An Ignoble Experiment

2. Comcast takes on Disney, Viacom with NBCU buyout of Sprout

Charter Communications (Nasdaq: CHTR) said it will begin marketing its pay TV and broadband services under a new brand, Charter Spectrum, early next year.

CEO Tom Rutledge, who has been hinting for months that a new brand was in the works, told analysts on Charter's earnings call last week that it planned to come up with a new name for products on cable systems that it has converted to all-digital platforms. "The time has come for us to rebrand Charter," Rutledge said.

Cablevision (NYSE: CVC) has used Optimum as the brand for its triple-play products for more than a decade. Its digital cable service was initially called iO: interactive Optimum. Comcast (Nasdaq: CMCSA) launched the Xfinity brand for its cable services in 2010, and Advance/Newhouse uses the brand Bright House Networks on its cable systems.

The major MSOs have used the new brands partly as an attempt to overcome consumer perceptions about cable customer service. Charter's selection of Charter Spectrum is unique in that it still incorporates the name Charter.

"This isn't really just a new product set we're selling--it's a new brand," Charter Chief Marketing Officer Jon Hargis told Bloomberg. "It's a big operational task to go all-digital," he added.

Charter said it plans to begin using the new brand some time during the first quarter of 2014.

For more:
- Bloomberg has this story

Commentary: Will Charter change its cable brand?

Commentary: Cable customer service is more important than a new brand

Read more about: Bright House Networks, Cablevision
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By Steve Donohue

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3. Comcast pushes Congress for spectrum to power Gigabit Wi-Fi

Comcast's (Nasdaq: CMCSA) NBCUniversal subsidiary said it has taken full ownership of preschool network Sprout, in a deal that will see it compete with Walt Disney Co.'s (NYSE: DIS) Disney Junior and Viacom's (NYSE: VIA) Nick Jr.

Eight-year-old Sprout was launched in 2005 by Comcast, PBS, "Sesame Street" producer Sesame Workshop and private equity group HIT Television Ventures. NBCU bought Sesame Workshop's stake in Sprout last December, and under the deal announced Wednesday, it bought out PBS and HIT.

Sprout, which last week announced an expanded carriage deal with Time Warner Cable (NYSE: TWC) and Bright House Networks, now counts about 60 million subscribers. The network has generated more than 1.5 billion video-on-demand views since 2005 from programs such as "The Goodnight Show," "Sesame Street," "Pajanimals," "Lazytown" and "Thomas & Friends," according to NBCU.

"We see enormous potential in Sprout, and we are committed to our investment in the kids and family arena," NBCUniversal Cable Entertainment Chairman Bonnie Hammer said in a prepared statement.

Comcast engineers have developed some unique interactive television applications that could surface one day on Sprout. In August, Comcast detailed in a patent application how it could embed dynamic media packets in "Sesame Street" which would make Big Bird and Oscar the Grouch stuffed animals containing computer chips come to life.

Comcast and NBCU didn't say if they will increase the amount of advertising that runs on Sprout. The network currently only places commercials between shows on its schedule.

In addition to competing with Disney, Viacom and The Hub--a joint venture between Discovery Communications (Nasdaq: DISCA) and Hasbro--Sprout faces competition from over-the-top video players.

For more:
- see the release
- the New York Times has this story (sub. req.)

Read more about: Comcast
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By Steve Donohue

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4. Microsoft signs Rovi to supply TV program guide data for Xbox One

Comcast (Nasdaq: CMCSA) needs the FCC to open up the 5 GHz spectrum band to power next-generation Wi-Fi services that could allow it to deliver wireless broadband at speeds of up to 1 Gbps, SVP of Business Development Tom Nagel testified at a House Energy and Commerce hearing on Wednesday.

Nagel disclosed in his prepared testimony that Comcast has expanded the number of Wi-Fi access points for Xfinity high-speed Internet customers to 350,000. The nation's largest cable MSO also began deploying wireless gateways from Cisco (Nasdaq: CSCO) earlier this year that Comcast has said may be able to power millions of neighborhood hotspots.

While Comcast already is already using the 5 GHz band, Nagel said it needs more of the unlicensed spectrum to meet demand from subscribers for Wi-Fi. It faces potential opposition from Toyota and other automobile manufacturers who want to use the 5 GHz band to deliver next-generation connected car applications, including applications that would warn drivers of collision threats.

Toyota principal researcher John Kenney raised concerns about possible interference from Wi-Fi services at Wednesday's hearing. "We have been actively engaged with the Wi-Fi community and other stakeholders who are exploring possible sharing solutions that will alleviate any risk of harmful interference from unlicensed devices… But we're not there yet and it's going to take a bit more time to see if we can get there," Kenney said in his prepared testimony.

For more:
- see Nagel's prepared testimony (.pdf)
- see Kenney's prepared testimony (.pdf)
- see Comcast blog post
- Broadcasting & Cable has this story

On the Hot Seat: CableLabs' Lookabaugh: All devices may connect wirelessly 'at some point'

Read more about: Comcast, Wi-Fi
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By Steve Donohue

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5. Comcast SVP Steve Reynolds reportedly joining Harris Broadcast

Interactive program guide vendor Rovi (Nasdaq: ROVI) said it scored a deal with Microsoft Corp. (Nasdaq: MSFT) to supply it with TV listings data for its new Xbox One gaming console, which hits retail stores on Nov. 22.

In addition to TV program schedules, Rovi said it will give Microsoft program reviews, celebrity profiles, program images and "rich descriptors" that can be used with the OneGuide navigation system that will run on the Xbox One.

Pay TV distributors such as Comcast (Nasdaq: CMCSA) and Verizon (NYSE: VZ) have built apps for the first generation of Microsoft's Xbox that allow subscribers to stream a limited number of networks to TVs without using a traditional set-top. The Xbox One, which can be connected to cable and satellite set-tops, will allow pay TV subscribers to use the gaming console to navigate programming with voice commands and hand gestures.

"OneGuide gives users instant access to all TV shows and movies they love in one place--no more switching between devices or TV inputs," Xbox Media and Entertainment Group GM of Content Acquisition Martin Sacchi said in a prepared statement.

Rovi, which owns the IPG patent portfolio developed by Gemstar-TV Guide International, has licensing deals with most major pay TV distributors. It faces competition in selling metadata to service providers from Tribune's TMS division.

For more:
- see the release

On the Hot Seat: Westlake: Microsoft negotiating more deals with multichannel providers for Xbox

Read more about: Comcast, IPG
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By Steve Donohue

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