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The Tickle File is ftm's daily column of media news, complimenting the feature articles on major media issues. Tickle File items point out media happenings, from the oh-so serious to the not-so serious, that should not escape notice...in a shorter, more informal format.

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Week of September 2, 2019

News coverage criticized for sending few reporters, relying on social media
"not enough to answer important questions"

Through much of August the attention of the world’s news media turned to the ecological disaster of the Amazon rain forest fires. Major international outlets sent correspondents and TV crews, at least as close as they could get. Broadcasters and newspapers showed satellite photos of smoke and flames covering large swaths of Brazil and into Bolivia. Understandably, this coverage converged with a growing interest in all things related to climate change and environment.

News coverage within Brazil was more limited, noted Observatorio da Imprensa (August 27). The report gave three reasons: major newspapers sent few reporters into the burning areas, “controversial statements of President Jair Bolsonaro ruled the national press” and the National Institute for Space Research (INPE) was the main source quoted. Major coverage themes included the relationship between government policies on the environment and the increase in Amazon deforestation, effects on weather in Sao Paulo, social media postings by politicians and celebrities and international repercussions at the G7 Summit. President Bolsonaro questioned INPE data on deforestation - available to all on its website in realtime - then fired the director. Thereafter he accused non-governmental organizations of starting the fires.

“In a week when the population showed great interest in the subject, the journalism produced by the major national newspapers presented a knowledge built from statements collected in Brasília offices, data available in cyberspace and statements by national and international experts,” said the report. “This type of coverage is not enough to answer important questions. You often have to go to the place where it is happening.”

When bad actors howl you know the TV is good
tough material

Television is terrible these days, some loudly complain. Indeed, there have been groanings and grousings since the glowing box lit up living rooms. Everybody’s a critic and TV was free, right? The recently broadcast HBO docudrama mini-series Chernobyl has been widely acclaimed for portraying heroism and angst in the face of nuclear disaster. Accolades were not universal. Critics will always be there and TV is no longer free.

Another stunning HBO docudrama taking on tough material is now drawing effusive praise and pointed barbs. The ten-part series Our Boys, jointly produced with Keshet Studios, portrays hate crimes amidst the endless Israeli-Palestinian conflict. Teenagers on both sides were targeted and murdered. “We tried to peel back the layers of this hate crime,” said Israeli co-director Joseph Cedar, quoted by Reuters (August 20).

Israel’s right-wing prime minister Benjamin Netanyahu offered his criticism, saying the series “soils Israel’s reputation” and is “anti-semitic,” reported Haaretz (August 31). He also called for a boycott of Channel 12, owned by Keshet Media Group. Channel 12 has been in PM Netanyahu’s sights for rather unflattering news coverage of pending corruption investigations ahead of new elections. (See more about elections and media here)

“When television is good, nothing - not the theater, not the magazines or newspapers - nothing is better,” said US broadcast regulator FCC chairman Newton Minnow to a 1961 broadcaster convention. “But when television is bad, nothing is worse. I can assure you that you will observe a vast wasteland.”

Growth by merger increasingly difficult, courts to decide
Order!

Among media companies, the urge to merge continues unabated. But there are complications. Potential partners rise and fall in favor. Investment bankers and private equity firms salivate.

Italian broadcaster Mediaset moved toward a merger with its Spanish subsidiary after a shareholders meeting this week approved the plan. Mediaset Spain will be absorbed into a new holding company, Media for Europe (MFE), to be based in the Netherlands. Also to be included in the MFE holding is the 9.6% holding in German broadcaster ProSiebenSat1.Media. MFE will likely be listed on Milan and Madrid exchanges later this year. (See more abut media mergers and acquisitions here)

Excluded, literally and figuratively, is Vivendi, which holds a 9.6% direct stake in Mediaset Italia and an 19.6% indirect stake through an independent trust mandated by an earlier court decision. Vivendi, principally controlled by investor Vincent Ballore, opposed the transaction, seeing it clearly as diluting its interests. Of course, Mediaset, principally controlled by the Berlusconi family, attempted to block Vivendi from voting its shares through yet another legal maneuver. A court decided Vivendi could vote its direct holding but not that of the holding held by the independent trust. (See more about Vivendi here)

Not all that long ago, Vivendi and Mediaset danced toward a joint venture that might have led to a rather significant TV merger combining Vivendi’s Canal+ and Mediaset’s Italian and Spanish holdings. Vivendi walked away, alleging cooked books. There were lawsuits. There is no love lost on either side. (See more about Mediaset here)

This leaves M. Ballore in a bit of a quandary, noted Bloomberg (September 5). An exit clause in Vivendi’s shareholder agreement with Mediaset allows for a €942 million withdrawal fee. That is less than the €1.1 billion Vivendi paid for the Mediaset stake and, even, less that the current book value of the Mediaset stake. Bad business for Vivendi investors.

The second option is, once again, to run all this through the courts, likely the European Court of Justice (ECJ) as it involves various jurisdictions. In recent decisions the European Commission has looked favorably on voting rights for indirect stakeholders, all in the interest of free movement of capital. With a potential ECJ vote in its favor, Vivendi could then block the Mediaset’s merger plan. Oops.

Vague internet rules spike rumors, censorship feared
"Don’t make yourself sad"

As notably authoritarian regimes hold power by controlling everything under their sword communication and information are most important. Media, particularly news, is a top target for crackdowns. Culture, arts, entertainment, even language and history come next.

Turkey’s nationalist, populist government gave the broadcasting regulator authority over all internet-based media last year. Those rules came into effect August 1st, all providers now required to obtain a license and follow the rules. A license costs US$17,000 per year; the rules are yet to be determined. “The aim is to create a new control and censure mechanism disguised as licensing,” said Istanbul Bilgi University law professor Yaman Akdeniz, quoted by Middle East Eye (August 1). (See more about media in Turkey here)

Officially, the law brings internet-based providers under the same rules established for radio and television broadcasters, baring hard on protecting children from improper language and “indecent” television programming. “Morality and security are, of course, familiar arguments for justifying this backward and out-of-date regulation,” said Kadir Has University media professor Suncem Kocer, quoted by Arab News (August 6). “It is out of date because the internet is not like the traditional television medium, which can supposedly be regulated by a commission that is fed by officers watching broadcast TV content on a daily basis.”

“More than 600 organizations, including influential broadcasters,” said RTÜK (Radio and Television Supreme Council) president Ebubekir Sahin, have submitted applications, quoted by media portal mediacat.com (September 3). Among the list - or maybe not - is streaming video on demand service Netflix. This attracted considerable international attention: everything about Netflix does. (See more about streaming media here)

A Netflix spokesperson confirmed to Reuters (September 3) and others that the company had applied for a license to operate in Turkey, where it has 1.5 million subscribers. It will establish an office in Turkey and pay 0.5% of revenue to the RTÜK. The aforementioned Dr. Akdeniz, quoted by mediacat.com, said Netflix was not on the list of applicants and would “strongly announce that it will probably exit the Turkish market.”

“We continue to increase our investments in Turkey on the one hand, on the other hand, we are continuing our discussions with officials from the parental controls we offer to throw further steps to strengthen,” said a Netflix spokesperson, quoted by Reuters. “Our goal is to ensure that our members enjoy content that they prefer while protecting our children from content that is not suitable for their age.“

“I have no intention of leaving you,” said a Twitter message from Netflix Turkey, quoted by Turkish tech news portal teknolojioku.com (September 3). “Please don’t listen to the rumors and make yourself sad.”

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