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Editor's Corner:  Consumers are paying for television's new golden age Also Noted: Spotlight On... Exterity, Enabledware join up on IPTV for Premier League football
Google exploring online video service; Fetch TV looks to double subscriber base and much more... Special Report:
 Time Warner Cable, Samsung partnership fuels rise of smart TVs
These days, it's almost implicit that any TV on the market will have the ability to connect to the Internet via a companion set-top box. Within this segment, however, is a subset that is also rising, albeit more slowly: smart TVs, or TVs with built-in Internet access. Read more
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Consumers are paying for television's new golden age
To be a true snob, one must deny any knowledge of television programming outside Downton Abbey. Even then, the true snob must emphasize that this PBS soap is a guilty pleasure that's just too delicious to resist ... kind of like a video banana split. I'm not a snob. I watch television. Importantly, for the statistics-keepers, I also pay a hefty fee to do so. Therefore, when the FCC issued its 15th Report to Congress on the status of competition in the market for the delivery of video programming--a title worthy of the report's 185 pages of statistics, drivel and opinion--I was not drawn to the statistics but rather to a statement from FCC Commissioner Ajit Pai commenting on the report. "While many fondly refer to the period between 1948 and 1959 as the Golden Age of Television, there is no time like the present for those who savor quality content," she said. I agree. When it comes to television, there's nostalgia and then there's common sense. Today's TV still has enough unfunny sitcoms, plotless dramas and so-called reality shows to keep the snobs sniffing but it also offers a larger share of excellent entertainment across the entire spectrum than the previous Golden Age of TV. Even snobs should (and most privately do) recognize this. This plethora of quality programming is rarely a part of discussions about pay TV competition. Deliberately or not, MVPDs have focused the latest conversations on broadband speeds and the availability of "content" from the Internet rather than the availability of high quality content available via IPTV, cable and satellite. Partially that is because, as the report notes, most MVPDs have access to the same programming but can compete on speed.  Continue reading this Editor's Corner online
Read more about: golden age of television, FCC
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* General ad info: Click here | Today's Top News 1. Netflix credits original programming for Q2 subscriber growth
Original programming, especially the highly anticipated return of Arrested Development, spurred Netflix (Nasdaq: NFLX) to greater second quarter subscriber adds--630,000 total--than was traditionally to be expected, CEO Reed Hastings said in a letter to shareholders accompanying second quarter earnings.  | | Arrested Development's return helped bump subscriber numbers. (Image source: Netflix) | Noting that net Q2 net additions are generally lower year-over-year due to seasonality factors, this year "was an exception, we believe, due to the launch of Arrested Development" which "already had a strong brand and fan base, generating a small but noticeable bump in membership when we released it," Hastings wrote. While the 630K number was well down from the 2.03 million the online video service provider added in the first quarter, it was 100,000 more than the second quarter of 2012, Hastings said. The Netflix boss added that original programming is only one factor in a success story that has driven the total subscriber count to 28.62 million streaming video buyers. That number is expected to climb to as many as 30.1 million by the end of next quarter. While the company did add an $11.99 monthly family plan during the month, "the take rate on this large family plan is minimal," Hastings wrote. Netflix reported $1.1 billion revenue in the second quarter--up from $889 million year-over-year--and net income of $29.5 billion, up year-over-year from $23 million. Hastings also pointed out that the competition for subscribers is growing from outside the traditional MVPD space. "Hulu and Amazon (Nasdaq: AMZN) Prime Instant Video continue to license some exclusive content and develop their own originals," he said, noting that all three services "are becoming more distinct from one another, like HBO, Showtime and Starz are distinct from one another on linear TV." For the future, Hastings wrote, the company will focus on original programming and improving the streaming experience along with tapping into social interaction among members. "In Q3, we'll be rolling out our profiles features which will allow households to have distinct 'profiles' for different members or viewing tastes within their home, enabling us to provide a much more personalized experience for our members," he wrote. For more:
- Netflix issued this letter to shareholders (.pdf) Related articles:
Netflix U.S. subscriber growth slows to 630K in Q2 2013
Hulu cancels sale again; gets ready to take on Netflix, Amazon Read more about: Subscriber Gains, Hulu
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2. Telco TV providers gaining strength according to FCC's video competition report
