March 2011

Why Studios Should Spark A Premium VOD War

Theater owners are rightfully nervous that ticket-buying audiences could dwindle if presented with the option of paying about $30—perhaps way too much, recent research suggested.

Threats of blocking theatrical distribution are either prelude to a clash or just public posturing for some kind of pact that will insulate theater owners should premium VOD take too big a bite out of their wallets. The prospect of war brings to mind a standoff that occurred one year ago between Disney and theater chains including Odeon over the studio’s plan to move up the DVD window on Alice In Wonderland. At some point soon, one studio or another is going to step up and make known what title(s) will be the canaries in this premium-VOD coalmine, and if White’s comments haven't already lit the fuse, that will. As badly as the studios want to meddle with the traditional windows that are under becoming more and more challenged to deliver revenues under pressure from digital platforms, they can't alienate the theater owners. The box office provides that first-window exposure crucial to driving momentum in every other stop on the distribution chain.

Telecom tussle over public safety

The campaign to create a nationwide wireless network for police officers and firefighters hasn't just been about what works best for public safety almost a decade after Sept. 11. In Washington, it’s been about what works for top telecom companies, too.

At the heart of the unfolding debate on Capitol Hill has been a heavily moneyed battle between Verizon, AT&T, Sprint, T-Mobile and other top telecom providers and equipment makers. Those industry players agree public safety needs a new network to share information during national emergencies, especially following the logistical perils some faced during Sept. 11 and Hurricane Katrina. Debate over the network is in full swing, but it’s become a political football between telecom giants trying to secure access to wireless spectrum — a resource critical to their future — and neither Congress nor the White House has managed, so far, to referee a successful outcome.

Kerry, Snowe introduce spectrum inventory bill

Sens John Kerry (D-MA) and Olympia Snow (R-Maine) are introducing legislation that allows federal agencies to survey how the government is using spectrum that could otherwise be used for commercial wireless.

The bill is being reintroduced amid greater focus by the White House and Federal Communications Commission on freeing up radio waves for mobile high-speed networks. The senators said their bill would allow the FCC and the National Telecommunications and Information Administration (NTIA) to take stock of radio spectrum being used. The proposed RADIOS Act would also establish Wi-Fi hot spots and other systems in federal buildings.

House leadership questions industry for taking it lying down on network neutrality

House GOP Whip Kevin McCarthy (R-CA) convened a meeting of top communications companies, where he, House Commerce Committee Chairman Fred Upton (R-MI), and Communications Subcommittee Chairman Greg Walden (R-OR) questioned why they are not doing more to help Republicans in the fight against network neutrality rules. Participants included Peter Davidson of Verizon, Tim McKone of AT&T, Steve Largent of CTIA, Walter McCormick of U.S. Telecom, Kyle McSlarrow of the National Cable and Telecommunications Association (NCTA), Comcast, and Time Warner Cable, according to industry sources.

Campbell To Re-Introduce Online Gambling Bill With Frank

House Financial Services Committee ranking member Barney Frank (D-MA) has found a new partner in his quest to legalize Internet gambling and to reverse a 2006 law that outlawed it. Rep John Campbell (R-CA) plans to introduce with Rep Frank a similar version of legislation Frank helped push through the Financial Services Committee in the last Congress.

Unlike in the last Congress when he was chairman of the committee, Rep Frank said Rep Campbell will be the lead sponsor of his bill this year. The measure approved by Financial Services in the last Congress aimed to counter a 2006 law that prohibited most online gambling and barred banks, credit card companies and other payment processors from processing payments for online bets. Frank's bill would have allowed for online gambling in states where it's permitted now and set up a regime to regulate it. A companion bill was introduced in the 111th Congress by Rep Jim McDermott (D-WA) that would have established a system for taxing online gaming, but that measure also died in the last Congress without any action beyond a hearing on the issue.

Industry group forms cloud commission to advise White House

An industry group with a record of shaping federal information technology policy has established a cloud computing commission to advise the White House on outsourcing more than $20 billion worth of IT services to the Web.

