Recently on Videonuze
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VideoHub Gets MRC Accreditation for Video Viewability and Other Metrics
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LAST DAY for Early Bird Discount - June 4th Video Ad Summit
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VideoNuze Podcast #180 - Does Live Streaming TV Make Sense?
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Turns Out Most "Mobile Video" Experiences Actually Happen at Home
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Multiscreen Live Linear - Consumer Values and Perceptions
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Live Streaming Gets Another Boost As Brightcove Rolls Out New Live Module
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Early Bird Discount Ends This Friday for June 4th Video Ad Summit in NYC
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Study: Click-Through Rate for In-Stream Video Ads is Four Times Higher Than for Rich Media and Mobile
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ABC Introduces Live Streaming as TV Everywhere's Grip on Broadcast TV Tightens
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Video Apps, Devices, and Fragmentation: How to Navigate the Maze
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Analysis for 'Regulation'
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Inside Retransmission Consent - Aereo's Biggest Threat to Broadcasters
I'm pleased to share Howard Homonoff's second piece on Aereo today. The first was "Here Are Aereo's Legal, Policy and Business Paths Forward." Howard is Principal/Managing Director of Homonoff Media Group LLC, a management consulting firm focused on traditional and digital media content distribution, social media analytics and regulatory strategy. He is a frequent industry speaker and producer/host of Media Reporter, starting soon on cable systems throughout New York City.
Inside Retransmission Consent - Aereo’s Biggest Threat to Broadcasters
by Howard Homonoff
Technology startups, by definition, often challenge the status quo - striving to deliver products or services that are better, faster, and/or cheaper than existing approaches. Yet, given the long odds against startups’ success, incumbents don’t often go on the warpath against startups in their space until the startup has at least demonstrated some genuine traction or ability to disrupt that status quo.
In this context, the intense opposition to Aereo from the broadcast industry is unusual. Aereo has been deployed in just one market and hasn’t disclosed any metrics about customer adoption (unattributed numbers suggest negligible penetration to date). Yet broadcasters have launched vigorous litigation (thus far unsuccessful) and executives have threatened to abandon their decades of traditional broadcast-based business models in favor of cable-based delivery if Aereo is ultimately deemed legal.
Why is it that broadcasters are so up in arms about Aereo? The answer, I believe, is that Aereo directly challenges a concept known as retransmission consent. As a close observer of Aereo’s coverage, I’ve been struck by how little attention retransmission consent has received, and how little it seems to be understood. Below I address 3 questions: What is retransmission consent? Why was retransmission consent originally created? Why is it viewed as so vital by the broadcast industry?Categories: Broadcasters, Regulation, Startups
Topics: Aereo
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VideoNuze-TDG Report Podcast #137 - Debating DOJ's New Cable Investigation
I'm pleased to be joined once again by Colin Dixon, senior partner at The Diffusion Group, for the 137th edition of the VideoNuze-TDG Report podcast.
First up this week, Colin and I discuss this week's news that the Department of Justice is investigating whether cable TV companies are acting to suppress online video. As I wrote on Wednesday, it's good for the government to be vigilant, but for now anyway I don't believe online video providers or consumers are being impacted (rather I suggested if the DOJ wants to address a REAL way consumers are being harmed it should look into the multi-billion dollar per year subsidy non sports fans are forced to pay for expensive sports networks).
Colin disagrees with me. As he's stated in the past, he believes the use of "private networks" to deliver video traffic to connected devices that doesn't count against data caps creates preferred broadband lanes and are inappropriate (Colin believes Comcast is doing this with its recent plan to deliver video services to the Xbox).
Wrapping up, Colin shares observations from Cisco Live a big analyst event he attended earlier this week and I do some shameless plugging for next Tuesday's VideoNuze Online Video Advertising Summit.
