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T-Mobile Slams Its Own Deal With DirecTV Now, Throws In Free Year of Hulu

Phillip Dampier January 25, 2017 Competition, Consumer News, Online Video, T-Mobile, Wireless Broadband Comments Off on T-Mobile Slams Its Own Deal With DirecTV Now, Throws In Free Year of Hulu

Former AT&T customers who dumped their former carrier for T-Mobile in return for a free year of DirecTV Now are getting a sweeter deal with a free year of Hulu with Limited Commercials as well.

T-Mobile CEO John Legere had avoided criticism of the streaming television service from AT&T-owned DirecTV until customers began complaining it has never worked as advertised, making the T-Mobile’s promotion a “meh” experience.

Legere has been a frequent critic of AT&T in social media, so it isn’t too surprising Legere started taking shots at AT&T’s streaming effort as well this morning.

On Twitter, Legere slammed DirecTV Now and called AT&T executives “delusional” over claims the service exceeded their expectations.

“To make things right for those new T-Mobile customers, the Un-carrier is giving everyone who participated in this deal a free year of Hulu — an awesome streaming service that actually works — on top of their free year of DirecTV Now,” said the company in a statement.

Customers need not surrender their existing DirecTV Now service. Hulu’s limited commercials plan comes along for the ride for one year. T-Mobile will send affected customers a promotional code they can use to sign up over the next several weeks.

No word on if customers can also upgrade to the $11.99 no-commercial plan and receive a partial credit.

One Down, 70+ to Go: Esquire Network Signs Off Cable TV for Good This Spring

Phillip Dampier January 18, 2017 Consumer News, Online Video 1 Comment

NBCUniversal has discovered fewer viewers than ever care about live, linear television. Fewer still cared about Esquire Network, the studio’s male-targeted cable network you probably never watched.

The cable channel will go dark on your cable lineup for good this spring, according to Advertising Age, and move to the internet on Esquire.com.

Esquire Network launched as a partnership between NBCUniversal and Hearst Magazines, and took over the channel space formerly occupied by the Style network in September 2013. Esquire was supposed to reach young rich guys, among the most difficult audiences to reach. Esquire had an extremely low chance of succeeding, if only because young men in their 20s and early 30s are among the least likely to subscribe to cable television. Men in this age group are also notoriously intolerant of live commercial-laden television, and would be unlikely to treat Esquire’s original shows as worthy of appointment viewing.

Can America live without cable carriage of shows like “Knife Fight?” Apparently so.

Although Esquire Network turned in much better ratings than its predecessor Style, which couldn’t draw flies to a horse barn, NBCUniversal decided to pull the plug anyway after the network averaged only 141,000 primetime viewers nationwide, many outside of the age range advertisers wanted to reach. In 2016, every cable subscriber with Esquire Network paid a portion of their cable bill to keep the network on the lineup, even though it scored less than one-tenth of a single ratings point among adults 18-49 years old. Viewers had as much chance landing on the network by sitting on their remote controls by accident as intentionally selecting the channel. Other channels sharing space in Esquire’s ratings basement include never-heard-of Pop, Reelz, and Destination America.

For the tens of viewers that cannot miss Esquire’s original shows, including  “Edgehill,” an investigative series about a 1998 unsolved murder of a Yale undergrad, no worries — it and other shows including “Borderland USA,” “Knife Fight,” “Brew Dogs,” and “Best Bars in America” will be ready and waiting for on-demand viewing on its website, where it may actually attract a larger audience.

The cable TV lineup comes at an ever-increasing cost for subscribers, and low-rated cable networks that force their way on the dial in bundles with more popular cable networks are partly responsible for the cord-cutting trend. Many customers are finding they can live fine without hundreds of cable channels they pay for and never watch, and as cancellations continue to grow, some studios admit it may be time to slim down the cable package and move low-rated cable channels to on-demand, online viewing instead.

Big Red Verizon Really Wants to Own a Cable Company – Charter or Comcast Will Do Nicely

Shhh… Don’t tell anyone except the newspapers, trade journals, everyone else….

Well-placed sources inside Verizon are leaking like a sieve to the media about the phone giant’s ambition to own and operate a large cable company.

In what may be a trial balloon to test the waters with the incoming Trump Administration, at least two “well-placed sources” have told the New York Post Verizon CEO Lowell McAdam is seriously contemplating countering AT&T’s buy of DirecTV and its attempted acquisition of content company Time Warner, Inc., with the buyout of a major national cable operator.

Verizon’s primary interest, according to multiple sources, is expanding available content to fill its current and future wireless platforms, especially 5G. Acquiring a cable operator would make content deals easier and more affordable because of volume discounting. It would also allow Verizon to directly sell cable products and services without investing in further FiOS expansion.

The CEO told friends at the Consumer Electronic Show in Las Vegas that he “wants to buy into cable.”

The most likely targets would have to be large cable operators with a national footprint, and a source told the tabloid two companies qualified: Charter or Comcast.

“Altice is too small,” the source speculated. That would also count out other medium-sized companies like Cox and Mediacom, because they have too limited a service area to be of much use to Verizon.

