Another Key Supreme Court Hearing

Grokster and web-based digital file sharing was yesterday and the "Brand X" case joins it in decisions that will substantially impact the media business. "Brand X" involves the regulatory determination of cable modems as an "information" or "telecommunications' service. The key issue: as an information service, modems are freed of many regulations requiring third-party access which apply if rules to be a telecommunications service.

For cable companies which have invested billions in capital and marketing expenses to push modems and broadband access as part of their offer to subscribers, this decision will decide if they have to allow access to third-party internet access providers at regulated costs. Cable wants to deny such access if it chooses to and this case will decide (unless, of course, it sends the case back to lower courts for further fact finding and deliberation) how modems are classified under applicable law.

Malone Supports Possible Cablevision Move for Adelphia

In a busy day for Dr, Malone, the new Cablevision Board member voices support for a speculated move by Cablevision to join LBO star KKR in its bid for Adelphia...while many on Wall Street have contrary opinions and doubt Cabelvision's financial ability to sustain the many deals on its plate (resolving Voom father-son battle, bidding for Manhattan real estate to counter new Jets stadium), Malone sees value in Cablevision adding subs if it can, even if not in direct NY area cluster...

The joint venture between Time Warner and Comcast for Adelphia still leads, but a Cablevision move might make a difference. But with Cablevision experiencing the contest between the Dolans, this doesn't feel like a move Cablevision can handle right now.

Malone: Making the Fox Nervous and Edgy

John Malone says he's not really interested in a spin-off of NewsCorp assets in exchange for his increased stock holdings because he doesn't think that NewsCorp (and, of course, Rupert) has any intent to offer any asset of appeal or desire to Malone and Liberty...Malone says he will stick (and may even increase) his current position in NewsCorp which does not make Rupert happy and may yet result in a deal that only John Malone can see at present...tax advantaged deals always being the key..

Cuban Lights Up Grokster Defense Costs

Billionaire HDTV and Dallas Maverick owner, Mark Cuban, states he will fund the defense costs for media file-swapping company, Grokster, as its case is set for Supreme Court decision. The copyright infringement liability of companies offering file-swapping services may be a key to a number of new media and broadband services allowing downloading and potential sharing of full-length video programs.

After watching the music industry be fundamentally challenged and changed by file-swapping and downloading, the film and television industry has been very aggressive in going after companies that allow online digital file swapping, seeking to maintain the value of copyrighted product and limit piracy. The stakes are high for everyone concerned

New FCC Commissioner Is Hot-- After Indecency

The First Amendment and changing social choices are more difficult for some Americans than others to live with and accept. hen the difficulty arises in those charged with either passing or administering laws related to content, then all of us need to become wary and involved. FCC Commissioner Martin, and Congressional folks like Senator Stevens, seek to impose greater restrictions on broadcast, and cablecast, programming.

If America didn't want to watch, they wouldn't. Assuming otherwise is a condescension to Americans and an elitist view of taste and propriety. In the land of the free, it s a brave thing to support the First Amendment and real individual choice.

Ads Made Just For You

The technology that allows ads to be targeted for specific regions and consumers is here. The questions remain as to how cable operators and ad agencies can work together to really make this happen, but it is one key way that advertising can adapt to a market where more and more channels appear and fewer but more specific demographic audiences watch; not to mention the concerns over ad-skipping from DVR and TiVO services.

Having one ad produced in several versions for distribution to different geographic areas offers advertisers a means to better market a product or service to differentiated but desired viewer groups. In time expect to see more of this and check with your friends in idfferent parts of the country and compare notes on how each of you were sold.

How Your Kids Spend Their Day

In case you weren't sure, this study inidcates how much time is spent online, playing videogames and watching tv. While none of this may surprise you, reading newspapers and doing homework actually make the list. Everything in moderation.

"Brand X" Case: Sounds Technical But It is Important

The Supreme Court case on what access rights third parties should have to cable modems is one of those rulings that will have significant impact on cable companies, independent internet service providers and you, the web user.

