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2013/07/23

| 07.23.13 | CBS prepares for TW Cable blackout; Verizon launches 500 Mbps FiOS Internet tier

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July 23, 2013
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Today's Top Stories

  1. CBS prepares for Time Warner Cable blackout
  2. FCC: Cable operators lost 2.5M subs from 2010 to 2012
  3. iControl helping cable operators add family locator, traffic and weather info to home automation apps
  4. Verizon to introduce 500 Mbps FiOS for $310 per month
  5. Netflix U.S. subscriber growth slows to 630K in Q2 2013

Also Noted: Spotlight On... Time Warner Cable launches TWC Central portal
ESPN recruits stats whiz Nate Silver; Scripps promotes Jagels to VP of creative services and much more...

Cable in the second quarter of 2013
FierceCable covers the earnings reports and conference calls for public pay TV distributors, programmers and tech vendors, and the second quarter of 2013 will likely yield some lively stories about battles between cable operators, telcos and satellite TV providers. Check this page regularly during the Q2 earnings season for the latest on broadband and pay TV subscriber growth (and churn) as well as new product updates unveiled during earnings calls. Also be sure to check out our Q1 earnings release page. See our earnings page here

Follow @FierceCable on Twitter!

News From the Fierce Network:
1. AT&T hiring 200-plus employees in South Florida
2. Vodafone remains open to a Verizon offer for Verizon Wireless stake
3. Teliphone sells IPTV assets to Coastline Broadcasting


This week's sponsor is Kony.

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Sponsor: Dell AppAssure

Events

> TIA 2013 - October 8-10 - Washington D.C.

Marketplace

> Whitepaper: Knowledge Management: 5 Steps to Getting it Right the First Time
> Whitepaper: eBook: Smarter Service: The Contact Center of the Future
> eBook: Backhaul Strategies for Next-Gen Networks
> Whitepaper: How Mobility Can Transform Your Business
> Whitepaper: Cisco ONE: Framework for the Internet of Everything
> Whitepaper: The Financial Benefit of Cisco's Elastic Core
> Whitepaper: How HR Is Solving the Puzzle of Leave Management

Jobs

> Tower Crew Foreman – Minneapolis, MN – CCI Systems, Inc.
> Sales Executive with ability to Speak Mandarin – Florham Park, NJ – PCS Wireless
> Sales Executive, Bilingual Spanish – PCS Wireless – Florham Park, NJ
> Wireless Store Manager – Florham Park, NJ – Cricket Communications
> Sr. Account Executive – San Diego, CA – Cox Communications
> Inventory Specialist /Revenue Analyst – Oklahoma City, OK – Cox Communications
> Field Auditor I – Rancho Santa Margarita, CA – Cox Communications
> SAS Administrator – Atlanta, CA – Cox Communications
> Senior Director, Technology Delivery Assurance – Atlanta, CA – Cox Communications
> SMB Account Exec (Cox Business) – San Diego, CA – Cox Communications
> Need a job? Need to hire? Visit FierceWirelessJobs

* Post a classified ad: Click here.
* General ad info: Click here

Today's Top News

1. CBS prepares for Time Warner Cable blackout


While Time Warner Cable (NYSE: TWC) and CBS Corp. (NYSE: CBS) agreed to extend the deadline for renewing a retransmission-consent contract until Thursday morning, CBS chief Les Moonves warned employees Tuesday that its owned-and-operated stations could lose distribution in Time Warner Cable homes.

"There is a very real threat that Time Warner Cable is going to drop our stations in New York, Los Angeles and Dallas," Moonves wrote in an internal memo, according to the Los Angeles Times.

Time Warner Cable has complained that CBS is demanding a 600 percent increase in retrans fees. Spokeswoman Maureen Huff said the nation's second-largest cable MSO has offered CBS "significant fees" and that it still hopes to reach a deal which could avert a blackout.

Moonves noted in his memo that Time Warner Cable collects about $20 monthly by packaging local CBS stations and other broadcast content with basic cable subscriptions. "Cable is a very, very profitable business, and Time Warner Cable can certainly afford to pay CBS a fair rate for our programming without passing any added cost on to its customers," Moonves said.

For more:
- the Los Angeles Times has this story
- the Wall Street Journal has this story (sub. req.)