Click here to listen to the podcast (20 minutes, 36 seconds)
Click here for previous podcasts
The VideoNuze-TDG Report podcast is available in iTunes...subscribe today!Categories: Broadband ISPs, Cable TV Operators, Podcasts, Regulation
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House Republicans' Assault on Net Neutrality Begins Next Week
Republicans on Capitol Hill will start their long-stated attempts to overturn the FCC's net neutrality regulations next Wednesday, with the House Communications & Technology Subcommittee planning a hearing. House Republicans have made no secret of their scorn for the FCC's net neutrality regulations and seem committed to doing whatever's necessary to block them from taking effect. While I've often said that net neutrality is a solution in search of a problem, the FCC's rules are actually not very burdensome, and to the extent that broadband ISPs abide by them, it feels unlikely that they would be expanded any time soon. Still, Republicans view this as an overreach by the government. It will be interesting to see how strongly Senate Democrats and President Obama come to net neutrality's defense, given all the other things competing for their attention.
Categories: Broadband ISPs, Regulation
Topics: FCC, Net Neutrality
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No Surprise, Ivi is Shut Down
Broadcasters got a win this week as a U.S. District Court judge issued a preliminary injunction against Ivi, requiring the service be shut down. The decision comes as little surprise, as Ivi's claim to being a cable system, and therefore entitled to a compulsory license to rebroadcast TV networks, seemed specious from the start. Though Ivi vows to appeal the decision, casting itself as consumers' savior, there's little reason to believe we'll see Ivi - at least in its current form - back any time soon. Moral here: just because the Internet makes it possible to rebroadcast networks, that still doesn't make it legal.
Categories: Broadcasters, Regulation
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Cable Industry Skirmishes With FCC Over Set-top Boxes
Speaking of set-top boxes, the cable industry, through its NCTA lobbying arm, was skirmishing this week on yet another regulatory front, the FCC's ongoing "AllVid" inquiry, which would possibly crack open the customer premise
equipment (CPE) by establishing an IP-based standard. Google, Sony and other CE companies are lobbying for AllVid as a way of streamlining delivery of over-the-top content into living rooms. Cable operators are arguing that such a move would compromise existing network licensing models. A more overarching concern is that a regulatory mandated approach would significantly level the playing field for new entrants to compete for consumers' attention.
Categories: Cable TV Operators, Devices, Regulation
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Verizon Challenges Net Neutrality Regulations
Yesterday Verizon appealed the FCC's new net neutrality regulations in the DC Court of Appeals, alleging that the FCC has exceeded its authority. The move is a little surprising given that last August Verizon seemed accepting of net neutrality, by submitting a joint net neutrality proposal with Google. What the two submitted and what the FCC eventually passed are different in a number of ways, but one way that they're similar is in the light regulatory touch granted to wireless Internet ISPs, which was a key focus of Verizon's given its massive wireless business. Even the treatment of wired ISPs wasn't terribly onerous, which is one of the reasons why a number of consumer advocacy organizations are also threatening a challenge to the FCC.
Other than trying to subvert the FCC's authority generally, it's not entirely clear to me what Verizon's trying to accomplish here. One thing's for sure, Verizon will have plenty of help from Republicans who are also challenging net neutrality.Categories: Regulation, Telcos
Topics: FCC, Net Neutrality, Verizon
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In Approving Comcast-NBCU, the FCC Blesses the Cable Model
Reading yesterday's FCC press release approving the Comcast-NBCU transaction, my main reaction was that rather than using the opportunity to try to force fundamental changes in the core cable business model, the FCC, through its key conditions, instead essentially blessed it.
Comcast - and by extension other pay-TV operators - must be delighted that their core packaging and pricing philosophies were basically untouched. Cable networks and studios should also be happy that their ability to monetize
through the monthly affiliate model remained intact as was their flexibility to monetize online (mostly). As a result, the large ecosystem of participants in the video ecosystem (e.g. talent, production personnel, etc.) should also be happy that their economic well-being won't be disrupted. Lastly, investors in the pay-TV ecosystem should also be happy; it's always a good day when the government chooses not to meddle in markets that are working pretty nicely from investors' perspective.
To get more specific, in the press release there are 7 key conditions under the heading, "Protecting the Development of Online Competition" that Comcast and/or Comcast/NBCU are required to follow. These relate to online video and I have listed them out below. After each one I have added my analysis/reactions.
