Who's Watching AT&T's Censors?

UPDATE: Since we first posted this item, there's been more reporting on AT&T's censorship practices.  It seems the Pearl Jam incident has not been the only one. 

See: "AT&T Admits It Edited Webcasts Before Pearl Jam's: Company says edits of political comments have happened a 'handful' of other times."  

"AT&T's Lollapalooza Recording Release Did Not Include 'Censorship' Clause"

In fact, at least one institutional investor is asking AT&T for an explanation of what happened when some lyrics of a political nature were edited from AT&T’s Blue Room webcast of Pearl Jam’s performance.

In a posting on its web site, Pearl Jam says fans informed the band that the webcast did not air certain words of "Daughter," which was sung to the tune of Pink Floyd's "Another Brick in the Wall."  The words, according Pearl Jam, were: "George Bush, leave this world alone," and “George Bush find yourself another home."

Relatively tame lyrics, you might think, given all that’s going on in the world.  But too strong, apparently, for a censor working for AT&T.

In a letter to AT&T Chair and CEO Randall Stephenson, Trillium Asset Management Corporation – a leading socially responsible investment firm with $1 billion in assets under management, including over 200,000 shares of AT&T common stock – cites statements from AT&T spokespeople that, “first, Pearl Jam’s anti-Bush lyrics were censored in error by Davey Brown Entertainment, the vendor producing the webcast for AT&T, and, second, that AT&T has policies against political censorship.” 

The Trillium letter goes on:

"We accept the Company’s explanation that this was an error and a violation of Company policy. But as investors alert to the value of the AT&T brand, we are chagrined by the Company’s unenviable position in the court of public opinion.

To defend itself against charges that it did something it shouldn’t have, the Company had to admit that it didn’t do something it should have. That is, to defend itself against charges of political censorship, the Company had to admit it didn’t have in place adequate procedures to prevent unauthorized political censorship. To be meaningful, a policy that disallows political censorship must be combined with procedures that ensure compliance."    

Trillium say the controversy comes at a “particularly inopportune moment” for AT&T as the company lobbies against proposed laws and regulations that would limit its prerogatives as a gatekeeper of information flows across the internet -- so-called “net neutrality” policies.  Trillium notes that AT&T’s position “has always turned on assurances that the Company would never interfere with content passing through its pipes.” 

Network neutrality – or “net neutrality” – guarantees equal access to the internet regardless of the source of content.  AT&T and other telecom carriers have been lobbying against proposals that would limit their ability to provide preferential treatment to the internet for their own content or content from providers that pay a premium to carriers. 

AT&T’s handling of the Pearl Jam webcast demonstrates the risks involved when corporate management becomes involved with “gatekeeping” of content. Open MIC’s press release on the issue, quoting me, puts it this way: 

“This is not a political issue – it’s a business issue,” said Connor. “The fact that AT&T did not seem aware that censorship had occurred – apparently until alerted to the fact by Pearl Jam – raises troubling questions about the company’s management. How can a company censor one of the most popular music groups in the world and not be aware of it?”  

“On the other hand,” said Connor, “if AT&T was aware that Pearl Jam’s lyrics had been censored – and did not immediately alert the public and the band to the so-called ‘error’ – even more troublesome questions arise.” 

Connor noted that since its founding Pearl Jam has reportedly sold more than 60 million records worldwide and is fortunate to be able to demand that AT&T make available an unedited version of the band’s performance on the web.   

“Think of all the musical artists and other content providers that don’t have the reputation and resources of Pearl Jam. How will we ever know if the gatekeepers at telecom companies have decided they don’t meet some arbitrary standard of what’s worth broadcasting on the web?” asked Connor. 

Open MIC and Trillium Asset Management both called on AT&T to make a full public report on the Pearl Jam incident.   As Trillium’s letter put it: “Only in this way can shareholders, consumers, regulators and legislators understand why this incident occurred and be assured of the Company’s ability to prevent similar incidents in the future.”

We await AT&T’s response.