Commentary: Tracking the top 10 worst programming disputes of all time

Related articles:
CBS-Time Warner Cable talks break down as blackout deadline approaches
Time Warner Cable to pitch Aereo if CBS blacks out cable subscribers
CBS to flood TV Guide Network with reality shows

Read more about: Retransmission Consent
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2. FCC: Cable operators lost 2.5M subs from 2010 to 2012


Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC) and other cable operators lost about 2.5 million video subscribers between 2010 and 2012, according to the FCC's annual video competition report.

Cable operators counted 57.3 million subscribers at the end of last year, down from 59.8 million in 2010, the FCC said Monday. DirecTV Inc. (Nasdaq: DTV)  grew its subscriber base by 700,000 to 19.9 million during the same period, while Dish Network (Nasdaq: DISH) remained flat at 14.1 million, the FCC said.

AT&T's (NYSE: T) U-verse TV posted the biggest video subscriber gain, growing its subscription base from 3 million to 4.1 million between 2010 and 2012, the FCC said. Verizon's (NYSE: VZ) FiOS TV expanded from 3.5 million to 4.5 million subscribers during the same period. Verizon reported last week that it reached the milestone of 5 million FiOS TV subscribers during the second quarter. AT&T is scheduled to release its second-quarter results Tuesday afternoon.

Increased programming costs for cable programming and pole-attachment fees have forced many smaller cable operators to exit the business, according to the FCC report, which cited data from the American Cable Association. "ACA contends that over the past five years nearly 800 cable systems serving over 35,000 subscribers have closed mostly in small and rural communities, leaving those communities without any wireline MVPD [multichannel video programming distributor] service," the FCC stated.

Also worth noting from the report:              

  • The FCC said cable operators installed 38,000 CableCARDs in retail devices such as TiVo (Nasdaq: TIVO) DVRs and connected TVs in 2012.
  • The number of households that rely solely on over-the-air antennas to watch TV remained flat at 11.1 million in 2012.
  • Deployments of DVRs in pay TV homes increased to 50.3 million in 2012, up from 46.3 million in 2011. DVR penetration in TV homes has increased to 43.8 percent.

For more:
- see the FCC report
- see statement from ACA

Hot Seat: ACA's Polka: Small cable operators may exit pay TV business

Related articles:
Verizon adds 140K FiOS TV subs; video penetration increases to 38.6% in Q2 2013
AT&T adds record 731,000 U-verse Internet and 232,000 TV subscribers in Q1 2013
TiVo asks FCC to reinstate CableCARD rules

Read more about: Comcast, ACA
back to top



3. iControl helping cable operators add family locator, traffic and weather info to home automation apps


iControl launched an Android app developer program which could help Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC) and other operators add family locator as well as weather and traffic information to their home automation and security apps.

The Redwood City, Calif.-based home automation software provider, which is backed by Comcast, Rogers Communications (NYSE: RCI) and Intel (Nasdaq: INTC),  said Tuesday that members of its FastTrack program include MapQuest, Weather Channel and Life 360, which has developed apps for Apple (Nasdaq: AAPL) iOS and Android devices that parents can use to track their children. Streaming radio app developer TuneIn and News Republic, which has developed apps that let smartphone and tablet users sign up for customized news alerts, also joined the iControl developer program.

"Our ultimate goal is to create an ecosystem with limitless possibilities for connectivity that takes the smart home to a new level," iControl SVP Jim Johnson said in a prepared statement.

In addition to Comcast and Time Warner Cable, MSOs that rely on iControl software to power their home automation and security products include Cox Communications, Rogers and Mediacom Communications.

Products such as Comcast's Xfinity Home app allow cable subscribers to use smartphones and tablets to view feeds from security cameras, control lighting and thermostats remotely and arm or disarm alarm systems connected to sensors on windows and doors.

Recent patent applications indicate that some MSOs are already looking to offer new services through their home automation and security apps. For example, last fall Comcast filed a patent application that detailed how it could integrate automobile security systems and send alerts to subscribers through cable set-tops and mobile devices if someone attempts to break into their cars. Comcast may also be able to use the integration of home and automobile security to let subscribers automatically open garage doors when their cars approach their driveways.

