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Another publisher joins the Murdoch/Steve Jobs love-fest
“really cool”
“Every publisher in the world should sit down once a day and thank Steve Jobs for saving the publishing industry,” said Axel Springer CEO Mathias Döpfner (April 7) on the American PBS television channel. Mr. Döpfner just loves the iPad. His interview came just days after Apple released the iPad to Rupert Murdoch’s rousing endorsement. (Read that story here)
After saying “I love it” and “it’s really cool,” Mr. Döpfner further endorsed new media technology. “If the media treated the iPad and other new devices as competitors the industry would soon be dead.”
One caveat Mr. Döpfner noted is the money Apple keeps from iPad apps. “Thirty percent is just too much.” Apple has relentlessly forced price concessions from music publishers on iTunes material. (See more on those illusive business models here) (JMH)
Another Moscow station changing
Billionaires at work in secret
98 FM, owned by United Media Holdings, will relaunch sometime soon under a new name yet to be revealed, reports Infox.ru (April 8). The Moscow station will target women. Sketchy details, yes? United Media general director Michael Berger said only that more information would be forthcoming.
Shuffling within Russia’s radio sector is continuing. Alexander Lebedev’s Pioneer Radio will be overhauled. And the News Corp owned stations have just been sold.
Number one Russian billionaire Vladmir Lisin principally owns United Media. (See more on Russian billionaires in media here) (JMH)
Al Jazeera To NBC’s Rescue
The revolution in Kyrgyzstan is an important foreign story for the US because of the US Air Force base there used to get supplies into Afghanistan and it appears the leaders of the revolution want that base closed. So if you’re NBC News with Brian Williams, the highest rated terrestrial US network newscast, and all you have in Europe these days because of cost cutting is a bureau in London -- not even in Moscow -- how do you get a direct report from the scene? Easy, you get the Al-Jazeera reporter on the scene on the phone for his on-the-spot comments.
Now Al Jazeera has a tough time getting onto US cable systems because of perceived bias, but, hey, if it is good enough for NBC News then why not US cable systems? In fact ftm monitors Al Jazeera, CNN International and BBC World on a daily basis and while the US and British networks won’t like this the truth is more often than not it is Qatar-based Al Jazeera offering the most complete fast reporting on breaking news, and it just seems to have more people on the ground.
In addition to the Al Jazeera comments, NBC got its Kyrgyzstan video from news agencies and it resorted to foreign affairs specialist Andrea Mitchell in Washington to do the voiceover. Really, is that how America’s leading newscast should be covering such an important international news story?
UK Election Comes Just In Time For The Libel Lawyers
The UK government’s hopes of pushing through Parliament a new law restricting lawyer fees in successful libel cases has hit the dirt thanks to Prime Minister Gordon Brown’s call for general elections May 6 with Parliament being dissolved this coming Monday.
The Bill met some opposition at the committee stage and now with this Parliament about to go away there’s simply no time for the government to do anything more with it.
The usual costs payout in winning a “no win, no fee” libel case is 200% -- the 100% the lawyers would have charged their own clients plus an additional 100% from the loser and all of that is paid by the loser. If the government proposals had passed the 200% legal fees would have become 110%. The media says those success fees have often totaled more than £1 million and forces them to make the financial decision to settle out-of-court even though they didn’t think they did wrong, just in order not to get hit with possible enormous legal fees. In addition, the fear of such costs also means that “iffy” stories get tossed just to play it safe. It goes without saying, but we’ll say it anyway, the libel lawyers like the rules just as they are.
State TV stormed – Kyrgystan
Civil chaos
Crowds of opposition supporters stormed the Kyrgystan State radio and TV (NTRC) building in the capital Bishkek shortly after noon local time, reports fergana.ru (April 7). Some equipment was destroyed although the main television channel has been broadcasting statements from opposition leaders.
Another television station, ETRC, continued broadcasting live for awhile, controlled by opposition supporters, reported RIA Novosti. It and Channel 5 subsequently went dark. Internet service has been slow and some news websites are not responding. (See more on media in Kyrgystan here)
Kyrgystan appears to have descended into civil chaos. President Kurmanbek Bakiyev reportedly (Regnum 8pm local) fled by air to Kazakhstan. (JMH)
Advertising markets out of recession
CEE growth “fast”
Ad markets are officially out of recession, declared media buyer ZenithOptimedia (ZO) (April 7) in its quarterly forecast. After the 2009 “break” global ad spending will rise 2.2% in 2010, 4.1% in 2011 and 5.3%. At the end of Q4 2009 ZO predicted a tepid 0.9% rise.
“This pattern of recovery is normal: after the previous two recessions it took three years of progressive recovery for the global ad market to return to normal growth,” said the widely anticipated report. “We expect the recovery to become more general as the year progresses, leading to overall growth next year.”
North American advertising, however, will lag with a 1.2% decline in 2010 over 2009. Ad spending in Japan will also be lower, 0.7%.