Categories: Cable Networks, Cable TV Operators, Deals & Financings, Regulation
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5 Items of Interest for the Week of Jan. 10th
Even though I was very focused this week on the CES "takeaways" series, there was still plenty of news happening in the online and mobile video industries. So as in the past, I'm pleased to offer VideoNuze's end-of-week feature highlighting 5-6 interesting online/mobile video industry news items that we weren't able to cover this week. Enjoy!
Level 3 fights on in Comcast traffic dispute
Level 3 is showing no signs of relenting on its accusations that Comcast is unfairly trying to charge the CDN for Internet traffic it delivers to Comcast's network. In an interview this week, Level 3 said it may use the "Open Internet" provisions of the FCC's new network neutrality rules to press its case. Level 3's challenge is coming at the 11th hour of the FCC's approval process of the Comcast-NBCU deal; it's not really clear if Level 3 is having any impact on slowing the approval, which appears imminent.
Comcast-NBCU deal challenged over online video proposal
Speaking of challenges to the Comcast-NBCU deal, word emerged this week that Disney is voicing concern over the FCC's proposed deal condition that would force Comcast to offer NBC programming to any party that had concluded a deal with one of NBC's competitors for online distribution. The Disney concern appears to be that the condition would have an undue influence on how the online video market evolves and how Disney's own deals would be impacted. While the FCC should be setting conditions to the deal, the Disney concerns highlights how, in a nascent, fast-moving market like online video, government intervention can cause unintended side effects.
YouTube is notching 200 million mobile video views/day
As if on cue with my CES takeaway #3, that mobility is video's next frontier, YouTube revealed this week that it is now delivering 200 million mobile views per day, tripling its volume in 2010. That would equal about 6 billion views per month, which is remarkable. And that amount is poised to increase, as YouTube launched music video site VEVO for Android devices. YouTube clearly sees the revenue potential in all this mobile video activity; it also said that it would append a pre-roll ad in Android views for tens of thousands of content partners.
Google creates video codec dust-up
Google stirred up a hornet's nest this week by announcing that it was dropping support for the widely popular H.264 video codec in its Chrome browser, in favor of its own WebM codec, in an attempt to drive open standards. Though Chrome only represents about 10% market share among browsers (doubling in 2010 though), for these users, it means they'll need to use Flash to view non-WebM ended video. There are a lot of downstream implications of Google's move, but for space reasons, rather than enumerating them here, check out some of the great in-depth coverage the issue has received this week (here, here, here, here).
Netflix usage drives up Canadian broadband bills
An interesting test of Canadian Netflix streaming showed that a user there might have to pay an incremental $12/month under one ISP's consumption cap. That would be more than the $7.99/mo that the Netflix subscription itself costs, leading to potential cord-shaving behavior. This type of upcharge hasn't become an issue here in the U.S. because even ISPs that have caps have set them high relative to most users' current consumption. But if streaming skyrockets as many think it will, and the FCC allows usage-based billing, this could fast become a reality in the U.S. as well.
Categories: Aggregators, Broadband ISPs, Broadcasters, Cable TV Operators, CDNs, Deals & Financings, International, Mobile Video, Regulation, Research, Technology
Topics: Comcast, Disney, FCC, Google, Level 3, NBCU, Netflix, WebM, YouTube
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Online/Mobile Video's Top 10 of 2010
2010 was another spectacular year of growth and innovation in online and mobile video, so it's no easy feat to choose the 10 most significant things that happened during the year. However, I've taken my best shot below, and offered explanations. No doubt I've forgotten a few things, but I think it's a pretty solid list. As much as happened in 2010 though, I expect even more next year, with plenty of surprises.
My top 10 are as follows:
Categories: Advertising, Aggregators, Broadband ISPs, Broadcasters, Cable Networks, Cable TV Operators, Deals & Financings, Devices, Mobile Video, Regulation, Satellite, Technology, Telcos
Topics: 4G, Android, Apple, Google TV, iPad, Net Neutrality, Netflix, YouTube
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Net Neutrality: Here Today, Gone Tomorrow?
Though the FCC passed new net neutrality rules yesterday, the fight is far from over. Republicans immediately vowed to block the rules when they take over the House in January, and threats of industry lawsuits flew. Even liberal supporters of net neutrality were unhappy that the rules didn't go far enough. While the rules are here today, whether they will be tomorrow is very much an open question.
