An Ignoble Experiment

eBook: TV Everywhere Gets Personal

Verizon (NYSE: VZ) began notifying its FiOS TV subscribers Thursday that it will move ESPN Classic and ESPN Goal Line / Buzzer Beater next month to its most expensive programming tier, the FiOS Ultimate HD package.

The telco will also offer subscribers ESPN Classic and Goal Line / Buzzer Beater in a premium sports tier, spokeswoman Heather Wilner told FierceCable. Verizon, which currently offers the niche ESPN networks in its Extreme HD package, said it will move ESPN Classic and Goal Line / Buzzer Beater to the new tiers on May 6. It will announce details about the sports tier "in the coming weeks," Wilner said.

Verizon also recently began charging FiOS subscribers a monthly surcharge of $2.42 to help cover the costs of regional sports networks that are included in its expanded basic programming package.

ESPN parent Walt Disney Co. (NYSE: DIS) doesn't allow affiliates to distribute its flagship ESPN and ESPN2 networks on premium sports tiers. "The deal basically requires ESPN to be offered on the first or second most popular tier offered by the carrier," Disney CFO Jay Rosulo told analysts on an earnings call last year.

But Disney does allow Verizon and other providers to distribute ancillary networks such as ESPN Classic and Goal Line / Buzzer Buzzer on digital tiers. ESPN acquired Brian Bedol's Classic Sports Network in 2000, and renamed it ESPN Classic. It flipped the switch on ESPN Goal Line / Buzzer Beater in 2010. Sharing the same channel on cable systems, it runs ESPN Goal Line during the college football season, offering live clips from several games. The network becomes Buzzer Beater during the college basketball season.

Moving ESPN Classic and Goal Line / Buzzer Beater to Ultimate HD and a new sports tier could help Verizon drive increased revenue from hardcore sports fans. Verizon CFO Fran Shammo told analysts last April that the company would tweak its programming packages. "We're going to rebundle certain of our packages to better bundle our content in order to make it more profitable based on the tier that you picked for us," Shammo said on Verizon's first quarter of 2012 earnings call.

Verizon already offers FiOS subscribers a $11.99 sports tier that contains niche sports networks such as Tennis Channel, Gol TV, Fox College Sports and Fox Sports en Espanol. It charges $14.99 monthly for Fox Soccer Plus, and $9.99 monthly for ESPN 3D. It also carries ESPN 3D in its Ultimate HD package, which includes every premium movie channel except HBO.

Read more about: Fran Shammo, Goal Line, Espn
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2. Time Warner Cable CEO Britt earned $17.4M in 2012

By Sue Marek

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3. AT&T U-verse customer survey hints at streaming video plans

Time Warner Cable (NYSE: TWC) Chairman and CEO Glenn Britt received a healthy pay increase in 2012. According to a company filing, Britt was paid $17.4 million in 2012, up from $16.4 million in 2011.

Britt's annual salary was $1.25 million, according to the filing. His non-equity incentive plan compensation was $6.6 million, down from $7.2 million in 2011. However, Britt's stock awards increased from $3.2 million to $3.7 million, and option awards increased to $5.2 million from $4.2 million.

The company also said it has amended Britt's employment agreement and extended it for one year, through Dec. 31, 2013. The Wall Street Journal reported in February that Britt will step down from his position when his contract expires at year end. However, Time Warner Cable officials declined to comment on the WSJ report. "If and when Glenn decides to step down, we will have an announcement," the company said in a prepared statement.

Another Time Warner Cable executive also fared well in 2012. According to the filing, President and COO Robert Marcus earned $10.1 million, up from $8.4 million the year prior. In addition, Michael LaJoie, CTO and executive VP, made $2.7 million, up from $2.6 million.

For more:
- see this Multichannel News report
- see this Hollywood Reporter article

How does Britt's pay compare to wireless executives' 2012 pay? See this special report

Read more about: Time Warner Cable, Glenn Britt
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By Sue Marek

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4. Comcast Ventures invests in YouTube startup Fullscreen

AT&T (NYSE: T) appears to be considering launching some type of streaming video service that would bundle local broadcast channels, popular sports and entertainment cable channels and other content that would not require a receiver box.

According to Variety, the company sent a customer survey to existing AT&T U-verse customers asking if they would be interested in signing up for, or even inquiring about, a type of service that would be offered at a lower price and without usage charges for streaming. The survey said that a Wi-Fi router and 6-megabits of Internet service would be included.

It's unclear whether AT&T would offer this service or if it would be offered by another broadband provider. However, the product described by AT&T sounds similar to a virtual MSO model that has been talked about in the cable industry, in which a cable provider would be able to deliver content outside its existing territory.

Just last month a Roku executive speaking at Light Reading Cable's "Cable Next-Gen IP Strategies: Entering the Zettabyte Era" conference in Denver said he believes that if the virtual MSO model does come to fruition it will be with companies that offer specialty packages to attract specific audiences, such as a package without sports programming. "I think this will be more of an opportunity than a threat," said Steve Shannon, senior vice president and general manager of Roku's content division.

For more:
- see this article

Read more about: AT&T, U-Verse
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By Sue Marek

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5. Cablevision's iPad app lets users stream some channels away from home Wi-Fi

Comcast's (Nasdaq: CMCSA) venture capital arm, Comcast Ventures, has made an investment in Fullscreen, a media company that helps people who post videos on YouTube manage their presence on the site.

Comcast is joined by fellow media investor Chernin Group, which also invested in Fullscreen. According to AllThingsD, citing unnamed sources, the two VCs are part of the $30 million round that gives Fullscreen a valuation of $110 million.

Fullscreen's founder George Strompolos previously helped create and run YouTube's partnership program. The Los Angeles-based startup employs about 80 people. It offers software that helps content owners better navigate YouTube. Customers include Disney Interactive, NBCUniversal and others.

Comcast Ventures recently launched a video campaign aimed at attracting entrepreneurs and startups. The video posted on Comcast Venture's site in February spotlights its investments in several startups, including targeted advertising technology provider Videology, social network application developer Flipboard and home monitoring and security technology provider iControl.

For more:
- see this AllThingsD article

Read more about: Youtube, Comcast Ventures
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By Sue Marek

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