TechAmerica Foundation announced that the board will be co-chaired by the heads of two major Web services firms -- Salesforce.com Chief Executive Officer Marc Benioff and CEO Michael Capellas of VCE. Last month, the Obama Administration directed federal agencies to follow a "cloud-first" approach when budgeting computing resources. Instead of investing in new hardware and software licenses, agencies are expected to first consider paying for short-term subscriptions to computer programs, storage space and IT equipment hosted remotely on the servers of companies like Salesforce. The idea is that by consuming IT services on an as-needed basis, rather than maintaining in-house data centers, the government will boost the efficiency of its annual $80 billion IT budget. The commission will provide recommendations for how agencies should roll out cloud technologies and suggest changes to policies that might obstruct the government's goals, according to TechAmerica officials. Recently, the Software and Information Industry Association, which represents cloud providers, successfully urged the government to consider relaxing requirements under the so-called FedRAMP cloud security program that it said would slow installations.

FCC Launches Proceeding to Implement the Twenty-First Century Communications and Video Accessibility Act

On March 2, the Federal Communications Commission adopted a Notice of Proposed Rulemaking that seeks comment on rules implementing provisions of the Twenty-First Century Communications and Video Accessibility Act of 2010 (CVAA). The NPRM proposes rules requiring providers of advanced communications services and manufacturers of equipment used for those services to make their products accessible to people with disabilities. This had been an item on the FCC's march 3 meeting agenda.

The Future Of Public Access TV In Chicago

Any individual or organization in Chicago can learn how to produce their own program at Chicago Access Corporation (CAN TV) and show it on one of its five channels. That’s because of the city’s strong cable-TV franchise agreement, which allows CAN TV to receive its funding directly from cable providers.

Refranchising takes place every 15 years, and will start up again in June when RCN is due for renewal. RCN, WOW, and Comcast are franchised by the city, but have the option of refranchising at the state level — which is what AT&T has chosen to do. CAN TV executive director Barbara Popovic says that if these other companies opt for a state franchise, a 2009 Chicago ordinance will give the city — not CAN TV — control of the one-percent fee for public, government, and educational (PEG) channels (this would be in addition to the five-percent franchise fee the city already receives from cable companies). “Whatever the regulatory vehicle, we feel it’s very important that the public be firmly in the mix,” she says. CAN TV recently commissioned an independent survey, which found that 85 percent of Chicago cable subscribers say it’s important that community issues are covered on local TV channels, and that customers would like more money set aside in their cable bill for the production of local programming than for commercial channels. Nearly 80 percent said it’s important that Chicago residents have access to a local facility where they can get assistance in producing programs. “If anything in Chicago, we see an increase in local interest and an increase in people using it,” says Popovic, noting that public-access centers have closed down in San Francisco and Seattle in addition to scores of PEG center closures in California, Michigan, and Indiana.

Broadband Growth Slows For Fourth Straight Year

New research from Leichtman Research Group finds that the broadband growth rate cooled for the fourth year in a row.

The 19 largest cable and telephone providers, which account for about 93% of the US broadband market, acquired 3.4 million net high-speed Internet subscribers last year. That's compared with 4.1 million in 2009, 5.4 million in 2008, 8.5 million in 2007 and a peak of 10.4 million in 2006. Major cable operators gained 2.3 million net broadband subscribers in 2010 -- representing a 68% share of annual broadband additions. As of the end of 2010, those providers had 75.1 million subscribers. Cable companies had 41.5 million broadband subscribers -- holding 55% share -- and telcos tallied 33.5 million.

Comcast is the biggest U.S. wireline broadband provider with 16.99 million subscribers at the end of 2010, followed by AT&T with 16.31 million, Time Warner Cable with 9.8 million and Verizon Communications with 8.39 million. LRG estimates that Cox Communications had 4.37 million high-speed Internet subscribers at the end of 2010.

MSTV Board Votes to Pursue Merger Discussions with NAB

The Board of Directors of the Association for Maximum Service Television (MSTV) voted unanimously to approve merging MSTV with the National Association of Broadcasters (NAB).

NAB's Television Board had previously voted in favor of the merger proposal. As a result of the merger, the legacy of MSTV's 54 years in broadcast spectrum protection and technology policy advocacy will be continued under the consolidated leadership of NAB President and CEO Gordon Smith. This action also complements the NAB Board's strategic direction to elevate technology issues within the organization, with the goal of ensuring a bright future for broadcasting in an increasingly technological and complex digital media world.