December 2015

As TV Ad Rates Soar, ‘Super PACs’ Pivot to Core Campaign Work

Soaring advertising costs in early primary states are compelling major “super PACs” to realign their tactics, de-emphasizing costly broadcast commercials in favor of the kind of nuts-and-bolts work that presidential candidates used to handle themselves. They are overseeing extensive field operations, data-collection programs, digital advertising, e-mail lists, opposition research and voter registration efforts. The shift away from the broadcast television buys that had been the groups’ main role in past presidential campaigns is among the most significant developments in outside political spending since the Supreme Court’s 2010 Citizens United decision, which paved the way for super PACs.

Originally conceived as a vehicle to raise and spend unlimited money on television, the most expensive part of a White House run, the groups now are seeking to relieve campaigns of much of the vital infrastructure that candidates would otherwise have to assemble and manage. The results of their efforts, which cannot be coordinated directly with the candidates, are unproven. It is not yet known whether field and data efforts spearheaded by outside groups will be as effective as they are in the hands of a candidate.

Altice-Cablevision Deal Hits New Bumps

Altice’s $10 billion deal to buy cable operator Cablevision Systems is running into unexpected turbulence in New York City. Since the European telecommunication operator announced the US cable acquisition in September, Cablevision’s shares have sunk further below Altice’s all-cash offer of $34.90 a share. The stock is trading 9 percent below the agreed takeover price, reflecting investors’ concerns about the deal closing. “The spread has widened in large part because people have become increasingly concerned that neither the city nor the state will find that the transaction is in the public interest, or alternatively, they’ll demand so much in terms of givebacks that ultimately the deal won’t be palatable to Altice,” said Craig Moffett, analyst at MoffettNathanson LLC.

New York City has said it has “a number of important concerns” about the merger and believes it has the power to deny the deal if it finds it isn’t in the public interest. Cablevision’s 3.1 million customers are concentrated in the greater New York market. New York Mayor Bill de Blasio’s top legal counsel Maya Wiley said the city is concerned about whether Altice has the financial wherewithal to digest Cablevision without skimping on customer service and infrastructure upgrades for faster Internet speeds. Wiley said the city is also concerned about the impact on jobs. Altice has a reputation for instituting drastic cost cuts.

YouTube Says T-Mobile Is Throttling Its Video Traffic

YouTube said T-Mobile is interfering with its video traffic, raising a new issue as federal regulators examine the wireless carrier’s streaming-video strategy. T-Mobile recently began offering a program that delivers video at lower quality in exchange for waiving related data fees. YouTube and its allies say T-Mobile also is lowering the quality of video that isn’t part of the program, including YouTube clips.

YouTube said T-Mobile is effectively throttling, or degrading, its traffic. “Reducing data charges can be good for users, but it doesn’t justify throttling all video services, especially without explicit user consent,” a YouTube spokesman said. YouTube's complaint marks one of the first public objections by a major Internet company to T-Mobile's program, known as Binge On. And it will likely draw further attention from regulators in Washington.

Disney in talks to sell Fusion stake to Univision

Univision is in negotiations to take over the ownership and operation of Fusion, the millennial focused US cable channel and digital network that it formed two years ago with Walt Disney. The price being discussed is unclear but people familiar with the matter said the two companies were discussing transferring full ownership of Fusion to Univision, America’s largest Latino and Hispanic media group.

Disney has decided to focus on millennial viewers using its other investments, notably its 10 percent stake in Vice Media, its ownership of Maker Studios, and its ABC Family Network, which is being rebranded Freeform, according to people familiar with the matter. Fusion was launched in 2013 as an English language digital and cable network aimed at the fast-growing population of second generation Latinos, combining the distribution heft and production capability of Disney’s ABC network with Univision’s expertise in the Latino market. It switched focus shortly after launch, broadening its target market beyond its original demographic to all millennials -- young people aged 18-32 -- regardless of their ethnicity.

Here is Why Public Wi-Fi is a Public Health Hazzard

[Commentary] We took a hacker to a café and, in 20 minutes, he knew where everyone else was born, what schools they attended, and the last five things they googled. If he wanted to, hacker Wouter Slotboom could now completely ruin the lives of the people connected: He can retrieve their passwords, steal their identity, and plunder their bank accounts. The idea that public Wi-Fi networks are not secure is not exactly news. It is, however, news that can’t be repeated often enough. There are currently more than 1.43 billion smartphone users worldwide and more than 150 million smartphone owners in the US. More than 92 million American adults own a tablet and more than 155 million own a laptop. I will never again be connecting to an insecure public Wi-Fi network without taking security measures.

[Maurits Martijn is a writer for Dutch online journalism platform, De Correspondent]