While everyone agrees that a well-functioning Internet is core to American society and the economy, net neutrality's challenge from the start has been between those who believe in pre-emptive regulations because big ISPs can't be trusted, vs. those that don't see a sustained pattern of ISP misbehavior warranting proactive FCC involvement.
Categories: Broadband ISPs, Regulation
Topics: FCC, Net Neutrality
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6 Key 2011 Trends in Online and Mobile Video
Yesterday Colin Dixon from The Diffusion Group and I presented a webinar describing our 6 key trends for 2011 in online and mobile video. Colin is one of the sharpest analysts of the pay-TV and online/mobile video industries and we had no shortage of ideas to sort through. Our list is a joint effort, and during the webinar we each presented the 3 trends we felt the strongest about. In today's post I share and explain each one. At the end of the webinar we conducted a poll asking attendees whether they agreed or disagreed with our predictions. I've noted those results in bold font. If you want to download the slides and/or hear more of our detailed discussion, just register for the on-demand version of the webinar and you'll be emailed a link.
Categories: Aggregators, Broadband ISPs, Cable TV Operators, Mobile Video, Predictions, Regulation, Satellite, Technology, Telcos
Topics: FCC, Google, Net Neutrality, Netflix, TV Everywhere
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5 Items of Interest for the Week of Nov. 29th
Following the Thanksgiving break last Friday, VideoNuze's end-of-week feature of curating 5-6 interesting online/mobile video industry news items that we weren't able to cover this week, is back. Read them now or take them with you this weekend!
Categories: Aggregators, Broadband ISPs, Devices, Mobile Video, Regulation, Research, Telcos, UGC
Topics: Comcast, FCC, IDC, Level 3, Magid, Net Neutrality, Nielsen, Verizon Wireless, Viacom, YouTube
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New Net Neutrality Ad Campaign Draws in Google's Co-Founders
When it comes to net neutrality, I've learned to expect the unexpected, as any sense of a formal process was long-ago abandoned in favor of an ad hoc free-for-all by interested parties. That was epitomized by the recent partnership between Google and Verizon which joined up to go rogue by proposing their own net neutrality recommendations in August. Though they thought they were moving the ball forward on the issue, they were promptly scorched by net neutrality advocates for endorsing vague private Internet lanes and exempting wireless from any new regulations.
Now the latest chapter in the net neutrality battle is unfolding with an online ad campaign, featuring an online petition directed to Google's co-founders
Sergey Brin and Larry Page, to live up to Google's corporate motto "don't be evil" by walking away from the Verizon deal. The campaign is funded by the Progressive Change Campaign Committee and other advocacy groups like MoveOn and Free Press. The petition's web site states that over 334,000 people have signed on so far. Ironically the ads are being bought through Google itself, and on Facebook.
Categories: Broadband ISPs, Regulation, Telcos
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5 Items of Interest for the Week of Sept. 6th
Though it was a short week due to the Labor Day holiday, there was no shortage of online video industry happenings this week. As I've been doing each of the last few Fridays, following are 5-6 noteworthy industry stories for your weekend reading pleasure.
Ooyala Raises $22 Million to Accelerate Global Expansion
Online video platform Ooyala's new $22 million round is a bright spot in what's been a pretty slow quarter for online video industry private financings. Ooyala's new funds will help the company grow in the Asia-Pacific region. Ooyala said it is serving 550 customers, double the level of a year ago.
Google TV to Roll Out World-Wide Next Year
Even though the first Google TV-enabled devices have yet to be deployed, Google CEO Eric Schmidt said this week that he envisions a global rollout next year. The connected device landscape is becoming more competitive for Google TV given the growing number of inexpensive connected device options.
Business Groups Question Net Neutrality Rules
Three pro-business trade groups urged the FCC to drop its net neutrality initiative, citing the "flourishing" broadband market and concerns that regulations will curtail new investments and hurt the economy. It seems like everyone has a different opinion about net neutrality, so the consensus needed to move regulation forward is still down the road.
