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How Many Ports Does a Set-Top Box Need?
Following a petition filed with the Federal Communications Commission by Intel and Verizon requesting that Ethernet ports be required on the backs of set-top boxes, the National Cable and Telecommunications Association have come out in favor of an open standard such as Ethernet (or even better, the tru2way standard developed by the cable companies) but against any sort of federal mandates. The trade group filed an ex parte filing with the FCC last night in which it argued that industry groups could work together to figure out how to deliver digital content without any pesky government interference.
The effort to put Ethernet ports on cable boxes would be a boon to carriers delivering content via their own IP networks and to companies such as Intel that are trying to get Wi-Fi as the home networking standard of choice. Anyone inclined to point out that they can already connect their set-top box to devices via Firewire, HDMI, optical ports and coax, and hence to ask why Ethernet is necessary, may not realize the stakes at play when it comes to controlling digital content in the home.
Most vendors, be they carriers, networking gear makers or computer manufactures, view the set-top box as the key to digital content for consumers as ports will dictate how easy it is for consumers to plug their boxes into a variety of networks without adaptors. So as the computer industry and the telecommunications companies get deeper into the digital TV and home networking market, we’ll wait to see if the FCC decides to make Ethernet ports mandatory. Even if they do, a showdown between those in favor of Ethernet and those on the side of cable’s tru2way standard is likely to ensure as each industry seeks to control the home network.
image courtesy of Chris Albrecht
HDTV to follow lead of smartphone
CVC Will Appeal Ruling Barring DVR Storage Service
Last month, Cablevision lost the first round of a legal battle over its plans to launch a network-based DVR service that would allow users to view shows from a remote server as if on their own DVRs. U.S. District Judge Denny Chin sided with the studios and networks opposing the plan, saying, “The RS-DVR is clearly a service, and I hold that in providing this service, it is Cablevision that does the copying.” Cablevision, not known for backing down, now says it will appeal the ruling. COO Tom Rutledge’s statement via Reuters: arguing that a remote-storage DVR is the same as a personal DVR “that merely enables consumers to exercise their well-established rights to time-shift television programming. ... We continue to believe strongly that remote-storage DVR is permissible under current copyright laws.”
Related:
-- Cablevision Loses Network DVR Case In Court
Discovery Lays Off About 200; Will Reallocate Some Resources To Digital
Discovery laid off more three percent of its workforce today, about 200 total. The WP reports that the company, based in Silver Springs, that the U.S. networks brand group, Discovery education (on top of 84 jobs cut late last year), corporate communications and corporate affairs lost about 20 percent of their staffs. But the company also would be hiring in digital media with laid-off employees getting preference and the first chance at new jobs; a memo from new CEO David Zaslav also said more layoffs and and hires are likely. Zaslav told the WP: “It’s always difficult to restructure and reorganize, but we’re really focused on trying to build the biggest and strongest and most competitive non-fiction media company in the world.”
As the WP notes, the move comes one day before Zaslav ends his first 100 days on the job. Discovery held its upfront last week, announcing a new network and a new broadband initiative called iPremieres. (via LostRemote.)
MultichannelNews: This round is the second phase of Zaslav’s restructuring. The first was the departure of several senior execs in early February. From the company’s prepared statement: “The savings accrued from today’s actions are not intended to drop to the bottom line. We will be investing back in original programming, the marketing of our brands and digital-media extensions.”
Related:
-- Discovery New Media Plans Include Online Premieres
-- Discovery In Major Reorg; Wolzien, Berman On Board As Advisors
Cable Ad Bureau Pulls Out Of EBay Ad Exchange T
That was a short relationship ... In a blow for the nascent eBay Online Media Exchange, the Cabletelevision Advertising Bureau announced today that its members will not participate in further trials or usage of the exchange effective immediately. From the statement by Sean Cunningham, president and CEO of the CAB: “We appreciated the opportunity to test the system – throughout our review it became apparent that the Media Exchange was too narrow an application, had clear connectivity issues related to cable’s emerging end-to-end e-business platforms and lacked the provisions necessary for capturing critical strategic and idea-driven intelligence during a buy.” Equally daunting for proponents, Cunningham pointed to the lack of interest in the exchange by “major members of the agency community.” In other words, no critical mass without critical mass. (via WSJ)
The move comes less than a month after CAB members complained about being mentioned in publicity when its members hadn’t yet seen a trial and were then included.
