CBS and Time Warner Cable have been embroiled in a heated contractual battle over the past week that has resulted in viewers in some major markets losing access to CBS programming. When disputes like these go nuclear and signal blackouts occur, it is inevitable that some folks will call for policy interventions since nobody likes it when the content they love goes dark.
While some policy responses are warranted in this matter, policymakers should proceed with caution. Heated contractual negotiations are a normal part of any capitalist marketplace. We shouldn’t expect lawmakers to intervene to speed up negotiations or set content prices because that would disrupt the normal allocation of programming by placing a regulatory thumb too heavily on one side of the scale. This is why I am somewhat sympathetic to CBS in this fight. In an age when content creators struggle to protect their copyrighted content and get compensation for it, the last thing we need is government intervention that undermines the few distribution schemes that actually work well.
On the other hand, Time Warner Cable deserves sympathy here, too, since CBS currently enjoys some preexisting regulatory benefits. As I noted in this 2012 Forbes oped, “Toward a True Free Market in Television Programming,” many layers of red tape still encumber America’s video marketplace and prevent a truly free market in video programming from developing. The battle here revolves around the “retransmission consent” rules that were put in place as part of the Cable Act of 1992 and govern how video distributors carry signals from TV broadcasters, which includes CBS.
But those “retrans” rules are not the only part of the regulatory mess here. Continue reading →
Very cool little video here by Jess3 documenting Internet growth and activity. Ironically, Berin sent it to me as Adam Marcus and I were updating the lengthy list of Net & online media stats you’ll find down below. Many of the stats we were compiling are shown in the video. Enjoy!
1.73 billion Internet users worldwide as of Sept 2009; an 18% increase from the previous year.[1]
81.8 million .COM domain names at the end of 2009; 12.3 million .NET names & 7.8 million .ORG names.[2]
234 million websites as of Dec 2009; 47 million were added in 2009.[3] In 2006, Internet users in the United States viewed an average of 120.5 Web pages each day.[4]
There are roughly 26 million blogs on the Internet[5] and even back in 2007, there were over 1.5 million new blog posts every day (17 posts per second).[6]Continue reading →
At the “State of the Net” conference this morning, Alan Murray of The Wall Street Journal interviewed Brian Roberts, Chairman & CEO of Comcast. Here are some highlights. [You can follow all of my live Tweeting at: @AdamThierer]
Stresses synergies from combination of Comcast cable channels & NBC broadcast properties (ex: Golf Channel & NBC Sports)
Program access rules “should give fair amount of comfort” to critics who fear that content will be withheld
“Businesses have to transform & reinvent themselves all the time” NBC part of that transformation for Comcast
Internet is more friend than foe; broadband has transformed the business for the better
Businesses grappling w/ ways to extend traditional services to consumers in new ways & still make $$$ (ex: TV Everywhere)
Most of you have probably already seen this but Pingdom recently aggregated and posted some amazing stats about “Internet 2009 In Numbers.” Worth checking them all out, but here are some highlights:
1.73 billion Internet users worldwide as of Sept 2009; 18% increase in Internet users since previous year.
81.8 million .COM domain names at the end of 2009; 12.3 million .NET & 7.8 million .ORG
234 million websites as of Dec 2009; 47 million were added in 2009.
90 trillion emails sent on the Internet in 2009; 1.4 billion email users worldwide.
26 million blogs on the Internet.
27.3 million tweets on Twitter per day as of Nov 2009.
350 million people on Facebook; 50% of them log in every day; + 500,000 active Facebook applications.
4 billion photos hosted by Flickr as of Oct 2009; 2.5 billion photos uploaded each month to Facebook.
1 billion videos served by YouTube each day; 12.2 billion videos viewed per month; 924 million videos viewed per month on Hulu in the US as of Nov 2009; + the average Internet user in the US watches 182 online videos each month.
Three months ago, when the DC Circuit struck down the FCC’s “Cable Cap”—which prevented any one cable company from serving more than 30% of US households out of fear that he larger cable companies would use their “gatekeeper” power to restrict programming—the New York Times bemoaned the decision:
The problem with the cap is not that it is too onerous, but that it is not demanding enough.
Even with the cap — and satellite television — there is a disturbing lack of price competition. The cable companies have resisted letting customers choose, a la carte, the channels they actually watch….
[The FCC] needs to ensure that customers have an array of choices among cable providers, and that there is real competition on price and program offerings.
