[Federal Register: October 7, 2009 (Volume 74, Number 193)]
[Notices]
[Page 51605-51608]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07oc09-68]
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FEDERAL TRADE COMMISSION
Public Workshops and Roundtables: From Town Crier to Bloggers:
How Will Journalism Survive the Internet Age?
AGENCY: Federal Trade Commission.
ACTION: Notice Announcing Public Workshops and Opportunity for Comment.
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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'')
announces that it will hold two days of public workshops on December 1
and 2, 2009, to examine the Internet's impact on journalism in
newspapers, magazines, broadcast television and radio, and cable
television. The Internet has changed how many consumers receive news
and altered the advertising landscape. Low entry barriers on the
Internet have allowed new voices of journalism to emerge; the Internet-
enabled links from one web site to another have given consumers easy
access to all types of news; efficiencies available through the
Internet have substantially reduced advertising costs. These and other
changes related to the Internet have benefitted consumers greatly.
At the same time, however, lower online advertising costs have
reduced advertising revenues to news organizations that rely on those
revenues for the majority of their funding. The explosion in the number
and types of web sites has increased the supply of advertising
locations. As that supply has increased, advertisers now pay less for
online advertising, and some advertising has moved from print,
television, or radio to online sites. In addition, most online news is
offered free, so online readers of news frequently do not contribute
subscription revenues to news media.
These developments are challenging the ability of news
organizations to fund journalism. The workshops will consider a wide
range of issues, including: (1) the economics of journalism on the
Internet and in more traditional media; (2) how the business models of
different types of news organizations may evolve in response to the
challenges associated with the Internet; (3) innovative forms of
journalism that have emerged on the Internet; (4) how competition may
evolve in markets for journalism and advertising; and (5) changes in
governmental policies that have been proposed as ways to support
journalism.
The Commission seeks the views of the news media and the legal,
academic, consumer, and business communities on the issues to be
explored at the hearings. This notice poses a series of questions on
which the Commission seeks comment.
DATES: The dates for the workshops are December 1 and 2, 2009. Comments
must be received by November 6, 2009, to be considered in preparing for
the workshops.
ADDRESSES: The workshops will be held at the FTC's Conference Center
located at 601 New Jersey Ave., N.W., Washington, D.C. 20001. Those who
plan to attend are encouraged to pre-register by sending an email to
(newsmediaworkshop@ftc.gov).
This information will be used for planning
purposes only. Interested parties are invited to submit written
comments electronically or in paper form, by following the instructions
in the Instructions For Filing Comments part of the SUPPLEMENTARY
INFORMATION section below. Comments filed in electronic form should be
submitted by using the following weblink: (http://
public.commentworks.com/ftc/newsmediaworkshop) and following the
instructions on the web-based form. Comments in paper form should be
mailed or delivered to the following address: Federal Trade Commission,
Office of the Secretary, Room H-135 (Annex F), 600 Pennsylvania Avenue,
NW, Washington, DC 20580, in the manner detailed in the SUPPLEMENTARY
INFORMATION section below.
FOR FURTHER INFORMATION CONTACT: Jessica Hoke, Office of Policy
Planning, FTC, 600 Pennsylvania Avenue, N.W.,
[[Page 51606]]
Washington, D.C. 20580; telephone (202) 326-3291; e-mail:
(newsmediaworkshop@ftc.gov).
Detailed agendas for the workshops will be
made available at the workshop webpage, which will be accessible from
the FTC Home Page (http://www.ftc.gov).
SUPPLEMENTARY INFORMATION: The Internet has given consumers access to
an unprecedented number of information sources. The Internet's low
entry barriers, in comparison to traditional media, have created new
publication opportunities resulting in multiple innovative forms of
journalism. Websites run by citizen journalists and bloggers, for
instance, provide information, analysis, and opinion on a wide variety
of topics. In addition, websites have been created that aggregate
stories from many different publications, so a particular news story
may be seen at multiple locations on the Internet. These changes have
benefitted consumers in a wide variety of ways.