For more:
- see the iControl release

Special Report: Comcast leads cable's push for cut of $13B home security and automation market

Commentary: Why Verizon Home Monitoring fails as a baby monitor but makes the perfect bug zapper

Related articles:
Cable home automation firm iControl sues Alarm.com, FrontPoint Security for patent infringement
Mediacom launching home security and automation service
Comcast Ventures spotlights Videology, Flipboard, iControl in pitch to entrepreneurs
Cox promotes Vince Groff to GM of home security business
Comcast may add automobile security to Xfinity Home platform

Read more about: Rogers, Weather Channel
back to top



4. Verizon to introduce 500 Mbps FiOS for $310 per month


Updated: Subscribers to Verizon's (NYSE: VZ) FiOS service will soon have another speed option available to them: a 500/100 Mbps speed tier starting at $310 a month for a bundled subscription.

Verizon speed comparison

Verizon updated its speed comparison chart. Enlarge

Initially available "in parts of every FiOS market," residential subscribers can get the new tier as part of either a double-play bundle for $309.99, or a triple-play bundle for $329.99 as part of a two-year agreement, according to a Verizon press release.

Business subscribers can access the 500 Mbps tier as a standalone service only, with the option of a dynamic IP address for $369.99 per month, or a static IP address for $389.99 per month, both with a two-year contract. It's also available on a no-contract, month-to-month basis.

A spokesperson for Verizon told FierceTelecom that a standalone, Internet-only service is available to residential subs for $300 a month with a two-year contract.

The 500 Mbps tier's availability "includes parts of Southern California, North Texas, the Tampa/St. Petersburg/Sarasota area of Florida, Virginia, the District of Columbia, Delaware, Pennsylvania, Maryland, New Jersey, New York, Rhode Island and Massachusetts. The only state where this particular speed is not offered is in the very small sliver of Connecticut that we serve," the spokesperson added.

The residential pricing, of course, varies depending on the FiOS TV lineup each subscriber chooses.

"Ten years ago, when we began designing the FiOS network, we said it would be futureproof," said Fowler Abercrombie, manager for product development at Verizon, in a video introducing the new speed tier. "Fast forward to today: FiOS is uniquely capable of fulfilling that promise. …We also knew that our homes would become connected homes, and our offices would become digital command centers."

Last summer, Verizon increased its FiOS speeds to a maximum of 300/65 Mbps. Its Quantum speed tiers include 50/25 Mbps, 75/35 Mbps and 150/65 Mbps. However, subscribers opting for the top two tiers had to swap out their existing BPON optical network terminals for GPON ONTs--something that existing customers who want to leap from 50 or 75 Mbps to 500 Mbps will most likely have to do as well.

Despite the insistence of some ISPs that consumers don't need high Internet download speeds, a few major providers capitulated to demand last summer following Verizon's Quantum launch. Comcast (Nasdaq: CMCSA) quickly announced its own 305 Mbps, Ethernet-based offering via its Xfinity service, and Charter (Nasdaq: CHTR) reportedly was working on a 300 Mbps speed tier.

Verizon is certainly tapping into consumer excitement around faster download speeds. The intense interest in Google Fiber's (Nasdaq: GOOG) 1 Gbps network buildouts in Kansas City, Provo, and Austin has caught the attention of major ISPs like AT&T (NYSE: T), which tried to steal some of Google's thunder in Austin on the day of that launch by announcing it would--someday, probably--offer a 1 Gbps service in the city.

For more:
- Verizon has this news release
- see this Verizon blog post
- DSL Reports has this story

Related articles:
Verizon unveils FiOS 300 Mbps data speed tier, doubles existing tiers
Verizon unveils prices for its new FiOS Quantum FTTP service lineup
Comcast counters Verizon's Quantum FiOS offering with 305 Mbps tier
Charter working on 300 Mbps speed tier to stay apace with Comcast and Verizon

Updated to add more pricing details and available areas.

Read more about: FiOS
back to top



5. Netflix U.S. subscriber growth slows to 630K in Q2 2013


Netflix (Nasdaq: NFLX) said Tuesday that it picked up 630,000 net U.S. streaming video subscribers in the second quarter, which was a sharp drop compared to the 2.03 million it signed in the first quarter.

But the online video provider gained 100,000 more net subscribers than the 530,000 it signed this time last year, with CEO Reed Hastings attributing the improved performance to the launch of original series "Arrested Development."

Netflix now counts 28.62 million domestic paid members for its $8 monthly streaming video product. It told shareholders that it expects it will count 29.4 million to 30.1 million domestic paid subscribers at the end of the third quarter and that it will generate up to $701 million in revenue in Q3.

