Image: Bloomberg News

Elections don’t have consequences if you happen to be a favored board member overseeing Cablevision.

For the third time in four years, the cable company has decided to keep several board members that shareholders voted against.

Vincent Tese will keep his board seat despite the fact 54.8 percent of shareholders wanted to show him the door. Leonard Tow was given a thumbs-down by almost 52 percent of voters and Thomas Reifenheiser squeezed by with a margin of just 0.5 percent.

Tese and Reifenheiser failed to win a majority of shareholder support in 2010, 2012, and again last month, but they will keep their board seats because Cablevision’s other board members said so. The zombie board members may be dead to those who hold shares in Cablevision, but as long as the board can collectively override shareholder wishes, they can stay.

That prompted New York City comptroller John Liu to recommend shareholders vote against all five Class A directors this year, because they are responsible for allowing the losing board members to stay.

“Shareowners delivered a stinging rebuke to the five Cablevision directors we opposed for being ineffective and unaccountable, including majority votes against two of them,” Liu said. “Both Mr. Tese and Dr. Tow, should immediately step down. In Mr. Tese’s case, this is the third majority vote against his directorship in the past four years. Enough is enough.”

“As fiduciaries, we can’t sit by and let the board make a mockery of our fundamental right to elect directors,” Liu added. New York City owns more than 530,000 shares of Cablevision stock, part of the pension fund portfolio Liu oversees. “Share owners need accountable directors who will ensure the company isn’t being run for the benefit of insiders at our expense.”

The New York Times reports shareholders have plenty to grumble about:

Over the last two years, while the Standard & Poor’s 500-stock index has rallied to a new high, Cablevision shares have dropped from more than $36 a share to under $15, where they were trading this week. Yet Cablevision’s chief executive, James Dolan, earned $16.9 million last year, and his father, Charles, earned $16.6 million as chairman — an unusually high amount for a chairman who is not serving as chief executive. Both payments were about 50 percent higher than the year before. In addition to their compensation, the two Dolans get a full-time car and driver as well as access to a helicopter and jet for personal use. Institutional Shareholder Services noted there was a “disconnect” at the company between performance and executive pay.

Mr. Tese, Mr. Ryan and Mr. Reifenheiser make up the compensation committee of the board, which approves the Dolans’ compensation.

Mr. Tese, a former chief executive of the New York State Urban Development Corporation and former director of economic development for New York State, was also Bear Stearns’s lead director before its collapse in 2008 and served on its finance and risk committee. “Given the significant lack of oversight provided by Mr. Tese during his tenure at Bear, particularly in the area of risk management, we believe he should not continue to serve on any public company board,” the proxy advisory service Glass, Lewis & Company said last year. Mr. Tese is a member of four boards, including that of Madison Square Garden, which was spun off by Cablevision and is also controlled by the Dolan family.

Mr. Ryan and Mr. Reifenheiser were both members of a special committee that approved an ill-fated proposed buyout of the company by the Dolans in 2007. Independent shareholders blocked the deal on grounds that the Dolans’ offer was self-serving and too low. “Its improvident support by the special committee is among the reasons we have lost confidence in Messrs. Reifenheiser and Ryan,” Mr. Liu wrote in his recent letter to the company.

Last year, Cablevision paid Mr. Tese $233,967, Mr. Ryan $247,508 and Mr. Reifenheiser $220,786 in cash and stock, according to the company’s proxy statement.

Not so fast, says Cablevision spokesman Charles Schueler.

“These directors have served Cablevision shareholders well and we look forward to their continuing contributions. Our shareholders know that Cablevision is a controlled company and they understand the rules by which our directors are elected.”

A Verizon Wireless upgrade that was supposed to fix bugs and introduce multi-screen, multi-window multitasking and new camera and image-related features to the popular Samsung Galaxy S3 instead has killed the phone’s 4G performance and dramatically decreased battery life. There are also reports some Verizon Wireless customers are finding themselves auto-enrolled in an unwanted caller ID with name add-on feature ($2.99/month) that leaves the phone connected to 3G or 4G service even when using Wi-Fi.