At the same time, changes associated with Internet technology pose
fundamental financial challenges to many news organizations. To a large
extent, these challenges reflect changes in the business of
advertising. News organizations traditionally have provided valuable
venues through which advertisers can reach consumers, and advertising
revenues - not consumer purchases - have funded most of the costs of
producing and distributing the news. Now this business model is under
stress. Online websites provide an almost limitless supply of
advertising venues - a fact that has reduced advertising revenues to
many traditional forms of news media. Particularly in the case of
classified advertising, much lower costs combined with a much larger
network of potential purchasers and sellers have encouraged advertisers
to move online to a significant extent, eliminating a substantial
portion of the advertising revenues that newspapers rely on.
Other developments raise additional issues. Consumers are using
``news aggregator'' websites, which collect and link to stories
produced by news organizations. Aggregators generally do not pay for
that content, claiming that they help news organizations by enabling
readers to link back to the original news story, thereby driving
traffic to the news organization's website and the advertising located
there. News organizations respond that some aggregators not only link
to the original news story, but also post a substantial portion of the
original news story at the aggregators' sites. This diminishes the
value of advertising at the original news story's website, they claim,
by decreasing the likelihood that a reader will visit the complete
story at the news organization's website. There are currently various
proposals to address this issue, including possible amendments to
copyright laws.
These financial challenges have prompted cost-cutting measures at
many news organizations. Additionally, a recession, bursting real
estate bubble, and automobile industry crisis also have reduced
advertising sales and revenues. In this economic context, the debt
burdens from heavily leveraged purchases of news organizations,
combined with other factors, have forced several large daily newspapers
to declare bankruptcy and others to impose significant cuts in staff
and other expenditures to lower costs.
The reduction in news staffs raises questions over whether certain
types of news are receiving less coverage as a result. Many have
expressed concern that investigative journalism will suffer.\1\ Some
economists believe that public affairs reporting may indeed be
particularly subject to market failure.\2\ Non-profit organizations,
some associated with universities or supported by foundations, have
developed to provide investigative journalism,\3\ and proposals exist
to amend tax rules to make it easier for foundations to support such
news organizations.
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\1\ E.g., Will Skowronski, Investigative Teem: New nonprofit
centers aim to fill the gap in state and local investigations, Am.
Journalism Rev. (Feb./Mar. 2009) (describing new nonprofit centers
dedicated to investigative journalism as a result of concern that
news organizations have declining revenues for investigative
reporting), available at (http://www.ajr.org/Article.asp?id=4693).
\2\Matthew Gentzkow & Jesse Shapiro, Competition and Truth in
the Market for News, 22 J. Econ. Perspectives 133, 146 (2008) (``As
Downs (1957), Coase (1974), Posner (1986), and others have pointed
out, when it comes to the kind of information that the First
Amendment is most concerned with, there may be large social gains
that consumers do not internalize. Consumers will prefer to free-
ride and let others invest in casting informed votes.'' (citations
omitted)). See also James t. Hamilton, all the News That's Fit to
Sell: How the Market Transforms Information into News (Princeton
Univ. Press 2004) at 13 (``The point here is that since individuals
do not calculate the full benefit to society of their learning about
politics, they will express less than optimal levels of interest in
public affairs coverage and generate less than desirable demands for
news about government.'').
\3\ See n. 1 supra.
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There are also concerns about the extent to which local journalism
will continue to thrive. New websites run by citizen journalists, which
generate local and hyperlocal news (covering neighborhoods of just a
few blocks), provide alternative sources of local news. For the most
part, however, these new journalism models have not yet proven
profitable. Various tax proposals seek to make it easier for
foundations and other low-profit ventures to support local journalism.
The FTC's workshops will bring competition, consumer welfare, and
First Amendment perspectives to analyze (1) the financial challenges
facing news organizations in the Internet age, and (2) the potential
for new opportunities for sustainable journalism. Workshop participants
will discuss, among other things:
Internet-related changes in advertising that affect news
organizations, and ideas for potential responses to those changes;
Internet-related changes in ways that consumers obtain
news, and ideas for potential responses to those changes;
Ideas for reducing the costs of providing the news and
restructuring news organizations to become more efficient (without
sacrificing quality);
Potential profit and non-profit models for journalism,
including innovative forms of journalism; and
Potential evolution in competition among news
organizations.
