May 2014

Hulu, Netflix Seen As Good Value, Traditional TV Stats Dip

The value of TV is declining in some areas. For example, the “perceived value” of free, ad-supported Web sites that air TV shows is slipping, as well as pay TV monthly subscriptions.

Subscription video services have a slightly higher value. According to Hub Entertainment Research, 64% of users say free, ad-supported Web sites such as Hulu either are of excellent or good value. This compares to a 68% number a year ago. Multichannel video program distributors' subscriptions -- cable, satellite or telecommunications -- are now at a 45% number, down from 49% in 2013. Likewise, premium cable network subscriptions are down -- at 28% versus 32% in 2013.

Still, when it comes to the likelihood of keeping a traditional pay TV video package a year from now, 71%, definitely/probably will. Only online streaming subscriptions overall are up: 49% versus 46%. The study says Netflix is growing as an alternative to DVR usage. Now, 18% say DVRs are a “default” when it comes to TV programming versus 20%, while Netflix has improved to 14% from 13% in 2013. When it comes to the value of discovering TV shows, 19% of respondents said they began watching a TV show “because of posts you saw from friends on Facebook” -- the highest result of eight social-media questions.

House authorizes intelligence programs through 2015

The House passed legislation to authorize intelligence activities through fiscal 2015.

Funding levels in the measure, passed 345-59, are classified. It would authorize spending for the CIA, Office of the Director of National Intelligence (DNI), National Security Agency and Defense Intelligence Agency (DNI).

House Intelligence Committee Chairman Mike Rogers (R-MI), who is retiring, said that the controversies over NSA spying had mischaracterized American intelligence activities. "We have somehow decided over the last year that our intelligence services are the problem," Chairman Rogers said. "They are part of the solution."

"For the sake of vigorous oversight and accountability over all US intelligence agencies, I urge my colleagues to support this bill," said Rep Dutch Ruppersberger (D-MD) of the Intelligence Committee. Due to the classified nature of many of its provisions, the intelligence authorization is marked up in committee behind closed doors. But Chairman Rogers maintained that members of the committee had engaged in rigorous debate on overseeing the nation's intelligence programs.

"There is no love fest when those doors close," Chairman Rogers said.

Democrats protest intelligence funding bill over NSA

The intelligence funding bill the House overwhelmingly passed would make no major reforms to some of the most controversial spying programs, which angered some Democrats.

Rep John Conyers Jr (D-MI), the top Democrat on the Judiciary Committee, voted against the measure because it made no effort to reform the National Security Agency and other programs. The funding bill “excludes even modest efforts to address cybersecurity, whistleblower protections, increased transparency, and drone warfare,” he said. “Because the bill falls far short on each of these matters -- and because the members introducing these reforms were not provided even the courtesy of open debate -- I did not support this bill.”

“While I recognize the necessity of guarding some of the intelligence community’s clandestine activities, matters that impact the civil liberties and safety of all Americans cannot be conducted in a manner that shuts out Congress and leaves the public in the dark," he added.

Rep Yoder: Agencies seizing e-mails is ‘much worse’ than NSA spying

A decades-old law on emails is more of a threat to privacy than National Security Agency surveillance, according to Rep Kevin Yoder (R-KS). He expressed deep concern over the 1986 Electronic Privacy Communications Act (ECPA), which allows police to obtain emails without a warrant.

“It’s much worse than the debates we’re having over whether the NSA should be able to theoretically review phone call” data, Rep Yoder said. “This is much worse in that they’re actually reading the emails,” he said.

Rep Yoder’s bill, the Email Privacy Act, would update the ECPA to require law enforcement officials to obtain a warrant before accessing digital communications including emails. Currently, officials can access any email that has been stored for more than six months without a warrant. The bill has wide support in the House, Rep Yoder said. He and co-sponsor Rep Jared Polis (D-CO) touted the bill’s 214 co-sponsors, just shy of half the members of the House.

“We’re very close to what we in Congress like to call a magic number,” Polis said, encouraging viewers to ask their member of Congress to support the bill. Yoder asked viewers to “differentiate this from the NSA issue” when contacting their members of Congress. While both issues deal with privacy, “it is different politically,” he said. No members have come out publicly against the bill, despite pushback from federal agencies, the lawmakers said.

The FCC may consider a stricter definition of broadband in the Netflix age

What is high-speed Internet? Believe it or not, there is a technical definition. Currently, it's set at 4 megabits per second. Anything less, and in the government's view, you're not actually getting broadband-level speeds.

These days, 4 Mbps may not get you very much anymore. The rise of streaming music and video means that all the things we do online now require a lot more bandwidth compared to even five years ago.

So the Federal Communications Commission is beginning to consider whether to raise the definition of broadband -- a change that might have big implications for the way we regulate Internet providers.

