Today's Top Stories FCC Chairman Tom Wheeler took to the FCC website's blog Tuesday in a continued attempt to counter criticism of the commission's soon-to-be-released net neutrality revisions. Calling some industry analysts' and experts' commentary on the proposed changes "misinformed," Wheeler said the proposal was not a final decision, but instead a "formal request for input" on Open Internet rules.  | | Wheeler | He also emphasized that the delay in implementing rules was having a negative effect on companies doing business via the Internet. "Today Internet Openness is being decided on an ad hoc basis by big companies. Further delay will only exacerbate this problem," Wheeler wrote. "The NPRM is seeking input on the best way to protect and promote the Open Internet." Pointing out that net neutrality rules have been debated--or tied up in court--for ten years now, Wheeler said the commission is looking for some sort of rule it can put in force. "We are asking for comment on a proposed a course of action that could result in an enforceable rule rather than continuing the debate over our legal authority that has so far produced nothing of permanence for the Internet." He also expanded his explanation of what constitutes a "commercially reasonable" standard, in the current draft's definition, saying that anything that creates a "fast lane" that degrades service for consumers and companies "would be shut down." Karl Bode of DSL Reports was critical of the latest post's claims that the revised Open Internet order would be tough and enforceable. "Except that it won't. The old rules had an ocean of intentional loopholes and don't cover wireless--just like the new rules," he wrote. "As many have pointed out, Wheeler's moves actually create more uncertainty as the agency continues to try and use Section 706 of the Communications Act in a way that's not particularly legally defensible." He called the commissioner's examples of commercially unreasonable behavior vague. "Wheeler's comments to date strongly suggest his threshold for what's going to be considered anti-competitive behavior will be stratospherically-high, and as is the case now--carriers will still be able to get away with anti-competitive behavior provided they're relatively clever about it." The FCC has seen a rash of criticism since The Wall Street Journal broke a story detailing the latest Open Internet revision last week. GigaOM's Stacey Higginbotham was particularly critical. "The FCC should man up and say exactly what it is doing here: It is implementing a double-sided market for the internet that could allow businesses to enter into commercial relationships with ISPs--who do not operate in a competitive market in the U.S.--for faster delivery of their content." For more:
- see Wheeler's latest blog post
- see this DSL Reports story
- The Wall Street Journal broke this story (sub. req.)
- GigaOM has this story Related articles:
Netflix deals with Verizon, Comcast aren't helping net neutrality, but does that matter?
NCTA's Powell calls on industry to invest in the network, not become complacent
Toll spat continues as Netflix accuses Comcast of double dipping
Reported net neutrality changes roil consumer advocates, send Wheeler into defensive mode Read more about: Verizon
back to top
| This week's sponsor is Meru. |  | Download the White Paper "802.11ac in the Enterprise: Technologies and Strategies" to learn from industry expert Craig Mathias about the technologies behind 802.11ac, deployment misconceptions and review steps that every organization should take in getting ready for 802.11ac.
Click here to download.
|
Richard Pepler, CEO of pay-TV stalwart HBO, said that the company's content deal with Amazon (NASDAQ: AMZN) is not a departure from the company's long-standing position that people who want its content should subscribe to HBO. "That's not true. We have always tried to monetize our library," he told Multichannel News in an interview this week. Pepler pointed out that some of its original content, such as The Sopranos, Sex and The City and Band of Brothers, has been syndicated to broadcast networks including A&E, TBS and History Channel. The Amazon agreement "was strategically for us the right partner." Pepler stayed coy on questions about the future of its second-screen product, HBO GO, saying it currently is an "enhanced product" that will help its partners--including distributors and MVPDs--build their value proposition. But he didn't give a clear "no" to the possibility of offering an all-OTT product to subscribers at some point in the future. "What I think HBO GO will enable us to do is pivot in any direction we want to pivot in," he said in the interview. Pepler has repeatedly stated that HBO GO will not be a standalone product: In March, he told the Los Angeles Times at the Game of Thrones premiere that exclusivity remains a key part of the company's business model. By any measure, HBO's online alternative and its original programming have led to a significant jump in subscriber numbers, adding 2 million subs in 2013, its biggest annual growth in 17 years. Further, Pepler told MCN, the company expects to do very well this year, too, saying "we've exceeded where we thought we were going to be at this time of the year." Pepler glossed over some of the sticking points to the HBO GO service, particularly its tendency to crash during the premieres and finales of popular shows like Game of Thrones and True Detective. He said only that the company's team of engineers is working "ferociously" to improve the service's capacity. He also downplayed the service's password-sharing woes, saying it's "not as extensive a problem as some of the public narrative would suggest" and carefully separating it from the issue of illegal downloads. For more:
- Multichannel News has this interview (sub. req.)
