Calling objections to an alternative to the pay-TV "gatekeeper model" for consumers to be able to choose independent user interfaces joining linear and over-the-top TV "non-issues," TiVo told aides to all FCC members there's no reason to delay issuing an NPRM on the agency's Downloadable Security Technical Advisory Committee (DSTAC) report. "Any remaining concerns can be addressed as part of a rulemaking proceeding, and are not reasons for the Commission to delay" the NPRM, TiVo General Counsel Matt Zinn and outside lawyers for the company said, according to a filing posted Friday in docket 15-64. "Despite some recent revisionist history being put forth by opponents of competition, Section 629 has always been about extending the principle of Carterfone to the video navigation devices market and giving consumers a choice among retail products for the consumer interface," it said of the Communications Act section on a retail market for video navigation devices. An NPRM on the DSTAC report may soon circulate (see 1512150072). NCTA pushed back against TiVo. Despite the company's comparison of Section 629 to Carterfone, "the FCC has repeatedly found that the telephone network does not provide a proper analogy for video," NCTA General Counsel Neal Goldberg responded by email. "From the beginning of its work implementing Section 629 in 1998, it said that ‘the telephone networks do not provide a proper analogy to the issues in this [video device] proceeding due to the numerous differences in technology between Part 68 telephone networks and MVPD networks.’ It reiterated that conclusion in 2010.”
Comcast said it looks "forward to participating" in an FCC probe into a variety of industry practices involving products that don't count against customers' data caps. FCC Chairman Tom Wheeler on Thursday said the agency had written Comcast, AT&T and T-Mobile, asking company representatives to come in and talk about Stream TV, the Sponsored Data and Data Perks programs, and Binge On, respectively -- a move criticized by the GOP commissioners (see 1512170030). In a statement Friday, Free State Foundation President Randy May said he was concerned the FCC "will end up banning most zero-rated and sponsored data plans without evidence of consumer harm. The pro-regulation forces appear to driving the Commission's agenda. And at the end of the day the agency seems to be more concerned with protecting competitors than protecting broader consumer interests." In a statement Thursday, Comcast said its Stream TV video service "is not a zero-rated Internet service but a cable service that only works in the customer's home. Our Stream TV service does not go over the public Internet." At the same time, the company said, "We are happy to cooperate with this request."
TV Everywhere is becoming increasingly ubiquitous, as 53 percent of consumers in pay-TV homes use a TVE service to watch content on a computer, mobile device or TV, up from 43 percent three years ago, GfK said in a news release Wednesday. GfK said its TV Everywhere 2015 report indicated 42 percent of pay-TV households received TVE offerings from signal providers, while 46 percent used TV network services. Mobile devices are the big driver of increased TVE use, GfK said, with monthly use of mobile apps and mobile sites doubling between 2012 and 2015. TVE viewership is particularly strong in younger demographics -- from two to four times higher among Generation Xers and millennials than baby boomers, GfK said.
Comcast will pay $26 million to resolve allegations it unlawfully disposed of hazardous waste and threw out records without first redacting private customer information, said the California Office of the Attorney General and Alameda County, California, in a news release Tuesday as they filed a proposed settlement in Alameda County Superior Court. The state said Comcast customer service centers, dispatch facilities and warehouses regularly sent various hazardous waste products such as electronics to local landfills. Comcast also threw out documents containing sensitive customer information like names and addresses without shredding them first, California said. The settlement, if approved by the court, would have Comcast pay $19.75 million in civil penalties and $3 million toward environmental and consumer protections in the state, provide CalRecycle with $2.25 million in airtime and $150,000 toward public service announcements, and spend at least $700,000 on its own environmental compliance efforts, it said. Comcast didn't comment.
Cord-cutting trends and network experimentation with lower advertising loads only explain some of the declining market values of large public content companies -- a $57 billion drop over the past 13 months, a Needham analyst wrote investors Wednesday. Investors also worry that multichannel video programming distributors are undermining their own revenue growth by putting identical content on less lucrative distribution platforms, said Laura Martin. Content companies putting their content also on digital platforms with low or no ad loads "are undermining their most valuable asset -- the dual revenue stream business model of linear TV -- because they retrain a consumer to expect high content quality at a significantly lower cost to that consumer," she said. When VOD contains full ad loads that can't be fast forwarded through, those viewers "are more valuable" than DVR views, she wrote. Meanwhile, 15 percent of ads are being blocked by consumers, and Apple's announcement this fall it would enable ad blocking apps points to accelerated adoption of consumer ad blocking, Needham said. But ad blocking "makes it less likely that the online video ecosystem will be a successful disrupter of the TV ecosystem," said the analyst, saying any possible demise of TV will come from incumbent companies shifting viewing identical content from high-value linear TV viewing hours to lower value digital platforms. A la carte channel offerings ultimately will likely account for less than 10 percent of total U.S. TV revenue "owing to the 'tyranny of choice,'" Needham said: "Too many choices overwhelm consumers and often leads to lower customer satisfaction levels or, worse, stops them from buying anything at all."
