GOP Reps. Fear FCC Study Effort to Reintroduce Fairness Doctrine

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The Federal Communications Commission's $900,000 study, "Multi-Market Study of Critical Needs," is drawing fire from Republican legislators who are concerned that the agency is laying the groundwork for reintroducing the Fairness Doctrine, Ad Week reported today.

The Fairness Doctrine, which was implemented by the FCC in 1949, was derided by the agency in 1987 as an unconstitutional infringement on the free press and expunged from the books two years ago (see "TUOL" post 8/24/11). The doctrine was aimed at airing conflicting views about controversial issues and required broadcasters to provide time for a response to personal attacks levied by the broadcasters.

The FCC study that has solons on edge intends to examine how tv stations choose news stories and how the news is produced and prioritized, according to the Ad Week article. Acquiring that data for analytic purposes would involve interviewing journalists about factors that affect their story selection and delving into their news philosophy.

Critics of the study view this as a blatant attempt to influence journalists' political speech. Newly appointed FCC chair Tom Wheeler has until January 10, 2014, to respond to questions posed by the GOP lawmakers, Ad Week reported, including why the study is confined only to the Columbia, South Carolina, market rather than tv markets of varying sizes and geographic locations.

Forbes Courting a Buyer?

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Grappling with declining print revenue, Forbes Media LLC has put itself up for sale, reportedly seeking a $400 million to $500 million ticket price, according to Ad Week.

With Publishers Information Bureau figures showing a 7.5 percent decline in print ad revenues over the first three quarters of 2013 compared to year-ago numbers, Forbes has lined up the Deutsche Bank to explore a sale. The esteemed business journal was established in 1917 by B.C. Forbes and remained the sole property of the Forbes family until Elevation Partners, a private equity firm, became a minority partner in 2006.

Since then, Forbes defaulted on a $90 million credit line, necessitating the sale of private family assets, including an island in Fiji, which led to the 2010 ouster of Steve Forbes as CEO and hiring of Mike Perlis, according to the Ad Week article.  Perlis cited comscore worldwide figures that shows Forbes.com unique visitors skyrocketing to 26 million from 12 million over the past three years as an indication that the media company would be attractive to suitors.

The Ad Week article speculated that a private equity firm would be most likely to take the plunge in acquiring Forbes Media LLC. The company has shifted its emphasis to its conference business and online edition, noting that its digital magazine provides more than half of its ad revenue.

Newspaper Guild Accuses Newsweek Owner of Unfair Labor Practices

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Maybe IBT Media, the upstart digital publisher that produces The International Business Times and recently snatched up Newsweek for a song (see "TUOL" post 8/5/13), should take a Dale Carnegie course in how to win friends and influence people.

The ink hasn't dried on the Newsweek acquisition and  Ad Week already is reporting that The Newspaper Guild last week filed an unfair labor practices charge against the new owner. IBT purportedly offered four Newsweek staffers continued employment, but indicated that company policy prohibited their discussing salary with colleagues or criticizing IBT.  The Guild condemned IBT for "illegally muzzling" its workers and alleged the company had violated U.S. labor law.

That determination will be made by the National Labor Relations Board. If the NLRB finds merit in the accusation, it will file a complaint against IBT. According to the Ad Week story, Newsweek only has a staff of 20, down from 150 just three years ago, so there's barely anyone around in the lunch room to whom one could complain about low pay or the boss.

Maxim Mum on Sale Price in Darden Media Group Acquisition

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Alpha Media Group has unloaded Maxim Magazine to the Darden Media Group ("DMG") for an undisclosed purchase price, Ad Week reported today.

In the deal, Darden will take over the two-million circulation periodical, its 15 international versions and digital extensions, according to Ad Week. The 18-year-old magazine was founded by British publisher Felix Dennis.  DMG reportedly plans to shake-up the one-time cutting-edge men's magazine by expanding the name across radio, cable and music platforms.