The FTC workshops will also explore whether recent changes in the
news industry require consideration of additional or alternative
governmental policies to ensure that journalism provides news of value
to consumers.\4\ Workshop participants will discuss, among other
things:
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\4\Governmental policies supporting news organizations are not
new. In the nineteenth century, newspapers were often distributed
through the mail with no charge for postage. Radio and television
benefitted from the government's licensing of spectrum without
competitive bidding. The Newspaper Preservation Act of 1970 provided
ways for newspapers to collaborate on operations costs, exempt from
the antitrust laws, while continuing to compete on content.
Copyright laws protect original news content, with exceptions for
``fair use.''
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Proposals for new tax treatment for news organizations;
Proposals for changes in copyright law and doctrine,
including the ``fair use'' of news stories;
Proposals for an antitrust exemption applied to certain
conduct of news organizations; and
Proposals for greater public funding of public affairs
news.
Other relevant topics for the workshops may be proposed as well. An
agenda for the December 1 and 2, 2009, workshops will be circulated at
a later time. Participants will include journalists, editors, owners,
and other representatives of news organizations, online advertisers,
new media representatives (such as bloggers and local news web sites),
consumer advocates, academics, economists, and government
representatives.
[[Page 51607]]
The Commission seeks public comment on the questions posed below or
any issue raised by this notice. Comments may address the issues raised
in these questions or other issues relevant to the topics to be
addressed at the workshops. Any interested person may submit written
comments. In preparing for the workshop, the Commission will consider
comments received by November 6, 2009. Later comments will be accepted
as well.
Changes Driven by Technology
How is the Internet changing the way consumers access
news? What further changes are forecast? What are the consequences of
those changes for consumers and for news organizations?
How is the Internet changing advertising expenditures?
What further changes are forecast? For which types of advertising will
news organizations likely remain preferred venues? What is the likely
role of targeted advertising in the future, both by news organizations
and other entities?
How is the Internet changing the way news organizations
and others research, write, edit, produce, and distribute news? How
could the Internet be useful in reducing those costs? What would be the
likely consequences of any changes?
What innovative forms of journalism have emerged due to
the Internet? What types of journalism are produced?
What are the business models, including the revenue
sources, for new models of journalism on the Internet? Are they
profitable? What are the prospects for future profitability?
What new forms of journalism and new business models may
become more prevalent in the future? How might new or improved
technologies drive the evolution of the news media in the future?
Economic Challenges of News Organizations
What economic challenges do news organizations face today?
What is the source of these challenges?
What alternative cost-cutting measures have news
organizations considered? Which have they adopted? What further
measures are under consideration?
How have cost-cutting measures affected the provision of
news to consumers? What types of news are no longer being covered? What
types of news receive less coverage than before? What are the long-term
consequences of such reduced news coverage for consumers? What are the
long-term consequences of such reduced news coverage for ensuring an
educated citizenry?
How might the business models of news organizations evolve
in response to these challenges? What would be the effect of new
business models on the type, quality, and quantity of journalism
available both off and online?
How are news organizations likely to compete for readers
and advertising in the future? What is the value that particular news
organizations can offer to persuade advertisers to choose them over
different venues for advertising? What is the value that particular
news organizations can offer that might persuade consumers to pay for
their content? How will those values differ depending on
characteristics of the news organizations (e.g., local, regional, or
national news; specialized or broad coverage; weekly or monthly news)?
Government Policies
Are new or changed government policies needed to support
optimal amounts and types of journalism, including public affairs
coverage? Why or why not? Could new or changed government policies
encourage more competition among news organizations?
Should the tax code be modified to provide special status
or tax breaks to all or certain types of news organizations? Why or why
not? If yes, in what ways? What would be the likely effects for
consumers? For news organizations? What strategic behavior or
unintended consequences might special tax treatment engender?
Do the protections for original news content under current
copyright law provide sufficient incentives to create that content? If
not, should copyright law be altered? What is the role of the ``fair
use'' doctrine in allowing use of original news content by news
aggregators and others? Should the ``fair use'' doctrine be modified?