AMC Networks is a poster child for problems small and mid-sized cable operators face in getting "fair, reasonable and non-discriminatory" programming agreements, American Cable Association and National Cable Television Cooperative members told FCC Media Bureau staff, said an ex parte filing posted Tuesday in docket 15-158. Large programming conglomerates like AMC demand escalating rates and coerce carrying of unwanted programming, ACA and NCTC said, saying such demands also increasingly don't allow for exceptions for small "channel locked" cable systems that have no capacity for additional channels. Their remaining choices -- charge unreasonable prices or drop channels -- "can be seen as a barometer for the industry as larger, more powerful pay television providers will likely face the same bundling and pricing demands and bandwidth constraints in the future," the industry groups said, saying NCTC members with roughly a million subscribers are considering no longer carrying AMC because of behavior such as forced bundling of low-rated networks. AMC also is discriminatory in its pricing and carriage, proposing rates to NCTC members twice what it charges other cable services, and the company uses such strong-arm tactics as crawls at the bottom of screens warning viewers they may lose networks soon, the two said. AMC also has removed cue tones from some operators' programming feeds, disrupting the insertion of local advertisements into commercial breaks, AMC and NCTC said. While pointing to AMC as proof of a broken video market, the two didn't recommend specific changes but asked the FCC to keep such matters in mind when assessing the state of competition in the video market. AMC didn't comment Wednesday.
The Justice Department signed off on Altice's planned $9.1 billion acquisition of a majority of Suddenlink. In a petition asking the FCC to adopt conditions Monday in FCC docket 15-135, DOJ said it had no objections as long as commission conditions include terms of the national security agreement signed Dec. 11 by Altice, Suddenlink and DOJ. Altice, which has said it hoped to close the deal by year's end (see 1507240027), didn't comment Wednesday.
Despite its protestations, Charter Communications is on a path to usage-based pricing (UBP) for broadband services, Dish Network said in an FCC filing posted Monday in docket 15-149. The heavily redacted filing pointed to internal documents as indicating "New Charter will deploy UBP the minute after any condition prohibiting it expires." UBP restricts consumers' Internet use and can be used by ISPs to discriminate against third-party services through zero rating, Dish said. "We already see this in the marketplace: Comcast's own services are exempt from the caps on Internet usage the company imposes on some of its customers." The companies Charter is trying to buy can't be expected to moderate Charter's plans as Time Warner Cable "is well known as the industry pioneer in UBP," Dish said. Dish repeatedly has urged the FCC to deny Charter's purchase of Bright House Networks and TWC (see 1512070025). In a statement Monday, Charter said, "There is no more friendly broadband provider to [online video providers] than Charter. Charter’s slowest speed is 60 Mbps, we have no data caps, no usage based pricing, no contracts and no modem fees. Also, Netflix, who strongly opposed to the Comcast/TWC transaction, supports the Charter, TWC and Bright House transactions.” Charter also noted that during the company's Q3 earnings call in October, Chief Financial Officer Chris Winfrey in response to a question about future adoption of UBP said, "We don't do it because we want to sell more services -- that's our business model [and] we don't have any plans to change it."
The Consumer Video Choice Coalition-supported security solution from the FCC Downloadable Security Technology Advisory Committee report would implement conditional access digital rights management and link protection, said Google Vice President-Access Services Milo Medin in a meeting Tuesday with FCC Chief Technologist Scott Jordan and Media Bureau staff. That is according to an ex parte filing posted in docket 15-64 Thursday.
Of the 79 percent of U.S. consumers who subscribe to TV, 23 percent trimmed the cord this past year by scaling back the size of their subscription package, PricewaterhouseCoopers (PwC) said in a report Wednesday. Some of that decline is due to the introduction of skinny bundles by multichannel video programming distributors, PwC said, and 57 percent of cord cutters did so because of subscription costs. In 2014, 91 percent of consumers envisioned subscribing to cable in the coming year -- a number that had dropped to 79 percent by 2015, implying close to 20 percent of cable subscribers could cancel within in the next year, PwC said. When cord cutters were asked what would get them to resubscribe, 56 percent said an a la carte customization option. Meanwhile, over-the-top video providers appear to be a threat to cable but not to each other, with 55 percent of Netflix subscribers also subscribing to at least one other OTT service, as do 91 percent of Hulu subscribers, PwC said. The study is based on an online survey of 1,200 U.S. consumers conducted in fall of 2013 and fall of 2014, a pair of consumer groups convened in September in Los Angeles, and a three-month analysis of social media, PwC said.