June 2014

Comcast hits back on tech group’s merger opposition

Comcast is pushing back on the tech industry’s opposition to the cable giant’s merger with Time Warner Cable. The Computer and Communications Industry Association (CCIA) -- which includes Google, Facebook, Aereo and T-Mobile -- is wrong to say that the merger will harm competition and consumers, Comcast Vice President of Government Communications Sena Fitzmaurice said.

"Every market Comcast operates in is highly competitive, and we compete actively every day against some of CCIA's members,” she said. Fitzmaurice criticized CCIA for its “inaccurate figures” about Comcast’s market share if the proposed merger goes through.

Rep Walden: Old Regs Could Be Death Sentence For Local Outlets

Communications Subcommittee chairman Greg Walden (R-OR) made it clear what he thought of the Federal Communications Commission's recent activity, and inactivity, on media ownership rules.

"Pretending laws designed for an era before smartphones and the Internet will get the job done is an effective death sentence for many local media outlets," he said. That came in opening statements at a hearing on media ownership rules, part of the parent House Commerce Committee's ongoing review of communications regulations, as well as a response to some current events like the joint sales agreement (JSA) ruling and the decision to role the 2010 and 2014 quadrennial reviews into one targeted for mid-year 2016.

Rep Walden said everyone was committed to the core values promoting localism, diversity and competition, but his view was that was best served by not hampering broadcasters ability to compete.

Rep Rush Reams FCC Over Diversity

The Federal Communications Commission got hammered by Democrats over diversity at the June 11 House Communications Subcommittee hearing on media ownership.

While most of the raised eyebrows over FCC action or inaction came from Republican members, the lack of diversity in broadcast ownership -- only four African American-owned TV stations, for example -- drew outright jeers from Rep Bobby Rush (D-IL).

Rep Rush said one of the reasons he had joined the Communications Subcommittee was to help increase media ownership diversity. He said he had been disappointed for a number of years, but that the current state of diversity was the worst it has been in his 21 years in Congress. He said he did not see a "vigorous commitment" from the FCC on diversity and that he was disappointed in the continual excuse-making.

Rep Rush questioned why FCC Chairman Tom Wheeler had pulled the plug on the critical needs study which was to help determine how ownership affected diversity of voices.

Conference Of Mayors Backs FCC Sports Blackout Rule

The National Conference of State Legislatures has asked the Federal Communications Commission not to eliminate its Sports Blackout Rule.

That rule backstops sports league broadcast blackout policies by preventing cable or satellite operators from carrying the blacked-out games to those local markets. The FCC has proposed scrapping the rule.

In a letter to FCC chairman Tom Wheeler, the conference said the rule "serve[s] the interests of states as well as the public by [helping to promote] economic activity, civic pride and the broadcast of professional football on free, over-the-air television."

The FCC rule helps promote attendance, the conference points out, and the stadiums, whose economic activity is boosted by getting fans in the seats, are often built partly with taxpayer dollars, they point out. "Thus, states share a stake in the continued use, success and vitality of sports facilities."

Amazon Blocking Warner Movies Pre-Orders in Latest Feud

Amazon.com isn’t accepting pre-orders for Warner Bros movies on its website, the latest of the online retailer’s contract feuds to spill into public view. Customers trying to pre-order films such as “The Lego Movie,” “300: Rise of an Empire” and “Winter’s Tale” are instead asked to sign up to be notified when the item becomes available.

Digital downloads of the movies are available for purchase through Amazon Instant Video. The world’s biggest online retailer is seeking concessions from Warner Bros that would give it more of a margin on sales of DVDs and digital versions of its movies, said a person familiar with the matter, who asked not to be identified because the negotiations are private.

Apple praised for plan to undermine extensive system that secretly tracks customers

As the political push to curb digital spying remains mired in debate, those who produce the technological wonders of our age are fixing on a more direct response: If you can’t legislate privacy, build it in.

It is against this backdrop that many in the technological community are applauding the decision by Apple to tweak how the iPhone searches for wi-fi connections. Through a relatively simple software update, the company plans to undermine a widely deployed system that stores such as Nordstrom have used to track the movements of customers to analyze shopping habits.

