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Altice End Runs Around Connecticut TV Station’s Blackout By Sending Customers to CBS All Access

“Of course you know this means war.”

Altice USA has found a way to use CBS’ All Access online streaming service against a Connecticut CBS affiliate that blacked out its signal for some Connecticut Cablevision customers.

Meredith-owned CBS affiliate WFSB-TV in Hartford has been off the Optimum television lineup in two dozen Connecticut towns as of 5pm Friday, Jan. 13 after negotiations between Iowa-based Meredith and Altice USA broke down over the price of renewing a retransmission consent contract that Altice claims is 800% more expensive than before.

That means Optimum customers in Litchfield County no longer have access to CBS programming. Or do they? Optimum’s website is redirecting affected customers to WFSB’s network — CBS — and offering a week’s free trial of CBS’ All Access, which allows viewers online access to all CBS programming on demand.

Optimum’s previously negotiated distribution deal with CBS for the All Access platform has been in place since the summer of 2015, which means CBS cannot pull the offer down from Altice’s website. That effectively means CBS is being used to undercut its own affiliate’s most important leverage — taking away popular programming until a provider finally capitulates and signs a renewal contract.

Matt Polka, president of the American Cable Association, which represents small and independent cable companies, loves it.

“Local broadcasters cannibalized by their own network!” Polka tweeted.

Altice USA has promised investors it will hold the line on programming costs even if it means finding alternatives for customers. This seems to be an example at work.

Will CBS All Access weaken Meredith’s position on WFSB to force price concessions? The New Haven Register isn’t sure, reporting there are years of “bad blood” between Cablevision and Meredith over carriage contracts:

During the last retransmission agreement negotiations in 2014, Cablevision Systems called on the Federal Communications Commission to investigate whether Meredith Corp. was meeting public interest obligations that are an important component of all television station licenses. Cablevision also sued Meredith in Connecticut’s court system under the Unfair Trade Practices Act.

The latest dispute has attracted the attention of both of Connecticut’s U.S. senators.

“I typically don’t get involved because it’s not for me to dictate the terms of a dispute between a cable company and a network,” Sen. Chris Murphy said in a statement issued Friday night. “But I haven’t been pleased with Altice’s commitment to Connecticut since it bought Cablevision.”

FierceCable reported the area’s congressional delegation isn’t happy with either company:

Connecticut’s two Democratic U.S. Senators, Richard Blumenthal and Christopher Murphy, sent a letter addressed to both Meredith Corp. CEO Stephen Lacy and Altice USA CEO Dexter Goei.

“While we respect the private negotiations being conducted by Optimum and WFSB and make no representations as to the merits of either side’s position, we believe that the current impasse does a disservice to Connecticut families and we urge you to negotiate in good faith to bring an end to this blackout,” the Senators wrote.

Altice, meanwhile, said in its own statement, “We have been negotiating in good faith for weeks and made multiple offers to Meredith even though their initial request was for more than 800% over what we currently pay.”

Better Late Than Never: CBS Adds $9.99 Ad-free Option to Its All Access Pass

Phillip Dampier August 31, 2016 Consumer News, Online Video No Comments

cbs all accessViewers hoping to see their last Cialis ad while watching 60 Minutes online now have that option as CBS announces the introduction of a commercial-free plan for its All Access subscription service.

For an extra $4 a month, CBS will remove all online advertising from its current run and new shows.  Those who don’t mind the ads can continue to pay $5.99/month, which includes an ad free experience for older content the network calls CBS Classics. Current CBS programming includes a heavy load of advertising and it is often repetitious. For some, $9.99/month is not too much to pay for the complete removal of commercials.

“The foundation of CBS All Access is not only about giving CBS fans access to more of the content they want, but also giving them more choice in how they watch their favorite CBS programming,” said Marc DeBevoise, president and chief operating officer of CBS Interactive. “The addition of a commercial-free plan gives our subscribers even more ways to customize their CBS viewing experience – from which devices to whether they watch in or out of the home, and now with commercials or without.”

Current subscribers will have the option to move to the commercial-free plan by logging on to their account through CBS.com.

For the commercial-free plan, CBS All Access’s live-streaming offering of local CBS Television stations, available throughout the U.S. in more than 150 markets, will continue to feature the same commercials as the over-the-air broadcast, and select on-demand shows will include promotional interruptions.

CBS All Access is available online at CBS.com, on mobile devices and tablets via the CBS App for iOS, Android and Windows 10, and on Roku Players, Apple TV, Xbox One, Xbox 360, Chromecast, Android TV, Amazon Fire TV and Fire TV Stick, with more connected device platforms coming soon.

CBS Considers Ad-Free All Access

Phillip Dampier August 11, 2016 Consumer News, Online Video 2 Comments

cbs all accessCBS may have discovered consumers don’t like to pay $5.99 for the company’s streaming service only to be inundated with just as many commercials as an over-the-air viewer encounters without having to pay a penny.