ESPN, YouTube Link Up for Promo Campaign
This week ESPN and YouTube kicked off their "Your Highlight" campaign, enticing ESPN viewers to upload their own sports clips, with the best ones to be shown on SportsCenter. Then the best of the best will win a trip to ESPN's studios to watch a SportsCenter taping. It's a great promotional concept, using online video to further invest ESPN viewers in the brand. Whoever thought it up deserves a shout-out.
Life Without a TV Set? Not impossible
Another interesting data point to tuck into your back pocket: according to a 2010 Pew study, just 42% of Americans feel a TV set is a "necessity," down from 64% in 2006. Pew interprets this as a loss of status for the TV, as other devices like computers and phones have become video capable. The perception of convergence is taking root.
Categories: Broadband ISPs, Cable Networks, Deals & Financings, Devices, Regulation, Research, UGC
Topics: ESPN, FCC, Google TV, Net Neutrality, Ooyala, Pew, YouTube
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Justice Dept Considering Online Restrictions For Comcast-NBCU
An article in today's WSJ, "Comcast Gets Static on Net TV" describes how the Justice Department is scrutinizing the online video implications of Comcast's deal to acquire control of NBCU. According to the article, the Justice Department is digging in to try to understand what, if any, implications the deal could have on online-delivered TV shows and movies from NBCU.
The article points out that nothing is likely to come out of the investigation that could derail the deal. However, the results could provide the foundation for the Justice Department to impose restrictions on Comcast's flexibility to decide where and how NBCU's premium programming could be distributed online. The purpose would be to head off Comcast somehow gaining preferred and/or exclusive access.
The investigation is merited given the size of the deal and yet the yellow caution flags should be up regarding the government making too many assumptions about how the online video market will unfold. As I've written a number of times, we are continuing to see surprising deals, technologies and products which challenge popular assertions that online video and incumbent pay-TV models are on a collision course with one another, with one winning at the other's expense. Just in the last few weeks, the Netflix-Epix deal, the Cox-TiVo partnership, and possibly this week 99-cent broadcast TV rentals from Apple all show that the market is incredibly dynamic, with a blending of online and traditional distribution becoming more common.
That said, Comcast already has huge market power, and control of NBCU's top-notch assets mustn't deprive others of access from which consumers gain. Finding the delicate balance between just enough safeguards, but without limiting innovation, is the key.
What do you think? Post a comment now (no sign-in required).Categories: Broadcasters, Cable TV Operators, Deals & Financings, Regulation
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Google and Verizon Net Neutrality Proposal Comes With Big Loopholes
Responding to rampant rumors last week concerning a potential side-deal on net neutrality, Google and Verizon held a conference call this afternoon unveiling a "Legislative Framework Proposal" by their respective CEOs Eric Schmidt and Ivan Seidenberg. The proposal is meant to influence other net neutrality stakeholders, including the FCC. Google and Verizon insisted there's no companion business deal between them.
On positive side, the companies' proposal tries to break the Washington net neutrality logjam by endorsing an open Internet backed up with a sensible, transparent and non-discriminatory approach that mainly leaves it up to networks to act responsibly. However, the proposal comes with at least 2 big loopholes which until clarified, will no doubt undercut a lot of the proposal's credibility.
Categories: Broadband ISPs, Regulation, Telcos
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5 News Items of Interest for the Week of Aug 2nd
In addition to producing daily original analyses focused on the evolution of the online/mobile video industry, another key element of VideoNuze is collecting and curating links to industry coverage from around the web. Each week there are typically 30-40 stories that VideoNuze aggregates in its exclusive news roundup. Many readers have come to depend on this curated news collection to ensure they're always up to speed.
Now, to take news curation up another level, on Fridays I'm going to test out highlighting 5-6 of the most intriguing news items of the week. In case you missed VideoNuze for a day or two during the week, you can check in on Friday to see the these top 5-6 industry stories of the week, some of which VideoNuze may have covered itself. Synopses and implications are noted. Enjoy and let me know your reactions!
Wired to Produce Short Films For iPad
The tech magazine recruits Will Ferrell for four short videos that lampoon inventions that failed to take off. Exclusively for its iPad app. More evidence of print pub capitalizing on video.