Sen Al Franken (D-MN), who has proposed legislation banning such tracking except when customers explicitly choose to participate, said, “Companies are tracking your movements when you go shopping without your knowledge -- and often when you don’t even enter a store. Apple’s decision to protect their users against this form of tracking is a smart and powerful move for privacy.”

Multiplatform TV: Comcast/TWC ‘Tipping Point’ For Advanced Ads

The pending combination of Comcast and Time Warner Cable could be the final piece of the interactive ad puzzle, spurring other distributors to embrace what has been a market on the verge of a breakout for about a decade, Bank of America Merrill Lynch Global Research senior media and entertainment analyst Jessica Reif Cohen said. Reif Cohen added that so far, interactive advertising has taken “baby steps.” But with the creation of a 30-million subscriber cable company, the industry will finally have an addressable ad champion with the necessary scale and scope.

“The tipping point of addressable advertising will be Comcast/Time Warner Cable,” Reif Cohen said, adding that other components like measurement also will need to fall into place. “There are steps that need to happen, but clearly it will be an area of growth.”

Reif Cohen pointed to the impact that Comcast already has had on the video side of the business with its current scale -- 22 million subscribers -- focusing on video on demand, TV Everywhere and its robust user interface platform, the X1. She noted that because of those efforts, Comcast customers watch more TV (more than 7 hours per day vs. 4-5 hours on average for the rest of the country) and more channels (about 40% more than average viewers.)

There is No Freedom in 'Free' TV

[Commentary] Broadcasters recently launched a front group with the apparent purpose of attacking pay-TV providers and making enough noise to distract from reforming our broken retransmission consent system that victimizes the public.

They named their new group TVFreedom, perhaps to misdirect from the fact that for decades they’ve actually opposed freedom of choice for TV viewers.

If the basic tier mandate is so critical to public safety, where is the evidence that the lack of such a mandate for the satellite companies has led to any harms?

Broadcasters are currently squatting on hundreds of billions of dollars worth of spectrum that they’re not using other than to provide 8% of the American public with “local” TV -- if and when those users can receive a decent broadcast signal. And local television isn’t even local anymore. Only one out of two TV stations actually shows local news. Further, 50% of the money collected in retransmission consent fees goes back to New York City to pay for expensive network programming, which is the exact opposite of what retransmission was supposed to do.

The broadcasters cannot -- and should not be allowed by the media -- to get away with claiming that retransmission consent amounts to the free market at the same time they fight to protect the government requirement that cable and telecom providers carry certain broadcast TV channels. Nor should they be able to claim retransmission consent is the free market when they tie carriage of the expensive cable channels they own to the local TV stations.

The basic tier is a relic of a bygone era when broadcasters were the only game in town. New technologies have disrupted this monopoly and now broadcasters are fighting to save a dying business model. Protecting an archaic monopoly is never good public policy.

[Frederick, PhD, is spokesman for the American Television Alliance]

Glenn Britt Dead at 65

Former Time Warner Cable chairman and CEO Glenn Britt died of cancer on June 11 at his home in New York. He was 65.

“Glenn left us with a legacy of innovation, integrity and inclusion," said Time Warner Cable chairman Rob Marcus.

Mobile banking could help low-income people, feds say

The federal consumer watchdog says mobile banking services present enormous potential benefits for low-income people. The Consumer Financial Protection Bureau (CFPB) said it will take a closer look at how mobile banking and financial services applications can empower unbanked and underbanked people to take better control of their personal finances.

"For the economically vulnerable, mobile (banking) can enhance access to safer, more affordable products and services in ways that can improve their economic lives," the agency wrote in the Federal Register.

The CFPB issued a request for information as it considers how to regulate mobile banking services. The bureau said 74,000 people each day signed up for mobile banking services in 2013, many of whom are low-income individuals whose only access to the Internet is through their phone, the agency said. According to a Federal Reserve study, 39 percent of underbanked people use mobile banking applications.