Access has been a core issue for cable and telecommunications from the beginning: when ATT ruled as a de facto monopoly, when cable companies had to attach their wires to telephone poles, when the ATT break up resulted in dominant regional telcos, when independent telephone companies needed connections to switches owned by the ATT progeny, and now, access to cable modems and their broadband capacity.

The scope of regulated companies rights to control its property needs to be measured against the desire to have actual competition in communications and telecommunications services. When established companies have spent billions to create a telecommunications infrastructure, their interest in reaping the rewards of that investment is legitimate. Yet, access to information has become an essential personal and business interest and having as free a choice as possible for selecting search engines and other web services is also legitimate.

This is one case to follow.

Mobile Phones: Much More Than Voice

This study shows how the use of mobile phones for video, gaming and downloadaing many things other than voice is a growing market, especially among younger demos. The opportunities for content owners are quite exciting, especially for new content owners trying to find carriage and space in the traditional tv marketplace.

If marketed right, video clips and games can provide new revenue and promotional sources and jump-start new content businesses.

Let Your Fingers Do The Walking Online

Another sign of how online shopping has grown..now more folks use online than traditional Yellow Pages and newspapers to find shopping sources.

AOL Making More Content Changes

AOL trying to attract more mass online users while retaining sufficient differences and attractions for subscribers. In a web market that has become far more open, accessible and content competitive than in AOL's formative years, this is the path AOL needs to pursue if it is to retain value and draw advertising.

Focus on Discovery: Approaching IPO Time?

Related to the stories about Liberty Media restructuring and the general look in media companies at refocusing their business lines, this article explores the possibilities for Discovery Commmunicatiosn becoming a public company. With established brands and strong management, a public Discovery may be an acquirer of current cable nets like HGTV, Food and Court TV that fit the Discovery non-fiction dominance.

Media Giants: Time to Downsize

Good look at the marketplace forced moving more media comglomerates to consider redefining and refining their assets and focus and play to their strengths. In the kind of cyclical shifts seen before, the Macro and "synergistic" benefits of size and integration do not show during varying market dynamics impacting different media divisions.

Focusing on Viacom, NewsCorp, Liberty Media and Comcast, the article walks through the current problems and pressures and the ways each company has responded.

Malone Goal: Selling Liberty's US Assets?

The media dealings and structure of John Malone remain as complex and dizzying as ever...always playing three dimensional chess with corporate moves at least several steps ahead of most everyone, it looks as if Malone may be trying to gather Liberty Media's domestic assets (programming interests like Discovery and production/facilities assets like Ascent Media) into a structure that can be more readily bought by an interested media giant--perhaps News Corp in exchange for Malone's increased shares in Rupert Murdoch's company.

Comcast Recognizes Asian-American Demographic Strength

Comcast has seen the value in the Asian-American demo and Asian themed programming by deciding to cahnge multi-ethnic International Channel to all Asian "AZN".

Over the last 18 months while working with Asian-American start-ups, I learned about the diffusion of Asian culture and themes through American, and global, culture, including food, martial arts, design, fashion and music. Asian-Americans represent a high-income, new tech adoption and fast growing demographic.

When Comcast recognizes that dynamic and decides to go after it, its as good a confirmation in this business as you can find.

Wall Street on MTVN's Future Growth

More financial thinking on Viacom, its plans to spit into two companies and if the stable of MYV Networks have matured and so will see smaller growth levels or whether the brands can find new areas of growth that can match the past. Several key media analysts see naturally slower growth while MTV execs see robust days ahead.

Much of this depends upon new programs that can catch fire. Brands as established as MTV and Nickelodeon do find it harder to match early year growth and as competitors find their voice it gets even harder. But that's the fun of managing these companies.

Jobs & Apple Go After Websites

Steve Jobs founder and current chief of Apple is suing websites that discusses Apple products and plans. Stating that he's concerned about the leaking of proprietary info and plans, the courts will have to determine the limits of new media journalism and trade secret protection. A story that shows that even in technology, the children can eat the parents of the revolution. With companies going after employees who talk about work problems online, the courts will increasingly become the decision makers as to the boundaries of broadband free speech.

