September 2014

Summer TV Ratings Were “Terrible”

“Terrible.” That’s the word MoffettNathanson Research senior analyst Michael Nathanson uses to describe the summer television ratings in a blistering new research note.

Aggregate prime time ratings for the broadcast networks were down 5.1% in August, while cable ratings sank a “shocking” 9.8%, Nathanson notes. “It’s impossible not to worry that either consumer behavior, due to increased time-shifting, has dramatically changed or something is broken in Nielsen’s measurement model,” Nathanson writes. What’s to blame? American viewers have taken to video-on-demand, digital video recorders and streaming services like Netflix in greater numbers. That has dragged down ratings figures for both broadcast and cable networks, especially in the summer months where there’s a “lack of real original content,” Nathanson said.

Former Qualcomm Exec Named Head of Google Fiber

Google Fiber has a new boss, the latest sign that the search giant is serious about delivering high-speed Internet service. Former Qualcomm executive Dennis Kish replaced Milo Medin, a key visionary behind the project.

Medin remains a Google vice president for access services and adviser to the Google Fiber team, a spokeswoman said, while working on other, unspecified Internet-access projects for the company. Kish was brought in for his operational expertise and will lead Google Fiber as the high-speed Internet and television service expands to new cities. Kish reports to Craig Barratt, Google’s senior vice president, access and energy. Chief Executive Larry Page recently added Barratt to his top circle of advisers, known internally as “L Team,” joining the executives that run other key Google divisions like search, advertising, Android and YouTube.

Amazon is a rising star in Hollywood

Like other online video services such as Netflix, Hulu Plus, Crackle and YouTube, Amazon has been investing heavily in original programming to grab some business from traditional networks and cable channels.

Bill would protect Yelp comments

A handful of House Democrats introduced a bill to protect people who write reviews on Yelp or similar online review websites. The Consumer Review Freedom Act would prohibit companies from including clauses in their contracts that prevented people from writing critical reviews about them online, a tactic that some businesses have used to avoid online negative publicity. “No country that values free speech would allow customers to be penalized for writing an honest review,” said Rep Eric Swalwell (D-CA), who wrote the bill along with Rep Brad Sherman (D-CA). “I introduced this legislation to put a stop to this egregious behavior so people can share honest reviews without fear of litigation.” Reps Steve Cohen (D-TN) and Tony Cárdenas (D-CA) are co-sponsoring the bill.

Big COPPA problems for TinyCo

TinyCo just settled a Federal Trade Commission lawsuit alleging the company violated the Children’s Online Privacy Protection Act (COPPA) Rule.

One interesting allegation: In exchange for in-app currency to buy game enhancements, TinyCo encouraged kids to turn over their email addresses, but the company didn't get parental permission as required by COPPA. TinyCo offers a number of kid-directed apps through popular app stores. For example, users of Tiny Pets could “Help your best friend Sully the Dog save the pets of TinyLand from the evil Duke Spendington. Hide them in your tree house by building homes for them.” (Darn that Duke Spendington!) The apps are free and have been downloaded millions of times, but users can make in-app purchases to enhance game play. TinyCo didn’t live up to its legal responsibilities, illegally collecting children’s addresses without their parents’ permission in exchange for game goodies. Users of TinyCo apps were encouraged to turn over their email “for information and promotions,” a practice the FTC says also violated COPPA. As a result, TinyCo collected tens of thousands of email addresses. In addition to a $300,000 civil penalty, the settlement mandates a major COPPA clean-up and the destruction of all information TinyCo collected from kids under 13.

FTC case against Yelp shows that COPPA isn’t just for kids’ sites

Yelp is an online service where people can read and create reviews about businesses and connect with others online and at local events. Many users post profiles with photos and detailed information about themselves. Yelp's "check in" feature lets users announce their presence at a certain business. Yelp introduced its apps in 2009 so people can access those services from their mobile devices. Before that, people had to register through the company’s website, which had a screening mechanism that prohibited users under 13 from signing up. Why that age? Because COPPA applies to operators of general audience websites or online services – including apps – with actual knowledge they’re collecting, using, or disclosing personal information from kids under 13. (Of course, the Children’s Online Privacy Protection Act (COPPA) also applies to kid-directed sites and services without regard to that “actual knowledge” standard.