Perhaps the Times‘ editors should have consulted with the Lead Technology Writer of their excellent BITS blog. Nick Bilton might have told him the truth: “Cable Freedom Is a Click Away.” That’s the title of his excellent survey of devices and services (Hulu, Boxee, iTunes, Joost, YouTube, etc.) that allow users to get cable television programming without a cable subscription.
Nick explains that consumers can “cut the video cord” and still find much, if not all, their favorite cable programming—as well as the vast offerings of online video—without a hefty monthly subscription. (Adam recently described how Clicker.com is essentially TV guide for the increasing cornucopia of Internet video.) This makes the 1992 Cable Act’s requirement that the FCC impose a cable cap nothing more than the vestige of a bygone era of platform scarcity, predating not just the Internet, but also competing subscription services offered by satellite and telcos over fiber. That’s precisely what we argued in PFF’s amicus brief to the DC Circuit a year ago, and largely why the court ultimately struck down the cap.
Bilton notes that “this isn’t as easy as just plugging a computer into a monitor, sitting back and watching a movie. There’s definitely a slight learning curve.” But, as he describes, cutting the cord isn’t rocket science. If getting used to using a wireless mouse is the thing that most keeps consumers “enslaved” to the cable “gatekeepers” the FCC frets so much about, what’s the big deal? Does government really need to set aside the property and free speech rights of cable operators to run their own networks just because some people may not be as quick to dump cable as Bilton? Is the lag time between early adopters and mainstream really such a problem that we would risk maintaining outdated systems of architectural censorship (Chris Yoo’s brilliant term) that give government control over speech in countless subtle and indirect ways? Continue reading →
I’ve just released a new PFF white paper looking at the hysteria that has often accompanied major media mergers and then taking a look at the marketplace reality years after the fact. Here‘s the PDF, but I have also pasted the entire thing down below.
_____________________________
A Brief History of Media Merger Hysteria:
From AOL-Time Warner to Comcast-NBC
by Adam Thierer
Although the pending union of Comcast and NBC Universal has not yet made it to the altar, Chicken Little-esque wails about the marriage have already begun in earnest. For example, the pro-regulatory media organization Free Press has already set up a website to complain about the deal.[1] And Jeff Chester, executive director of the Center for Digital Democracy, has called it “an unholy marriage.”[2] The fever only promises to spread once the deal is formally announced, and a lengthy fight over the deal is expected at the Federal Communications Commission (FCC) and whichever antitrust agency reviews the deal.[3]
But reality tends to play out somewhat less dramatically than the script penned by the media worrywarts. It’s worth looking back at some of the more prominent examples of media merger hysteria in recent years to understand why such panic is unwarranted, and why a deal between Comcast and NBC Universal is unlikely to lead to the sort of problems that the pessimists suggest.[4]Continue reading →
The D.C. Circuit has struck down as arbitrary and capricious the FCC’s “cable cap.” The cap prevented a single cable operator from serving more than 30% of U.S. homes—precisely the same percentage limit struck down by the court in 2001. The court ruled that the FCC had failed to demonstrate that “allowing a cable operator to serve more than 30% of all cable subscribers would threaten to reduce either competition or diversity in programming.”
The court’s decision rested on the two critical charts (both generated by my PFF colleague Adam Thierer in his excellent Media Metrics special report) at the heart of the PFF amicus brief I wrote with our president, Ken Ferree:
First, the record is replete with evidence of ever increasing competition among video providers: Satellite and fiber optic video providers have entered the market and grown in market share since the Congress passed the 1992 Act, and particularly in recent years. Cable operators, therefore, no longer have the bottleneck power over programming that concerned the Congress in 1992.
Second, over the same period there has been a dramatic increase both in the number of cable networks and in the programming available to subscribers.
Our chart shows the explosion in the number of programmers (though not the total amount of programming), as well as the falling rate of affiliation between cable operators and programmers, which was among the prime factors motivating Congress when it authorized a cable cap in the 1992 Cable Act:
Sit down, kids, and let Grandpa tell you about something we used to call “watching television.”
Why, back when, we had to tune to something called a “channel” to see our favorite programs. And we couldn’t takethetelevisionset with us; we had togo seeit!
Ah, those were simpler times.
Oh, sure, we had some technology we thought was pretty fancy then, too, like your TiVo and your cable and your satellite, which gave us a few hundred “channels” of TV at a time. Imagine that — just a few hundred! And we had to pay for it every month! Isn’t the past quaint, children?
