If Aereo Wins Lawsuit, Head of CBS Says He’ll Consider Taking the Network Off the Air

Phillip Dampier March 12, 2014 Consumer News, Online Video 6 Comments

cbsCBS head Les Moonves is ready to take the CBS television network off broadcast television and move it to a pay television platform where he can protect the network’s revenue should the Aereo video streaming service be deemed legal.

Aereo’s fate is likely to be decided by the U.S. Supreme Court in April, and if it should prevail providing local television signals over streaming video without paying the network for the programming, CBS is prepared to walk away from over 50 years of free over the air television.

“If Aereo should win, which we don’t think will happen, we can go ‘over the top’ with CBS,” Moonves said on Tuesday at an investor conference. “If the government wants to give them permission to steal our signal, then we will come up with some other way to get them our content and still get paid for it.”

“Over the top” refers to streaming programming over the Internet.

Cable, satellite and telco TV customers would be unaffected because CBS already receives compensation from those pay television venues. But those watching over the air would lose CBS unless they maintained an Internet-based subscription to the network.

Moonves said he will play hardball against any “systems out there that try to hurt us.”

German Chancellor Mocks British Prime Minister Over State of UK’s Broadband

Phillip Dampier March 11, 2014 British Telecom, Broadband Speed, Public Policy & Gov't, Rural Broadband, Video Comments Off on German Chancellor Mocks British Prime Minister Over State of UK’s Broadband
Chancellor Angela Merkel and Prime Minister David Cameron

Chancellor Angela Merkel and Prime Minister David Cameron

The slow pace of rolling out superfast broadband across the United Kingdom did not escape the notice of German Chancellor Angela Merkel, who stung Prime Minister David Cameron with a joke comparing the two countries’ progress to provide Internet access to every home.

While traveling to Hanover to visit the CeBIT trade fair, Carmeron sought to promote Great Britain’s economic relationship with Germany. But Merkel wanted to know when Britain would finally complete the rollout of high-speed Internet access to every house in the country.

Cameron’s government has faced criticism over its decision to roll out an advanced form of DSL using fiber to the neighborhood technology similar to AT&T U-verse. Some critics accuse the government of allowing BT and other vendors to overspend public resources on a network that some fear will not prove fast enough to compete in the long-term.

Cameron told Merkel the government had earmarked hundreds of millions of pounds on the project. In response, Merkel dryly replied that Germany’s network would successfully reach every citizen in Germany by 2018.

btUK Communications Minister Ed Vaizey has also faced criticism from communities learning they are not on the upgrade list as well as those promised improved service but still waiting to receive it. Vaizey repeated his claim that 95 percent of the United Kingdom would have faster Internet access by 2017. The British regulatory agency Ofcom’s statistics show the government has a long way to go, with only 73 per cent of the country able to get access to high-speed broadband as of this month.

While in Hanover, Cameron suggested the world was nearing a new industrial revolution dependent on a speedy Internet. Cameron noted the future includes “The Internet of Things,” where technology would enable devices of all kinds to interact over wireless networks. Robust broadband infrastructure was therefore essential to the economies of both countries.

As part of that effort, the two leaders announced a joint effort between British and German universities to develop the next generation of Wi-Fi dubbed “5G” that would be fast enough to download a typical movie in less than one second.

[flv]http://www.phillipdampier.com/video/UK Superfast Broadband 2014.flv[/flv]

Although BT likes to advertise “superfast broadband” as coming from a fiber network, in fact most homes will receive an advanced form of DSL service delivered over a hybrid fiber-copper network. (2:38)

Frustration Central: Charter Communications’ Digital Conversion Irritates Cities, Customers

all digitalCharter Communications’ march to all-digital service is one big Excedrin headache for many of the communities enduring the cable company’s conversion.

Charter is embarked on a campaign to end analog cable television service, freeing up bandwidth to offer more HD channels and increase broadband speeds. But the switch to digital has been accompanied by frequent service disruptions and outages.