The FCC soon intends to solicit public comments on whether broadband should be redefined as 10 Mbps and up, or even as high as 25 Mbps and up, according to an agency official who asked not to be named because the draft request was not yet public.

The new threshold would likely increase the number of people in the United States that statistically lack broadband, which in 2012 amounted to 6 percent of the population. Depending on the responses, the FCC may decide that broadband must be defined as being at least 10 Mbps, or even 25 Mbps.

Set-Top Box Market ‘Ripe For Further Consolidation’: Analyst

As the proposed marriages of Comcast and Time Warner and AT&T and DirecTV move forward, this latest wave of consolidation is poised to have an effect on the telecommunications supplier market, creating a fresh batch of winners and losers.

That, of course, will extend to the realm of video gateways and set-top boxes, with at least one analyst believing that this new round of mergers and acquisitions will cause a shift in a market that is largely made up of Pace, Arris (thanks to its acquisition of Motorola Home in 2013), Cisco Systems, Technicolor and EchoStar.

“This mature, yet fragmented market, in which the top five vendors account for about 37% of the revenues, is ripe for further consolidation,” Sam Rosen, practice director at ABI Research, predicted, pointing out that Arris, with its focus on cable and IPTV, stayed ahead of Pace, which, in his estimation, is “over-weighted on satellite.”

AP, Others Protest Pay For Play D-Day

D-Day's 70th anniversary events may have reduced coverage by news agencies outside of France.

The Association Press says it and other news agencies (AFP, Reuters and ENEX) have protested the French president's office decision to grant exclusive rights to the main ceremony (June 6) to two French broadcast networks, which are now trying to charge global news outlets, cable channels and online outlets collectively over a quarter of a million dollars for access to that exclusive coverage.

June 6 marks the 70th anniversary of the Allies successful effort to storm the beaches of France under withering enemy fire, liberate the country from German occupation and turn the tide of World War II. "The French host broadcasters, France Televisions and TF1, are demanding that global news providers AP, AFP, Reuters and ENEX pay nearly 200,000 euros ($265,000) collectively for live broadcast and online streaming coverage of the official ceremonies, which feature at least 18 heads of state," AP reported.

Department of Commerce Open Government Plan Version 3.0 Published

On January 21, 2009, President Barack Obama issued the first executive memorandum of his Administration, entitled “Transparency and Open Government.”

This memorandum established three guiding principles for the conduct of government activities. Government should be transparent. Government should be participatory. Government should be collaborative. The Department of Commerce (the Department) is fully committed to these principles, and we are pleased to present the 2014 Department of Commerce Open Government Plan, version 3.0.

The Plan is updated annually, and this release represents its fifth publication. The Department will continue to encourage and strive for increased participation and collaboration among its employees, with other government agencies and the American people.

The 2014 plan provides an overview of the Department’s new 2014-2018 Strategic Plan, describes Department program and functional areas which are critical to Open Government, features three “flagship” Open Government initiatives, and highlights Open Government happenings of ongoing initiatives and activities across the Department’s Bureaus and Operating Units (BOUs).

Working to Ensure Americans Remain Connected When Disaster Strikes

With the start of summer comes the beginning of the hurricane season along much of the US coast. And with hurricanes comes the increased possibility that communications could be disrupted.

Less than two years ago, Hurricane Sandy left a trail of death and destruction including disrupted communications for millions of people and thousands of businesses along the East Coast. The Federal Communications Commission (FCC) has reported that about a quarter of cell sites across 10 states and the District of Columbia were knocked out of service during the peak of the storm.

As the Executive Branch agency primarily responsible for advising the President on telecommunications and information issues, the US Commerce Department’s National Telecommunications and Information Administration (NTIA) has been working with other federal agencies to help Americans remain connected in the wake of natural disasters or other emergencies.

[Fletcher is Associate Administrator, National Telecommunications and Information Administration]

Class-Action Lawsuit Filed Against Proposed AT&T and DirecTV Merger

On the heels of their announcement of a merger, AT&T and DirecTV found themselves hit with a class-action lawsuit filed by one of DirecTV's public shareholders.

Teresa Silvestri filed the suit on behalf of other shareholders, targeting DirecTV and its board of directors, AT&T, and its subsidiary, Steam Merger Sub.

The document details the merger deal, with AT&T acquiring each share of common stock of DirecTV for $28.50 per share in cash, and $66.50 per share in AT&T stock. However, she alleges that this breaches both companies “fiduciary duties of loyalty, good faith, due care and disclosure by … agreeing to sell DirecTV without first taking steps to ensure that [the public shareholders] would obtain adequate, fair and maximum consideration under the circumstances.”

The document further accuses the companies of “entering into the merger agreement without attempting to maximize shareholder value in order to obtain millions of dollars in benefits for themselves.” She seeks a jury trial in the case, asserting that without one, “the merger will be consummated, resulting in irreparable injury to [the public shareholders].”