Well, it all started to change around aught-eight,or maybe ’09, for sure. That’s when you no longer needed a television to watch all the television you could ever want.
Yes, I still remember it like it was yesterday . . .
Too true. Anyway, Paul goes on to document how some folks have already completely made the jump to an online-online TV existence and are doing just fine, although the idea of us all gathering around the tube to share common experiences may be a causality of the migration to smaller screens, he notes.
Forensic experts are increasingly relying on DNA as “a genetic eyewitness,” says Jack Ballantyne, associate director for research at the National Center for Forensic Science at the University of Central Florida in Orlando, who is studying whether a DNA sample can reveal a person’s age. “We’d like to say if the DNA found on a bomb fragment comes from the young man who carried the bomb or from the wizened old mastermind who built it.”
The push to predict physical features from genetic material is known as DNA forensic phenotyping, and it’s already helped crack some difficult investigations. In 2004, police caught a Louisiana serial killer who eyewitnesses had suggested was white, but whose crime-scene DNA suggested — correctly — that he was black. Britain’s forensic service uses a similar “ethnic inference” test to trace murderers and rapists.
It goes almost without saying that the first impulse of many is to ban this evolving area of technology:
Worried about the ethical and social challenges, Germany doesn’t permit the forensic use of DNA to infer ethnicity or physical traits. Nor do a handful of U.S. states, including Indiana, Wyoming and Rhode Island. The U.K. and the Netherlands allow it.
The main downside I can see to the use of this technology in crime-fighting is that it would be disastrous for the genre of crime fiction. While it certainly sounds like something out of GATTACA (my favorite movie of all time), it would have killed the plot: The genetic-GESTAPO probably would have known that our genetically-defective hero Vincent Freeman (Ethan Hawke) was not in fact, the genetically-engineered-but-crippled superman Jerome Morrow (Jude Law) he claimed to be—and the whole plot would have gone up in smoke. How much fun would that have been?
Interestingly, it seems Hulu once made the entire film available online but no longer does so. Fie on them and their conspiracy to suppress the future! Damn it, Hulu, don’t you know that “There Is No Gene For The Human Spirit?”
This ongoing series has explored the increasing ability of consumers to “cut the cord” to traditional video distributors (cable, satellite, etc.) and instead receive a mix of “television” programming and other forms of video programming over the Internet. As I’ve argued, this change not only means lower monthly bills for those “early adopter” consumers who actually do “cut the cord”, but, in the coming years, a total revolution in the traditional system of content creation and distribution on which the FCC’s existing media regulatory regime is premised.
This revolution has two key parts:
Conduits: The growing inventory—and popularity—of sites such as Hulu, Amazon Unboxed and the XBox 360 Marketplace (or software such as Apple’s iTunes store), that allow users to view or download video content. Drawing an analogy to the FCC’s term “Multichannel Video Programming Distibutor” or MVPD (cable, direct broadcast satellite, telco fiber, etc.), I’ve dubbed these sites “Internet Video Programming Distributors” or IVPDs.
Interface: The hardware and software that allows users to display that content easily on a device of their choice, especially their home televisions.
While much of the conversation about “interface” has focused on special hardware that brings IVPD content to televisions through set-top boxes such as the Roku box or game consoles like the XBox 360, at least one company is making waves with a software solution. From the NYT:
Boxee bills its software as a simple way to access multiple Internet video and music sites, and to bring them to a large monitor or television that one might be watching from a sofa across the room.
Some of Boxee’s fans also think it is much more: a way to euthanize that costly $100-a-month cable or satellite connection.
“Boxee has allowed me to replace cable with no remorse,” said Jef Holbrook, a 27-year-old actor in Columbus, Ga., who recently downloaded the Boxee software to the $600 Mac Mini he has connected to his television. “Most people my age would like to just pay for the channels they want, but cable refuses to give us that option. Services like Boxee, that allow users choice, are the future of television.” ….
Boxee gives users a single interface to access all the photos, video and music on their hard drives, along with a wide range of television shows, movies and songs from sites like Hulu,Netflix, YouTube, CNN.com and CBS.com.
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology. Learn more about TLF →
CBS and Time Warner Cable have been embroiled in a heated contractual battle over the past week that has resulted in viewers in some major markets losing access to CBS programming. When disputes like these go nuclear and signal blackouts occur, it is inevitable that some folks will call for policy interventions since nobody likes it when the content they love goes dark.
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.