The FCC Plays For Time in Charter-TWC Merger

The Federal Communications Commission and the U.S. Justice Department this week each signaled their intent to approve Charter Communication’s $65 billion acquisitions of Time Warner Cable and Brighthouse Networks, subject to several conditions.

The mergers will create the second largest cable-TV provider in the country, with 17.4 million subscribers, behind Comcast’s 22 million. Strikingly, though, none of the conditions attached by the FCC and DOJ have to do with the provision of cable-TV service. Instead, they deal almost entirely with promoting over-the-top video as a viable competitor to cable.

FCC_headquartersUnder the deal with the FCC, the merged company will be prohibited from imposing usage-based pricing or data caps on its 19.4 million broadband subscribers, a tactic many cable internet providers have turned to lately to discourage video cord-cutting by indirectly raising the cost of using OTT services like Netflix.

Charter will also be prohibited from charging Netflix and other OTT providers with interconnection fees for delivering traffic to Charter broadband subscribers.

Under the agreement with the Justice Department, Charter will be barred from inserting or enforcing most-favored nation (MFN) clauses in its carriage agreements with programmers — a tactic many pay-TV providers, particularly TWC, have used to discourage programmers from making their content available on OTT platforms. Read More »

The Box And The Bundle

One of the most striking aspects of the current debate over the FCC’s proposal to “unlock” the set-top box is how shabby the public arguments are on all sides.

Chairman Tom Wheeler, who cooked up the idea, hangs his case for requiring pay-TV providers to disaggregate essential programming, navigation and entitlement elements of their service for the convenience of third-party device makers and developers on the alleged cost to consumers of renting a set-top box from their provider every month, which the proposal pegs at $231 a year (a figure others dispute). Allowing consumers to bring their own device will save them money, according to Wheeler. The White House made a similar argument in endorsing the proposal.

settop _box_openSet-top box fees are surely excessive, like the cost of pay-TV service itself. But they’re also arbitrary, just like a lot of other line items on the average cable bill. Broadcast fee? Regional sports fee? How are those calculated? The idea that requiring operators to eliminate one line item on a monthly bill full of arbitrary fees and prices will translate into meaningful cost savings to consumers seems far-fetched.

For that matter, the idea that letting consumers buy their own set-top box would necessarily result in significant savings also seems far-fetched. A TiVO Roamio goes for $600, plus $10 a month for the guide. Read More »

The Impoverishment Of Live TV

Live programming, particularly live sports, is widely seen as the last major thread still holding together the pay-TV bundle. Apart from news, nearly all other types of programming are just as enjoyable viewed on demand or time-shifted, perhaps even more enjoyable given the prospect for commercial-avoidance.

Live events, however, especially sports, are more valuable and enjoyable when viewed in real time, providing an incentive for consumers to coachellacontinue to pay their cable or satellite bill, particularly so as more live sports programming moves off free broadcast channels to pay-TV channels.

Live sports are also increasingly available over-the-top, of course. But for the most part those streams are simply retransmissions of existing linear broadcasts targeted at fans who can’t watch the games on their native broadcast platforms either because the games are not available in the viewer’s home market or because the viewer doesn’t have access to a big screen TV at game time. Issues with Given the option, most people would still choose to watch most sporting events on their native broadcast platforms.

Recent developments in the world of live streaming hint at how that could start to change, however. Read More »

RightsTech Summit set for New York City on July 26

On July 26 Digital Media Wire and Concurrent Media Strategies will hold the inaugural RightsTech Summit at the Japan Society in New York City, a 1-day executive leadership conference that brings together cross-industry leaders focused on furthering technology innovation around rights management and licensing across multiple media verticals.

rightstechlogo2One of the goals of the event is the establishment of industry best practices for the rapidly evolving RightsTech ecosystem.

Issues and discussion groups at the inaugural RightsTech Summit include:

  • Machine Readable Rights
  • Smart Contracts
  • Shared Responsibilities
  • Blockchain and Big Data
  • RightsTech in the Enterprise
  • RightsTech and Direct-to-Consumer Distribution
  • RightsTech and Piracy
  • Attribution and Provenance

For registration information and complete details please visit RightsTechSummit.com.

