U.S. broadband households with a streaming media device watch more video on TV than those without, said Parks Associates research released Tuesday. Streaming media device owners watch 22 hours a week, six of that Internet video and eight hours of broadcast TV, compared with 18 hours a week for non-owners, though non-owners watch more broadcast TV -- 10 hours a week, Parks said. Streaming devices, along with more over-the-top video options, have "altered the video environment, demanding new business models in advertising, content creation, and video subscriptions," said Brett Sappington, Parks director-research, in a statement.
The video headend proposal in the Downloadable Security Technical Advisory Committee final report would make third-party navigation devices more competitive, said Public Knowledge Senior Staff Attorney John Bergmayer in a discussion Monday with FCC Deputy Chief Technologist Alison Neplokh, according to an ex parte filing posted Wednesday in docket 15-64. The video headend proposal for a downloadable security, supported by Public Knowledge’s representative on the DSTAC, “would allow for third-party navigation devices to meaningfully differentiate themselves from and compete with each other,” Bergmayer said. The FCC “should proceed to a rulemaking proceeding” using that approach, which would result in “a clear, nationwide standard for video device compatibility with MVPD [multichannel video programming distributor] systems,” he said.
Within 10 years, half of all TV watchers under the age of 32 will be "cord nevers," who have never paid for traditional cable service, said a Forrester report released Tuesday. The problem of dealing with such cord nevers eclipses the business challenges for cord cutters, Forrester said in the study. While paying customers for cable still are about 75 percent of the population, and the number of cord cutters is growing slowly -- today they're about 6 percent and are unlikely ever to top 15 percent -- cord nevers now are 18 percent of the population, the research firm said. And particularly worrisome are the ages 18-31 "digital cord nevers" -- who have "grown up believing they can have all of the TV they want without paying a traditional TV distributor for it," Forrester said. That group watches nearly eight hours of streaming video a week, particularly on laptops or desktops and smartphones, and often through such services as Netflix or YouTube, the company said. They're far less likely, though, to watch Hulu or Amazon Instant Video, meaning "ample opportunities for over-the-top (OTT) service providers to appeal to them with services that complement Netflix," Forrester said. Such digital cord nevers are "a permanent change that will only accelerate," meaning marketers need to focus more efforts into advertising during marquee events and into mobile video advertising, and take part in linear TV experiments targeting such cord nevers, like Sling TV or CBS All Access. Meanwhile, for programmers such trends indicate content will continue to be the gold standard, Forrester said: "It may not make as much money per viewer as it wants, or as it used to, but it still has the power to control most of the money that it and others make by windowing premium content and reselling rights to some players while denying rights to others." Also, programmer direct relationships to viewers will play a bigger role as some programmers will bypass Amazon or Netflix and start their own OTT services or create apps with the aim of deeper engagement with audiences, Forrester said. Programmers are likely to begin insisting on better data from online distributors beyond just aggregate program viewing numbers, so that by 2020 "no data, no deal" terms will likely be the norm, Forrester said.
Minus the network nonduplication rule, network affiliates can only enforce their nondupe rights in court by their network affiliation agreements banning any retransmission consent outside their markets, while those affiliates also would have to get contractual commitments from local multichannel video programming distributors that they won't carry duplicative programming from distant stations, NBCUniversal said in an FCC ex parte filing posted Monday in docket 15-216. The filing covered a meeting between Margaret Tobey, vice president-regulatory affairs for the broadcaster, and a variety of Media Bureau staffers, plus the Office of the General Counsel, at which the network brought a litany of arguments on why the nondupe rule should be kept. The rule's safeguarding against duplication of network programming "preserves the full value of the network programming for each affiliate," NBCUniversal said. That value is "fundamental to the dual-revenue stream -- comprised of advertising revenues and retransmission consent fees -- that local broadcasters rely on to finance local program production and acquisition and to help offset network programming production and acquisition costs," NBCUniversal said. While backers of Chairman Tom Wheeler's plan to eliminate the exclusivity rules (see 1508120051) have argued the nondupe rule is unnecessary because local stations can enforce their rights in other ways, it "provides the most direct and efficient means of protecting those rights" and that Congress has been clear in its desire that the exclusivity rules remain, NBCUniversal said. And given compulsory license rules, MVPDs don't need network approval for retransmission, meaning the government "has made private enforcement of the contracted-for protection virtually impossible," NBCUniversal said. With the FCC looking at revising its 'totality of circumstances" test in good-faith retransmission negotiations, the network said, "it makes no sense to suggest that the Commission’s limited role in enforcing nonduplication protection is no longer needed because the parties can craft private remedies and then, in a separate and ongoing proceeding, to ask whether those same private remedies should be prohibited." At the very least, NBCUniversal said, the exclusivity rules should stand at least while GAO is undertaking a proceeding about whether compulsory copyright licenses should be phased out -- an argument it also made last month (see 1509240028).
Time Warner Cable's efforts at better customer satisfaction are the focus of a new national advertising campaign. The drive had an "open letter" published in 18 major newspapers over the weekend as the kickoff to what the company is calling "Customer Service Week." The company also said it's beginning a series of tongue-in-cheek TV commercials poking fun at such issues as waiting on hold for a customer service representative. According to TWC, it's made such changes over the past couple of years as launching of better scheduling so almost all service visits happen within a one-hour window of when they're scheduled, and more recently its TechTracker service for reminding people of appointments and providing a technician's name and other identifying information when the tech is en route. In a statement, TWC CEO Rob Marcus said, apart from the company's pending acquisition by Charter, "our customers expect and deserve the best customer experience we can deliver.”
Lionsgate and Skydance signed a worldwide TV distribution agreement for Skydance TV properties to become part of Lionsgate's distribution pipeline of programming, Lionsgate said Monday. The deal involves both existing and under-development Skydance programming, Lionsgate said. Simultaneous with the agreement, Brandon Zimon -- ex-Sony Pictures Television vice president-international distribution -- was named Skydance Media senior vice president-international television sales and co-productions.
AT&T and Viacom signed a new distribution agreement allowing Viacom's various networks to remain part of AT&T's U-verse TV and on AT&T-owned DirecTV, the telco said in a news release Monday. It said the multiplatform distribution agreement "entitles AT&T's satellite and IPTV platforms to the best deal in the industry for Viacom" content.
The Media Bureau set a Dec. 1 deadline for comments on an NPRM on possible changes to its "totality of circumstances" test in retransmission consent good-faith negotiations, the FCC said in a public notice in docket 15-216 posted Friday. Replies are due Dec. 31. The NPRM seeks feedback on 15 practices, ranging from the threat of a blackout just before a marquee event to attempting to manufacture a retrans consent dispute "in hopes of encouraging government intervention" (see 1509020061).
Verizon's go90 mobile entertainment platform will now include Univision entertainment, sports and VOD content, the broadcaster said in a Wednesday news release.
Multichannel video programming distributors have a 15-day window to hand over data on reach and number of subscribers in a franchise area if a franchising authority wanting certification to regulate a cable operator's basic service tier requests it, according to FCC-amended effective competition rules. The agency filed a small-entity compliance guide Wednesday to spell out compliance with the new effective competition regime. Franchising authorities seeking to establish that a local market lacks effective competition request the data from the MVPD if it's not otherwise available, the guide said. Meanwhile, to oppose such franchising authority regulation, a cable operator can file a petition for reconsideration in which it either disagrees with the franchising authority or demonstrates the presence of effective competition through low penetration, municipal provider or LEC effective competition, the guide said. A cable operator filing a petition for reconsideration will automatically stay any imposition of rate regulation pending the results of the recon proceeding, according to the FCC.