It was not an auspicious moment for Big Red, never fast with phone updates, particularly when Sprint customers earlier received a similar upgrade with no ill-effects.

Your editor spent two days last week attempting to mitigate Verizon’s mistakes, including several hours inside multiple Verizon Wireless store locations and talking to their national customer support center. In the end, it resulted in not one, but two factory refurbished phone exchanges and a $20 service credit for data service effectively disabled by a firmware upgrade.

This nightmare has a name: JZO54K.I535VRBMD3 — a software update so plagued with bugs, Verizon reportedly pulled it over the weekend after customers complained it ruined 4G wireless data service, along with the phone’s performance. The 128MB update has been available for about a week for those regularly checking their phones for software updates, and some customers began being prompted to install it last Friday.

So how can you tell if you are affected? Choose Settings -> About Device and check the “Build Number” visible at the bottom of the screen. If it ends in VRBMD3, you may be impacted. Not every customer is reporting problems, which may mean some phones are not affected or the performance degradation has been dismissed as a temporary reception problem or has only subtly affected low-bandwidth applications and has gone unnoticed.

Symptoms

1. Your wireless data signal strength meter on the phone suddenly shows much poorer reception than before the update;
2. Your battery life has declined significantly and the battery is very warm to the touch;
3. You have trouble loading web pages or accessing multimedia content with long buffering pauses or sudden loss of reception in places where signals used to be adequate;
4. Messaging services seem unstable with frequent disconnects;
5. Your phone drops from 4G to 3G service and stays connected at 3G (or less) speeds until you reset the phone;
6. Using “Speed Test” apps result in “Network Communication Issue” errors or extremely long test times with very high ping rates, very slow/inconsistent download speeds, and trouble measuring upload speeds;
7. You find icons for both Wi-Fi and 3G or 4G wireless service at the top of your phone at the same time;
8. You suddenly find your account billed for Caller ID plus Name service at $2.99 a month, despite not requesting this service.

Phillip “Verizon turned my 4G phone into a 1G phone” Dampier

The more of these symptoms you experience, the greater the chance Verizon’s update for the S3 has temporarily left your phone a shadow of its former self.

Verizon officially recognized the wireless connectivity problem May 31 when it released an internal bulletin acknowledging the software update is responsible. The company claims it has since stopped sending it out to S3 owners (we have not been able to confirm this ourselves).

Verizon blames Samsung for the defective update. Samsung blames Verizon, telling customers software upgrades are vetted, approved, and distributed exclusively by Verizon. Customers are left over a barrel until one or both companies assume responsibility and issue corrected firmware, which could take weeks.

Verizon Wireless’ technical support told Stop the Cap! the phone’s firmware is at the heart of the problem, and although it can sometimes get phones to be more tolerant of the software update, no number of factory resets, SIM card refreshes or replacements, or settings changes will fully correct the problem. Many customers can expect continued degraded 4G performance comparable to 3G speeds (or much worse) either because of slowed performance or an unstable connection until a fix is available.

The problem with multiple icons for both Wi-Fi and 3G or 4G service has to do with a single new app Verizon has forced on their customers. “Caller ID plus Name” was added to your app list in the latest update and is responsible for the dual data connections and reported instances of customers being auto-enrolled and billed for the service, even if they never specifically ran the app.

Bloatware is bad enough, but badly performing forced apps are worse. You can permanently disable the offending app and solve the double icon problem with this simple fix:

Enter Settings -> Application Manager, and select the “All” applications tab along the top. Find “Caller ID plus Name” in the list, select it, and you will see a button to “disable” the app. This may not resolve the problem of the app auto-enrolling you for a paid feature that costs $2.99 a month, so watch your bill.