Email us at info@digitalmediawire.com

——

RightsTech Summit

July 26, 2016

Japan Society

333 East 47th Street

New York, NY 10017

From Winky-Dink to Facebook Live: Social TV’s Next Chapter

Broadcasters have long dreamed of making TV interactive and social. From the days of “Winky-Dink & You,” which encouraged its young viewers to draw on the TV screen along with the show’s host (much to their parents’ dismay), to Time Warner’s Full Service Network in Orlando, Fla., to the short-lived flowering of second-screen apps, broadcasters and their technology partners have tried for decades to make watching TV a more engaging experience by giving viewers the means to interact directly with their programming, and with others watching at the same time.

Most of those efforts have failed to catch on as their backers had hoped, largely because broadcast platforms are inherently uni-directional. They’re winky_dinknot networked to support much beyond overlaying some pre-baked interactive elements. Even today, when second-screen use while watching TV is a mainstream behavior, most of that activity involves something other than the content on the TV screen, or happens on unrelated social media platforms like Twitter and Facebook that are opaque to the broadcaster until after the fact. Dedicated second-screen apps allow for greater dialog between broadcaster and viewer but don’t really capture the broader conversation around the content.

This month, however, we’ve seen the first steps toward what could be a new and more promising stage in the evolution of social TV. Last week, Twitter landed a deal with the NFL to live-stream a package of 10 “Thursday Night Football” games next season. Though Twitter was not the highest bidder for the streaming rights, the micro-blogging service is a natural online home for the NFL. Nearly 50 percent of the conversations on Twitter are sports related and the NFL is one of the most frequent topics of those conversations. Read More »

Bridging The Streaming Music ‘Value Gap’

The global music business offered up two cheers this week for the first signs of life in the recorded music business in nearly a decade. According to International Federation of the Phonographic Industry’s (IFPI) latest global sales report, total recorded music revenue grew 3.2 percent in 2015, to $15.0 billion, the biggest jump since 1998 and the only growth since 2012, when sales ticked up 0.3 percent.

The overall growth IFPI_YouTubecomparisoncame entirely from digital sources, particularly streaming revenue, which jumped 45 percent over 2014, to $2.9 billion, or 19 percent of total revenues. Physical sales continued their decade-long slide, falling another 4.5 percent, buoyed somewhat by the continued renaissance of vinyl.

The strong streaming numbers were not evenly distributed, however. Subscription streaming revenue accounted for $2 billion of the $2.9 billion total, as the total number of paying subscribers reached 68 million, while industry revenue from ad-supported streaming amounted to a mere $634 million, despite more than 900 million listeners worldwide.

The report referred to the mismatch between consumption and revenue to artists and labels as a “market-distorting value gap,” that must be closed, echoing comments last month by RIAA CEO Cary Sherman. Read More »

How Twitter Beat Out Rivals For NFL Deal

Twitter this week landed streaming rights to a 10-game package of Thursday Night Football games next season for a surprisingly modest $10 million, edging out rival bids from Verizon, Amazon and Yahoo, at least one of which reportedly came in 50 percent higher than Twitter’s offer. Another rival, Facebook, reportedly dropped out of the bidding last week over objections to the advertising framework imposed on the deal by the NFL.

Twitter, in fact, will get minimal advertising rights as part of the deal. As a technical matter, it will be rebroadcasting the CBS and NBC feeds of the nfl_gamegames, which the networks will also be streaming over their own, authenticated TV Everywhere platforms as part of their $450 million deal to broadcast the games, and the networks will be handling the bulk of the ad sales for both broadcast and digital channels. Twitter will get a little bit of inventory around the margins to sell, plus some pre-game, player-created spots on Periscope. The deal is basically a $10 million brand-building exercise for micro-blogging and live streaming platform.

The games, in fact, will be available for free, without authentication, both on Twitter’s own platform and across its entire, syndicated global footprint.

That last point was obviously critical for the NFL, which has been working feverishly to expand its audience outside the U.S. and sees streaming as a way to reach potential fans in territories where broadcast rights would be a tough sell. Read More »

We’re All Netflix, Now

On April 10th Showtime will make all 13 episodes of its new Steven Soderbergh series “The Girlfriend Experience” available on its VOD platform in a single, binge-ready dump. So too will Starz, with all six episodes of the new Andrew Dice Clay comedy “Dice,” as the pay-TV networks increasingly ape the strategy pioneered by Netflix.