Americans who want competitive video services are getting their wish--for the most part--according to the FCC's 15th Report to Congress on the status of video programming competition. Specifically, the report said that telephone MVPDs (multichannel video programming distributors) represented about 8.4 percent of the total subscriber universe in 2011 and that that universe expanded from 100.8 million to 101 million households between year-end 2010 and June 2012. At the end of June 2012, the report continued, AT&T (NYSE: T) U-verse and Verizon (NYSE: VZ) FiOS counted 8.6 million subscribers. The gains came at the expense of cable operators, who saw their share of MVPD subscribers fall from 59.3 percent of all MVPD video subscribers at the end of 2011 to 55.7 percent at the end of June 2012. The report broke down the subscriber penetration differences between 2010 and 2011, noting that in 2010, there were 132 million homes with access to at least the two DBS MVPDs. Approximately 128.8 million homes had access to two satellite providers and one cable operator, but no telco TV provider and about 42.9 million homes had access to at least four MVPDs including cable, satellite and a telco, the report said. In 2011, 132.5 million homes were assumed to have access to at least the two DBS MVPDs; 130.7 million homes had access to at least three MVPDs (cable and satellite); and 46.8 million had access to at least four MVPDs, the report concluded. The 185-page document fulfills a statutory mandate that the FCC report annually to Congress on competition in the market for delivery of video programming. "When you step back from the blizzard of facts and figures, the report's principal lesson is simple--and profound. Today, more Americans have more choices when it comes to video programming than ever before," Commissioner Ajit Pai said in prepared statements accompanying the report's release. While hailing most of the report's information as good news, Acting Chairwoman Mignon Clyburn focused on a darker statistic. "Nearly three out of 10 rural Americans do not have access to high-speed Internet that is sufficient to receive online video distributors' services," she pointed out in her prepared remarks, adding her "hope that these consumers are not forgotten as these services become more popular and offer more extensive programming." Online, or over-the-top (OTT) video were also cited in the report, drawing the attention of Commissioner Jessica Rosenworcel, who pointed out that "we view 40 minutes of Internet video each week" and that is "bound to grow now that more than a third of all households have a television connected to the Internet--often through a gaming device." Even so, the report did step back to the basics and conclude that over-the-air broadcast television continues to hold its own. About 11.1 million households rely exclusively on over-the-air broadcast television, which Clyburn described as "one of the most affordable sources of entertainment and news." The report placed the MVPD group into "1,141 cable MVPDs, two DBS MVPDs, two large telephone MVPDs and many smaller telephone MVPDs" noting that "each MVPD has its own business model and competitive strategy (but) there are some similarities within types of MVPDs." For more:
- the FCC issued this press release
- and this report Related articles:
Infonetics: Worldwide IPTV providers gaining on competition
AT&T to FCC: don't call us a cable operator
CenturyLink broadband, IPTV business up even as legacy wireline declines Read more about: Telco Tv, cable
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3. Verizon FiOS hits 5 million subscriber mark as consumer revenues climb
Verizon (NYSE: VZ) added 140,000 FiOS video customers in the second quarter and now has more than 5 million customers nationwide, the carrier said in announcing second quarter earnings. The 140,000 additions were less than the 169,000 video subs Verizon added in the first quarter, but still an improvement over cable numbers which continue to decline. In other FiOS business, Verizon said it added 161,000 broadband subscribers (down from the 188,000 additions in the first quarter) to bring that total number to 5.8 million. FiOS, both video and broadband, is driving revenue, CFO Francis Shammo said in a conference call with analysts. "We continue to see positive signs highlighted by sustained FiOS revenue growth. Consumer revenues grew 4.7 percent driven by FiOS, which now represents 71 percent of (wireline) consumer revenue. Our overall consumer monthly ARPU increased 9.4 percent to more than $109 and we sustained a blended FiOS ARPU at over $150 a month," Shammo said. "Two-thirds of our FiOS customers are triple play, which have a higher amount of reoccurring revenue per month." Still, Verizon has no plans to expand FiOS beyond the markets where it is already offered and where the carrier is embarked on an aggressive copper-to-fiber migration designed to move non-FiOS broadband subscribers into the FiOS fold. That migration will eventually—but not anytime soon-result in an all-IP network, Shammo said. "That's going to be quite some time in order to deactivate the copper switches and take all of that plant and equipment out," Shammo cautioned a questioner. "We have the plans to do that but that's not something that's going to be done within this year or next year." What is going to be done within this year or next year is an increased level of activity in an ongoing relationship between Verizon Wireless and a group of cable operators that includes Comcast (Nasdaq: CMCSA), Cox Communications, Time Warner Cable (NYSE: TWC) and Bright House Networks. Rather than pursuing a tack of delivering FiOS via LTE--something that AT&T (NYSE: T) is planning with its U-verse IPTV service--Verizon chose to work together with the cable operators to jointly develop products and sell Verizon Wireless along with cable service in non-FiOS markets. "It's hard for Verizon Wireless to sell a cable product outside of the FiOS footprint because it's new and it's hard for the cable companies to sell a wireless product outside of the footprint because of distribution channels," Shammo said. "So as we continue to work through this we're gaining some momentum here." According to Shammo, Verizon is marketing cable services in 968 Verizon Wireless stores across the country and 2,500 "indirect locations." As for wireline FiOS, Shammo also indicated that the service is gaining momentum in the MDU marketplace. "What's differentiating us right now is the superiority of our product with fiber into the home," Shammo said. This advantage, he said, has become evident to customers who are affected by the copper-to-fiber migration. For more:
- Verizon issued this press release
- and recorded this webcast Earnings summary: Wireline telecom earnings in the second quarter of 2013 Related articles:
Verizon adds 140K FiOS TV subs; video penetration increases to 38.6% in Q2 2013
Verizon's wireline consumer revenue rises to $3.6 billion on strong FiOS adds Read more about: LTE
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4. ITU puts G.fast on track for 2014 approval