Trouble

Affected customers with degraded service have several options:

1. If your phone is still under warranty, and most Galaxy S3 phones are, you can request a free handset replacement. Since Verizon created the problem, ask for a free shipping upgrade to overnight FedEx delivery. Your refurbished phone will arrive without a battery, SIM card, or back cover. Use the ones included with your original phone and your replacement handset should automatically activate. Immediately after powering up, your phone will offer a series of two or three Verizon firmware updates that you can defer. Until it can be verified Verizon has stopped pushing the defective update to customers, we recommend you avoid performing these firmware updates. If you don’t, and Verizon pushes the defective update to your replacement phone, it will likely perform no better than your original;
2. Request service credit for degraded/lost data service. Remember to also request credit, if applicable, for any Mobile Hotspot option, GPS travel, or other Verizon add-on that depends on a stable data network connection;
3. Indicate your displeasure that Verizon did not more thoroughly test the update before pushing it on customers.

Here are the suggested fixes Verizon may attempt on your phone, but we do not believe they correct the underlying problem — only updated software will:

• Removing the battery and “Refreshing/replacing the SIM card” may help refresh roaming rules or possibly correct a corrupted SIM card. Some customers reported this helped them get back data service they completely lost after the update, so it might help in certain cases, but probably will not correct the unstable 4G connection;
• Clearing the cache and cookies from the web browser is unlikely to have any effect on this problem;
• Changing the Mobile Networks setting to/from “Global” to “LTE/CDMA.” A few customers reported they got back some data service after toggling these options. The default on the Samsung Galaxy S3 running firmware from last fall was (and still remains) Global. We suspect the switch toggles the radio off and on, forcing a reconnect, which can bring back a 4G connection after the phone downshifts to 3G. But we don’t believe this will correct the speed/stability problem;
• A “factory reset” is frankly a waste of time. This will leave your phone with the same defective firmware. If you had symptoms before, you will likely still have them after resetting your phone.

If you are reluctant to part with your phone and avail yourself of any option other than requesting a service credit while Samsung and Verizon point fingers over who is responsible and and when a fix will arrive, you can make life with your phone a bit easier with these tips:

1. Stay on Wi-Fi when possible. Wi-Fi data performance was not affected by this software update;
2. Expect 30-40% reduced battery life. We suspect this (and the hot battery) is caused by the phone trying to deal with unstable 4G service, as if it was in a fringe reception zone. Keep a charger handy;
3. Try and get your phone to downshift to 3G by finding a weak reception spot (like a basement) and hope the phone drops (and remains) on 3G until it is rebooted. It appears 3G data speeds are not affected by the software bug;
4. Expect problems when using high bandwidth applications on Verizon’s LTE 4G service. We found video next to impossible to view on 4G, but audio streaming did seem to perform at lower bit rates.

Expect web browsing on 4G to be problematic on complex web pages, which may load incompletely. Try and do your browsing on mobile versions of websites or wait until you can find Wi-Fi.

Optimum profits.

Cablevision customers that managed to keep now-discontinued television packages will soon have to pay an extra $4-7 a month to upgrade to one of several newer packages this summer.

In March 2012, Cablevision dropped many of their “iO” packages in favor of new ones dubbed “Optimum.” The cable company originally let current customers keep the older, cheaper packages, but starting June 3 that will be no more.

Michael Chowaniec from Cablevision’s Government Affairs department notified Connecticut regulators the company was preparing to force customers into newer Optimum packages at a higher cost.

“Legacy customers migrating to comparable packages will experience a rate increase, but will gain between 6 to 23 linear networks and/or premium channels and enhancements and additional On Demand services,” Chowaniec wrote. “In many cases, the rate change is significantly less than the price of the additional channels and services, if purchased on an a la carte basis.”

“Customers on promotions for a legacy video package that is being eliminated will be able to keep their promotional rate through the end of the promotional period and will be migrated at the end of the promotion,” he added.

The rate increases come after an earlier $5 rate hike for broadband service and the introduction of a $2.95 monthly “sports programming fee” paid by most customers. That represents a total rate increase for some of up to $15 a month in 2013.

Life has been getting tougher for Cablevision customers over the past few months. Optimum Rewards members are losing their “Free Movie Tuesday” and discount ticket benefits with the sale of Cablevision’s 47 movie theater chain Clearview Cinemas.