DMG is headed up by Cal Darden Sr., a former executive for United Parcel Service, so he knows a hot package when he sees one. Guess that means Maxim won't be running a Girls of Federal Express pictorial anytime soon.

Soap Opera Weekly Magazine Shuts Down...Unless It Was All Just a Dream

Original main title (Photo credit: Wikipedia)With once-thriving daytime dramas down to four stalwart soap opera hangers-on, including General Hospital and Days of Our Lives, it's not surprising news that American Media Inc. has discontinued Soap Opera Weekly ("SOW").

According to an article in Ad Week citing Audit Bureau of Circulations numbers, SOW circulation plunged 50 percent over the past four years to 107, 817. Competitor Soap Opera Digest ("SOD") continues to keep readers abreast of all the torrid affairs, long-lost twins and other hijinks among their favorite  "soaps" characters, but also saw  circulation decline by 40 percent last year to 292,219.

Sounds as if this segment of the publishing industry is undergoing a not-so Secret Storm and can use a Guiding Light to show it the way to profitability.

UPDATE: Tobacco Cos. Singe FDA Rule in Federal Court

Image via WikipediaUnited States District Court for the District of Columbia Judge Richard J. Leon this week granted a preliminary injunction to tobacco companies challenging Food & Drug Administration regulations requiring cigarette packaging to carry graphic depictions of the health consequences of smoking.

Last August, R.J. Reynolds Tobacco Co., Lorillard Tobacco Co., Commonwealth Brands, Inc., Liggett Group, LLC and Santa Fe Natural Tobacco Co. sued the FDA, which in June 2011, promulgated regulations, set to take effect in September 2012, based on H.R. 1256, the Family Smoking Prevention and Tobacco Control Act of 2009, that mandated cigarette packaging and related advertising include grisly images, such as a cadaver on an autopsy table and blackened lungs. (See "TUOL" post 8/17/11.)

In siding with the plaintiffs' request for a preliminary injunction in the case, R.J. Reynolds Tobacco Co. et al. v. U.S. Food & Drug Administration et al. (Case No. 1:11-cv-01482), Judge Leon wrote in his 29-page opinion: "[T]he plaintiffs have demonstrated a substantial likelihood that they will prevail on the merits of their position that these mandatory graphic images unconstitutionally compel speech, and that they will suffer irreparable harm absent injunctive relief pending a judicial review of the constitutionality of the FDA's rule."

The tobacco companies argue the FDA-imposed warnings exceed the limits of factual and neutral information and thereby, violate their First Amendment right of free speech. As reported by Ad Week, Judge Leon's Order prevents H.R. 1256 from taking effect until 15 months after the current lawsuit is resolved, which derails the September 2012, implementation.

Whither Jen, Brangelina & the Kardashians?

Image via WikipediaAmericans' taste can't have improved, so the sour economy must be to blame for sagging celebrity magazine newsstand sales.

Ad Week reports that the numbers from the Audit Bureau of Circulations' Rapid Report don't bode well for periodicals immersed in Hollywood glitz. People magazine, for instance, saw decreased newsstand sales over the second half of 2011 average out at 1.1 million copies, a 12.4 percent decline compared to second half 2010 numbers. People can take some solace in a 4.3 percent upward tick in subscriptions, for a total circulation of 3.6 million.

The news isn't much better for Bauer Publishing Co. periodicals Life & Style and In Touch, according to Rapid Report figures, as newsstand purchases plunged 7.5 percent and 8.5 percent, respectively. Celeb gossip journal Star Magazine, published by American Media, Inc., missed its rate base on more than half of  22 issues sold, while Us Weekly magazine, produced by Wenner Media, fell short on its circulation guarantee on five of 13 issues, Ad Week noted in its review of Rapid Report figures.

Looks like TMZ.com and tv talk shows are going to have to step up to inform Americans about whether Kim Kardashian is dating an NFL star and to provide bulletins on Demi Moore's rehab.