ZO forecasts “fast” recovery in Central and Eastern Europe in 2010 and 2011 after crushing declines in 2009. Ad spending in Central Europe fell 23.1% in 2009, 24% in Eastern Europe. (See more on ad spending here)
Without surprise, internet advertising appears to fuel the spending recovery. In 2009 the internet share of ad spending rose to 12.6% and ZO predicts 17.1% by 2012. Paid search made up 50.2% of internet ad spending in 2009, which will rise to 52.1% by 2012. Internet display advertising will continue to fall and be eclipsed by internet video ads.
Television ad spending fell globally by 6.7%, though the TV share of the ad pie grew 39.4%. ZO expects continued share growth for TV ads to 40.6% in 2012 as TV ad spending grows rapidly in developing markets.
Of course, not every ad sectors can be winners. The print sector has “clearly suffered the most from the downturn, which has exacerbated their structural problems of falling consumer interest and substitution of new media,” said ZO. “By 2012 we predict newspapers’ share of global ad expenditure will have fallen to 19.4%, from 25.1% in 2008, while magazines’ share will have fallen to 8.6% from 11.6%.”
French broadcasters ask Culture Minister to sort out digital mess
“unjustified” delay
Two French broadcaster associations slammed Culture Minister Frederic Mitterrand for the “unjustified” delay in implementing a digital radio strategy. Last week Mitterrand referred to digital radio as “not a priority” for the government.
DR France, an association of digital radio supporters, and Syndicat National des Radios Libres, the community non-profit radio association, released (April 6) an open letter to Minister Mitterrand (Read here – in French) asking for support, clarity and the addition of DAB+ as an authorized standard for digital radio.
The French government chose the T-DMB standard over others. Big national network operators – not represented by the groups appealing to Minister Mitterrand – pushed T-DMB over DAB and DAB+. (See more on digital radio here)
“In an attempt to preserve their advantage, some private broadcasters want a further delay for digital radio. However, in terms of audience interest, the enrichment of the offer and the principles of pluralism and media independence, nothing justifies this. This is dangerous for the equilibrium between the telecoms sector and the audiovisual media. This is dangerous for the future of seven hundred radio broadcasters, over four-fifths of which are small businesses.”
“Your support on this point is essential because it is the government, not the CSA, decides the standards,” said the statement. “Our European neighbors are on a much more proactive path and more respectful of the broadcasters.” (JMH)
News Corp Russian stations sold
Easier said than done
Ever since News Corporation Chairman Rupert Murdoch made clear in 2008 his intentions to exit Russian and other Eastern European media investments the pathway has been bumpy. Aside from a cold towel thrown on potential buyers by the economic downturn there were slippery deals to untangle. The Russian radio stations – Nashe Radio, Best FM and Ultra – were finally sold last week. (See more on radio in Russia here)
The buyer is Vitaly Bogdanov, owner of My Family radio (Moya Semya) and 95.2 FM. Terms were not disclosed in the News corporation statement (April 2). Russian sources peg the value at about US$ 15 million. Last year News Corporation came to an agreement of the purchase and sale of the Russian radio stations to Alfa Group, related to Alfa Bank, for US$ 20 million. Those talks disintegrated when a Moscow court decided to allow a suit from the estate of the late Badri Patarkatsishvili.
Patarkatsishvili, it appears, acquired stakes in Nashe Radio, Best FM and Ultra from News Corporation’s original partner in the Russian radio stations, Boris Berezovsky. (See more on the colorful Mr. Patarkatsishvili here)
Last month (March 11) News Corporation exited Latvian television stations LNT and TV5, selling to the former owner. Within days the Riga Circuit Court seized the assets pending a corruption investigation. It’s not known if the sale came to closing.
News Corporation exited Bulgarian national television channel bTV, selling to Central European Media Enterprises (CME) at less than half the sum originally anticipated.
So far, News Corporation has been unable to sell its outdoor advertising business in Russia. (JMH)
Should Local Government Compete With Local Newspapers?
A major thorn in the side of local UK newspapers, as if they don’t have thorns enough given the economic recession, is that more and local government bodies (borough councils) are publishing their own local newspapers boosting council activities and taking local advertising – all to the detriment of independent local newspapers.
Now the Parliamentary cross-party culture, media and sports committee has asked the government’s Office of Fair Trading to investigate. John Whittingdale, the committee chairman summed up the situation succinctly, “While it is important that local authorities communicate with their citizens, it is unacceptable that councils can set up publications in direct competition to local newspapers and that act as a vehicle for political propaganda.”
Local newspapers have long complained about the legality of council newspapers but the government Audit Commission recently ruled they were not a misuse of public funds. The Parliamentary Commission has taken a different tack – not whether the council newspapers are a misuse of public funds but rather whether the publicly-funded newspapers are threatening the very existence of a free local press.
UK Libel Gag Orders Could Be Under Threat
In the final weeks of the current UK government (general elections to be held May 6) there is yet another attack on rigid UK libel laws – this time a senior judge is heading up a committee to look at the practice of judges issuing gag orders in advance of publication. Often a newspaper has a “scoop”, contacts the party in question for comment who usually says “no comment” who then immediately calls his/her lawyer who then goes to court to ask for an injunction stopping publication, and too often, the media says, the judges issue the injunction.
