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M E D I A  U N S P U N
What the Press is Reporting and Why (http://www.mediaunspun.com/)

Tuesday, April 30, 2002

Top Spins...
Things Fall Apart at WorldCom
The Silence of the Webcasters
Other Stories

Media Unspun serves business news and analysis, authoritatively and irreverently, every business day. It is available for an annual subscription fee of $50, less than a dollar a week. If your two-week free trial is coming to an end soon, please visit http://www.mediaunspun.com/subscribe.html and sign up via credit card or check.


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Things Fall Apart at WorldCom

WorldCom CEO Bernie Ebbers has to find someone else to lend him money from now on. Ebbers is out the door, an unsurprising development first reported by the Wall Street Journal. Technically he "resigned," said the WSJ, but the Friday decision came "under pressure from outside directors" who were tired of the SEC investigations and the hoopla over WorldCom's $366 million personal loan to Ebbers. And we're supposed to care that he didn't get an annual bonus last year?

The current issue of Business Week, written before Ebbers' ouster, reported the investor prediction that "Ebbers may not be around when the economy fully recovers." At that point, investors worried that Ebbers' resignation "would push the stock price even lower." In reality, Bernie's departure sent WorldCom shares up early Tuesday -- though arguably they couldn't have fallen much more than they did Monday, as investors worried that the stock would be crippled by debt and reduced to junk-bond status. Good luck to WorldCom Vice Chairman John Sidgmore, who gets to try to turn this ship around.

Around 8 a.m. today, online articles that had previously hedged all statements with "reported the Wall Street Journal" started reporting the shakeup as fact. (Now we know that WorldCom PR reps get to work nice and early.) "The center has failed to hold at WorldCom," said TheStreet.com. A Yeats reference -- nice touch for an event some will view as poetic justice. - Jen Muehlbauer

WorldCom's CEO Ebbers Resigns Amid Board Pressure Over Probe
http://online.wsj.com/article/0,,SB1020119459695576640,00.html
(Paid subscription required.)

Ebbers Is Out at WorldCom
http://www.thestreet.com/markets/marketfeatures/10019973.html

WorldCom CEO Ebbers quits
http://cbs.marketwatch.com/news/story.asp?guid=%7BC3DAA5A8%2DF28B%2D4BD7%2DA850%2DA4567B24787A%7D

Ebbers out at WorldCom
http://money.cnn.com/2002/04/30/technology/ebbers/index.htm

Woe Is WorldCom
http://www.businessweek.com/magazine/content/02_18/b3781079.htm

The Second Coming, W.B. Yeats
http://www.poets.org/poems/poems.cfm?prmID=1369


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The Silence of the Webcasters

If Internet radio stops playing in the forest, will anyone stop hearing it? A loose coalition of small Webcasters is planning a day of silence tomorrow to protest proposed royalty rules they say would ruin them.

The Christian Science Monitor ran a comprehensive wrap-up of the squabble earlier this month, calling it a battle that "could determine whether online radio winds up in the hands of the many or the few." At issue is an industry-proposed royalty rate for Webcast music -- which would be retroactive to 1998 -- that many small Webcasters say represents twice their revenues, or more. "We're calling this a bankruptcy rate," the San Jose Mercury News quoted a VP at Webcast portal Live365.com.

This fight has been simmering since February -- Unspun linked to coverage a month ago -- and has been heating up in recent days. CNET's News.com and USA Today covered the day-of-silence angle, and News.com and others took note last week when a group of congresspersons sent a concerned letter about the proposed royalties to the Librarian of Congress.

USA Today gave the recording industry some air time on the question, noting that the Recording Industry Association of America says they should not be last in line to get paid, watching while Webcasters pay for, for example, bandwidth. The Christian Science Monitor countered with a quote from a law professor who believes she knows what the RIAA is thinking: "Webcasting is not the place for the recording industry to collect all the money that it believes it is losing on CD sales because of peer-to-peer file sharing."

USA Today provided some of the only hard numbers Unspun came across in researching this hot-blooded fight. The paper quoted Gartner G2 figures for audience size: "16% of the 156 million adult Internet users ... listen to the estimated 10,000 Net radio stations," most of which average under 70,000 listeners a month. Come tomorrow morning, that might add up to a lot of slience. - Keith Dawson

Net radio to fall silent for a day
http://news.com.com/2100-1023-894676.html

Net Radio Will Pull Plug to Protest Fees
http://www.usatoday.com/life/cyber/tech/2002/04/29/radio-fees.htm

Net radio fears heard in Congress (April 23)
http://news.com.com/2100-1023-890024.html

Fees threaten to silence Web radio (April 4)
http://www.christiansciencemonitor.com/2002/0404/p17s01-ussc.htm

Can Internet Radio Survive? (March 28)
http://slashdot.org/article.pl?sid=02/03/27/0041254

Web radio's last stand (March 27)
http://www.salon.com/tech/feature/2002/03/26/web_radio/index.html

Plan to alter Internet radio (March 25)
http://www.bayarea.com/mld/mercurynews/business/2926260.htm

Copyright Office Proposes Webcasting Regs (Feb. 20)
http://slashdot.org/article.pl?sid=02/02/20/2351222


Other Stories

Villain in the Mirror
http://www.nymag.com/page.cfm?page_id=5966

Many Bidders May Pursue New Method to Carry TV
http://www.nytimes.com/2002/04/30/technology/30WAVE.html
(Registration required)

New Music Service to Allow CD Burning
http://www.latimes.com/technology/la-000030404apr29.story

Consumer Groups Decry 'Dot-US' Policies
http://www.washingtonpost.com/wp-dyn/articles/A2413-2002Apr29.html

Lessons From the HP Trial
http://www.business2.com/articles/web/0,1653,40003,FF.html

Microsoft Cuts 8 People From Witness List (Bloomberg)
http://www.latimes.com/technology/la-000030585apr30.story

Ad groups come to terms on Web contracts
http://news.com.com/2100-1023-894843.html

When 'high speed' isn't high enough
http://news.com.com/2100-1023-894468.html

Webby Awards Announces Nominees
http://siliconvalley.internet.com/news/article/0,2198,3531_1024441,00.html

SEC Files New Charges Against Teen
http://www.latimes.com/business/la-000030592apr30.story

Apple's eMac Attack in Schools May Pinch Margins
http://www.thestreet.com/tech/tishwilliams/10019888.html

FT.com unveils subscription charges
http://media.guardian.co.uk/presspublishing/story/0,7495,707611,00.html


Staff

Written by Deborah Asbrand (dasbrand@world.std.com), Keith Dawson (dawson@world.std.com), Jen Muehlbauer (jen@englishmajor.com) and David Sims (davesims@sonic.net).

Copyedited by Jim Duffy (jimduffy86@yahoo.com).

Editor and publisher: Jimmy Guterman (guterman@vineyard.com).

Media Unspun is produced by The Vineyard Group Inc.
Copyright 2002 The Vineyard Group, Inc.
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