Update: NYT: Cunningham told the Times: “We don’t believe that eBay is going to get this right.” he said seven national cable nets tested the exchange over the last month and decided it went too far in removing humans from the ad sales process.
Related:
-- Cable Nets And Ebay Media Marketplace Committee Work To Patch Things Up
-- Ebay Readies Online Ad Marketplace For March Launch
Discovery New Media Plans Include Online Premieres
As part of its upfront today, Discovery Networks unveils some online plans that show the hand of new CEO David Zaslav—who went through many of the same issues during his last job at NBCU. It’s not as vast an offering as the broadcast nets on broadband but, starting in 3Q07, Discovery iPremieres will feature two full-length ad-supported episodes a week via streaming on demand; the episodes will be selected from new or returning shows and specials, rotating weekly among the various nets. The shows will be available for one week before the on-air premiere. In an effort to make it more attractive to national advertisers, iPremieres will include bonus material like clips and interviews. It will be available at discovery.com.
-- The first shows include Discovery Kids’ Bindi: The Jungle Girl, sure to attract buzz since it stars the daughter of recently deceased croc hunter and Discovery draw Steve Irwin.
Related:
-- Discovery Buying Out Cox’s Stake For $1.2 Billion
-- Industry Moves: Discovery Appoints Campbell As Digital & Emerging Networks Head; Possible M&A Plays
Scripps Hopes To Repeat Cable Success With Interactive Expansion
Scripps has stepped up the pace of new digital initiatives and hires over the past few months. And while some have expressed lingering doubts about its newspaper holdings and concern continues over the ability to absorb the high acquisition costs of comparison shopping sites Shopzilla and uSwitch, it’s clear that the company has been zeroing in on growing its interactive revenues.
As we reported last month, Scripps lured Deanna Brown from her post as general manager of Yahoo Media Group’s Lifestyles business unit to take on the new position of president of its Interactive Group. And in an indication of the kind of offerings to come, Scripps has unveiled a new social network related to its cable TV network HGTV and also introduced a new video player on its websites. (Disclaimer: Scripps is one of our sponsors.)
The WSJ takes a look at Scripps’ digital progress. The company has enjoyed considerable early success as online revenues from cable-related properties leapt 70 percent last year—representing roughly 3 percent of total company revenue—and plans to increase that contribution this year. At the moment, the current challenge is turning the $1 billion it spent acquiring Shopzilla and uSwitch into revenue growth. Those sites were responsible for 11 percent of Scripps’s operating revenue in 2006, assuming the company had owned uSwitch for the full year.
As a Merrill Lynch analyst report pointed out recently, Shopzilla has been plagued by a slowdown in unique visitors and pageviews. But Scripps says this is a short-term problem, as the company has cut back on search advertising, saying that it will eventually get revenue from visitors who enter its website directly rather than those directed from third parties.
Overall, Scripps hopes investors and analysts will take its track record into account. In 1994, it began to change its identity as a newspaper company to a diversified media company when it started the HGTV cable network. And while it has displeased some by holding on to its newspaper division, Scripps hopes its demonstrated commitment to the interactive space will prove that it can repeat its cable success.