Challenges of Launching New Independent Channel--SiTV

SiTV founder celebrates hard won one year anniversary of launch. Acknowledging the realities of the difficulties, and that many of the warnings of failure come from established and dominant media companies, SiTV shows that if you know the market you are trying to reach and you have the passion in your belief, those are two key foundations for success. While convincing investors and distributors that your idea is sound enough to merit money and bandwidth is not for the faint of heart, the market needs new voices that truly are new and can add to the program chorus. If we come to a time when only media giants can launch a new channel, content creativity and diversity will diminish and another piece of the American dream is placed disappears.

Use of DVRs and Cable Viewing Up

The findings in a study by Horowitz Associates shows that use of DVRs is increasing. Not surprising but the key question remains: how many are skipping commercials and how often. Anecdotal experience indicates that many people do skip through in spite of some studies that try and offer support to advertisers and the standard tv business model. Maybe the means to measure this will be established, but content owners and distributors need to work together to figure out how tv economics will work as more individuals watch tv on their own schedules and may decide which commercial spots are worth their time.

Comcast Seeks to Secure its Tech Future

With the deals to invest in Motorola set-top boxes, in GemStar and its interactive program guides, in Liberate Technologies and its interactive tv services and in TiVO, Comcast is determined to stay ahead of the tech curve regarding interactive and DVR developments. Competition against DBS and telcos will require a technological edge that meets the needs of increasingly tech sophisticated consumers that wants to program their own tv schedules and be active interactive participants with entertainment and info.

NBC Uses Website to premier "The Office"

In another example of how reaching out to the web/broadband community is becoming an important marketing/promotional tool, NBS uses MySpace.com to webcast a segment of "The Office" in advance of its broadcast premier...hoping to generate buzz around the new media water cooler, I expect to see more of this traditional/new media venture especially to reach younger demographics...

Strength of Specialty Programming on VOD

Comcast VOD chief speaks to growing popularity of certain VOD product...as Comcast is both the biggest MSO and biggest advocate of VOD, the focus on thematic programs like dating, fitness and other niche product indicates how Comcast is thinking when new program ideas are presented....when the giant speaks, its good for programmers to listen because the direction and clues of intent and negotiating push...the economics for programmers still need to be there to support distinct program production and that issue remains the main point of contention...if Comcast is still averse to paying license fees, even for VOD only programming, then advertising splis and efforts need to be a key deal point...

Sumner Wants To Split the Difference

Maybe because he can't decide which co-president to choose or maybe because the company's valuation is suppressed because of the mix of assets, but Sumner and Viacom's Board are considering splitting the company in tow, with one headed by Les Moonves and containing broadcast and outdoor ad businesses and the other headed by Tom Freston and containing the MTV Nets and Paramount properties. Apparently many key execs are unhappy with their stock options remaining underwater; not a reason for a fundamental corporate re-org, but I don't own any of the options.

Many on Wall Street are skeptical. I'm sure the employees are pondering their possible futures.

Bush Picks Martin as FCC Chairman

Bush has reportedly chosen FCC Commish Kevin Martin to replace Michael Powell as FCC Chairman. This can be seen as a potential boost to broadcaster issues and positions because Martin has generally supported the broadcasting industry positions on issues like digital multicast must-carry and may well be a champion of their positions in the more influential role as Chairman. Of course, as a Commissioner, taking positions is very different from having to lead the agency and forge majority (if not unanimous) votes on a range of complex policy and regulatory questions. Next us is choosing another Republican to fill the third Republican commissioner slot.

ComcastSaves TiVO

Good news for TiVO from Comcast. TiVo appears to be saved by Comcast's deal whereby TiVO and Comcast's DVR will be married into a device offering a range of services including downloading video from the web and increased record/playback options. TiVO stock finally goes up. Some interesting questions arise regarding the downloads of video content and saving (copyright controls and related rights for web content) , but a focus on DVR and TiVO does speak to cable ops offering as much content as possible and hopefully allowing more new channels to find space.

