March 2013

Disney, News Corp. Discuss Hulu's Future

News Corp and Walt Disney have begun discussions about resolving uncertainty over their jointly controlled online video site Hulu LLC, with one possible outcome being that one or the other company sells their stake.

The two companies, which each own about a third of Hulu, have each indicated at different times over the past few months their willingness to buy the other out, the people say. There is also the possibility both companies will decide to sell to an outsider, the people said. Most of the other third of Hulu is owned by Comcast, majority owner of NBC, but regulatory requirements prevent it from voting its stake. Discussions are fluid, one of the people said. Hulu's partners put the site on the market in 2011 and decided later not to sell. One of the people cautioned that the companies could decide again to hold on to their interests in Hulu.

From LBJ to Nixon to Obama, why the White House may ‘regret’ hassling the press

[Commentary] History shows that, although public respect for the news media currently resides in the basement, press enmity has proved to be an unsustainable — though popular — tactic for the White House. Two modern administrations in particular made press enmity a guiding force in their communications and political strategy: those of Richard Nixon and Lyndon Johnson.

[Troy, a senior fellow at the Hudson Institute, was a senior adviser to President George W. Bush]

House Intelligence chairman aims for cybersecurity bill markup in April

House Intelligence Committee Chairman Mike Rogers (R-MI) said he is aiming to wrap up talks with the White House and privacy advocates about measures in his information-sharing cybersecurity bill by April so it can move to a markup.

"We're still negotiating a lot of little pieces of the bill with privacy groups and the White House, and we're having great conversations with both Democrat and Republican senators now, so I'm hoping to have that wrapped up by April, where we can actually move a product in April," Chairman Rogers said in an interview with The Hill at the RSA cybersecurity conference in San Francisco. Chairman Rogers said the recent talks with the White House have been encouraging and that the release of President Obama's cybersecurity executive order this month is a positive political development for the information-sharing bill. "We're negotiating, we're talking, which is better than what happened last year, and I'm encouraged by that," he said. "Here's the good news, everybody agrees that we need an information-sharing [measure] now. The executive order, I think, takes pressure off the Senate from having to pass a infrastructure standards mandate or bill. That's great. That means the one thing we can get bipartisan agreement on is this cyber sharing portion. I think it actually increases our chances of getting a product to the President's desk for signature."

Comcast to FCC: We've Overdelivered on NBC Promises

Comcast filed its two-year NBCU deal compliance report at the Federal Communications Commission.

The report outlines compliance with the voluntary conditions agreed to by Comcast in order to secure government approval of the deal. Comcast executive VP David Cohen says the takeaway is that the company has met, or exceeded, all its obligations in the transaction. That includes

  • the two 2012 launches of minority-owned independent networks, ASPIRE and Baby First Americas;
  • $24 million in PSAs on various topics;
  • 1,000 more kids VOD choices than were required by year three;
  • an additional 1,700 hours of local news and information on its NBC-owned TV stations. Comcast says it has increased the hours by 1,700 above pre-transaction levels; and
  • extending its broadband plant to 221,891 more homes for a cumulative total of 421,767 in two years, already topping its three-year commitment.

Comcast Says NBCU Is Negotiating 'Full Freight' Internet TV Deals

NBCUniversal is in talks with several Internet video providers to license a full lineup of programming comparable to what it offers traditional pay TV providers, Comcast disclosed in its annual report to the Federal Communications Commission.

In the past year, “NBCUniversal received and is negotiating several 'full freight' requests,” Comcast said in its second annual compliance report filed with the FCC. The report is required under the FCC's 2011 approval of Comcast/NBCU transaction. Comcast declined to provide additional details on the negotiations. Aside from those seeking such “full freight” deals, Comcast noted that content-licensing agreements with OVDs have become a regular part of NBCU’s business. In the past year, NBCUniversal entered into new agreements with Internet video distributors, including Amazon.com, Barnes & Noble, Flixster, Google, MediaNavi, Target, Toys ‘R’ Us and Vd.io.

FCC Asked to Turn Down Alaska Station Buy

A group of Alaska broadcast television station owners urged the Federal Communications Commission to deny applications by Denali Media Holdings, a subsidiary of General Communication, to buy three TV stations: CBS affiliate KTVA Anchorage (DMA 145) and NBC affiliates KATH-LD Juneau (DMA 201) and KSCT-LP Sitka (in the Juneau DMA).