No final decision has been made, the newspaper notes, adding no talks are underway between Verizon and any cable company at present. Should Mr. Trump repeat the earlier objections to the AT&T-Time Warner, Inc., merger he made last October, any marriage of Verizon with a cable operator would be unlikely. Trump cited unchecked media consolidation as his primary reason for opposing AT&T’s latest acquisition deal, but he has not repeated those objections recently. Last week Trump met with AT&T CEO Randall Stephenson in New York.

McAdam originally planned to use Verizon’s acquisition of Yahoo! as a way to broaden the phone company’s content library, but that yet-to-be-finished deal has been in turbulence since media reports exposed major security breaches of Yahoo’s e-mail and portal sites.

A deal with Charter is more likely than a buyout of Comcast because Charter’s most significant shareholder – John Malone, has no allegiance to keeping Charter Communications independent. Charter also lacks the kind of complications that an acquisition of Comcast could bring – notably Comcast’s ownership of NBC and its dozen owned-and-operated TV stations.

Malone has a long history of dispassionately buying and selling large telecom assets, including the cable company Tele-Communications, Inc. (TCI) he helped build from a handful of cable systems into what used to be the nation’s largest cable operator. In 1999, TCI was sold and rebranded as AT&T Broadband and Internet Services. Three years later, most of those cable systems were again sold to their present owner Comcast.

Verizon may argue it has already divested significant amounts of its FiOS service to Frontier Communications in the Pacific Northwest, Indiana, Texas, California, and Florida, limiting antitrust concerns. But state regulators, particularly in New York, are likely to raise serious objections if Verizon, already the dominant telephone company in New York (except Rochester) attempts to acquire Charter, the only significant cable operator in upstate New York and Manhattan. That would leave the vast majority of New York with a classic telecom monopoly, with only one provider for landline and broadband service.

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.”

Today is Last Day to Grab 100+ Channel DirecTV Now Promotional Package for $35/Mo

Starting tomorrow, new customers signing up for AT&T’s 100+ channel streaming television package will pay $60 a month, up from the $35 promotional price AT&T has been advertising during the holidays.

Today is the last day customers can lock in the $35/month price, and those willing to pay in advance will receive either an Amazon Fire TV Stick (prepay one month) or a 4th generation 32GB Apple TV (prepay three months).

Since launching, DirecTV Now has received mixed reviews. Many customers like the wide range of popular cable channels, and access to HBO and Cinemax for just $5 a month each. But early after launch technical glitches also proved frustrating for many subscribers. Among the most common are cryptic error messages that claim viewers are attempting to stream from outside the U.S. and another that claims customers have too many concurrent streams running. Several app updates have been released to deal with the problems, and complaints seem to be easing.

AT&T hasn’t reported how many customers convert from its free trial to become paying customers, but some analysts remain skeptical if customers without cable television care about a streaming package of linear TV, even at the $35 price point.

Fool.com:

When it first launched, Sling TV seemed like it would be a big hit. That has not proven to be the case possibly because the cord-cutting audience has learned to live without cable and the cord-never folks (people who never had cable in the first place) perhaps don’t miss what they never had.

[…] By putting an end date on this promotion, AT&T can gauge whether enough interest exists in live-streaming television for the company to continue. These are products that seem like a good idea, that have so far been rejected by the marketplace.

That may be because even the top packages from the live-streaming services have holes compared to cable. In most cases they are missing at least some broadcast networks and their interfaces — while not bad for a digital product — are clunky compared to just flipping around with a remote control.

It’s also very possible that cord-cutters and cord-nevers are finding their entertainment elsewhere.

Rutledge: Not worried about the competition

The CEO of Charter Communications continues to consider “cable TV alternatives” like Sling TV and DirecTV Now not much of a threat, because customers appreciate the convenience of having local channels and DVR capability available, and cable operators claim they provide a better set-top box experience.

“I think there’s a lot of reasons why the packages, the big rich packages, will stay together, and why people will continue to pursue their historic [consumer] patterns,” CEO Thomas Rutledge told the annual Citi 2017 Internet, Media and Telecommunications Conference in Las Vegas.

For many ordinary cable TV customers, taking the final step of canceling cable TV has been more psychologically difficult than dropping services like a landline phone because the alternatives available in the marketplace do not yet match the quality and convenience of the cable package.

AT&T apparently also believes a-la-carte cable TV sounds better in theory than practice, considering its marketing efforts have focused on a cable television replacement that most closely resembles traditional cable’s bloated TV lineup. Sling TV’s slim package has not been as successful in the marketplace as some investors had hoped.

For AT&T, there may be more at stake than just a standalone streaming television package. The company announced last week it planned to provide DirecTV Now over its 5G wireless network it plans to test in Austin later this year.

AT&T wants to see how 5G networks manage heavy video streaming traffic, according to a company news release. The development of 5G, which can achieve 14Gbps speeds in lab tests, could be critically important to AT&T’s plan to gradually decommission wired networks in its rural telephone service areas. Should AT&T be able to demonstrate 5G is a more robust replacement for traditional wired communications networks, it could bolster its argument to discontinue wired telephone and broadband service. But it could also mean the eventual end of DirecTV’s costly fleet of satellites in favor of broadband and wireless distribution.

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