Locast vs. the Media Giants

Locast a nonprofit startup service that launched in 2018 which grabs over-the-air channels and streams them free over the internet said late Thursday that the ABC, CBS, Fox and NBC's "sham litigation" against it, is an antitrust conspiracy to drive it out of business and they are colluding to deny consumers over-the-air signals they once committed to make freely available. 

The suit was the first attack against a company that many see as a successor to Aereo (see past stories), a for-profit streaming service that five years ago offered consumers livestreams of broadcast channels for a monthly subscription. The difference between the cases is Locast's nonprofit status. US copyright law has allowed certain nonprofit institutions to grab over-the-air TV signals and retransmit them to nonpaying viewers, such as a university setting up an antenna that can retransmit to students in its dorms.

Locast's first official answer to the copyright suit goes beyond simply rejecting the companies' accusations of copyright infringement to accuse them of collusion and it's bringing Google's YouTube into the fight. Locast stated that executives at YouTubeTV a paid service that streams live TV channels, met with the Big Four broadcasters suing Locast in April. According to Locast, the YouTube executives were told that if YouTubeTV provided access to Locast, then YouTubeTV would be "punished" by the media giants when YouTube renegotiated the licensing deals allowing its streaming service to carry media giants' cable networks.

In full disclosure, although Locast relies on donations from viewers, it accepts money from corporations and recently received $500,000 from AT&T, which also operates the DirecTV satellite service. When a fee dispute blacked out CBS for more than 6.5 million AT&T television subscribers for a few weeks this summer, AT&T encouraged its users to try Locast.

No doubt this story will continue for some time and we look forward to seeing how it ultimately plays out. More:  The Hollywood Reporter 09/26/19 - Locast Accuses the Major Broadcasters of Antitrust Violations and The New York Times 09/27/19 - Locast, a Free Streaming Service, Sues ABC, CBS, NBC and Fox

Dish Unveils Sling TV Internet Pay-TV Service

The OTT video landscape changed significantly this week when DISH finally unveiled their long talked about OTT offer, Sling TV. The new service targets cord cutters and cord neverers with a new video product that is helping shape a rapidly changing video business marketplace. It’s interesting that this new twist on TV is coming from a traditional pay-TV operator which appears to be the first to be breaking from the standard industry bundling status quo. Sling TV's lineup will include ESPN and ESPN 2, but it doesn’t include any broadcast networks. They will feature networks from Disney/ESPN, Turner Broadcasting and Scripps Networks Interactive. The stripped-down bundle is targeted at price-sensitive and Internet-savvy millennials who don’t currently subscribe to a pay-TV service. MORE: Telecompetitor.com 01/06/15 - DISH OTT Offer, Sling TV, Uses Sports for Cord Cutter Bait and GIGIOM 01/05/15 - Dish’s new Sling TV service liberates ESPN from the cable bundle

Amazon Launches Fire TV Stick

In the growing competitive field of Streaming Sticks, Amazon introduced the Fire TV Stick today. Designed to take on challengers like the Roku Streaming sticks and Chromecast dongle, Amazon’s HDMI-based media adapter represents a smaller, less expensive complement to their $99 Fire TV box. The new smaller and even more affordable device sells for $39 and features access to Netflix, Prime Instant Video, Hulu Plus, Twitch, WatchESPN and a variety of other services right out of the box.  Jeff Bezos, Amazon.com founder and CEO, said in announcing the new product, “The team has packed an unbelievable amount of power and selection into an incredible price point.”

The company said the Fire TV Stick has 50 percent more processing power and 2x the memory of Chromecast, and 6x the processing power, 2x the memory, and 32x the storage of Roku Streaming Stick It supporting standards like DIAL allowing users to fling shows from services like YouTube, Spotify, and Netflix (coming soon) from an Android phone or iPhone. They began to take pre-orders today and will start shipping the new product on 19th of November.

