Nov 27, 2017

​Washington feeds uncertainty in a changing media landscape

Illustration: Rebecca Zisser / Axios

One after another, regulators are making moves that underscore just how fast the media industry is changing, putting pressure on Washington to make sure laws keep up.

Why it matters: The internet has generally been seen as a democratizing force for the flow of information by giving diverse voices more ways to reach Americans. But new technologies, like high-speed broadband and automation, have changed the way information reaches people on the internet. And while media businesses scramble to respond, Washington is split on what to do.

Where it stands: Regulatory decisions over the past week have significant ramifications for the digital industry.

  • The Justice Department sued to block AT&T's takeover of Time Warner, an $85 billion deal that would have combined one of the country's largest internet service providers with a TV and movie programming powerhouse. Blocking it sets a precedent of future media and telecom deals.
  • The FCC released its plan to repeal existing net neutrality rules. Under the new plan, which is expected to be adopted next month, internet service providers like AT&T, Verizon, and Comcast would be able to block or slow down consumers' access to certain content and strike deals to give preferential treatment to some content companies.
  • Both rulings come on the heels of a media deregulation blitz at the FCC that is seen as a win for broadcasters — including Sinclair Broadcasting Group's $3.9 billion bid for Tribune Media — and newspapers.

A few major shifts are driving the policy turnabouts:

  • Legacy media is collapsing to tech. Traditional TV networks are suddenly competing for viewership with tech companies like Netflix, Amazon, Google and Facebook, that people only need an internet connection to access for a fraction of the cost. This makes must-have content that will attract audiences even more valuable.
  • The pipes are merging with content. Internet service providers don't want to be "dumb pipes" that just deliver the bits that power the internet. They know that to survive, they need to give consumers an incentive to buy their service. So the companies that own the internet pipes are merging with the content companies to provide better experiences. This is why Comcast bought NBCUniversal, and why AT&T wants to buy Time Warner.
  • Fear of discrimination. These mergers are mostly taking place to get ahead of consumers' migration to digital TV. But some worry that mergers could give deep-pocketed media conglomerates an unfair advantage over upstarts.If large companies own the content and the pipes to distribute it, they'll have an incentive to speed up the delivery of their own digital streaming content at the expense of their rivals'.Net neutrality rules aimed to prevent that kind of favoritism, but the current FCC argues those rules impede innovation.

The split: At the heart of uncertainty right now is that two divergent views are emerging from this administration of how to handle increasing consolidation on all fronts.

  • While the FCC is giving industry players — specifically broadcasters and internet service providers — room to grow bigger in a changing media landscape, the Justice Department is taking the opposite approach by trying to prevent a mega-media merger from happening.
  • Democrats have long been concerned about too much power in the hands of a few, while Republicans tend to be more business-friendly. But the Trump administration has also shown distrust of giant corporations with outsized market power.

What to watch: A lot rides on whether the Justice Department succeeds in blocking AT&T's acquisition of Time Warner. The outcome of that court case could trigger a new wave of media consolidation, or stop new mergers in their tracks.

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U.S. coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios. This graphic includes "probable deaths" that New York City began reporting on April 14.

More than 62,300 U.S. health care workers have tested positive for the novel coronavirus and at least 291 have died from the virus, the Centers for Disease Control and Prevention reported on Tuesday. COVID-19 had infected about 9,300 health professionals when the CDC gave its last update on April 17.

By the numbers: More than 98,900 people have died from COVID-19 and over 1.6 million have tested positive in the U.S. Over 384,900 Americans have recovered and more than 14.9 million tests have been conducted.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 11:00 p.m. ET: 5,589,626 — Total deaths: 350,453 — Total recoveries — 2,286,956Map.
  2. U.S.: Total confirmed cases as of 11:00 p.m. ET: 1,680,913 — Total deaths: 98,913 — Total recoveries: 384,902 — Total tested: 14,907,041Map.
  3. Federal response: DOJ investigates meatpacking industry over soaring beef pricesMike Pence's press secretary returns to work.
  4. Congress: House Republicans to sue Nancy Pelosi in effort to block proxy voting.
  5. Business: How the new workplace could leave parents behind.
  6. Tech: Twitter fact-checks Trump's tweets about mail-in voting for first timeGoogle to open offices July 6 for 10% of workers.
  7. Public health: Coronavirus antibodies could give "short-term immunity," CDC says, but more data is neededCDC releases guidance on when you can be around others after contracting the virus.
  8. What should I do? When you can be around others after contracting the coronavirus — Traveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  9. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 41 mins ago - Politics & Policy

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

There are no COVID-19 patients in hospital in New Zealand, which reported just 21 active cases after days of zero new infections. A top NZ health official said Tuesday he's "confident we have broken the chain of domestic transmission."

By the numbers: Almost 5.5 million people have tested positive for the novel coronavirus as of Tuesday, and more than 2.2 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 14.9 million tests).