Online Use and Time For Everything Else

Which study to believe? In the recent past, several have indicated that folks who spend more time online are doing so at the expense of tv and reading time. Intuitively it makes sense: you only have so many hours in a day as dictated by physics and natural law and with all you have/want to do in a given 24 hour period, sepdning more time on X tends to impact how much time you can spoend on Y and Z.

Yet, here's a new study that indicates an increase in time spent with other media if you are a dedicated online user. That is certainly possible; one medium giving you reason to explore another for additional info or views. But something is getting shorter time: have you checked on the kids or fed the dog lately?

Cable Wants Franchise Rules For Telcos

The question of applying cable franchise rules to telcos issue will only grow as telcos build out their video platform....the question will be raised again and again as cable will argue that without equal application (or elimination), telcos will have competitive advantage and may decide to redline communities that cable has to serve. While cable has tremendous in-place advatanages over telco regarding video offerings, the growth of DBS shows that cable remains vulnerable on service and price. As telco video offerings grow, franchise requirements will become more of a legitimate question that the FCC and Congress will have to answer.

Congress Continues Focus on "Indecency"

The public and political effort to place cable and satellite programming under traditional broadcast content regulations, particularly on issues of indecency, continue with House members racing ahead of Senators to introduce new legislation.

While questions over constitutional application of such regulations need to be answered, and those answers may well negates these current efforts, the programming community remains sensitive to perception and public spotlights.

Government Produced and Manipulated "News"

From the NY Times, a story on how far this White House has taken managed and produced pr and had it accepted and distributed as legit news....it is generally tough enough to judge the merits and accuracy of reporting from most sources and few readers/viewers take the time to check let alone even consider it...when the government intentionally becomes part of that manipulated mix to this extent, somehow the issue of Rather's liberal bias and Fox News's pro-government angle become less important..at least those angles have been recognized and discussed, but when the government becomes a "news" supplier, the First Amendment begins to enter Alice in Wonderland territory and that grining face you see may occupy an office at the White House

Newspapers Struggle With Onlines Success

The increasing readership on online versions of newspapers is impacting the circulation and readership--and so ad revenue-- of the paper versions. With most online versions being free, it is difficult to cahnge to a subscritpion model but newspaper publishers may feel compelled to lose some online readers and, perhaps, get them back to the paper versions. Of course, unless there is great loyalty to and interest in the newspaper's presentation of the news, online users may simply move onto other online news sources and so the newspaper loses on both ends.

Newspapers Struggle With Onlines Success

The increasing readership on online versions of newspapers is impacting the circulation and readership--and so ad revenue-- of the paper versions. With most online versions being free, it is difficult to cahnge to a subscritpion model but newspaper publishers may feel compelled to lose some online readers and, perhaps, get them back to the paper versions. Of course, unless there is great loyalty to and interest in the newspaper's presentation of the news, online users may simply move onto other online news sources and so the newspaper loses on both ends.

AMC and ABC News Team Up to Produce Docs

Interestaing venture between American Movie Classics and ABC news to produce docs with Hollywood/entertainment themes. AMC gets exclusive windows and it adds depth to its lineup.
Expect to see more of these kinds of partnerships with programmers, from cable and broadcast, teaming up to more effectively use resources and expertise.

AOL Moves Quickly into Webcasts

The rapid growth of webcasting, especially simulcasting of broadcast/cablecast shows, is shown by this story on the moves by AOL into the webcast market. While issues will likley remain regarding contractual limitations arising out of affiliate deals with cable operators and programmers regarding simulcast and webcast content, if the viewers of webcasts grow and can be quantified, the advertising and pomotional opportunities will become increasingly attractive and valuable. In time, exisiting simulcasts will be replaced by time-shifted webcasts and unique and special content created exclusively for the web. Such content may well be in connection with broadcast and cablecast shows that have name/brand recognition, but the web will be another source of video in competition with "traditional" media. Every content owner needs to plan for this market and get content ready to offer the broadband marketplace.