Hastings noted that Netflix faces increased competition from streaming video rivals Hulu and Amazon (Nasdaq: AMZN) as well as from cable programmers that have developed multiplatform products. "TV Everywhere continues to steadily improve, with, for example, the HBO Go app now available on AppleTV," the Netflix chief wrote in a letter to shareholders.

Netflix's domestic DVD rental business continues to bleed subscribers. It counted 7.51 million DVD rental customers at the end of Q2, down from 7.98 million in the first quarter and 9.24 million in the second quarter of 2012.

While original programming such as "Arrested Development" and Kevin Spacey drama "House of Cards" is helping Netflix grow its subscriber base, the company's expenses continue to increase. Its cost of revenues jumped to $1.48 billion in the first half of 2013 compared to $1.27 billion in the first half of 2012. The company spent $185 million on technology and development in the first half, up from $164.3 million in the first half of 2012.

Netflix said it generated $1.1 billion in revenue in Q2--which includes results from its international operations--up from $889 million this time last year. It posted $29.5 billion in net income, a gain of more than $23 million compared to last year. Earnings per share jumped to 49 cents, up from 11 cents in the second quarter of 2012.

For more:
- see the letter to shareholders (.pdf)

Related articles:
Netflix stock drops 24% following Q2 2012 earnings report
Netflix expected to post big jump in U.S. subscribers
Netflix gains 2.03 million subs in Q1 2013
Netflix adds Suddenlink to Open Connect CDN
Cablevision partners with Netflix to deliver 'super HD' movies and 3D TV shows
Comcast won't offer Netflix to Xfinity TV subscribers

Read more about: Reed Hastings, TV Everywhere
back to top



Also Noted

SPOTLIGHT ON... Time Warner Cable launches TWC Central portal

Time Warner Cable (NYSE: TWC) said it launched a new TWC Central portal on Tuesday, which replaces Road Runner, the brand it used previously for its high-speed Internet service and online portal. The MSO is looking to boost ad revenue through the portal, which features slots for rich media ads including in-banner video ads. The portal also contains links to TV Everywhere programming on TWCTV.com and can be used to access its email, VoiceZone and DVR manager products. Read more

Quick news from across the Web.

> ESPN said it hired renowned statistician Nate Silver, who correctly picked results from the 2012 presidential election in 49 states. ESPN said Silver will continue to write his FiveThirtyEight blog and that it acquired the domain. He'll also contribute to programs on ESPN and Walt Disney Co. sister ABC News. News release

> Comcast's commercial division said it has connected more than 100 office buildings to its network in Williamson County, Tenn. News release

> Scripps Networks Interactive promoted Heather Jagels to VP of creative services for HGTV and DIY Network. News release

> Usage-based broadband technology provider Active Broadband Networks said it is partnering with ZCorum to power that company's new Bandwidth Commander managed service offering. News release

IPTV News

> The combination of IPTV and controlled online video via a hybrid set-top box continues to gain traction overseas. German cable technology company WISI Communications and Austrian interactive multiscreen solutions provider IP.NETCOM have partnered to launch a hybrid set-top box that combines HbbTV with classical IPTV for use with the Multi Screen Content Management System (AiMS). Read more

Telecom News

> AT&T is opening two new retail locations in Miami and hiring 235 employees for locations between Key West and Vero Beach, the carrier announced Monday. Read more

> IP transit provider Hurricane Electric has established a fifth point of presence in New York City at Telx's 111 8th Ave. data center. Read more

And finally... MaxLinear said it began shipping its MxL6xx family of global hybrid television tuners for Samsung TVs. News release


Events


* Post listing: Click here.
* General ad info: Click here.

> TIA 2013 - October 8-10 - Washington D.C.

TIA 2013 will address disruptive technologies and changing business models as companies position themselves for success with wireless, the transition to all-IP networks, Cloud, M2M, smart buildings, and more. The conference will offer ideas for thriving in the changing ICT environment. www.tia2013.org. Registration opens June 2013.



Marketplace


* Post listing: Click here.
* General ad info: Click here.

> Whitepaper: Knowledge Management: 5 Steps to Getting it Right the First Time

This eBook sets out 5 simple steps for optimizing customer service and support with an effective, best-practice-led knowledge management initiative. Download today!

> Whitepaper: eBook: Smarter Service: The Contact Center of the Future

This eBook explores the challenges facing traditional contact centers and the benefits of deploying the contact center of the future. You'll find links to further resources on the final page. Download today.

