The successful launch of ViaSat 1, the new satellite broadband satellite.

ViaSat, the parent company of satellite Internet service provider WildBlue, will introduce new pricing and speed packages Tuesday for its satellite broadband service.

WildBlue has offered satellite-based Internet access for several years, but the speeds and heavily-restricted “fair access policy” have left many customers looking for something better.  But for many satellite Internet customers, DSL or cable broadband is miles away and will be indefinitely, so any improvement in satellite broadband is good news.

“Are the days of satellite fraudband finally over?” asks Stop the Cap! reader Madeline who lives in rural Idaho. “I was a customer of WildBlue and Hughes in the past and both were not worth bear spit.”

Madeline and her family are potato farmers, and have been for three generations.  She remembers when the phone company started selling dial-up Internet access and got hooked on the Internet to get updated weather reports, trade farming information, and stay in touch with relatives.  But as the web has grown more multimedia-oriented, dial-up has progressively become an intolerable way to experience it.

“In the 1990s, web ads and pages were simple and they’d load quick,” she says. “Now it’s all video ads and other things that take five minutes or more to appear, so you become stuck waiting until you give up.”

WildBlue’s new satellite, ViaSat 1, may change the perception of a satellite Internet experience that is only slightly more tolerable than dial-up.  With speeds up to 12Mbps, WildBlue’s new speed packages will finally deliver something more than the 1.5Mbps “Pro” service the company currently sells for $80 with a 17GB usage cap.

“The key words with satellite are ‘up to‘ because you never get the speeds they promise, especially at night when everyone is on,” Madeline says. “If you use what they consider to be ‘too much,’ your speeds are cut further.”

ViaSat 1 has a total capacity of 140Gbps, double that of the company’s other satellite — KA-SAT.  That wireless pipeline will eventually be shared by commercial, government and residential customers.  With several hundred thousand anticipated users, WildBlue will continue to restrict usage even with the new capacity.  No word on what specific limits will be put in place, but it is likely customers will at least enjoy a speed boost from the new satellite.  ViaSat hopes to economize using web compression technology and other traffic management techniques to make efficient use of the satellite’s broadband capacity.

Madeline remains unconvinced, however.

“You don’t choose satellite Internet because you want to, you choose it because you have to,” she says. “My guess is WildBlue will continue the same low caps — especially to make sure we steer well clear of web video — and will still charge us a lot of money for service you can’t use all you want.”

Madeline went back to dial-up and frequently visits some nearby relatives who receive Internet from a Wireless ISP.

“While everyone else in the country is talking about Netflix and making video calls to relatives, we are still sending e-mail and setting egg timers to make sure we don’t stay online too long and get throttled before the month is out.”

WildBlue’s Existing Packages (Company-supplied information)

WildBlue’s Acceptable Use Policy.

*A “threshold” (a/k/a “usage cap”) is the amount of data that you can upload or download in a 30-day period before WildBlue’s Fair Access Policy (speed throttle) applies.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Wildblue Demo.flv[/flv]

WildBlue produced this demonstration to show off web browsing over its new ViaSat 1 satellite.  Keep in mind this browsing session took place before the satellite was available for general customer use and the company avoids mentioning its usage limits, which are extremely small in comparison to wired broadband.  (3 minutes)

HBO's Go service streams HBO movies, specials, and series to "authenticated" HBO subscribers

Time Warner Cable began testing its HBO and Cinemax Go “TV Everywhere” online video services Wednesday, starting with a private beta test for their super-premium Signature Home customers who pay $199+ for cable, broadband, and phone service.

Signature Home customers signed up for HBO and/or Cinemax will receive e-mail from the company that includes login instructions for the authenticated video service, which will be included in the cost for both premium channels.  Customers must subscribe to one or both premium channels for access.  Time Warner Cable’s Jeff Simmermon says other Time Warner Cable premium channel subscribers will get access as soon as next week.

For now, Time Warner’s implementation of the online video services will support Mac and PC computers.  Tablet and smartphone owners will have to wait for respective apps coming at a later date.

The cable company’s gradual rollout of the streaming video service is designed to prevent subscribers from overloading the company’s servers, which happened with the introduction of its iPad online viewing app.