“Grant of these applications would result in the combination of ownership of television stations in two of the three television markets in Alaska with ownership of the largest, indeed in many cases the exclusive, provider of terrestrial cable and broadband service to much of Alaska’s population,” the broadcasters said in their petition to deny. “GCI officials have boasted to business executives and employees of other television stations that they intend to use their combined assets to restrict competition in Alaska, and to reduce the diversity of news and information sources for Alaskans,” the broadcasters continued. GCI identifies itself as Alaska’s largest telecommunications firm. GCI’s cable plant, which provides voice, video and broadband services, passes 80% of Alaska’s households.

Chairman Rockefeller Vows to Avert Wireless Cramming Scams on Consumers

Senate Commerce Committee Chairman John D. (Jay) Rockefeller IV (D-WV) sent letters to four US wireless telephone companies sharing his concerns that the practice of “cramming” unauthorized third-party charges is migrating to consumers’ wireless telephone bills.

Consumers have already lost billions of dollars to cramming on their wireline telephone bills. Chairman Rockefeller wrote the same wireless companies – AT&T, Verizon Wireless, Sprint, and T-Mobile – in June 2012 about the growing incidence of cramming on wireless telephone bills. Since then, studies and reviews of consumer complaint websites call into question the effectiveness of many protections that wireless companies have put in place to protect consumers from unauthorized third-party charges. The Committee completed a year-long investigation into cramming on wireline telephone bills in 2011, which showed that cramming has cost American consumers and businesses billions of dollars over the past decade. In response to the Committee’s investigation, wireline telephone companies took a number of positive steps last year to eliminate cramming on wireline bills. However, millions of American consumers and businesses now use wireless telephones. Rockefeller is concerned that wireless companies have not acted aggressively enough to ensure cramming does not migrate from wireline to wireless bills.

FCC Field Hearing Focuses on Innovative Network Technologies

The Federal Communications Commission (FCC) held a field hearing on network resilience and reliability on Feb. 28. This was the second national field hearing, with a prior set of field hearings held in New York City and Hoboken, N.J., relating to Superstorm Sandy on Feb. 5. This field hearing had a decided California flavor.

The focus was on what innovative network technologies, smart power solutions, social media and mobile applications might do to improve communications network resiliency in times of disaster. Chairman Julius Genachowski opined that broadband is essential to our daily lives, and high reliability is important as a result. With 30 percent of Americans relying on cellphones, he said it is critical that users be able to reach 911. The FCC is working on “Next Gen 9-1-1,” improving location accuracy for mobile 911, and enabling wireless emergency alerts to allow local authorities to send warnings and texts to people in affected geographic areas. The chairman announced that the FCC staff had conducted a comprehensive analysis of the “super Derecho” violent thunderstorms. A Notice of Proposed Rulemaking would be considered at the March FCC meeting.

[Rachelle Chong is a former Commissioner of the Federal Communications Commission and the California Public Utilities Commission]

Authors Guild Wants Lawsuit Against Universities Revived

The Authors Guild is asking an appeals court to revive its lawsuit against five universities that worked with Google to digitize books.

The authors' organization is asking the 2nd Circuit Court of Appeals to rule that the digitization initiative is not protected by fair use principles. "The Libraries’ actions subvert the fundamental premises of copyright law and, unless enjoined, threaten to decimate existing and developing markets for literary works," the Authors Guild argues in its legal papers. Last year, U.S. District Court Harold Baer in New York rejected that argument, ruling that the project was "transformative," and therefore met the criteria for fair use. He characterized the project as an "invaluable contribution to the progress of science and cultivation of the arts," in a ruling granting summary judgment to the HathiTrust.

Denied in the Supreme Court, warrantless wiretap opponents are losing ground fast

For the past decade, a legal battle has been brewing on multiple fronts over the US government’s ability to conduct secret surveillance on the phone calls and emails of American citizens without a warrant. And after a Supreme Court decision, it's a fight that the American people are in grave danger of losing.

The 5-4 decision that ended Clapper v. Amnesty International earlier this week did not address the important question of whether or not warrantless wiretaps are constitutional, as various lawyers, journalists, and civil rights groups have been asking the court to do since the program first came to light in 2005. Rather, the court dismissed the challenge outright on the grounds that since plaintiffs can’t prove they’ve been specifically targeted (as no one short of the government itself really can), they don’t have the proper standing to sue in the first place. For privacy advocates, the dismissal is nothing short of a disaster.