Cablevision’s ruling family even canceled the July 4 fireworks display run for years from their home on Oyster Bay, N.Y. “for personal reasons.”

Rogers customers may now have to pay to read their monthly bills.

Eastern Canada’s biggest cable company wants you to use your broadband service to check your balance, unless you are willing to pay a $2 monthly “paper bill fee.”

Rogers had charged new wireless customers (along with anyone making changes to their account) a $2 paper billing fee since 2011, but now everyone will pay if they want a hard copy.

At the same time the company is adding a new billing fee, it is taking away two popular cable channels in a move the company describes as part of “our ongoing commitment at Rogers to deliver a superior television experience.”

Fewer channels might bring better value if the company reduced the cost of your cable package, but don’t worry about that:

“Please be assured that there will be no change to your Rogers cable TV rates and all other aspects of your service(s) will remain the same,” a company letter said. “We apologize for any inconvenience these changes may cause.”

The inconvenience will be greatest for fans of BBC World who will now have to upgrade to a high-end package to keep watching the popular global news channel. It was stripped out of the basic lineup.

Spike is also getting the spike, kicked into a higher-end package at the same time existing customers see no corresponding decrease in their rates.

The sneaky price increase is not going over well with many Rogers customers, according to the Toronto Star.

Back in the fall of 2010, British billionaire Alki David fired a salvo against major broadcast networks in the United States and United Kingdom with the introduction of FilmOn, an online cable system offering unlimited viewing of broadcast networks from both countries for around $10 a month. By early 2011, lawsuits from various networks forced the removal of the most-watched channels, and most of the incentive for subscribers to keep paying for the service.

But David has never given up on FilmOn, and borrowing a page from Aereo’s business plan, he has brought back most of the major American networks on his relaunched platform, dubbed AereoKiller.

The company claims it is now using individual over-the-air antennas to receive broadcast stations from the New York or Washington, D.C. area, selling 24/7 streaming access for $9.99 per month or $99 a year. DVR service is sold at prices ranging from $2.95 a month to $190 a year, depending on the number of hours recorded.

Among the stations included:

New York

• WCBS (CBS)
• WNBC (NBC)
• WNYW (FOX)
• WABC (ABC)
• Bounce TV (via WWOR subchannel)
• WPIX (CW)
• WNET (PBS)/WNET-Kids
• WNJU (Telemundo)

Washington, D.C.

• WRC (NBC)
• WTTG (FOX)
• WJLA (ABC)
• WUSA (CBS)

There seem to be no geographic restrictions to prevent out of area viewers from subscribing, and FilmOn offers viewing on the desktop, as well as through iOS and Android apps.

David

FilmOn may have avoided streaming west coast stations because a California court found in favor of broadcasters who sued to shut down the operation three years earlier. But it ultimately will not keep David’s upstart service out of the courts in the east.

Last week, three major television networks and Washington, D.C. station owner Allbritton Communications filed suit against FilmOn for streaming signals from the nation’s capital without permission.

Based on the track record of earlier ventures, customers may want to avoid subscribing at the annual package price. Historically, broadcasters have fought and won temporary restraining orders that block the streaming services until the case makes its way through legal proceedings. Aereo, which streams New York area television stations exclusively to New York City customers has proven the exception and continues to run, at least for now.

Broadcasters consider stopping “dime-sized” antenna farm streaming services like Aereo and AereoKiller a top priority, because networks and local stations earn lucrative retransmission consent rights fees from cable, satellite, and telco-TV providers used by at least 90 percent of the viewing audience. Should these alternative technologies be found legal and not in violation of copyright, pay television providers could potentially license and incorporate similar technology into their respective set-top boxes and avoid paying license fees to station and network owners.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/FilmOn Introduction 5-13.mp4[/flv]

FilmOn’s introductory promotional video features some boastful claims from founder Alki David that are perhaps more wishful thinking than reality, but PlayOn has persisted despite broadcaster lawsuits by creating and distributing original live and recorded programming.  (8 minutes)