foregone revenue and additional costs required to produce diary estimates in the affected markets will reduce 2008 earnings by $0.22 to $0.33 per share (diluted). Consistent with past practices, detailed annual revenue and earnings per share guidance will be provided in conjunction with our fourth quarter 2007 earnings release expected to be issued in February 2008.

 


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