X1 Marks the Spot for Comcast

Comcast and Netflix this week confirmed an agreement to incorporate Netflix’s streaming service into Comcast’s X1 video platform, signalling a dramatic shift in what has long been a contentious relationship between the companies.

“Comcast and Netflix have reached an agreement to incorporate Netflix into X1, providing seamless access to the great content offered by both companies,” the two said in a joint statement given to Recode.  “We have much work to do before the service will be available to consumers later this year. We’ll provide more details at that time.”

netflix_blockThat’s a far cry from a few years ago when Netflix CEO Reed Hastings was working overtime to turn Comcast into public enemy number one in the net neutrality fight and Comcast was imposing interconnection fees on Netflix for access to its last-mile network.

But the shift is more likely the result of a change in circumstances than a change of heart. Read More »

Peak TV and the Politics of Plenty

The formal comment period for the FCC’s controversial set-top box proposal closed this week, after tallying 256,747 submissions. As in any hard-fought rulemaking proceeding these days, most of those were canned comments from “the public” rounded up by PR firms working for parties on all sides of the issue. But it also drew more than 1,000 substantive comments from rights owners, members of the pay-TV industry, technology providers and other agencies of government involved in telecommunications policy, including the White House.

FCC_headquartersI’ve written here before, perhaps excessively, on the relative merits (or lack of them) to the various sides’ positions, so I won’t belabor the debate further. But the latest round of comments revealed another, related issue that bears watching regardless of how the set-top box debate turns out: the very different perspectives on the impact of innovation coming from different corners of the TV business.

The Motion Picture Association of America, representing the 6 major Hollywood studios, has been nearly apoplectic over the FCC’s plan, and its final reply comments — all 50 pages of them — were no exception: Read More »

Disney’s Split UI Personality

Walt Disney Co. CEO Bob Iger this week said he is “very excited” about the user interface Hulu has designed for its planned virtual-pay-TV service launching next year.

“We’ve seen the interface because we’re partners [in Hulu]” Iger said Wednesday at the MoffettNathanson Media & Communications Summit. “It’s a great interface, a tremendous user experience, and we’re in discussions with them about our channels and about prices.”

hulu_nocbs-1He also used the opportunity to take a swipe at traditional pay-TV operators for the lack of innovation in their UIs over the years.

“I’ve been frustrated over the years by the UI” of cable and satellite TV services Iger said. “Maybe because I’m getting older I don’t have the patience anymore, but we’re all getting more and more spoiled by what technology makes possible,” in terms of surfacing, discovering and accessing content.

According to Iger, consumers raised on digital platforms today simply won’t tolerate any glitches or difficulty in access the content they want when they want it, and the traditional pay-TV industry simply hasn’t kept up with the times. Read More »

What UI Voodoo Will Hulu Do In Linear Debut?

One of the more interesting subplots to Hulu’s apparently pending rollout of an over-the-top bundle of linear channels will be what it does with the user interface.

As I’ve noted here previously, the traditional programming grid that still drives navigation on most pay-TV systems today is at the core of the current tussle over Federal Communications Commission chairman Tom Wheeler’s proposal to “unlock” the set-top box to allow third-party devices and applications to interoperate with pay-TV services. And apart from pay-TV operators themselves, the loudest objections to Wheeler’s proposal have come from programmers, who fear those third parties will not honor the agreements networks have with operators concerning their position within the traditional pay-TV UI.

“ArmHulu_homepage’s length agreements between MVPDs and programmers provide the necessary licenses to transmit the content, and in exchange the MVPDs agree to a range of license terms, including security requirements, advertising rules, [electronic programming guide] channel placement obligations, and tier placement requirements,” the Motion Picture Association of America wrote in comments submitted to the FCC. “These terms are material to the grant of the copyright license, and to copyright holders’ ability to direct the exploitation of their works in a manner that enables them to continue to invest in the high-quality programming that viewers expect. ..The only terms the proposal would explicitly recognize are copy, output, and streaming limitations. Extensively negotiated terms on matters including “service presentation (such as agreed-upon channel lineups and neighborhoods), replac[ing] or alter[ing] advertising, or improperly manipulat[ing] content,” are all left unaddressed by the FCC’s proposal.” 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 »