They don’t have much choice. Bingeing is how Americans watch TV now. According to Deloitte’s latest Digital Democracy survey, 70 percent of viewers admit to binge-watching, defined as viewing three or more episodes in a single sitting, and one in three say they binge at least once a week. The average number watched during a single binge, fact, is an astonishing five episodes, which in the case of a drama series could easily eat up four or five hours. Millennials in the survey average six episodes per sitting.

We binge-watch so much TV in fact that we’re making ourselves anxious, depressed and lonely, according to a separate study by researchers at the University of Toledo. Yet our appetite is only growing. According to Deloitte, all age groups in its study binged more in 2015 than they did in 2014.

The seemingly irresistible trend, however, poses a dilemma for traditional linear networks. Making new series or seasons available for bingeing risks undercutting primetime ratings. Read More »

The Accidental Blockchain Evangelist

PledgeMusic founder and CEO Benji Rogers did not set out to become the leader of a movement when he posted his now-famous essay last November describing how the blockchain — the technological underpinning of the cryptocurrency Bitcoin — could be used to untangle the notoriously Byzantine world of music licensing and payments. It was more a thought experiment than a business plan. But his ideas struck such a chord in the industry that Rogers has been thrust into the unwonted role of leading spokesman for the use of blockchain in the music business.

PledgeMusic CEO Benji Rogers

PledgeMusic CEO Benji Rogers

“I could never have imagined that the article I wrote would have the impact that it has,” Rogers would write a few months later in a follow up post. “In the short time since it came out, I have been overwhelmed by offers to speak publicly, offers of help and even offers to fund ‘what you are building.’ So I need to be clear here before we begin: this is not something that I am building.”

There are many in and around the music industry who would like to try, however.

By putting the blockchain at the center of his proposal Rogers helped spark growing interest in the industry in using the technology to bring transparency to the famously opaque world of music rights, where simply identifying who owns a musical work or recording, and who is entitled to be paid for which uses, can be near-impossible, keeping works out of the hands of would-be licensees. Blockchain was a major topic of discussion at this year’s SXSW conference, where it bore for full slate of panels. Read More »

Fighting Fraud And Piracy With Blockchain

Anyone who has ever posted a photograph or original piece of artwork on the internet knows that credit is fleeting. No sooner is it pinned, retweeted or shared then any metadata or watermark linking it to its source is stripped away or simply left behind as it spirals across social media platforms. By the time it reaches the end of the viral chain, even if someone wanted to offer proper attribution that information is all-but impossible to find.

A growing number of entrepreneurs are starting to tackle the issue of digital attribution and authentication, however, by leveraging the Bitcoin screenshot-www.verisart.com 2016-03-24 18-34-07blockchain. This month, New York-based Blockai and Los Angeles-based Verisart went live with new services that allow creators to register their works on the blockchain to create a permanent, indelible record certifying their patrimony and ownership.

The startups join a growing list of blockchain-based authentication services targeting the graphic arts, including Monegraph, ConSensys, ascribe, Stem, Mediachain and others. Just as the blockchain provides an open, self-verifying and decentralized ledger of Bitcoin transactions, it can also be used as a self-verifying database of other types of time-stamped events, such as the registration of a copyright. Those records, moreover, can contain a variety of kinds of data, including a hash of the work itself, the metadata to be associated with it, and information about permitted uses. Thus, any new instance of the work without that metadata would not match the original record and would be shown to be a copy. The permanent records also make it possible to recover the metadata even after it has been stripped away through subsequent uses of the work. Read More »

Vizio Gives Its New TVs A Mobile Heartbeat

For people who still want to watch TV programming on a big-screen TV, cutting the cord means accepting a series of kludges. You can use the built-in apps on your smart TV to stream Netflix, Hulu and other popular over-the-top channels, but you’re still stuck navigating through menus and login screens using a point-and-click remote that’s often less functional than an ancient cable remote navigating a grid-style program guide.