“Rather than spend time aggregating a large list of volunteers across our footprint, vetting them against various eligibility requirements, and making sure that each of our markets is equally represented to arrive at a final approved master list, we’re going with all SignatureHome customers,” Simmermon said. “This will allow us to take a representative sampling from across all markets — which have varied tech infrastructures — without overloading our systems.”

Time Warner is one of the last major cable operators to unveil the premium movie channel streaming service.

More than 1,400 movies, specials and series are available for streaming from HBO Go.  Cinemax’s counterpart is more limited — just over 400 movies and soft core adult entertainment from its Max After Dark series.

Time Warner’s new Android app

Time Warner Cable has introduced a new free app that will eventually allow subscribers with an authenticated cable television package to stream dozens of channels over their Android-powered portable phones and tablets like that graphic drawing tablet with screen.

The TWC TV™ App for Android lets your Android device change the channel on your TV from anywhere in your home and manage your DVR inside or outside of your home.

Other features include:
– Interactive program guide – view program listings for up to 7 days and change channels on compatible set-top boxes
– View a filtered guide showing favorite channels or HD channels only
– Search for programming by title or episode
– Schedule and manage upcoming DVR recordings on compatible DVRs
– Adjust recording start/end times and change save time

Requirements
– Compatible Android smartphone or tablet (see below)
– Time Warner Cable video package at the Standard (Expanded Basic) level or higher
– Compatible set-top box or DVR (Motorola iGuide equipment is currently unsupported)
– Internet connection (WiFi or 3G)
– Time Warner Cable user name and password

Compatibility
– TWC TV supports most smartphones running Android 2.1 (Éclair) and higher
– TWC TV for tablets supports the Motorola Xoom, Samsung Galaxy Tab 10.1 and Sony Tablet S running Android 3.x. Other Honeycomb 3.x tablets with 1280×800 resolution should also work.

Those hoping to stream Time Warner Cable’s video lineup will have to wait.

“Once manufacturers and cellular carriers begin to upgrade their phones to Android 4.0 (Ice Cream Sandwich), we will release an update to offer in-home live TV on these devices,” Jeff Simmermon, Time Warner Cable’s director of digital communications wrote on the company’s blog. “We expect to see those upgrades early next year.”

A brief test of the new app at Stop the Cap! HQ ended quickly because Time Warner Cable’s My Services authentication portal has been down this morning.  That causes the app to generate an error message stating it cannot find a compatible DVR or set top box.  This is one of the problems customers face from online authentication systems.  If they go down, your access to “TV Everywhere” content goes with it.

Simmermon adds that Apple iPhone owners will be able to obtain the app sometime in January.  For now, only Apple iPad owners can view streamed video content.

Verizon Communications has held no talks with Netflix about a possible acquisition, despite frenzied media reports to the contrary.

Deal Reporter, a trade publication, was the source of the original rumor, but Bloomberg News reports the story is premature after talking with two sources who should know.

The rumored takeover did wonders for Netflix stock, which jumped more than six percent on the news.  That’s a boost the streaming and DVD-rental service needed after a year of public relations missteps and subscriber losses.

Verizon’s recent move towards launching its own streaming entertainment service outside of its FiOS fiber-to-the-home service areas made the rumor more credible, but other analysts think Verizon’s interest is on different company that shares Netflix’s love of the color red.

“Verizon’s not interested in Netflix, they see Redbox as a much better fit,” Sam Greenholtz, an analyst with Telecom Pragmatics in Westminster, Maryland, who has consulted for Verizon and was briefed by its employees about its plan, told Bloomberg.

It’s not the ubiquitous network of Redbox kiosks Verizon is after, it is the content distribution deals the company has with Hollywood studios.  Those deals are becoming quite lucrative for production companies — so lucrative in fact Time Warner’s chief entertainment mogul has cut back on his personal bashing of Netflix.  With Amazon, Time Warner’s own HBO Go, and Verizon entering the online video fray, Netflix CEO Reed Hastings declared there is now an “arms race” among the behemoths to dominate online viewing, and jack up licensing fees.

