The Coming Wireless Video Wars

Blog0 Comments

Having dropped $48 billion and change last year to acquire DirecTV, AT&T is now earmarking tens of billions more over the next 3 to 5 years to acquire media companies, according to a report this week by Bloomberg. Citing “people familiar with the plans,” the report said AT&T is targeting acquisitions ranging from $2 billion to $50 billion, with an eye toward “owning some of the content it distributes.”

It likely won’t be distributing it through DirecTV, however, at least not via satellite. According to an earlier Bloomberg report, AT&T will begin phasing out DirecTV’s randallstephensonsatellite platform within the same 3 to 5-year window, with any eye toward making internet streaming its primary TV platform by 2020. The company has lately been lining up carriage deals ahead of its planned launch of its DirecTV Now over-the-top service later this year. And it has been aggressively steering its wireless customers toward DirecTV by bundling unlimited wireless data plans with a DirecTV subscription, which so far has been taken up by some 5 million of its wireless subscribers.

DirecTV Now will also be “zero-rated” for AT&T wireless customers, meaning it won’t count against their monthly data cap. Read More »

Why MVPDs, Studios Won’t Take Yes For An Answer on STBs

Blog0 Comments

When Federal Communications Chairman Tom Wheeler unveiled his initial proposal to “unlock” the pay-TV set-top box back in January, pay-TV service providers and programmers howled in protest. Operators complained that the proposal, which called for multichannel video program distributors (MVPDs) to make their video feeds, channel listings, and subscriber entitlement data available to third-party device makers as discreet “information flows,” would require a major and expensive re-architecting of their systems. Programmers complained that making their content available directly to device makers with whom the programmers had no contractual arrangement amounted to a de facto compulsory copyright license, which the FCC had no authority to create or enforce.

FCC_buildingBoth threatened to sue.

The two arguments were, in fact, reinforcing. The current carriage agreements TV programmers and distributors have with pay-TV operators are premised in part on pay-TV systems operating in certain ways and not in other ways. Changing how those systems function could cause part of the premise of those licensing agreements to crumble. Read More »

Unbundling The Set-Top Box

Blog0 Comments

Somewhere, Steve Jobs is smiling. Nearly six years after the late Apple CEO complained that real innovation in the TV industry could only happen if you first “tear up” the traditional pay-TV set-top box, the FCC is taking the first steps toward doing just that.

FCC chairman Tom Wheeler this week announced that the commission will vote next month on whether to proceed with a formal rulemaking to “unlock the set-top box,” if not quite tear it up, by requiring cable, satellite and telco pay-TV providers to make elements of their service available to third-party device makers and software developers.

“Today, 99 percent of pay-TV customers lease set-top boxes from their cable, satellite or telco providers,” Wheeler wrote in an op-ed published Push_button_cable_boxWednesday. “Pay-TV subscribers spend an average of $231 a year to rent these boxes, because there are few meaningful alternatives. If you’ve ever signed up for a $99-a-month bundle for cable, phone and Internet and then wondered why your bill is significantly higher, this is a big reason…This week, I am sharing a proposal with my colleagues to tear down the barriers that currently prevent innovators from developing new ways for consumers to access and enjoy their favorite shows and movies on their terms. The new rules would create a framework for providing device manufacturers, software developers and others the information they need to introduce innovative new technologies, while at the same time maintaining strong security, copyright and consumer protections.” Read More »