Overall the specs look good and based on Amazon great success with the Fire TV Box, which launched a little more than six months ago and quickly became the best-selling streaming media box on the e-retailer, the Fire TV Stick might be the first product that will be a serious challenger to Chromecast in terms of both features and value. Obviously Mr. Bezos believes he has a winner, the rest of us will have to wait and see how it performs in the real world to be sure. More: TechCrunch.com 10/27/14 - Amazon’s New Fire TV Stick Is A $39 Chromecast Competitor With A Hardware Remote and Variety.com 10/27/14 - Amazon Whips Out TV Stick Against Google’s Chromecast and Roku and/or Twice.com 10/27/14 - Amazon Unveils Fire TV Stick

TV Everywhere Growth Surges 388%

Television is changing and viewers are embracing and personalizing it as they're consumption habits morph. According to Adobe's bi-annual Video Benchmark Report, authenticated TV Everywhere viewing surged 388% in the second quarter compared to the same quarter last year. Indicating that more people watched more TV online than ever before while programmers witnessed broader use as unique monthly viewers increased by 146 per cent across browsers and TV apps. Although online TV consumption still remains fragmented across platforms, gaming consoles and OTT devices gained the largest percentage of market share and Android apps surpassed desktop browsers as access points for watching TV online.

The findings from Adobe’s Report are based on aggregated and anonymous data from more than 1,300 media and entertainment properties using Adobe Marketing Cloud and Adobe Primetime. They noted that a series of major global sports events buoyed results, including the Sochi Winter Olympics, March's NCAA Men's Basketball Tournament and the summer's World Cup. The report includes 165 billion total online video starts and 1.53 billion TV Everywhere authentications across 250 pay-TV service providers covering 99 per cent of pay-TV households in the US. The analysis also examined TV Everywhere content from 105 TV channels and more than 300 TV apps and sites. More: 10/21/14 FierceCable.com - TV Everywhere use surges: authenticated viewing jumped 388% in Q2, Adobe says  Also MediaPost.com 10/21/14 - Devices And OTT Lead Video Consumption Growth

OTT gains on traditional TV particularly among Millennials.

Late yesterday, measurement specialist comScore, issued a research paper titled "The U.S. Total Video Report" that looks at shifting TV viewing habits in the digital age. There's little doubt that American's viewing patterns are quickly changing, and our youth are leading the way.  The study – The U.S. Total Video Report, which tabulated results from 1,159 respondents in August – found that Millennials (adults 18 -34), watch original TV shows on digital platforms one-third of the time. ComScore notes that the older the viewer, the more likely to watch on a TV set. In other bad news for TV broadcasters, comScore found that 1 in 6 millennials hadn't watched an original series on a TV set in the past month. Instead, they're getting their video from set-top boxes such as Roku and Apple TV, and game consoles.

Unsurprisingly, Millennials are also more likely to be cord-nevers or cord-cutters and they are more likely to time-shift their viewing: 46 percent of them time-shift shows, while only 35 percent of those 35 to 54 do so.  Among other findings, consumers who subscribe to paid digital video services are more likely to binge-view TV shows over a monthly period – 87% vs. 69%. TV via the DVR (43%) is the preferred binge-viewing platform, followed by the TV via VOD (19%); Internet connected TV devices (12%); live TV – a category that includes reruns or marathons from MVPDs – (11%); tablets (4%), desktops/laptops (3%); and smartphones (2%).

While comScore's results are interesting, their methodology  and approach called Total Video to track unduplicated audience metrics across platforms has some flaws. ComScore surveyed 1,159 viewers with an online questionnaire, so those surveyed are all active internet users. The report is available for free download (registration required). MORE: TechCrunch 10/14/14 - Netflix Leads In U.S. Digital Video Subscriptions In Home And Among Millennials by Ingrid Lunden

Is the FCC Redefining Television

The Federal Communications Commission is preparing a proposal which could help the fledgling OTT industry by treating certain online video services like cable and satellite TV providers. The move would help the online services gain cheaper access to major network programming and could allow them to become stronger competitors to the dominant pay-TV providers like Comcast.  Gaining rights to popular channels has been a major hurdle for online TV services. Sony Corp. and Dish Network (as previously reported here) are among the companies considering Web-based services to compete with traditional cable and satellite operators. The big issue and cause for some OTT failures like Intel’s exit from its “OnCue” service, is in securing highly coveted programming from ESPN, NBCU, AMC and others is that the networks typically are owned/controlled by the larger MVPD’s (Comcast, Time Warner, Cablevision).