Hastings sees only the deepest-pocketed players as having a chance to make a stand in the online streaming marketplace, because content costs are increasing dramatically.  Hastings says Verizon and Amazon are bit players because they don’t offer a deep catalog of content and their offerings are more difficult to view on the family television set.

“The competitor we fear most is HBO Go,” Hastings said. “HBO is becoming more Netflix-like and we’re becoming more HBO-like. The two of us will compete for a very long time.”

HBO Go is part of the cable industry’s TV Everywhere project, delivering online video services to authenticated cable-TV subscribers.  Although HBO Go is typically included for free with an HBO subscription, the premium movie channel’s price has increased dramatically in the last three years.  In many areas, a monthly subscription for HBO now runs just shy of $15 a month.

CNN Money pondered whether Netflix can ultimately stay independent in a country where vertically and horizontally integrated super-sized entertainment companies control programming, distribution, and the Internet providers consumers use to access the content.  Netflix may still be an acquisition target:

Verizon. On the one hand, Verizon appears to be showing stronger interest in Redbox, which is planning to launch a streaming-video service in May 2012. On the other hand, Redbox is likely to face the same onerous licensing costs that plague Netflix, and Verizon might be better off buying a company experienced in licensing streaming rights. And besides, by hinting of a Redbox deal, Verizon can push down Netflix’ price – making a deal that much cheaper.

But if a Verizon deal makes sense on the face of it, it could become problematic over time. The two companies’ cultures are incompatible. Netflix takes risks that often (but not always) pay off, and builds its products around the customer’s experience. Verizon is risk-averse and builds its strategies on wringing fees from customers. If Netflix members staged a revolt over of the subscription fiasco, imagine how they’d react if Verizon raised fees further or demanded Netflix users sign up with its Internet service.

Microsoft. Netflix could give Microsoft the popular online service it’s never been able to build on its own. The Xbox has gone from gaming console to a well-received smart TV device, and integrating Netflix’ streaming-video service could put it ahead of Apple and Google. Plus, Reed Hastings could bring Microsoft a seasoned executive who instinctively understands where digital content is going.

Google. If the search giant can buy a phone maker, why not a video service? At $42.6 billion Google’s cash stockpile is 116 times the size of Netflix’s. Google already owns the only other digital-video property that has been embraced by the masses: YouTube. Combining the best features of both could lead to the only site you’d need to visit to get your video fix. Google’s recent comments on a controversial anti-piracy bill, however, could strain relations with studios that Netflix must license from.

Apple. As with Google, Apple’s $45 billion in cash will not only buy Netflix but sign many content deals and still leave tens of billions in the coffers. Thanks to iTunes, Apple has longstanding relationships with TV and movie studios, which could secure better terms for Netflix. And like iTunes, Netflix could spur enough sales of Apple devices that Apple doesn’t need to worry about making the profit that Netflix investors expect today.

Amazon. For as long as Netflix has been around, someone has been suggesting a merger with Amazon. Consumers have been buying DVDs from Amazon for years, and with IMDB, the best single film database on the planet, finding and researching movies to watch would be a cinch. The catch has been that owning Netflix’s mailing facilities would open it up to taxes in many states. But that may change now that Netflix seems ready to sell off its shrinking DVD-rental business.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg Bibb on Verizons Possible Bid for Netflix 12-12-11.flv[/flv]

Porter Bibb, managing partner at Mediatech Capital Partners LLC, talks about Verizon Communications Inc.’s possible offer for Neflix Inc. and the outlook for the streaming video industry. He was widely cited as one of the primary sources of the Verizon acquisition rumor.  He speaks with Jon Erlichman on Bloomberg Television’s “Bloomberg West.”  (5 minutes)

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/KRIV Houston Dont Cut Your Cable TV for Xbox 12-7-11.mp4[/flv]

Microsoft Xbox 360 owners who recently updated their consoles are discovering a range of new programming delivered over broadband.  But don’t cancel your cable television subscription just yet.  As this KRIV reporter in Houston discovered, an increasing number of online viewing choices require an active subscription with your cable TV provider to watch.  (2 minutes)