What would be the effects of any changes in copyright law or doctrine
on consumers and news organizations? What strategic behavior or
unintended consequences might changes in copyright law or doctrine
engender?
What joint actions, if any, are news organizations
considering to address the financial challenges they face as a result
of changes brought about by the Internet? Are there any joint actions
for which an antitrust immunity arguably would be required? If so, have
joint actions been tried first that do not require antitrust immunity?
Under what circumstances, if any, could an antitrust immunity for
certain joint conduct be justified? In what ways, if any, would
antitrust immunity be preferable to innovation to address new
challenges?
Should the federal government provide additional funding
for news organizations? Why or why not? If yes, should only current
recipients of federal funding receive increased funding? What methods
have other countries used to provide government funding for the news,
while retaining journalistic integrity? What would be the costs and
potential consequences of increased federal funding for the news? What
strategic behavior or unintended consequences might increased federal
funding engender?
Interested parties are invited to submit written comments
electronically or in paper form. Comments should refer to ``News Media
Workshop Comment, Project No. P091200'' to facilitate the organization
of comments. Please note that your comment - including your name and
your state - will be placed on the public record of this proceeding,
including on the publicly accessible FTC website, at (http://
www.ftc.gov/os/publiccomments.shtm).
Because comments will be made public, they should not include any
sensitive personal information, such as any individual's Social
Security Number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. Comments also
should not include any sensitive health information, such as medical
records or other individually identifiable health information. In
addition, comments should not include any ``[t]rade secret or any
commercial or financial information which is obtained from any person
and which is privileged or confidential. . . ,'' as provided in Section
6(f) of the Federal Trade Commission Act (``FTC Act''), 15 U.S.C.
46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing
material for which confidential treatment is requested must be filed in
paper form, must be clearly labeled ``Confidential,'' and must comply
with FTC Rule 4.9(c), 16 CFR 4.9(c).\5\
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\5\The comment must be accompanied by an explicit request for
confidential treatment, including the factual and legal basis for
the request, and must identify the specific portions of the comment
to be withheld from the public record. The request will be granted
or denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR
4.9(c).
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Because paper mail addressed to the FTC is subject to delay due to
heightened security screening, please consider submitting your comments
in electronic form. Comments filed in electronic form should be
submitted by
[[Page 51608]]
using the following weblink: (https://public.commentworks.com/ftc/
newsmediaworkshop) (and following the instructions on the web-based
form). To ensure that the Commission considers an electronic comment,
you must file it on the web-based form at the weblink (https://
public.commentworks.com/ftc/newsmediaworkshop). If this document
appears at (http://www.regulations.gov/search/Regs/home.html#home),
you
may also file an electronic comment through that website. The
Commission will consider all comments that regulations.gov forwards to
it. You may also visit the FTC Website at (http://www.ftc.gov)
to read
the document and the news release describing it.
A comment filed in paper form should include the ``News Media
Workshop Comment, Project No. P091200'' reference both in the text and
on the envelope, and should be mailed or delivered to the following
address: Federal Trade Commission, Office of the Secretary, Room H-135
(Annex F), 600 Pennsylvania Avenue, NW, Washington, DC 20580. The FTC
is requesting that any comment filed in paper form be sent by courier
or overnight service, if possible, because U.S. postal mail in the
Washington area and at the Commission is subject to delay due to
heightened security precautions.
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. The Commission will consider all timely and responsive
public comments that it receives, whether filed in paper or electronic
form. Comments received will be available to the public on the FTC
website, to the extent practicable, at (http://www.ftc.gov/os/
publiccomments.shtm). As a matter of discretion, the Commission makes
every effort to remove home contact information for individuals from
the public comments it receives before placing those comments on the
FTC Website. More information, including routine uses permitted by the
Privacy Act may be found in the FTC's privacy policy, at (http://
www.ftc.gov/ftc/privacy.shtm).
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. E9-24197 Filed 10-6-09; 12:23 pm]
BILLING CODE 6750-01-S