- the L.A. Times has this story Related articles:
Amazon, HBO sign exclusive multiyear content deal
Amazon video streams triple while sales climb 23 percent, but profits remain thin
3 reasons why Netflix has to raise prices in 2014
Hulu cracks down on VPN masking to block access by non-U.S. viewers Read more about: HBO
back to top
You've got shows: AOL is making a big addition in its original series library, announcing that it will add 16 original, unscripted programs featuring major Hollywood talent such as James Franco, Steve Buscemi, Zoe Saldana, Mike Epps and others. In the show Making a Scene, Franco and several friends will recreate classic movie scenes, while Saldana will host My Hero, in which actors "surprise the friend or family member who helped shape them into the person they are today," according to an Adweek story. AOL's similar unscripted programs, City Ballet with Sarah Jessica Parker and #CandidlyNicole with Nicole Richie, are online hits, with both garnering sponsorships from Citibank and Verizon. They were renewed for an additional season in April. In a similar vein, Yahoo added to its original series play, announcing two new original comedy programs, Reuters reported. Paul Feig, creator of Freaks and Geeks, will produce Other Space, a "galactic adventure." Meanwhile, executive producer Mike Tollin and director Bryan Gordon of Smallville fame will offer up Sin City Saints, a series that follows the owners of a pro basketball expansion team. Set to premiere next year, Yahoo will post both eight-episode series in their entirety on its website. For more:
- Adweek has this story
- Reuters has this story Related articles:
Yahoo, Vevo try again, expanding video licensing and promotion
Sony plans original series for PlayStation
New Amazon pilots draw mixed response
Netflix, Crackle, AOL On target consumers with original streaming content Read more about: Yahoo
back to top
Video streams on Amazon's (NASDAQ: AMZN) Prime Instant Video service "nearly tripled" in the first quarter compared to the same period last year. The online giant touted new products in its earnings release, like Fire TV and its HBO content deal, while minimizing more worrisome aspects of its financials, like its spiraling expenses. Net sales were up 23 percent for Amazon, but the cost of doing business is eating away at its overall profits, its earnings results for the first quarter revealed. Operational expenses were $19.6 billion, up from $15.9 billion a year ago, and shipping costs jumped 31 percent over 2013 to $1.83 billion. The online retail giant recorded net income of $108 million, with earnings per share of 23 cents. That was in line with analysts' expectations. But analysts sounded a worried note on Amazon's continued spending levels. "Top line growth is doing well. It's an acceleration. But they're spending money freely," BGC Partners analyst Colin Gillis told MarketWatch. Much of that spending took place in its shipping operations, as well as its Amazon Web Services operations. But development and launch of its new Fire TV box also presumably ate up a chunk of that cash, according to a MarketWatch story. Amazon's increase in Prime membership rates in March, from $79 to $99 per year, was largely driven by the costs related to shipping. "The biggest one was we think we built a great service (but) transportation costs had grown dramatically," said CFO Tom Szkutak on the earnings call, who added that a number of different factors led to the price rise. Amazon introduced several new products in the quarter, including Fire TV and its HBO content deal for Prime Instant Video. Szkutak stayed neutral in responding to questions about the HBO deal, saying only that Amazon has continued to add great content and that the deal will be "great for customers." The second quarter will likely proceed along similar lines as the first: Amazon forecast sales between $18.1 billion and $19.8 billion. It also warned of an operating loss between $55 million and $450 million due in large part to expected stock-based compensation and amortization of its intangible assets. Investors don't seem to be fazed by the thin profit margins, however: Amazon stocks rallied 4 percent ahead of its results announcements, and continued to gain 2 percent to $337.73 after market close. For more:
- see the earnings release
- MarketWatch has this story
- Business Insider has this story Related articles:
Ice dam breaks: AOL, Amazon, Dish, AT&T, TWC spill into online video
Amazon, HBO sign exclusive multiyear content deal
WWE Online, Twitch close in on Amazon in bandwidth growth
Report: Amazon to release 3D smartphone in second half of 2014 Read more about: Amazon
back to top
BroadbandTV, the third-largest player in the YouTube-based multichannel network (MCN) space, signed a deal with FremantleMedia to manage fan-uploaded content related to its TV series, including "American Idol," "The X Factor" and others. A company that has worked somewhat quietly in the background handling content rights management for a number of major broadcasters, distributors and sports leagues including the NBA and A&E Networks, BroadbandTV is continuing to gain ground with content producers--not just major corporate players trying to control their brand online, but smaller entities and individuals trying to get noticed on the massive YouTube playground, through its VISO multichannel network. Specifics of the FremantleMedia agreement were not provided, but Lewis Ball, EVP of professional services for BroadbandTV, told FierceOnlineVideo that the companies "are working on a revenue share basis and it's a very sizeable deal." It may be BroadbandTV's biggest deal yet. "FremantleMedia currently achieves 72 million monthly unique users on YouTube worldwide making it the most watched of any TV network or movie studio in the world," Ball said. FremantleMedia SVP of Digital Olivier Delfosse told TheWrap's Lucas Shaw that "there has already been an immediate upswing in revenue" since implementing BroadbandTV services three weeks ago. The deal was publicly announced on April 23. The company will use its VISO NOVI platform to detect and manage fan-uploaded content related to FremantleMedia properties. BroadbandTV's rights management service is able to offer copyright infringers various options. While its clients can authorize it to simply detect and report an infringer to YouTube and have the content in question removed or blocked, BroadbandTV also can place advertising on the content, rather than take it down, and have all revenues from that advertising filter back to the content owner. Content producers have battled Internet users posting clips or full versions of movies and TV shows for several years. But their initial approach--get offending videos taken down and then attempt to sue the pants off everyone involved--worked about as well as the music industry's offensive against file-sharing teens and their grandmas. New ways to manage fan-uploaded or fan-produced content are evolving, changing the traditional enforcement model. In March, Viacom and Google settled a drawn-out, billion-dollar copyright infringement suit involving YouTube. No money reportedly changed hands, signaling that a new content enforcement model--Google's ContentID program, along with a recently revealed, controversial "super-flagger" initiative--may be working acceptably for Viacom, along with, perhaps, a revenue model agreed upon by both parties. That evolving online business model was a likely attractor for FremantleMedia in signing the deal. "The viewer path has fundamentally evolved, we remain committed to producing fantastic content in formats that support the business and effectively serve our fans," said CEO Cécile Frot-Coutaz in a prepared statement. For more:
- see this press release
- TheWrap has this story Related articles:
Viacom, Google settle their differences, while Google reveals 'super-flagger' program
Digital media companies form video trade association GOVA
YouTube auditing some videos' views Read more about: YouTube
back to top
| 
Netflix deals with Verizon, Comcast aren't helping net neutrality, but does that matter?
The Cable Show 2014: Live coverage
No comments:
Post a Comment
Keep a civil tongue.