Motorola and Verizon team up for TV tablet
Enjoying success with its Droid smartphones, Motorola now looks to challenge the iPad, with its own tablet device, using Google's Android OS. A partnership with Verizon could mean new online video features for the phone giant's FiOS service. Another sign of evolution in the pay-TV business.
Bewkes: Rental Delays From Netflix, Redbox Is Paying Off For DVD Sales
The 28-day DVD delayed release window Warner Bros. struck with Netflix earlier this year is helping the studio gain better sales for films The Blind Side and Sherlock Holmes. The deal helps Netflix position itself as a valued partner in the midst of declining DVD sales.
Dish to stream live TV on iPad, other devices
Dish Network takes place-shifting to a new level with plans for an iPad app that would allow remote streaming, likely using its Sling technology. Subscription TV, mobile video viewing and cool devices converge.
FCC Calls Off Stakeholders Meetings
The FCC's private net neutrality negotiations are off the rails as a reported bilateral deal between Verizon and Google causes controversy. Next steps are unknown as the FCC's plan to keep Internet playing field level hits a major pothole.Categories: Devices, FIlms, Magazines, Regulation, Satellite, Telcos
Topics: DISH, FCC, iPad, Motorola, Netflix, Verizon, Warner Bros., Wired
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With Google-Verizon Deal, Net Neutrality Uncertainty for Video Providers Rises
A possible private deal between Google and Verizon, for how the latter will handle traffic on its wired and wireless networks, means the prospect of the FCC brokering a net neutrality consensus among key stakeholders just got less certain. The inconsistency that could result isn't good news for online and mobile video content providers seeking assurance that delivery of their content won't be affected by network operators either technically or financially.
To put this possible deal in context, the FCC has been trying to forge a net neutrality agreement among key parties in the wake of a recent court decision that severely curtailed its regulatory authority. The talks have been conducted in secret and the parties have pledged not to disclose their progress. The policy goal is to ensure network owners don't bias for or against any kind of traffic, so that the Internet's longstanding openness will be perpetuated.
Categories: Broadband ISPs, Regulation, Telcos
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Net Neutrality Takes Another Twist
Another day, another twist in the ongoing net neutrality saga. Yesterday brought news that the FCC plans to redefine broadband transmission from an unregulated information service to a regulated telecommunications service under what's known as Title II. The FCC's move came several weeks after an appellate court ruled that the FCC did not have authority to sanction Comcast for blocking BitTorrent traffic.
No surprise, industry groups were quickly up in arms about the policy change, concerned about the uncertainty it brings (with legal challenges surelyforthcoming), plus the implications for continued network investments. Like everything else in Washington, net neutrality is now gripped by a partisan divide. Republicans are against any new regulations and Democrats favor them.
As I've written before I continue to believe a policy of regulatory restraint, accompanied by vigilance, is best for now. The broadband ISP business is for the most part quite competitive and ISPs have huge incentives not to block certain traffic. For now I continue to think letting the market sort this out is the best approach.
What do you think? Post a comment now (no sign-in required).Categories: Broadband ISPs, Regulation
Topics: FCC
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Verizon CEO: No Mobile Spectrum Shortage, FCC Should Butt Out
Were you as surprised as I was to read yesterday that Verizon CEO Ivan Seidenberg is questioning the need to reclaim broadcast spectrum for mobile data use? Instead he believes that ongoing advances in technology will address any potential bandwidth squeeze. His comments represent a weird reversal because Verizon has been (for obvious reasons) a key proponent of gaining access to this spectrum. As I wrote a few weeks ago, the bandwidth reclamation concept is one of the most contentious in the FCC's recently released National Broadband Plan.
I'm not clear on what's going on here. The iPad's release this past weekend is yet another reminder of the infinite mobile data uses ahead. Meanwhile recently-amped up rumors that Verizon will get getting the iPhone later this year means lots of data increases from Verizon itself. Throw in the coming proliferation of Android devices as yet more evidence of mobile data's rise. So why would Seidenberg now cast doubt on the spectrum reclamation effort? Beats me. Any ideas?
What do you think? Post a comment now (no sign-in required).Categories: Regulation, Telcos
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