FCC Chairman Tom Wheeler was asked about the matter yesterday and stated that a proposal is circulating among commissioners “is probably a bit of an overstatement.” Nonetheless the industry analysts are buzzing. “This is a very big deal,” said Richard Greenfield, an analyst for BTIG. “It could pose very significant challenges to the traditional cable TV bundle.” Paul Gallant, with Guggenheim Securities, said in a note today, that broadcasters such as CBS Corp. and 21st Century Fox Inc. would potentially benefit from having more buyers for their programming.

According to an unknown source by Bloomberg, the change would affect online video providers that offer a cable-like programming service on a schedule, and not on-demand services like Netflix, which allows subscribers to watch videos whenever they want. But it could revive the controversial online video service Aereo, which allowed subscribers to watch broadcast TV channels on their computers and Internet connected-TVs.

 

Although for now this may just be chalked up as a rumor, it is one that would have a broad impact on the business as it is today, a  move which could significantly broaden competition in the MVPD market. More: FierceCable 09/30/14 - Rumor mill:Aereo-like platforms may be given program licensing rights by FCC and/or Variety.com09/29/14 - FCC Wants Some Online Providers to be Treated as Cable Operators

Sony Goes Over the Top with Viacom Deal

Sony, like Dish Network and others that we've reported on recently, is developing a broadband-fed services and they took a step closer to reality yesterday as they announced that they had completed a distribution deal that covers 22 Viacom cable channels at launch, as well as access the Viacom's full on-demand package.  In addition to popular services, including BET, Comedy Central, MTV and Nickelodeon, Sony will be able to offer customers access to Viacom’s TV Everywhere websites and apps as well as its full VOD package.  The company first announced its plans to offer pay TV channels over the Internet by the end of this year, and this is a big step in delivering on that promise.  More: Bloomberg.com 09/10/14 - Sony Recruits 22 ViacomNetworks for Internet TV

Aereo Disrupts NFL's TV Business Model with a favorable Supreme Court Decision

Aereo, the Barry Diller backed company that I've written about in numerous posts on SMM is certainly a hot topic these days.  Since it launched, it has been embroiled in legal battles which have pushed their way through the court system where as early as today the Supreme Court could issue a ruling in the dispute between the broadcast networks and the startup streaming service. Although it more than likely will be some time before the courts ruling may actually come down, the media is a "buzz" about the topic. Yesterday, the Washington Post published an article that claimed that, if Aereo wins, “the foundation of the NFL’s television business could crumble” because “a thriving Aereo could help fans bypass the broadcasters, devaluing their expensive contracts with the NFL.” In my opinion this claim is bias and full of false statements but I am not the final judge that will determine the faith of this industry disrupter. Truth be told, I honestly hope that Aereo if not some spin on it's technology will prevail however, I'm acutely aware of what a big stakes game this is.  

The Little Antenna that could
change the broadcasting industry

Read up on it at: The Washington Post - Cecilia Kang's 06/17/14 - How the Supreme Court’s ruling on Aereo could change how we watch football and also review a good contrasting perspective with Chris Morran' 06/18/14 piece on Consumerist - No, A Supreme Court Victory By Aereo Would Not Crush The NFL. I'll be interested to read your feedback as well as watch how this all plays out.

Apple TV, Roku _ Who's Winning the OTT War and what are we Watching

Among those who use streaming media players, Roku owners access new subscription video platforms more than Apple TV which becomes more interesting when you factor in that currently there are more Apple TV devices deployed. This new research was published and presented at this week's NAB show by Parks Associates where they profiled the different device owners streaming and content purchasing habits. Their findings showed that 86% of Roku owners use one or more subscription OTT service, versus only 77% of Apple TV owners. Additionally, 75% of Roku owners use Netflix, compared to 63% among the Apple TV crowd. As a point of difference, more Apple TV owners use Amazon Prime Instant Video – 40% versus 28% and Apple TV also has a clear lead in sales passing $1 billion last year. On a similar topic, the latest study from video delivery firm Qwilt shows that Amazon's Instant Video is the third largest video site (March 2014), behind Netflix (57.5 percent) and YouTube (16.9 percent). Although it's sitting at a modest 3%, Amazon is still beating out Hulu (2.8 percent). I expect to see this number rising  considerably, since this data was collected before the Fire TV set-top box hit the market last week. More: 04/09/14 Advanced Television - More Roku owners than Apple TV owners use OTT and 04/09/14 Multichannel News - Roku Tops Apple TV In OTT Usage: Study and Qwilt 04/04/14 - Amazon Rising – Amazon’s Streaming Video Surpasses Hulu and Apple