> eBook: Backhaul Strategies for Next-Gen Networks

Wireless operators are considering various strategies when dealing with network capacity challenges. This eBook explores backhaul best practices and solutions. Download for free today.

> Whitepaper: How Mobility Can Transform Your Business

Mobility is more than just smartphones and tablets. IT professionals need to get their arms around on four key elements of the mobile ecosystem as the rise of mobile devices in the enterprise offer untapped opportunities for businesses...Download today!

> Whitepaper: Cisco ONE: Framework for the Internet of Everything

Prepare service provider networks to harness network value, increase business agility, and achieve greater operational efficiency. Learn More

> Whitepaper: The Financial Benefit of Cisco's Elastic Core

This whitepaper describes the financial benefits of an intelligent, converged, and programmable network. Read Now

> Whitepaper: How HR Is Solving the Puzzle of Leave Management

Over half of HR professionals are unsure how much employee absence costs their organization. This unsettling statistic was revealed in the Optis survey conducted in June at the SHRM 2012 Annual Conference & Exposition in Atlanta. Find out more and download today!



Jobs


* Post listing: Click here.
* General ad info: Click here.

> Tower Crew Foreman – Minneapolis, MN – CCI Systems, Inc.

CCI Systems is a 100% employee owned company seeking experienced tower crew foremen to lead crews on the construction and implementation of cell site upgrades, antenna change outs, new cabling, and all required testing and documentation. Duties & Responsibilities include lead work on tower top…Learn more

> Sales Executive with ability to Speak Mandarin – Florham Park, NJ – PCS Wireless

The Sales Executive will be responsible for all sales activities, from lead generation through close in an assigned territory. He or she will develop and implement agreed upon Sales Plan which will meet both personal and business goals of expanding customer base in the marketing area…Learn More

> Sales Executive, Bilingual Spanish – PCS Wireless – Florham Park, NJ

The Sales Executive will be responsible for all sales activities, from lead generation through close in an assigned territory. Candidates must be fluent in Spanish as well as in writing in Spanish.  He or she will develop an annual business plan in conjunction with Sales Manager… Learn More

> Wireless Store Manager – Florham Park, NJ – Cricket Communications

Cricket Communications offers nationwide wireless voice and mobile data services over high-quality, all-digital wireless networks. Every day, our Store Managers at Cricket run all aspects of the Cricket retail business including, but not limited to, financial management, business operations... Learn More

> Sr. Account Executive – San Diego, CA – Cox Communications

The Sr. Account Executive - Enterprise is responsible for meeting or exceeding sales goals for large accounts. The position is responsible for initial contact with customers, follow-up, proposal preparation, making customer presentations and seeing the sale through to the signing of a contract...Learn More

> Inventory Specialist /Revenue Analyst – Oklahoma City, OK – Cox Communications

The Inventory Specialist is responsible for providing accurate and detailed reports regarding inventory sell-out levels with recommendations and guidance to assist sales leadership in yield management through the development of optimized rates...Learn More

> Field Auditor I – Rancho Santa Margarita, CA – Cox Communications

The Field Auditor will maintain the security of the cable system by designing and implementing an effective and efficient audit program, asset and loss prevention programs; investigate internal and external security problems; implement internal and field security programs with other departments... Learn More

> SAS Administrator – Atlanta, CA – Cox Communications

SAS Administrator is responsible for providing senior level expertise on overall technology, infrastructure and administration as it relates to the SAS Grid enabled architecture, installed on RHEL/JBOSS server platform. Manages, configures and supports SAS...Learn More

> Senior Director, Technology Delivery Assurance – Atlanta, CA – Cox Communications

This position is accountable for driving Standard Processes, Governance, and Continuous Process Improvements across the Technology organization to improve the consistency and repeatability of our delivery processes. This role supports all technology organizations and closely partners with our enterprise portfolio management team...Learn More

> SMB Account Exec (Cox Business) – San Diego, CA – Cox Communications

The SMB Account Executive promotes, sells, and retains commercial business solutions for voice, data and video to SMB level customers. Sell bundled telephony, data and video products to existing/new commercial business customers based on assigned revenue targets...Learn More

> Need a job? Need to hire? Visit FierceWirelessJobs

Announcing FierceWirelessJobs, the new FierceMarkets careers site. Find the perfect job or post your openings at http://www.fiercewireless.com/jobs.

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