TW Hears Sweeter Music

A few years ago when Time Warner's fiances were under great stress from accounting and related problems arising out of the AOL merger, TW sold its Warner Music group to a private entity led by Edgar Bronfman, Jr. With its own finances stablized and the music business looking a bit more attractive, Time Warner indicates that it is looking to exercise an option it retained in the deal to buy back 15% of the Warner Music Group now that an IPO for the Group seems increasingly likely. When the sale was finalized, TW CEO Richard Parsons said the option was essentially "shmuck insurance" that gave TW the right to buy back into a business that might again see an upside. Smart move.

The Changing Face and Business of Broadcast News

The word "anchor" and "nightly news" once had great weight.....over the past 20 years. the growth of cable, and especially the internet, have reduced the mass audience and the news graitational mass of broadcast network news....

This story describes those changes and what broadcast news divisions and their corporate parents are trying to do to remain relevant and find some hook into younger demographics...

Courage...

AOL Moves into VoIP: Telephone Buddy Lists

With AOL getting ready to offer voice-over-internet services, take a look around your neighborhood and see how many digital phone service trucks are showing up from the cable company...the classic, assumed forever, monopoly of telephone companies has been transformed into as competitive a market as new technology can provide....you don't have to understand the technology, just know that it works and that it might be less costly...

Mobile Video: The Promise and The Hype

Some (legitmate) doubts raised as to how quickly mobile video over cell phones will be adopted..the technology is ready and content owners are beginning to sign-up and experiment with clips and short-form info/promos, but how this service will be accepted by the paying mobile public certainly does remain to be (literally) seen...

Video Challenge From Telcos

How the new moves by telcos into offering video is putting some early competitive heat on cable operators...while the last time telcos tried video it never really got off (or under) the ground and telcos withdrew, as cable begins to take market from traditional telephone users the phone companies are finally beginning to return the favor with video offerings...there's a long fiber road from the curb to the home, but with DBS taking away more basic subs the cable companies should be feeling a bit of heat...

Webisodes from "Blair Witch" Creator

Remember how "Blair Witch" used the web to create intense interest in the film before it opened?

The film's creator is creating new long-form and structuring it in the form of webisodes....for new and indie filmakers this may be the means to get their vision accessible. With broadband increasing in availability and use, and younger demos spwending more time online, this may be the way more films get their start...

SONY's Stringer Theory

The continuing new media holy grail of merging content and technology is the challenge for Howard Stringer a he takes over top spot at SONY...in truth, its always about content...

Delivering something of interest and value to a mobile/on-emand/broadband society remains the real challenge...even new adapters will experiment with almost anything but if the content doesn't inform or entertain, the technoilogy can't transform it simply by playing with bits and bytes and new ways....

Private Equity Hot for Cable

A good look at how cable ops are currently viewed as "hot" among private equity investors...also speaks to how regional clusters have become the driving force in MSO economics...It may be one of those circle games in cable...many early cable companies started as privately held companies and didn't look to the public markets for equity (and, of course, ownership) until pressed by needs for cash to buy and modernize....except for the likely sale of Adelphia, cable consolidation is mostly over and now its optimizing cash flow from offering newservices in exisiting and upgraded cable clusters....

American Luddites

Interesting look at the challenges of marketing new media and new technologies to that group of Americans that just won't "buy" into the digital/portable/broadband world...as odd as it may seem, not everyone feels they need to walk down the street with digital music, cell-phone/blackberry urgencies, and video clips. And, at home, some people may still pick up a book and feel OK with 15 channels to choose from.

Insight Going Private

As cable operators continues to see themselves as consistently undervalued by Wall Street, Insight, as Cox has recently done, decides that it can best "appreciate" its value by taking that judgement directly away from the public markets...its also possible that this may be an easier way for Comcast to buy its operating partner at some point down the road...