Roku gets Smart (TV)

Anthony Wood broke the news late Sunday prior to the CES show that Roku has decided to take another route to win the war for controlling your TV, soon Roku will be integrated into your new smartTV. Partnering with TCL and Hisense, the company plans to release the Roku TV later this year. This is a bold move from a company that has already positioned themselves as the leader in the OTT world. The field however is becoming crowded with existing and new entries all over at the 2014 CES show. This new strategy if carried out correctly could be the beginning of an entirely new era for connected TV's.
 MORE: Roku Blog - 01/05/14 Introducing Roku TV or WIRED - 01/06/14 Roku TV Is the First Smart TV Worth Using or

TiVo - To Roam or not to Roam

The DVR pioneers at TiVo are back with the recent launch of a new line of devices that promise closer integration of streaming services and personal recordings. Their cool new trick; out-of-home (OOH) streaming of both live and recorded shows, with the ability to download shows to to smartphones and tablets from anywhere. The company says that the new Roamio line combines the functionality of a DVR, Apple TV, Roku and Slingbox and even with all of those devices in a user’s entertainment centre; they still wouldn’t have access to everything a Roamio can do for them. It says that while doing what other cable set-top-boxes don’t do: combine all the best of linear TV with all the best over-the-top content, TV lovers now have the ability to roam free and both control and consume from out of the home through a mobile device. According to Colin Dixon, chief analyst and Founder of nScreenMedia, "The TiVo Roamio has reset the bar for what a DVR can do by making all that functionality and content available anywhere will allow users to get more value from the content they already pay for.” For now, the connectivity only works with iOS devices but the company has plans to roll out to Android sometime next year.

 

Now I'll admit that I've always have a soft spot in my heart for TiVo because truly, their early product was literally years ahead of it's time but now I must question.... is it enough to keep the company relevant? I guess only time will tell. As always, your thoughts and comments are welcome.

 

Netflix in Discussions for U.S. Cable Carriage

In an effort to continue to expand their subscriber base and to create a second revenue stream, Netflix is in talks with Comcast, Suddenlink Communications and several other cable operators about integrating its streaming video service with leased set-top boxes. Obviously U.S. MVPD's have taken notice of Netflix’s new arrangement with Virgin Media and, more recently, with Sweden’s Com Hem and are weighing out the potential future impact those deals may have state side.  At this point the company's mix of original series and large catalog of TV shows and movies, has essentially become a new premium subscription service that can do battle with HBO, Starz and Showtime. According to the Wall Street Journal, Netflix doesn’t have all the distribution rights it needs to offer its entire service on leased boxes in the U.S., at least not yet.

 

According to industry insiders, at this point in the game, Netflix would not gain much from a U.S. cable deal. The current distribution of cable STB's with IP capabilities, is very small and the overwhelming number of boxes deployed in the field today don’t speak IP (which at this point is critical to support a Netflix app). While cable operators are starting to deploy IP boxes, they will represent a fraction of the market for the near term future.

Technology aside the WSJ reports the biggest holdup between Netflix and U.S. cable companies is cable providers' fear of losing viewers of its own services and advertising. Currently they are 30 million Netflix subscribers in the U.S. alone and they will continue to access the service one way or another – via gaming consoles, retail TiVo boxes, Roku boxes and smart TVs – with or without cable’s help. In my opinion having Netflix on the set-top box would at least keep subscribers engaged with the cable video platform and prevent them toggling to a different video input and a different video device. MORE: MediaDailyNews - Netflix May Cut Deals with Cablers - 10/14/13 and Adweek - Is Netflix Looking for Cable Distribution Deals? by Sam Thielman 10/14/13

 

Amazon Plans OTT Set Top Box

Amazon is on track to release a video-streaming STB prior to the end of the year, according to the WSJ. The device code-named ‘Cinnamon’ is said to be similar to the Roku 3 or Apple TV players and is similarly styled as a platform to run applications and content from a variety of sources including the obvious choice, Amazon Prime. A set-top box would deepen Amazon’s reach into the living room, where it is currently dependent on other hardware makers to reach consumers watching video on TV sets. Providing a device of its own is a potentially crucial component to Amazon’s ambition of expanding beyond its core online marketplace business.

