An Ignoble Experiment

2. 400K sign consumer-group petition opposing Comcast-Time Warner Cable merger

Aereo, the cloud-based antenna and DVR technology currently in a death struggle with broadcasters and the U.S. Justice Department over the right to exist, is moving ahead with plans to become an app in the Google (NASDAQ: GOOG) Play store.

If all goes according to plan, starting May 29, current Aereo subscribers and others living in Aereo markets will be able to download the app for Android, including support for Chromecast, the company said in a press release. The Google application adds to existing apps for Apple (NASDAQ: AAPL) iPad, iPhone and iPod Touch as well as Chrome for Mac, Chrome for Windows, Safari, Internet Explorer 9, Firefox, Opera Software, AppleTV and ROKU.

"The way people watch and experience television is changing and Google is a pioneer in providing consumers with more choice and flexibility in how they access and experience the media," Aereo CEO and founder Chet Kanojia said in the press release. "Consumers deserve more options and alternatives in how they watch television and our team is committed to providing consumers with the best experience possible using Aereo's innovative cloud technology."

If that cloud technology continues to be available. Broadcasters, who claim Aereo violates their copyrights and their ability to sell the rights to their content via retransmission agreements, disagree and have taken the matter to the courts.

Kanojia himself admitted that the company could cease to exist if it loses a battle that is now going before the U.S. Supreme Court. Broadcasters have the support of the Justice Department in claiming that Aereo gives consumers access to copyrighted content and doesn't pay licensing fees for that content. Aereo, meanwhile, recently picked up an endorsement from the American Cable Association (ACA) representing smaller cable operators, although major operators have remained silent on the battle.

Last month Kanojia was candid when asked about his company's future during a Bloomberg Webcast, saying, "If we don't succeed, despite our best efforts and the good law being on our side, it would be a tragedy. But it is what it is."

For an $8 monthly fee Aereo subscribers in New York, Boston, Atlanta, Miami, Houston, Dallas, Detroit, Baltimore, Cincinnati, San Antonio and Austin get access to local broadcast programs received via an over-the-air antenna and streamed to their device. They can also record and play back programming via a cloud-based DVR, and can increase the amount of recording time (and add a second tuner) for $12 monthly.

For more:
- see this press release

Read more about: ACA, Aereo
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By Jim Barthold

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3. Shaw revenues up even as cable subscriber numbers continue to fall

Consumer-interest groups Common Cause, Consumers Union, Daily Kos, Demand Progress, Free Press and Working Families have gathered 400,000 signatures on a petition opposing Comcast's (NASDAQ: CMCSA) proposed $45.2 billion takeover of Time Warner Cable (NYSE: TWC). The organizations said the petition will be presented to the FCC and Department of Justice as those organizations review the proposed deal.

"Comcast has unleashed an army of lobbyists in Washington to win approval of this deal but the cable giant can't fool Americans back home who are speaking out in growing numbers against a market takeover of this scale," Free Press representative Craig Aaron said in a press release.

Among other reasons for opposing the deal is the concern of a growing digital divide should the two companies consolidate that many broadband connections, said Working Families' Dan Cantor.

"Our country lags behind the rest of the developed world on Internet service, speed and affordability," Cantor said. "We should narrow the digital divide by investing in infrastructure—but this mega-merger would only threaten to make that gap worse."

Demand Progress representative David Segal agreed, citing the dearth of competitive broadband service providers as a reason why "Americans already suffer some of the slowest and priciest Internet access in the developed world."

The petitions come on top of a letter submitted by 50 public interest groups to the FCC and DoJ demanding that the deal be blocked.

For more:
- see this Consumers Union press release

Read more about: Comcast, Common Cause
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By Jim Barthold

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4. Samsung building hybrid IP set-top boxes for Singapore telco StarHub

Shaw Communications said it lost 20,758 cable TV subscribers in the second quarter, an improvement over the year-ago period when it lost 29,525 customers, but still part of an ongoing customer drain. The Canadian MSO added 12,767 high-speed data customers, compared to 7,675 in the year-ago period and now has 1.98 million cable TV subs and 1.9 million Internet subs to go along with 892,837 satellite TV customers (down 1,405 in the quarter).

Shaw's cable division reported a 3 percent jump in revenue to $839 million ($764.6 million U.S.) and its satellite TV revenue was up 5.2 percent to $220 million ($200.5 million US). Overall, Shaw reported revenue of CA$1.27 billion ($1.16 billion), or 2 percent higher than the year earlier period. The Canadian company also reported earnings of CA$222 million ($202.3 million).

The gains were, at least in part, due to the sale of two French-language channels that were dispatched as the company continues to focus on expanding its digital business, executives said.

"Our focus on leading technology, customer service and value leadership continued throughout the quarter," CEO Brad Shaw said, noting that the company expanded its Shaw Go Wi-Fi to over 35,000 hotspots and launched new apps for its TV Everywhere service. "We continue to leverage our leading network infrastructure and high quality content, driving profitability and long term growth."

Almost as a boilerplate, Shaw emphasized that the company will continue to focus on "disciplined and sustainable growth, customer retention and driving performance through continuous improvement."

For more:
- see this press release

Read more about: Canada, Shaw Communications
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By Jim Barthold

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5. CNN launches interactive app to put viewers in control of content

Samsung is building and launching a line of three new hybrid set-top boxes in collaboration with Singapore MVPD StarHub.

The service provider said the first new hybrid box will be able to load VOD content four times faster than current models and will include recording capabilities and a search function that lets users access such applications as traffic conditions. Another two set-tops will be launched in "the near future," the two companies said, offering features like recording, multiscreen and IPTV.

"The interface is designed to make it more seamless, more IP-like," Lin Shu Fen told Today Online. "Most of our customers are on [the] cable platform, so our focus is on enhancing service on the cable platform. But we are future-proofing our boxes so all our boxes will be IP-ready."

The first box received a mixed review from Alfred Siew on Techgoondu.

"The set-top box, like it or not, is still based on old cable TV technology," Siew wrote, noting that while it is "nicer and smaller than before, [it] will never be as interactive as a PC or even a WD Live box or game console connected to the Internet. Heck, even a low-powered Android box that runs apps on your large-screen TV … might appear more interactive."

On the other hand, Siew conceded, "with half a million households on cable TV in Singapore, StarHub's newfangled set-top box … will still matter to some couch potatoes in Singapore."

While not claiming the deal is exclusive, Samsung, which has collaborated with telcos in Europe and the U.S., said it has no plans to collaborate with Singapore's other pay-TV provider, SingTel.

For more:
-see this Today Online story
- and this Techgoondu review

Read more about: Samsung, StarHub
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By Jim Barthold

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