More than 50 percent of U.S. broadband households use paid over-the-top video services, Parks Associates research found. More than 40 percent of U.S. broadband households selected online video as one of the top three important sources of video, compared to 25 percent of households for rented DVDs and 13 percent for owned Blu-ray discs, Parks Associates said in a press release (http://bit.ly/OEQTmI). Analysts also found that 37 percent of consumers age 18-24 claimed that video from online sources is their most important video source, it said. Watching programs through playback on DVR was highest among the 35-44 demographic, it said. The research includes data from two surveys involving a total of 13,000 respondents, a spokeswoman said. Parks will present the findings March 27 in a webcast.
An NAB ex parte filing Tuesday (CD March 19 p21) accusing the pay-TV industry of collusion in advertising rates is “a transparent stunt to muddy the waters” on discussion of joint sales agreements and retransmission consent, said NCTA CEO Michael Powell in a written statement. “NAB’s latest attack is an unfortunate and desperate attempt to divert attention from examination of discrete broadcast ownership issues,” Powell said. “Heavily regulated local broadcasters in smaller markets are being scrutinized by the FCC for a practice that involves one local TV station selling ads for another local TV station,” said NAB President Gordon Smith in a Wednesday news release highlighting the filing (bit.ly/1dpA6dE ). “Yet the heavily consolidated pay-TV industry, unshackled by any ownership rules, is free to engage in this most collusive of advertising sales practice on a massive scale in multiple markets."
Global digital music delivery sales rose 4.3 percent in 2013 to $5.9 billion, due mainly to “steep growth” in subscription services and “stable income from download sales in most markets,” IFPI said Tuesday in its annual state of the industry report (http://bit.ly/1lLJw8r). “Globally, digital now accounts for 39 per cent of total industry global revenues and in three of the world’s top 10 markets, digital channels account for the majority of revenues,” said IFPI, formerly the International Federation of the Phonographic Industry. Overall global music sales, including those of packaged media, fell 3.9 percent to around $15 billion, hurt mostly by a 16.7 percent free-fall in Japan, the world’s second-largest recorded music market, IFPI said. “Japan remains a market in transition,” IFPI said, “with legacy mobile products and physical format sales only now starting to decline, while streaming and subscription services are still establishing themselves.” Within digital, subscription services are now “part of an increasingly diverse mix of industry revenue streams,” IFPI said. Sales from music subscription services grew 51.3 percent in 2013, exceeding $1 billion for the first time and “growing consistently across all major markets,” it said. The “subscription model” is prompting more consumers to shift “from pirate services to a licensed music environment that pays artists and rights holders,” it said. Globally, about 28 million consumers became “paying subscribers” to subscription services in 2013, vs. only 8 million in 2010, it said. Sales from ad-supported streaming services such as Vevo and YouTube are also growing, rising 17.6 percent in 2013, IFPI said. “Music video revenues in particular increased as the industry extended the monetisation of YouTube to more than 50 countries, adding 13 territories in 2013,” it said. “Vevo has performed strongly, hitting 5.5 billion monthly views in December 2013, a 46 per cent year-on-year increase, and attracting 243 million unique viewers worldwide.”
Consumers expect the same TV user experience throughout their home, regardless of the platform delivering the content and regardless of the receiving device, including set-top box or connected consumer electronics device, said Parks Associates researchers. Set-top box middleware also must accommodate the interoperation and virtualization of features among customer premises equipment devices, “which will add substantially to the software’s complexity,” Parks said in a Monday news release (http://bit.ly/1iWF6cW). Many operators believe the video services business has fundamentally changed, “and full IP distribution of content is the next evolutionary step for the pay-TV industry,” it said. The analysis is based on interviews and past consumer surveys conducted by Parks, which includes industry expertise using comparative data on HDTV and 3D TV adoption, a spokeswoman said.
LIN Media reached a retransmission consent agreement with Cox Communications. “Programming will remain on the Cox lineup in all impacted markets with no interruption in service to Cox customers,” said the cable operator in a news release Friday (http://bit.ly/OoW8Hu).
Sinclair continued to urge the FCC to reject Buckeye Cablevision’s complaint that the broadcaster didn’t demonstrate good faith in retransmission consent negotiations with the cable company. Sinclair is willing to continue to negotiate “if Buckeye would provide a realistic offer, that does not involve a failing station, and not continue to basically make the same below-market offer repeatedly,” Sinclair said in a filing posted Friday to docket 14-33 (http://bit.ly/1fF5LMs). Last month, the companies hit an impasse on carriage of WNWO-TV Toledo, Ohio (CD Feb 21 p20). The FCC shouldn’t impose sanctions on Sinclair, said that company now. “It would be both inappropriate and without legal foundation for the FCC to bail Buckeye out."
The Copyright Office will accept comments until April 14 on issues raised during its two roundtables this week, particularly on legislative solutions for orphan works and mass digitization, said a Wednesday release. Comments can be submitted electronically using the form at www.copyright.gov/orphan.
Charter Communications customers subscribing to the Showtime network can access Showtime programming anywhere. Through Showtime Anytime, subscribers will have free, unlimited on-demand access to hundreds of hours of Showtime programming, and the live broadcast of both the East and West Coast feeds of Showtime, on any computer, tablet, phone and Roku streaming players, Charter said in a news release Thursday (http://bit.ly/P5czct). Customers can sign in with their Charter username and password at www.ShowtimeAnytime.com, it said. The same Showtime programming available on Showtime Anytime “will be available to Charter customers on the Charter TV Application and Charter.net in the near future,” said the cable operator.
A media stock analyst thinks the U.S. Solicitor General got it wrong on Aereo, when the solicitor general told the Supreme Court Monday (CD March 5 p9) that the service is illegal while Cablevision’s remote-storage DVR (RS-DVR) isn’t. It’s “impossible” to reconcile that, wrote Richard Greenfield of BTIG Research in a note to investors Wednesday. “Nothing happens in the Aereo system unless the consumer using the system activates it and tells the system to record and stream the content to them -- as in Cablevision, the copies are clearly made by the consumer.” Excluding the issue of whether Aereo controls the antennas getting the broadcast-TV signal and then streaming it on the service, “from the capture/storage/streaming aspect, the functioning of Cablevision’s RS-DVR, Google Drive and Aereo are indistinguishable,” wrote Greenfield. “We have no doubt Aereo is illegal if Cablevision is overturned, however, if Cablevision’s RS-DVR is legal and online cloud storage services built on the Cablevision RS-DVR are legal, then the storage/streaming aspects of Aereo must be legal.” The 2nd U.S. Circuit Court of Appeals in Cablevision ruled that that RS-DVR service is legal.
The Supreme Court denied a motion from FilmOn to let it intervene in the court’s proceeding on its competitor Aereo, said court documents. FilmOn CEO Alki David had told us he wanted to have its case heard alongside Aereo’s because the court’s decision is likely to affect FilmOn’s business as well as Aereo, even though FilmOn has a different position on copyright. Justice Samuel Alito “took no part in the consideration or decision of this motion,” said the court order. Alito similarly recused himself from the decision to grant cert to Aereo. The court’s decision not to allow FilmOn to intervene “doesn’t hurt us at all!” David said in an email. “We wish Aereo well.” FilmOn will file an amicus brief in the Aereo case, he said.