February 2016

FCC Chairman Says Set-Top Box Proposal Will Boost TV Innovation

Federal Communications Commission Chairman Tom Wheeler says that a proposal to open up the set-top cable box will make it “easier for consumers to watch TV,” pushing back against industry criticism that the plan would jeopardize copyright and privacy protections or hobble innovation. Chairman Wheeler said that the proposal would merely establish an open platform so competitors could offer their own set-top boxes that consumers could purchase rather than be forced to rent the equipment from their cable and satellite providers.

“The big kick I get is that AT&T and the cable companies have been putting out statements say, ‘This is going to thwart innovation,'” he said. “And I scratch my head and say, ‘My goodness, let’s see. When it the last time that competition thwarted innovation rather than spurring innovation?’ And you are telling me that a locked down, closed system will have more impetus to be innovative, than a competitive, open system? I think that history shows that it is exactly the opposite of what happens in reality.” He said that what it could lead to are fewer remote controls and easier navigation, where consumers can “shape television to how they use it.” "All we are saying is, ‘Cable operators, you can go ahead and control your product. But have an open platform so that anyone can build a device, and then let’s compete on who can offer the better device.’ Let’s have the cable company say, ‘You want to pay me for my interface, because it does all these things nobody else does.’ Rather than, ‘You must pay me.’ We are just trying to get to that basic American concept of competition.”

GOP pushes for ban on in-flight phone calls

Cell phone calls during flights would be banned under an aviation funding bill that is scheduled to be considered by lawmakers in the House during the week of Feb 8. The Federal Communications Commission caused a stir in 2013 when it considered lifting a current ban on in-flight cell phone calls after the Federal Aviation Administration moved to allow more electronic devices to be during flights. The FCC reasoned that it is now less of a concern that in-flight calls would interfere with airplane navigation equipment than it was when most of the electronic bans were put in place.

The potential end of the call ban has drawn widespread opposition, with critics fearful it would lead to loud telephone conversations in the crowded confines of airline cabins. The Federal Aviation Administration measure unveiled by the House Transportation and Infrastructure Committee during the week of Feb 1 would enshrine the ban on in-flight calls in federal law, regardless of the diminishing safety concerns. The panel said the measure, known as the Air Innovation Reform and Reauthorization (AIRR) Act, "prohibits the use of cell phones and mobile devices for voice communication during commercial flights." The House Transportation Committee is scheduled to hold an initial hearing on the FAA bill on Feb 11.

Charter-TWC: A Bad Deal for Storytellers

[Commentary] In 2015, Comcast’s attempt to merge with Time Warner Cable collapsed after the Federal Communications Commission rightly concluded, “The merger doesn’t help consumers.” Now, the FCC and the Department of Justice must once again ask whether consumers would benefit from a proposed merger of three giant cable operators: Charter Communications, Time Warner Cable and Bright House Networks. The clear, simple answer is no!

The continued, rapid consolidation of the communications and entertainment business is not in the interest of consumers or content creators. If allowed to merge, this Mega-Cable monolith of a conglomerate would control more than a third of America’s cable television and broadband markets, including New York (NY), Los Angeles (CA), Dallas-Ft. Worth (TX), and Charlotte and Raleigh-Durham (NC). The merged companies, plus Comcast, would constitute a dangerous duopoly controlling almost 90% of all high-speed broadband connections in the country. That would put these giants in position to control the fate of new and emerging over-the-top services that rely on a robust high-speed broadband connection. Worse yet, the thought that this merger is only a one-dimensional “distribution” play seems to us to be an unfinished sentence. This is what competition is supposed to be about: a robust marketplace offering the greatest number of options to creators and consumers alike. The Mega Cable merger would significantly reduce competition. We urge the FCC and the Department of Justice to reject it.

[Lowell Peterson is executive director and Michael Winship is president of the Writers Guild of America, East]

CWA Keeps Up Pressure on Altice-Cablevision

The Communications Workers of America has told the New York State Public Service Commission that the proposed merger of Altice and Cablevision Systems is not in the public interest and should be rejected. The 700,000-member union, which represents 300 Cablevision employees, made its argument in initial comments to the New York Public Service Commission. The union has already urged the Federal Communications Commission to block the deal, and plans to take the same tack with the New York City Franchise Concession Review Committee and the Connecticut Public Utilities Regulatory Authority.

Cablevision in February of 2015 reached agreement on a new contract with the CWA, but only after years of contentious negotiations. The union is concerned about job losses, and about the amount of assumed debt involved in European telecommunication company Altice’s $17.7 billion all-cash purchase of Bethpage (NY)-based Cablevision. The CWA has argued that the deal’s heavy debt burden could put jobs at risk, so it has been pushing back on a number of regulatory fronts.

LRG Finds 80 Percent Penetration of VOD or DVR Service

New market research from Leichtman Research Group (LRG) illustrates the household penetration of video-on-demand (VOD) and digital video recorder (DVR) is on the rise and highlights the extent to which subscribers are consuming video content in US homes. A DVR, Netflix, telecommunication company or cable video-on-demand (VOD) service is present and used in 8 of 10 US households, according to LRG, which surveyed 1,214 households across the US for its 14th annual ¨On-Demand TV XIV¨ report. Moreover, LRG found that 30% use two of these services and 13% use three. In addition, nearly 6 in 10 (57%) subscribe to a streaming VOD (SVOD) service – either from Netflix, Amazon Prime and/or Hulu. Nearly half (48%) of adults stream such services every month, LRG highlights. Additional takeaways from LRG’s latest research report include:

  • 77% of those ages 18-24 stream an SVOD service monthly — compared to 63% of ages 25-44, 50% of ages 45-54, and 23% of ages 55+
  • 37% of all adults stream Netflix weekly — compared to 8% in 2010
  • 83% of Netflix streaming users watch Netflix on a TV set

The Wi-Fi in the White House is just as bad as yours

The White House may be a symbol of American strength and leadership, and an impenetrable fortress only conquered by those who dare to jump the fence, but when it comes to Wi-Fi, it's just like your home. President Barack Obama revealed that the Wi-Fi in the most protected building on earth is kind of sketchy. "We've been trying to get that straight for the next group of folks, because it is an old building, and so there's a lot of dead spots where Wi-Fi doesn't work," President Obama said. First Lady Michelle Obama said their daughters weren't thrilled with the connection either. "It can be a little sketchy," Michelle Obama said about the Wi-Fi. "The girls are just irritated by it sometimes."