In Texas, customers complain their digital channels are often frozen or pixelated. In Casper, Wyo., where Charter acquired an older cable system from Cablevision that was originally built by Bresnan Communications, customers’ complaints range from inconsistent service and slow response times to loss of sound and frozen video during airing of City Council meetings.

But some of the loudest concerns about Charter originate from the Outer Banks of North Carolina where customers are finding the switch to digital can be very costly.

Tourism is a major part of the local economy and the Outer Banks are filled with seasonal homes, rental condos and hotels. Many property owners maintain seasonal accounts with Charter Cable, only active during the tourist season. Some hotel owners notified about Charter’s plans to transition towards digital service worked with the cable company to buy televisions that would not need additional equipment to work after the switch. With the cable company’s recommendations, some hotel chains purchased dozens or even hundreds of digital-ready television sets installed in rooms that were ready for the switch.

Charter_logoOnly recently, Charter notified customers they also planned to encrypt the basic lineup, rendering the digital televisions useless without the additional cost and inconvenience of installing Charter’s digital set-top boxes. Although Charter will temporarily offer customers free rental of the boxes, after the offer expires, customers will pay Charter $6.99 a month for each box. For some upper end condos, the cost of renting multiple boxes will exceed the cost of the cable TV package.

The Outer Banks Voice details several other customer complaints:

With the older analog systems, many owners flat mounted their televisions to walls and had the cable wired directly into the television, out of sight. With boxes now required, rental homeowners will need to figure out where to place the box and how to run the cables to the set.

In addition, rental companies and homeowners will need to keep track of numerous remotes and keeping those remotes supplied with working batteries.

[…] Thus far, Charter is not offering boxes for sale, so owners cannot absorb the cost over the long-run use of the box, and there appears to be some confusion on whether homes with five or more televisions will require a “Pro Installation” at extra cost to ensure signal strength is sufficient.

If such an installation is required, owners and rental management companies will also be required to arrange access for Charter installers.

Rental condos are also faced with yet another logistic hurdle.

Many condos include cable television fees in their monthly association dues, and the cable contracts for all units are in the name of the condo association.

To obtain boxes, condo owners are now going to be required to set up their own individual accounts, often from an out-of-state location, and then determine how to get the boxes installed.

Signal strength is also a concern in condo projects. Even with analog signals, the multiple connections in one area make reception fuzzy and of low quality.

A small sample of complaints found all over Charter's social media pages.

A small sample of complaints found all over Charter’s social media pages.

Charter Communications shared their side of the story about the digital conversion:

Outer Banks, N.C.

Outer Banks, N.C.

Charter customers are notified by newspaper, direct mail, bill messages, phone calls from Charter representatives, and Charter commercial spots beginning at least 30 days prior to their cutover. Charter is making it easy for customers to receive one or more digital boxes at no cost for one, two or five years, depending on the customer’s programming package and other qualifying factors.

Customers that need less than four boxes can have them shipped directly to their home by calling 1-888-GET-CHARTER or pick them up at a Charter Store.

Customers that live out of town, that own vacation homes, can authorize personnel with their property management company or other specified individuals to pick up their boxes. Customers must first authorize those individuals and add them to their account by calling 1-888-GET-CHARTER. The customer account owner can rescind authorization of individuals at any time.

Property Management companies or authorized individuals can then obtain up to five set-top boxes at a Charter Store.

Customers needing more than five boxes should contact Charter 1-888-GET-CHARTER. A professional technician will be scheduled to assist customers with the installation.

Charter Stores are currently operating with expanded hours to accommodate customers during this all-digital project. Charter Store hours will also be expanded in April where peak volume is expected.

Commercial properties have several options available and can work with their Charter Business account representative on the best solution for their business.

Due to advances in technology, solutions available may involve the need for additional equipment in order to provide the best possible cable, Internet and voice products for our customers.