 

In recent weeks Amazon has approached a variety of app developers and cable TV providers seeking partnerships for the rollout of its set-top box. They have set a deadline of mid-October to submit apps for the device, said the Journal's sources. More: CNET 10/04/13 - Amazon recruits variety of apps for set-top box, report says and WSJ Online 10/03 - Amazon Readies Set-Top Box for Holidays

Online Video Viewing on the Rise

According to Nielsen’s 2013 OTT Video Analysis, released last week September, viewers are streaming video at a breakneck pace - up 38% year over year, largely direct by the rapid growth of tablets and smartphones.  The data also surfaced details that some 38% of Americans are users or subscribers to Netflix, 18% are Hulu users (including 6% who subscribe to Hulu Plus) and 13% are Amazon Prime Instant Video users. The report also found that 88% of Netflix customers and 70% of Hulu Plus customers are binge users who stream three or more episodes of the same TV series in one day. This new ability to watch multiple episodes or even entire seasons of certain programs in one sitting is shifting the way viewers consume content and demonstrating incredible binge appetites for programming available anytime and anywhere on services such as Hulu, Netflix and Amazon Prime. MORE: 09/18/13 Nielsen.com - "Binging" is the New Viewing for Over-The-Top Streamers

It's Official, Cord-Cutting is No longer a Myth

Leichtman Research Group released its latest analysis of the pay-TV industry today. What did their findings uncover?  Their review of the 13 largest multichannel video providers in the U.S., representing 94% of the market, lost a combined 345,000 net video subs in the second quarter. That compares to the 325,000 subs those providers lost in the second quarter of 2012 and 2011.

In a separate report published this month by IHS, they identified that Internet pay TV is leaving cable and satellite providers in the dust.  From April to June, Verizon Fios and AT&T each boasted a 300,000 increase in subscribers, while cable and satellite providers lost a combined 750,000 subscribers. The report credits the decline to consumers' opting exclusively for over-the-top devices or services such as Netflix to watch TV.  Snip-Snip.... More: MCN - 08/19/13 Major U.S. Pay TV Providers Lost 345,000 Subs in Q2

Intel's TV service is named OnCue

Hot scoop from Gigaom is out today. According to Janko Roettgers, Intel's forthcoming TV service, which is expected by the end of the year, will be called OnCue. Branding and advertising for the service will likely be handled by OMD, Roettgers adds. The patent applications also reveal a logo and a potential tagline: "TV has come to its senses." More: gigaom.com 07/12/13 - Scoop: Intel’s upcoming TV service is going to be called OnCue

Cable Spectrum Allocations - less video for more internet

I’ve spent a lot of my career in and around cable operations and it might come as surprise to you but there is not very much profit in the video side of their businesses anymore. The programmers have eaten it up with rising rates and bundling. The Broadcaster have received their share through retrains fee's and the spiraling cost of Sports content… let’s not even bother to start that discussion. So where are the profits? Well for the past 7-8 years it’s been from voice and data services.

So it’s become obvious to cable operators that internet access bandwidth increasingly is more valuable than video entertainment bandwidth.  That is reflected in the growing recognition that it is broadband access which is becoming the foundation service for cable operators, gradually replacing television revenues. Eventually, as linear TV is viewed less, the spectrum it now uses on cable and fiber will be reallocated to expanding data transmission.  Netflix and other streaming video services now are driving bandwidth consumption in the U.S. ISP business. Since at least 2011, real time entertainment content has represented at least 49 percent of peak hour traffic in North America.  Industry statistics reflect that by the end of last year, video had grown to represent as much as 75 percent of peak hour broadband traffic. With gradual attrition of video revenues, it will at some point make sense to allocate more cable bandwidth for Internet access, and less for linear TV.

This kind of evolution to the cable business is not new.  Operators in past decades had prioritized analog signal delivery over digital. As the need to support Internet access grew, operators gradually shifted to “more digital” in the mix, and finally to “all digital,” as doing so freed up additional bandwidth for use for Internet access. The future is yet to be determined but the signs are strong. MSO's have always fought with the "dumb pipe" label but now it is exactly that pipe that holds the keys to power over the consumer's household.