Related:
-- Industry Moves: Feinbaum Upped To EVP at Scripps Networks; Looking At M&A and New Online Launches
-- Earnings: Scripps Q4 Profits Rise; Interactive Up; No Plans To Sell Newspapers; Shopzilla Concerns
-- Scripps Considers Newspaper Sell-Off To Focus On Internet, Cable
Discovery Buying Out Cox’s Stake For $1.2 Billion
Discovery Communications said today that it planned to buy out all of its stock held by Cox Communications in a deal that included transferring the Travel Channel (and Travelchannel.com and audio tour guides firm Antenna Audio) and $1.275 billion in cash to Cox for its 25 percent stake in the company. The transaction is expected to be completed in May. Release
B&C: The deal leaves Discovery with just two owners - John Malone’s Discovery Holding Corp., which owns two-thirds, and Advance/Newhouse Communications, which owns one-third. The transitioning out of Travel comes shortly after the arrival at Discovery of its new CEO David Zaslav, from NBC Universal, who has actively begun reshaping the underperforming Discovery.
Cablevision Assembles Group For Digital Marketing Efforts; New EVP
U.S. cable company Cablevision has created a new digital marketing/commerce division with the goal of attracting advertisers and subscribers as it seeks to fend off a challenge in the New York metro area by Verizon FiOS, Mulitchannel News reports. The new division is headed by Patricia Gottesman, a 28-year Cablevision vet, who has been named EVP of digital marketing and commerce.
Initially, the group will start working on a linear-channel-based, TV-remote-enabled shopping experience. Cablevision has already been experimenting with linear and multiplatform advertising models. Two-and-a-half years ago, Cablevision released Optimum Homes and Optimum Autos, linear channels that showcase real estate and cars for sale from area vendors. Those channels are also supported by a broadband component on Cablevision’s Optimum Online Internet service.
This is shaping up to be Cablevision’s biggest challenge as an MSO to date. And despite the court loss we reported on earlier involving the creation of a network-based DVR service, Cablevision is likely to maintain its aggressive roll-out of new digital initiatives. The company is in 3 million homes and businesses in its 4.6 million-home footprint in the New York metro area and reports 78 percent penetration of its iO digital product, the highest such penetration among major cable operators.
Related:
-- Cablevision Loses Network DVR Case In Court
-- Verizon, AT&T U-verse Look Local For Programming
HBO Promotes Sopranos’ Last Season With Digital Send-Off
With the first of The Sopranos last nine episodes is slated to air on HBO in two weeks, the cable network plans to squeeze as much life out the mob drama as possible. On the digital front, HBO is collaborating with a variety of cable networks on interactive initiatives as part of part of a promotional campaign designed to make sure everyone knows this is it, Multichannel News reports.
Comcast is taking advantage of the VOD effort by supplying 100 hours of free enhanced fare per month.
Leading up to the April 8 season opener, viewers can check out Soprano’s co-branded microsites, featuring gaming, video content, 20 short-form content pieces that offer weekly episodic previews, behind-the-scenes segments and cast interviews.
Not to be out-done by Comcast’s VOD offerings, Charter.net will showcase short-form video during the promotional window for both The Sopranos and HBO’s Hollywood buddy series Entourage, which is leading out of the mob series.
As part of HBO’s role as Cox Communications “Net of the Month” partner throughout March and April, there are Sopranos video and offer pages on both Cox.com and Cox.net. Rounding out the promotions is corporate sibling Time Warner Cable is sponsoring a broadband trivia sweepstake, while its RoadRunner broadband service will deliver a short-form video content.
HBO began previewing some of the digital content to its affiliates six months ago, wanting to give them a measure of control over the promotion. The idea was that affiliates would be more enthusiastic about submitting their own ideas for what would appeal to their respective audiences rather than enforce a one-size fits all campaign.
So while HBO tries to turn its other original programming into the next Sopranos, this current digital promotion is likely to influence the direction of efforts for its other programs.
Cablevision Loses Network DVR Case In Court
Cablevision has lost a legal battle against several studios and TV networks to introduce a network-based DVR service. U.S. District Judge Denny Chin in New York ruled against the cable company.
It had hoped a network-based DVR system, called Remote Storage DVR or RS-DVR, would have done away with the need for the installation digital set-top boxes in subscribers’ homes, and instead the storage would be on the cable company’s end. Other cable operators had been vocal in their support for such a system, but have not jumped into it for fear of such legal reprisal.