Time Warner Cable Spams Customers With Empty Promises E-Mail

twc spam

Robert D. Marcus has plenty to be excited about. After less than two full months on the job as CEO, he agreed to sell Time Warner Cable and exit his management role if and when the merger is approved. But he won’t be hurting, because he negotiated a bountiful golden parachute that will award him more than $56 million in exit compensation the day he leaves.

Courtesy: Jacobson

Courtesy: Jacobson

That is but one example of the kind of “innovation” Comzilla will offer Time Warner Cable customers. Others include charging top dollar cable modem rental fees, a broadcast TV surcharge, a completely arbitrary usage cap on broadband service, and an offshore customer service experience even more despised than what Time Warner Cable customers get. 

Without actual head-to-head competition, there is no doubt we will hear executives crow to Wall Street that a supersized Comcast has plenty of room to raise broadband prices even higher and to cut company investments in innovation it won’t need to succeed in a controlled duopoly market.

AT&T and Verizon executives — Comcast’s largest competitors — have shrugged their shoulders about the merger deal, believing it will have almost no effect on their bottom lines. Why should it? Comcast has found a growth formula that works — a tap dance away from competition — buy out other cable companies to grow the customer base instead of winning ex-customers back with better service and a lower price.

It appears Marcus’ grand vision for turning Time Warner Cable around with a massive investment in faster speeds and better service is now dead. All that is left on the table is the vague notion of a “significant investment to improve reliability and to enhance our customer service.” In other words – we’ll do a better job to make sure the service you already pay big money to receive actually works and we’ll do a better job answering our phones.

Survey results show the proposed merger is not at all popular with Time Warner customers.

Nothing about Marcus’ spammed e-mail to customers is likely to change that perception.

Cablevision Execs Sued for Excessive Pay; $80 Million Paid to Dolan Family Over 3 Years

Phillip Dampier March 10, 2014 Cablevision (see Altice USA), Consumer News Comments Off on Cablevision Execs Sued for Excessive Pay; $80 Million Paid to Dolan Family Over 3 Years
Charles Dolan, Cablevision CEO

Charles Dolan, Cablevision CEO

Cablevision Systems Corp.’s board of directors have been sued by an investor for wrongfully approving “grossly excessive” compensation for Chairman Charles Dolan and members of his family who serve as executives at the fifth-largest U.S. cable company.

The board of Bethpage, N.Y.-based Cablevision, which includes Dolan’s three daughters, approved more than $80 million in pay and benefits for the firm’s founder and his son over the last three years while the company piled up financial losses, according to the plaintiff’s suit.

Charles Dolan founded the cable company in 1973. Although others at the company have taken a larger role managing its day-to-day operations, Charles still won approval of $41 million in compensation for himself over a three-year period beginning in 2010. His son James was awarded $40 million, despite the fact he seems to be losing interest in Cablevision, preferring to devote more time to his rock band – JD & The Straight Shot – where he serves as lead singer, according to the lawsuit.

The plaintiff alleges the compensation packages were excessive and a waste of corporate assets at a time when Wall Street analysts criticized the cable company for underperforming financially.

cablevision“The Dolans treat Cablevision as a family coffer, routinely entering transactions with the company that have improperly favored the Dolan family’s interests over the interests of the company and its public stockholders,” said shareholder Gary Livingston, who filed the suit.

What the Dolan family wants, they usually get. The family collectively hold shares that control about 73 percent of the company’s voting rights.

It isn’t the first time the Dolan family — now billionaires — have found themselves in court over compensation issues. In 2008, the company’s top executives agreed to pay more than $24 million to settle shareholder lawsuits accusing them of benefiting from stock option grants that were backdated.

Livingston’s case is an example of “baseless shareholder lawsuits designed simply to enrich the plaintiff and his lawyers,” Charles Schueler, a Cablevision spokesman, told Bloomberg News today in an e-mailed statement.

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