You could buy a new Apple TV device with it’s sleek-looking, touch-based remote, but you’ll still be scrolling through menus and fumbling through on-screen, point-and-click keyboards. You can use a Chromecast dongle, and do your navigating on a mobile device, but Chromecast basically just turns the TV into a dumb display. Your mobile device isn’t really talking directly to the TV — the dongle is simply discovering your tablet or google_chromecast_2_hdmi_port_thumbsmartphone inputs by virtue of being on the same network and then fetching the content requested itself — which introduces latency between command and response. And if you need to answer your mobile phone in the middle of a show it can interrupt your cast.

But the biggest problems with most connected TV streaming platforms, whether embedded in the TV itself or implemented in a set-top box, are that their operating systems are generally static and the apps you use are no one’s priority.

TV makers are not really OS companies, and their streaming platforms show it. The UIs are primitive, and the OS functionality is limited by the computing horsepower — often not very much — built in at the time of manufacture. Since people generally don’t replace their TVs very often — certainly compared with how often they upgrade their phones — OS upgrades are limited to firmware updates, which don’t happen very often. Read More »

Why Sean Parker’s Screening Room Could Succeed Where Others Failed

Efforts to shorten the theatrical window by enabling early in-home availability of movies have a poor track record in Hollywood. DirecTV’s effort in 2011 to offer movies in-home 60 days after their theatrical release for $30 quickly foundered, despite the support of four major studios, largely because the studios, fearful of retaliation from theater owners, didn’t shorten the window enough to persuade consumers to shell out the high ticket price. Digital HD, heavily promoted by 20th Century Fox, offers movies in home three to four weeks before their DVD/Blu-ray release for a premium price, but support from other studios has been spotty and DHD has had negligible impact on consumer behavior.

home-theater-lightingEfforts to eliminate the exclusive theatrical window altogether, such as Netflix’s insistence on making its original feature films available on its streaming service the same day they’re released in theaters, have been met with a near total freeze out by theaters, and no major studio has dared try.

It’s no surprise, then, that the new proposal from former Napster co-founder Sean Parker and Prem Akkaraju to offer movies in-home day-and-date with their theatrical release for $50, through a platform called The Screening Room, has sparked controversy in the Hollywood. Art House Convergence, which represents 600 independent theaters, released an open letter to the industry decrying The Screening Room concept.  “We strongly believe if the studios, distributors, and major chains adopt this model, we will see a wildfire spread of pirated content, and consequently, a decline in overall film profitability through the cannibalization of theatrical revenue,” the letter said. “The theatrical experience is unique and beneficial to maximizing profit for films. A theatrical release contributes to healthy ancillary revenue generation and thus cinema grosses must be protected from the potential erosion effect of piracy.” Read More »

Apple-Dubset Deal Marks A Rights-Tech Milestone

Apple Music this week tapped rights-tech developer Dubset Media to manage clearances and royalty payments for DJ mixes and other mashups, opening the way for thousands of hours of user-generated content to be made available legally on the streaming service.

The deal, which relies on Dubset’s proprietary technology for identifying the individual tracks used in extended mixes and making payments to the appropriate rights owners, marks a milestone for electronic dance music (EDM) and other types of derivative work, such as DJ mixes and remixes, which have become hugely popular with music fans but until now have largely been kept off the major streaming services due to the difficulty and Andy_Moor_DJ_2010complexity of clearing the rights for the dozens of tracks they typically include. Instead, most EDM and DJ mixes wound up on platforms like SoundCloud , which until recently had no licensing deals in place with music labels or publishers, or on underground streaming services that are less particular about copyrights.

“Our genre has grown hand in hand with the rapid growth of streaming and digital services yet, despite billions of online plays, most of our creators and rights-holders earn very little for their efforts compared to their ‘pop’ peers,” Association of Electronic Music CEO Mark Lawrence told Music Business Worldwide in response to the Dubset announcement. “This is the first move to correct the imbalance.”

But the deal also represents a milestone in a growing effort, both in the music business and in other media industries, to bring technology to bear on complex rights-management problems to try to open up new, more efficient and transparent channels for exploiting and monetizing media content rights. Those rights-tech efforts could eventually prove as disruptive to the business of owning, using and licensing media rights as technology has already proved to the distribution side of the business. Read More »