The ITU has offered multiple rays of hope for telcos that want to get into the IPTV space but are unwilling or unable to build out fiber infrastructure to deliver the necessary broadband speeds. After a meeting of its ITU-T Study Group 15 in Geneva, ITU said it is "one step closer" to final approval of G.fast, a standard that delivers superfast downloads of up to 1 Gbps up to a distance of 250 meters. The Geneva meeting served up a first stage approval of the ITU-T G.9700 standard that specifies ways to obviate interference between G.fast equipment and broadcast services such as FM radio. The standards body is now on track for probable G.fast standard approval by early 2014. The standard is backed by multiple service providers, chip manufacturers and system vendors, ITU said, because its top speeds would enable service providers to deliver upcoming bandwidth-rich services such as ultra high definition TV and multiple broadband service levels without investing in fiber to the home (FTTH). It would, in all likelihood, make IPTV service a reality for a number of smaller telcos with limited financial and network resources. "G.fast is an important standard for service providers globally (who) will be able to deliver fiber-like performance more quickly and more affordably than with any other approach," said Tom Starr, chairman of ITU-T Study Group 15, Working Party 1, which oversees the G.fast effort. Besides the attraction of higher broadband speeds, G.fast is configured to enable consumer self-installation without technical assistance, erasing an often expensive installation process from the service provider's books and improving the customer experience, the ITU said. The standard is being coordinated with the Broadband Forum's system architecture project Fiber to the Distribution Point (FTTdp), the ITU added. "G.fast promises the speed of fiber with the ease of installation of ADSL2," said Les Brown, associate rapporteur of the G.fast Experts Group. For more:
- ITU issued this press release Related articles:
Alcatel-Lucent, Telekom Austria wring 1 Gbps from existing copper
G.fast gets ITU first stage approval Read more about: IPTV, G.fast
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5. Teliphone sells IPTV assets to Coastline Broadcasting
Vancouver-based CLEC Teliphone Corp. is selling its IPTV assets to Coastline Broadcasting Ltd., a regional cable operator based in Black Creek, British Columbia. The sale will give all of the telco's technology and related infrastructure to the cable company, which will use it to help deliver TV services to 800 subscribers in the Courtenay, B.C., area, the two companies said in a press release. The deal also makes Teliphone an authorized rebiller of Coastline new media services, the two companies said. Teliphone identifies itself as "one of the largest independent facilities-based CLECs in Canada," providing voice, data, broadband Internet, IT support, cloud computing, co-location data centers and IPTV services across Canada to carriers, business, government and residential customers. The CLEC maintains a national network, including wireless backhaul and a trans-Canada SONET fiber optic network. Teliphone also operates a U.S. network. Its voice and IPTV services are available in 47 countries. Teliphone, in a second quarter earnings announcement, said it was using a policy of acquisitions to bulk up its business. In February the carrier said it would spend an undisclosed amount of money to acquire Titan Communications to bulk up a growing triple play offering. For more:
- Teliphone Corp. issued this press release Related article:
Acquisitions: Teliphone adds Titan Communications; Vision247 nabs Fora Read more about: Teliphone, British Columbia
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Also Noted SPOTLIGHT ON... Exterity, Enabledware join up on IPTV for Premier League football London-based Premier League Fullham Football Club is the first organization to experience a venue-wide IPTV platform provided via a partnership between enterprise technology provider Exterity and media content delivery software provider Enabledware. The partnership combines Enabledware's Venue IPTV middleware and Exterity's IPTV headend and receive products to create a platform to distribute media content throughout a site or venue. Continue ... More IPTV news from around the Web. > In a logical move, Google is reportedly exploring the idea of providing an online video service that some believe might compete with incumbent IPTV, cable and satellite operators. Story > IPTV/IP video measurement vendor IneoQuest Technologies has introduced a test and verification suite. Press release > Upper Midwest service provider HickoryTech has deployed Amino's HD set-top boxes as part of its IPTV service offering. Press release > Australian IPTV provider Fetch TV is hoping to double its subscriber base in the next nine months. Story > Deutsche Telekom launched a TV Everywhere service--Entertain to Go--for iPads, laptops and PCs for subscribers using its IPTV platform. Story > Australian telco Foxtel will launch its "Play'" OTT service next month to deliver over 40 linear channels to connected devices with no lock-in contracts. Story Cable News > Time Warner Cable is using Aereo's local TV platform as leverage in its retransmission-consent battle with CBS Corp. (NYSE: CBS). Article Telecom News > Subscribers to Verizon's FiOS service will soon have another speed option available to them: a 500/100 Mbps speed tier starting at $310 a month. Article And finally … Swedish broadcast and IPTV transport system provider Net Insight reported net sales down 3.1 percent year-on-year to $11.21 million for the the second quarter. Story News From the Fierce Network:
> Malone foresees tiered broadband pricing, cable industry consolidation Post
> Verizon's Shammo doesn't expect many to sign up for Edge upgrade program Post
> 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.
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| > 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 | ©2013 FierceMarkets This email was sent to ignoble.experiment@arconati.us as part of the FierceIPTV email list which is administered by FierceMarkets, 1900 L Street NW, Suite 400, Washington, DC 20036, (202) 628-8778.
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