“We’re toying with the idea of a commercial free option and how we might roll that out to consumers,” Marc DeBevoise, president of CBS Interactive said Wednesday at the Television Critics Association summer press tour, reports Variety.

The monthly fee includes live streaming of the local CBS affiliate in some markets and a library of content — both old and new — owned or licensed by CBS. While some of the older shows are shown with few commercials, current season shows often contain a full commercial load. That appears to be turning viewers off, and the service is growing more slowly than its competitors.

DeBevoise told attendees CBS will try limiting the ad load on debuting original content that will be available exclusively through CBS All Access in the United States. A new version of “Big Brother” is the first new series, expected to start this fall. “Star Trek: Discovery” and a spinoff of “The Good Wife” will follow in 2017. CBS plans to cut ads by 25% for those shows, leaving paying streaming viewers with about 12 minutes of ads to watch per hour.

To draw attention to the streaming service, CBS will air the pilot episode of “Star Trek: Discovery” on the broadcast network, but episodes after that will be exclusively available online.

CBS is planning to introduce other streaming-exclusive series through All Access with four new shows for 2017 and more beyond that.

CBS wouldn’t say how much it might charge for ad-free viewing.

Sony PlayStation Vue Adds 9 New CBS Local Stations to Lineup

vue

Sony PlayStation Vue has added live streams of CBS stations in nine new markets, expanding the reach of CBS-affiliated stations on the cable TV online alternative.

Effective immediately, subscribers can watch these CBS affiliates if you are located within the local coverage area (thanks to Cord Cutters News):

  • lineup playstationCalifornia: KFMB San Diego
  • Florida: WPEC West Palm Beach
  • Michigan: WWMT Grand Rapids/Kalamazoo
  • North Carolina: WBTV Charlotte
  • Ohio: WKRC Cincinnati, WOIO Cleveland
  • Pennsylvania: WHP Harrisburg
  • Texas: KEYE Austin
  • Utah: KUTV Salt Lake City

PlayStation Vue isn’t just for game consoles, available on PlayStation 4, PlayStation 3, Google Chromecast, Roku, Amazon Fire TV/Stick, and also available on the PlayStation Vue mobile app (iOS/Android). A seven-day free trial is available to U.S. viewers.

The service appears to be a more direct competitor to traditional cable television, offering a substantial number of traditional cable networks and an increasing number of local over the air stations:

PlayStation Vue Packages:

  • Access: 55+ channels, including an assortment of cable, movie and sports channels for $29.99 per month ($39.99 if local stations are provided)
  • Core: 70+ channels and regional sports networks for $34.99 per month ($44.99 if local stations are provided)
  • Elite: 100+ channels, including all channels noted above plus Epix Hits and two other entertainment channels for $44.99 per month ($54.99 if local stations are provided)

Showtime is available a-la-carte. In smaller cities without live local station streaming, the service offers on-demand access to selected network shows.

CBS All-Access Not Exactly a Runaway Success; Discounts Coming

Phillip Dampier March 9, 2016 Competition, Consumer News, Online Video 5 Comments

cbs all accessAttempts by CBS to get consumers to pay the network $5.99 a month to stream ad-filled network shows, classics, and local affiliates has proven less compelling than the network originally thought.

CBS chairman and CEO Les Moonves admitted to investors “All-Access” has not met the company’s expectations, even after CBS added options to watch several of its network affiliates around the country.

Speaking at the Deutsche Bank Technology, Media & Telecom conference in Palm Beach, Fla., Moonves said CBS was considering discounting the service, especially if customers bundle it with Showtime’s standalone online video service, now priced at $10.99 a month.

Moonves

Moonves

Instead of relying entirely on other companies to create so-called “skinny bundles” of pared down video packages offered as an alternative of one-size-fits-all cable TV, CBS has kept some of its online video offerings in-house under the All-Access brand, which launched in October 2014.

But convincing the public to pay $6 a month for ad-laced shows is proving as much of a challenge for CBS as it had been for Hulu’s Plus option. Moonves suggested CBS is considering adding a premium ad-free option like the one Hulu offers now, for an additional $4 a month, and is also trying to get the National Football League to allow NFL game streams on All-Access in the future.

CBS’ best chance of success for its subscription service may come from offering original shows exclusively to subscribers, particularly a new Star Trek series premiering in January. Moonves predicted that would help make All-Access an “extraordinary success.”

“Next year it’s going to add substantially to our bottom line,” he added.

Moonves called cord-cutting “inevitable,” as consumers gravitate away from traditional cable television packages.

“Someone is going to figure out how to do this and how to give people what they want […] and not for $100 a month,” Moonves said. “It will [sell] for $35-39 dollars a month [and] you’ll get the 12 to 15 or 18 channels that you care about, and not the Karate Channel for 25¢ a month. That doesn’t make sense anymore.”

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