The Justice Ministry has appointed Master of the Rolls (second most senior judge in England and Wales) David Neuberger to head a committee made up of judges and lawyers who have represented claimants and defendants. Its recommendations are due next month.
Last month another government committee proposed libel reform legislation making it more difficult to start libel proceedings in the UK – especially by “libel tourists” from outside the UK – and that “public interest” should be an allowed defense to encourage more investigative journalism.
Was That A Contrite Tiger?
Tiger Woods faced the world’s media Monday at the Masters and he answered everything thrown at him – trouble is it was the professional golf writers doing the throwing and there was not a tabloid reporter who got to ask what everyone really wanted to know about his personal life!
Tiger seemed contrite; he answered everything including questions dealing with the use of certain prescription medicines and why he undertook some of the medical treatment he had over the years, and why certain doctors. He did get personal about how his private life, such as talking about how his father’s death had changed his outlook, but there was no rag reporter jumping up with the follow-up to ask the obvious that if he was so upset at the time then how come he was then with a woman, not his wife, at the time? That may be gutter press journalism, but until he answers such questions as to why, for instance, his wife was not with him this week on his return to golf then he will not be left alone – any crisis management expert will tell him that!
The Masters is about as controlled a golf tournament as there is, perfect for the four-time Masters champion in this situation, but next week and the weeks thereafter he won’t be on such friendly ground and the rags will eventually have their day.
CBS says its announcers know that Tiger’s personal life is a big part of this year’s tournament and the network won’t shy away from talking about that -- but for how long and how often?
Australia Bangs Heads Together For Sports Reporting Deal
Australian sports bodies, particularly Cricket Australia and Australian football, have tried over the years to impose harsh reporting restrictions on news organizations -- not allowing mobile coverage, restricting the number of pictures a web site can run, even wanting lists of clients, the list goes on -- and it had all gotten very contentious. They said it had nothing to do with freedom of the press but rather their “right” to make as much money as they could from commercial sales and they claimed unlimited news reporting limited their financial success. The news organizations cried “foul” claiming it was all about freedom of the press.
Some international news organizations had boycotted events rather than agree to coverage restrictions, but the new deal gives the media what it wants for news reporting purposes while inhibiting their commercial sales direct to the public which remain the province of the sports bodies.
It’s an important agreement because Australia has been in the forefront of imposing coverage limitations and sports bodies around the world were watching to see if they were going to get away with it. If they succeeded then no doubt everyone else would have rushed in, too. As it is the Australian deal could very well serve as the basis for what is done by many of the world’s major sports bodies.
Fast-tracked Mosley privacy case criticized
Defining the shadows
The decision by the European Court of Human Rights (ECHR) to fast-track a complaint lodged by former Formula One (F1) boss Max Mosley brought stinging rebukes from media watchers. Briefs filed by the European Publishers Council (EPC) and several NGOs criticized the ECHR for “failure to give any sensible or coherent definition to the concept of privacy.” (See EPC statement here)
Mosley brought suit in UK courts against the News International owned News of the World tabloid after the newspaper published details, including photos, of a 2008 goose-stepping episode with hookers. The UK High Court awarded Mosley damages for invasion of privacy.(See more on Mosley v. News of the World here) Mosley moved the case to the ECHR in October 2008.
Mosley asked the ECHR to establish law requiring reporters to give at least two days notice to public figures in advance of publishing reports of misbehavior in order to allow those errant souls sufficient time to file injunctions against publishers. The effect, obviously, would bring a halt to investigative journalism, keeping misdeeds – like expense account cheating – forever in the darkness. Public figures – from celebrities to politicians – have long sought to expand the legal definition of private space and, thus, keep the punters and reporters from intruding.
Global Witness and other anti-censorship NGOs joined the EPC filing (April 4) asking the ECHR to narrowly define the right to privacy “so it cannot be used to suppress investigative NGOs and journalists writing on subjects of public interest,” said its statement.
“If Max Mosley is successful, many issues of critical public interest will never see the light of day”, said Global Witness director Patrick Alley.
The UK House of Commons Culture, Media and Sport Committee, after hearing from Mosley and others, called (March 10) for the Press Complaints Commission to require reporters to notify subjects prior to broadcast or broadcast. Mosley wanted a new law but the Commons Committee clipped that, preferring to let courts decide the scope of privacy under the Human Rights Act.
The European Court of Human Rights should not be confused with the European Court of Justice (ECJ). The ECHR is located in Strasbourg while the EJC sits in Luxembourg. Both have case backlogs stretching years.
The 47 Member Council of Europe established the ECHR in the 1950’s to look after the European Convention on Human Rights. Because its basis is a treaty, all signatories are bound to its decisions. The UK Human Rights Act (1998) adopted, more or less, the language of Article 8 of the Convention. When it comes to the boundaries of privacy, legal definitions vary across Europe. (JMH)
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