Wal-Mart and CMT--Let's Promote Together

The dominant retailer joins with the dominant country music network to promote music and related entertainment efforts of CMT...good example of how even an established network can create new marketing and promotional opportunities in a marketplace growing ever more crowded with new music content distribution technologies....

Sharing and Swapping: Online Music Flows

More companies look to Apple's I-Tunes as inspiration, and more court cases continue to offer some mixed signals and openings for transferring music files...the broadband/digital world is changing how content is distributed and produced and traditional business---and even legal--models are being remade everyday..

More Father-Son Cablevision Warfare

With new board members set by Chuck Dolan, the conflict with son, Jim, seems to be morphing and escalating...centering on the different choices over Voom, this battle may be the beginning of a long speculated sale of Cablevision by Chuck..a sale that Time Warner has looked at, and tried to make happen, for a long time...

Comcast Looks To 1 Billion VOD Streams

Comcast, even with its insistence on receiving free VOD content, continues to be the prime mover on growing the VOD market....at some point, as VOD becomes better known and received by subscribers, programmers should be able to convince Comcast and other MSOs that the most effective way to create more and unique VOD content is to find a business model (paying for content, ad-supported, sponsored) that works for all parties...

More on Retrans Consent Questions

The major cable ops are also pushing hard again on how retrans consent has been abused by major broadcast networks in forcing carriage of untested "sister" cable networks and so creating a disparity of launch opportunities for new and independent cable networks...the more that must-carry and retrans consent is looked at, the greater the chance that a truly fair and level playing field can be created for new programmers..

Retransmission Consent Rules Under More Attack

The ACA, repping small cable ops, is asking the FCC to change how retrans consent works by basically having hte rules let local market forces determine choice and pricing for carriage of broadcast signals. Rather than have a local station require carriage at the price that local station can get, the ACA wants its members to be allowed to bring in distant (non-local) signals and create competition for the broadcast carriage space.

This effort may not survive a counter-analysis on the importance of 'localism" but it shows how retrans consent is continung to be questioned in a number of areas...with digital multicast must-carry denied by the FCC, the entire broadcast-cable relationship is undergoing change...

Streaming Web News

Infinity plans to stream its owned and operated news stations on the web...more evidence that the web is becoming as key a source of news and info as any other medium...while there's no drive-time for the web, the folks who will be listening at home and in their offices should be factored in somehow...

Interactive Content--More Important, More Revnue

Programmers take notice--offering interactive offerings is becoming increasingly valued as an element of choice..especially true in some kind of gaming format...America likes to play..

Costs of Music Licensing Keeping Shows from DVD

Music use is one of the more complicated, and costly, elements of producing...and sometimes producers don't initially acquire all rights necessary to allow the program to be distributed across different markets and platforms...problem is, with DVD and VOD growing in popularity, trying to get all those rights later can be difficult and more costly...

Measuring VOD

The announcement by Cablevision of its intended use of a system that measures VOD use and programmer ratings is important for the industry..if VOD is going to become the source of distinct content it can be content owners and advertisers need to knwo what is working and who is watching....

More Ad Dollars Flowing to New Media

The advertiser recognition that new media and multiple platforms are for real continues...with more viewer/consumers spending time online, with on demand, self-scheduling their tv week, and even accessing info on cell phones, there is no mass media anymore but an aggregation of different portals into people's homes and interests...

Offering clusters of desired demographics is more valued than simple numbers....broadcast will certainly survive but its glory days of almost total dominance now are part of America's mythic "golden age"...

Congress Looks to Move on Cable "Indecency"

Though the constitutional basis for Congressional action are less clear than the "public airwaves" theory for regulating broadcast, the focus on content "indecency" continues with Senator Stevens, and now Congressman Barton, vowing to hold hearings, intoduce legislation and bring basic ad supported cable into broadcast's regulatory fold...

As an advocate of individuals (and parents) controlling their own viewing decisions, neither Free Specch nor creativity are served by government threat and oversight.