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OCTOBER 14, 2013
TWC & CBS Feud Plants Seeds for Change

Time Warner Chief Executive Officer Glenn Britt stated after the end of the month-long feud with CBS  that he was "encouraged by the 50+ consumer organizations and legislators that supported our call for Congress and the FCC to reassess the 1992 re-transmission consent rules. The rules are woefully out of date, are the primary reason cable bills are rising, and too frequently leave our customers without the programming they love.  We sincerely hope that policymakers heed that call and take action to prevent these unfortunate blackouts soon.” 

Although CBS received an increase in their re-transmission fees by using the upcoming NFL season as leverage, it's important to note that the feud itself was instrumental in "planting the seeds of change for re-transimiision consent [reforms] as noted by  Rich Greenfield, BTIG who also pointed out that 2013 was the first year in which there was a decline in U.S. pay television service.  He went on to say that, "It's hard not to be concerned that there's a growing population growing up not using." 

In fact, more and more Apps are being launched for full-episode streaming.  Take for instance the CBS App which includes full episodes of the primetime shows such as 2 Broke Girls, Big Bang Theory, NCIS, Person of Interest, The Good Wife, and Elementary.  The daytime and late night programming has been made available the day after air, and other primetime shows available eight days after initial broadcast.

Quoting Matt Strauss, Senior Vice President of General Manger, Video Services, Comcast Cable: "Offering more current season content On Demand can help lift a show's ratings by giving viewers an opportunity to catch-up ... It's a good formula for everyone - consumers, programmers and distributors." 

Indeed, this is the mind-set of cord cutters.  Watching what they want, when they want it, and where they want it; and they are willing to sacrifice certain shows in order to avoid contracts and packages which contain content of which they have little interest.

The ability to stream programming on demand is changing the way the content is being watched, and only time will tell in which direction it moves.    


Sources: 

Were Consumers the Biggest Loseer in the CBS-Time Warner Cable Dispute?

Comcast and CBS Increase Streampix and Xfinity on Demand Offerings







AUGUST 19, 2013
Roku Rated the most Popular Streaming Device

In recent news this week from the online PC Magazine, it has been noted that "Roku is the most  popular streaming video device in the U.S., trumping the Apple TV, according to new data from Parks Associates"

It is also predicted that by 2017 sales of connected TV devices will top 330 million.

Aside from Apple, Intel, and Google who are all said to be working on streaming devices and services, it was reported by The Wall Street Journal reported this week that Sony has entered into a preliminary agreement with Viacom Inc. to carry the company's cable channels on a Sony-based streaming TV service, and may have discussed with Time Warner Inc., Walt Disney Co., and CBS Corp to launch an online pay-TV product that would be first available on their PlayStation consoles and Bravia HDTVs, and later on smartphones and tablets.

The deal which has been reportedly struck suggests that the shows would be available at same-time air as cable or satellite customers, but unless Sony and others are able to turn the industry this direction, it's unlikely that a la carte channels will be available - which is one of the most important reasons consumers have cut the cord.

Meanwhile, the feud continues on between CBS, who wants Time Warner Cable to pay more for carrying its channels and how the CBS content is made available to other digital providers such as Netflix and Amazon.  For many sport fans, the big question remains whether or not a deal will be struck before the NFL season which begins on September 8th.  For the general subscribers of Time Warner, they no doubt are wondering when the CBS programs they are paying for will finally return.


Sources: 

CNN Money - Sony-Viacom deal won't make a la carte TV a reality

PC Magazine - Roku Trumps Apple TV as Most-Used Streaming Media Player

Tom's Guide - Tech for Real Life  Sony Closer to Launching Streaming TV Service

The Wall Street Journal - Sony nears deal with Viacom for new Internet TV Service




AUGUST 14, 2013
Time Warner Cable & CBS Feud 

The two mega companies have been feuding over retransmission fees, and customers of Time Warner Cable are paying the price.  The disagreement led to TWC dropping all of its CBS programming in several cities including CBS, Showtime, The Movie Channel, Flix and the Smithsonian channel.  In turn, CBS prevented TWC subscribers from accessing show on CBS.com and showing anti-Time Warner Cable ads when they attempted to watch "The Dome" on CBS.com.  In place of the show, an ad read: Content Not Available!  Attention Time Warner Cable Customers.  Time Warner Cable has dropped CBS and won't let you see your favorite shows.  Call Time Warner Cable and tell them you want your CBS shows back!"

According to the Huffington Post this led to skyrocketing rates of piracy for the hit show, "Under the Dome."  Some paying customers of TWC feel justified in illegally downloading the show, indicating that "If you are paying for it, then it's not pirated."

So while piracy skyrockets and consumers are blocked from viewing the channels they are paying for, the negotiations continue.

What it boils down to is that CBS is seeking more money from Time Warner Cable for the right to broadcast, and TWC thus far is not budging.  Both are accusing the other of "trying to hamper the development of online services like Netflix, Amazon, and Hulu."

Rory Whelan, regional vice president for government relations at Time Warner Cable, stated that "Such blocking is akin to yanking television antennas off our customers' rooftops to make certain they cannot access CBS programming over the air."

For rural residents who can't receive a signal with an over the air antenna, the blocking of online content of any kind is already a yank in this direction; and while the feud continues, it should be noted that over the last twelve months CBS earned $3.65 billion in profit and Time Warner Cable earned $7.65 billion.


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