Amazon will soon enter your Living Room with their own OTT/STB

Online retail giant Amazon is developing a set-top box device that will stream video content from the web to your TVs, according to Bloomberg Businessweek. The STB device, which is due later this year, will provide access to Amazon’s expanding video services, which include Amazon Prime Instant Video, a service which provides access to more than 37,000 feature films and TV episodes for free. Users will also be able to buy/rent film and TV titles via Amazon Instant Video. Much like other streaming devices from Boxee, Roku and Apple, Amazon's box will also offer access to video services like Netflix and Hulu Plus, though Amazon's video offering will likely be heavily integrated into the device.
 
Some could say that Amazon is late to the OTT game, but the reasons for doing a set-top box are obvious, with its original content being the most popular on the platform since it launched. As Amazon finds its way to more niche shows that it can present exclusively, the reasons to grab an Amazon-branded device for your TV makes more sense. In the same way that Apple leverages each of its devices to sell new ones, Amazon is learning how it’s done. Jeff Bezos leads his company by taking smart, calculated steps all the while capitalizing on mistakes made by others. Kindle-TV anyone?

Primary Growth drivers for OTT - Amazon, Hulu & Netflix

The over-the-top video market grew 60% last year to pass US$8 billion, driven by companies like Netflix, Hulu, Apple, and Amazon, according to new figures by ABI Research. The research found that the three largest markets – North America, Europe, and Asia-Pacific – experienced year-on-year growth in excess of 50% in 2012.  ABI predicted that as mobile devices like tablets and other connected devices continue to spread, the market will pass US$20 billion by 2015.  “The shift to digital and OTT distribution is accelerating, particularly as content providers increasingly warm up to these channels,” said ABI senior analyst Michael Inouye.  Subscription Video On Demand (SVOD) services, like Netflix, will continue to dominate the OTT business. But newer business/consumer models will also gain ground. In 2012, ABI says 58% of OTT video revenue came from subscription services. It estimates that subscription's share of the business will drop to less than 32% in five years.

Aereo Continues to Push Forward

Barry Diller's streaming video service Aereo continues to win its courtroom victories. Last year, a federal judge in New York rejected TV networks' request to prohibit the service from launching its new video-on-demand offering. Today the Second Circuit Court of Appeals has declined to issue an injunction that would have shut down Aereo, the streaming service that delivers broadcast signals to customers willing to pay $8 a month. Meanwhile, according to the Wall Street Journal, the company is bolstering its programming with ATnT, which is talking about packaging high speed Internet service with Aereo’s programming and Dish Network is looking at ways to use Aereo as a way of offering low-cost programing packages to its customers.

“Today’s decision from the Second Circuit Court of Appeals again validates that Aereo’s technology falls squarely within the law and that’s a great thing for consumers who want more choice and flexibility in how, when and where they can watch television,” said Chet Kanojia, Aereo CEO and Founder. “The ruling to uphold Judge Nathan’s decision sends a powerful message that consumer access to free-to-air broadcast television is still meaningful in this country and that the promise and commitment made by the broadcasters to program in the public interest in exchange for the public’s spectrum, remains an important part of our American fabric.”

Broadcasters have argued Aereo violates copyright rules by streaming over-the-air signals to customers so the court decision is a major set-back. Moreover, other pay TV distributors could be prompted to create similar services to avoid paying broadcasters retransmission consent fees. In the U.S. almost $2 billion dollars were paid by TV distributors last year for broadcast programming, up 33% over the prior year according to SNL Kagan. More: Deadline 04/01 - Aereo Exploring Alliances With Pay TV Distributors: WSJ  Also See: SMM Post from 1/13/13 – Aereo: An Industry Disrupter!

UPDATE 04/03/13 - In a surprising move given ongoing legal challenges between the respective services, FilmOn.TV founder and CEO Alki David – the billionaire media entrepreneur – has congratulated the legal team at Internet TV streaming service Aereo on what he describes as its “hugely significant” win in court against the Major Networks… More: AdvancedTelevision 4/03 - FilmOn welcomes Aereo ruling