Chin agreed with the studios and networks in his ruling: “The RS-DVR is clearly a service, and I hold that in providing this service, it is Cablevision that does the copying.”
MultiChannel: The ruling was applauded by one major programmer, Turner Broadcasting System. “Obviously, we are very satisfied with the result and we are pleased that the court has accepted our view of the rules of the road: headend-based copying requires a license,” said a Turner spokesperson.
Update: Cablevision is considering an appeal.
Related:
-- TV Networks Sue Cablevision
-- Add Turner’s CNN, Cartoon Network To List Of Cablevision Remote DVR Foes
-- Lawsuit Over Cablevision DVR Plans Could Change Copyright Law
Cablevision Lose Network DVR Case In Court
Cablevision has lost a legal battle against several studios and TV networks to introduce a network-based DVR service. U.S. District Judge Denny Chin in New York ruled against the cable company.
It had hoped a network-based DVR system, called Remote Storage DVR or RS-DVR, would have done away with the need for the installation digital set-top boxes in subscribers’ homes, and instead the storage would be on the cable company’s end. Other cable operators had been vocal in their support for such a system, but have not jumped into it for fear of such legal reprisal.
Chin agreed with the studios and networks in his ruling: “The RS-DVR is clearly a service, and I hold that in providing this service, it is Cablevision that does the copying.”
MultiChannel: The ruling was applauded by one major programmer, Turner Broadcasting System. “Obviously, we are very satisfied with the result and we are pleased that the court has accepted our view of the rules of the road: headend-based copying requires a license,” said Turner spokesperson.
Related:
-- TV Networks Sue Cablevision
-- Add Turner’s CNN, Cartoon Network To List Of Cablevision Remote DVR Foes
-- Lawsuit Over Cablevision DVR Plans Could Change Copyright Law
Channel 4 Ups Web Expenditure, Eyes IPTV Carriage
UK public service broadcaster Channel 4’s annual new media budget is increasing by £1 million ($1.9 million) to £22 million ($43 million) in 2007. In its statement of programme policy (required by regulator Ofcom), C4 said: “While we expect our portfolio of new media services to generate commercial returns to be returned to the core channel, we will also use new media platforms to launch entirely new services with public service broadcasting values and to offer viewers new ways to access Channel 4’s output.”
The additional investment will go to overhaul the websites for Channel 4 News and the Dispatches news show, launching improving user-generated content portals for comedy and documentaries, and to online education content. It will also take the broadcaster’s 4OD on-demand package (currently available on cable TV and computer screens) onto BT’s Vision IPTV service.
Virgin Media ‘Considers Bid’ For ISP Pipex’; Would Extend Branson Reach
Virgin Media may be about to buy one of the UK’s oldest internet service providers, Pipex, The Telegraph speculates, in a move that would extend Richard Branson’s broadband offering from cable to fixed-line. Sixteen-year-old Pipex appointed an investment bank last week to draw up sale plans, with any one of BT, Carphone Warehouse, Tiscali, BSkyB or Orange initially mooted as possible suitors. Telegraph does not cite its source but said Virgin Media (which rebranded last month after a merger with ntl/Telewest) was a “surprise frontrunner” amongst several expressions of interest.
In an increasingly competitive market, several UK companies now offer triple-play telephone, internet and IPTV services, with the addition of Branson’s Virgin Mobile adjunct marking his company out as a “quad-play” provider. But Virgin will need to grow its communications network from cable alone if it is to grow its subscriber base : while cable is available to just 55 percent of the country, ADSL broadband of the kind offered by Pipex is available over a standard phone line to anyone whose local exchange has been upgraded. A Virgin Media spokesperson just told me no comment: “Lots of people are looking at it and I’m sure we’ll continue to be mentioned in dispatches”.
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zinkwazi posted a photo:
i finally got my mythtv media center set up.
now we can stream (pause, record to dvd etc) the cable tv signal via wireless to any computer in range :)
btw, the kids are watching disney's "little einsteins"
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