The FTC’s just-announced settlement with TinyCo deals with that aspect of the Rule.) The problem with Yelp apps was how that age-screening mechanism worked – or more accurately, didn’t work. People who registered on the app were asked for a date of birth, but regardless of what they entered, the Yelp app allowed them to sign up and gave them full access to all features.

Why T-Mobile needs Wi-Fi calling: its network can’t match AT&T and Verizon

T-Mobile’s new emphasis on Wi-Fi calling is a tacit admission that T-Mobile’s network, despite improvements, still can’t match those of AT&T and Verizon Wireless. Many T-Mobile customers go to the company’s support forums to complain of poor reception at home and elsewhere, despite T-Mobile coverage maps indicating that they should receive good quality.

All carriers have coverage problems that can be exacerbated in rural areas, but studies show that on average T-Mobile lags behind AT&T and Verizon -- though not Sprint. Wi-Fi calling should improve reliability in regions with poor cellular coverage. It won't help prepaid T-Mobile customers manage calling limits, though. T-Mobile's current postpaid plans include unlimited minutes, and customers on older postpaid plans with limited minutes will be given unlimited Wi-Fi calling. Wi-Fi calls do count against minutes for prepaid customers, though.

Would you buy a Wi-Fi router just to use your cell phone indoors? T-Mobile hopes so

T-Mobile is making Wi-Fi calling more accessible for all of its customers. Part of that strategy involves selling only phones that are capable of making Wi-Fi calls from here out (existing customers are eligible for an early Jump upgrade to get a new phone if they wish) -- but the other piece of the strategy is a humble wireless router.

Don’t let the name fool you -- the Asus-built T-Mobile Personal CellSpot has nothing to do with the company’s cellular network. It’s not a FemtoCell, but a dual-band, 802.11ac router (it also works with the older b/g/n protocols) that the carrier is giving away to any customer who wants it and puts down a $25 deposit. Plug it in, and you can make Wi-Fi calls that promise to sound better, without having to worry about how good your T-Mobile cell signal is. The new device is not a requirement for using T-Mobile’s Wi-Fi calling features. In fact, as long as your phone supports it, any Wi-Fi signal will work just fine. But T-Mobile says its CellSpot is better than most Wi-Fi routers out there, and that it’ll be a piece of cake to set up.

Roberts: Wi-Fi Could Be Retention, Revenue Tool

Comcast Chairman and CEO Brian Roberts said that Wi-Fi could be used as both a retention tool and revenue generator in the not too distant future. Roberts said that the explosion in Wi-Fi usage has been a boon for cable high-speed data offerings, which usually offer the service as a free add-on to cable customers. Roberts estimated that about 70% of all data usage goes across Wi-Fi networks. Asked where he envisioned the cable business would be headed in the next three to five years, the Comcast chief said he had no crystal ball, but guessed it would involve products and services built to take advantage of the Wi-Fi network.

Michael Powell: Keep Diversity Pipeline Filled

The cable industry has to maintain a steady pipeline of qualified people of color to ensure increased diversity within the employment ranks of cable companies, according to National Cable and Telecommunications Association CEO Michael Powell.

Powell, speaking at the opening panel at the National Association for Multi-ethnicity in Communications (NAMIC) Conference, said overall the industry is outperforming most other industries when it comes to its diversity efforts. He added to remain vigilant, the industry needs to keep an eye on its diversity employment numbers and be prepared to react to any dips that may occur within those numbers, particularly among middle and upper management positions. “If you want to smooth those dips you have to groom a steady pipeline of men and women to be ready when the opportunities come,” he said.