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Walmart Educating Consumers on How to “Cut the Cord”

Phillip Dampier September 14, 2016 Competition, Consumer News, Online Video 3 Comments

walmartWalmart is recommending customers consider cutting off cable television for good with a step-by-step guide advocating an end to high-priced bills for hundreds of channels you’ll never watch:

When you sign up for cable, you are sold on the possibly hundreds of channels you will have access to, but how many do you actually watch? Most people find that they have, at most, a couple dozen channels that carry all of their favorite shows, while the rest are just filler. Unfortunately, whether you watch them or not, you’re still paying for all of those extra channels. Part of the tremendous savings (an average of $80 a month) in cutting the cord is moving to services that offer a smaller set of channels representing only what you want to watch. Not only do you just have the channels that you actually want, but streaming services are far more convenient, since they’re geared towards on-demand delivery of content. You watch what you want when you want. Most are month-to-month, meaning you can switch it up anytime rather than being stuck in a long-term contract.

The guide gives Walmart the obvious opportunity of selling customers on new televisions and equipment to enhance their streaming experience, and they don’t forget to mention how to hook up an antenna they just happen to sell to get local stations back on your cable-less television.

Walmart also uses its “cord-cutting” guide to upsell customers on VUDU, an often-forgotten pay-per-view streaming service Walmart just happens to own.

FCC Chairman Announces Compromise Set-Top Box Reform; Free ‘Apps’ for One and All

explorer 8000[Editor’s Note: Federal Communications Commission chairman Thomas Wheeler today released a compromise proposal hoping to get the cost of set-top box equipment down for millions of Americans forced to lease equipment to watch cable television.

Wheeler originally proposed requiring an open standard for set-top box equipment that would open the market to competition by allowing manufacturers to directly sell equipment to consumers and compete for their business. Cable operators, programmers, and various special interest groups that depend on financial contributions from those operators immediately launched an unprecedented pushback claiming set-top box reform was racist, anti-minority, promoted copyright theft, and was illegal and unconstitutional. Small cable operators claimed they might be driven out of business, and programmers claimed companies like Google might fundamentally change the channel lineup on new equipment that would leave them in a disadvantaged position.

In fact, the hundreds of millions of dollars in annual revenue earned by cable operators charging the same price for equipment fresh out of the box or handed down in beat up condition to the fifth customer in eight years was more likely the driving factor.

Mr. Wheeler capitulated and released a more modest proposal promising cable operators would be forced to offer free “apps” for devices like Roku and Apple TV. But cable operators will likely own and manage those apps and have direct control of authentication methods and anti-piracy measures that are likely to be proprietary. Still, apps like TWC TV which covers Time Warner Cable’s lineup on devices like Roku have allowed consumers to ditch expensive set-top equipment and irritating Digital Adapters that don’t function well and have almost tripled in price since their introduction. Making sure these apps provide comparable functionality with set-top boxes and are released to a variety of devices will be key to whether Wheeler’s proposal, delivered in full below courtesy of the Los Angeles Times, has a measurable impact on cable bills.]

FCC chairman: Here are the new proposed rules for set-top boxes

There’s never been a better time to watch television in America. We have more options than ever, and, with so much competition for eyeballs, studios and artists keep raising the bar for quality content. But when it comes to the set-top-box that delivers our pay-TV subscriptions, we have essentially no options, creating headaches and costing us serious money in rental fees. That makes no sense, which is why I’m sharing a proposal with my fellow commissioners at the Federal Communications Commission to change the system.

Wheeler's compromise

Wheeler’s compromise

Ninety-nine percent of pay-TV subscribers currently lease set-top boxes from their cable, satellite or telecommunications provider, paying an average of $231 a year for the privilege, according to a recent analysis. The collective tab is $20 billion annually in rental fees. In a recent study, 84% of consumers felt their cable bill was too high. What they may not realize is that every bill includes an add-on fee for their set-top boxes. We keep paying these charges even after the cost of the box has been recovered because we have no meaningful alternative.

Pay-TV providers will be required to provide apps — free of charge — that consumers can download to the device of their choosing.
Earlier this year, the FCC launched a process to unlock the set-top-box marketplace. We were motivated by the desire to give consumers relief, but we were also mandated to take action by Congress and the law, which says that consumers should be able to choose their preferred device to access pay-TV programming.
Over the past seven months, the Commission conducted an open proceeding where we heard from pay-TV providers, programmers, device and software manufacturers, consumers groups, and, most important, the American people. We listened.

Now, I am proposing rules that would end the set-top-box stranglehold. If adopted, consumers will no longer have to rent a set-top box, month after month. Instead, pay-TV providers will be required to provide apps – free of charge– that consumers can download to the device of their choosing to access all the programming and features they already paid for.

appletvIf you want to watch Comcast’s content through your Apple TV or Roku, you can. If you want to watch DirectTV’s offerings through your Xbox, you can. If you want to pipe Verizon’s service directly to your smart TV, you can. And if you want to watch your current pay-TV package on your current set-top box, you can do that, too. The choice is yours. No longer will you be forced to rent set-top boxes from your pay-TV provider.

One of the biggest benefits consumers will see is integrated search. The rules would require all pay-TV providers to enable the ability for consumers to search for pay-TV content alongside other sources of content. Just type in the name of a movie, and a list will come up with all the places it is scheduled for broadcast and where it can be streamed (like Amazon Prime or Hulu).

Integrated search also means expanded access to programming created by independent and diverse voices on the same platform as your pay-TV providers. Consumers will more easily find content even if it’s not on the pay-TV service to which they subscribe.

These rules will open the door for innovation, spurring new apps and devices, giving consumers even more choice and user control.

While our primary focus during this proceeding was to promote consumer choice and fulfill our congressional mandate, we recognize that protecting the legitimate copyright interests of content creators is also key to serving the public interest. To ensure that all copyright and licensing agreements will remain intact, the delivery of pay-TV programming will continue to be overseen by pay-TV providers from end-to-end. The proposed rules also maintain important protections regarding emergency alerting, accessibility and privacy.

Large pay-TV providers, which serve more than 90% of subscribers, will have two years to fully implement the new requirements.  Medium-sized providers will have an additional two years to comply, and the smallest providers would be exempt.

This is a golden era for watching television and video. By empowering consumers to access their content on their terms, it’s about to get cheaper — and even better.

Net Neutrality End Run: AT&T Exempts Its Own DirecTV Content from Its Mobile Data Caps

Phillip Dampier September 7, 2016 AT&T, Competition, Consumer News, Data Caps, DirecTV, Net Neutrality, Online Video, Public Policy & Gov't, Wireless Broadband Comments Off on Net Neutrality End Run: AT&T Exempts Its Own DirecTV Content from Its Mobile Data Caps

directvAT&T Mobility customers can now stream AT&T-owned DirecTV video on their mobile devices without fear of hitting their data allowance, because AT&T has exempted its own content from mobile data caps.

AT&T customers using the DirecTV iPhone app discovered the sudden exemption in an update released today, according to a report in Ars Technica:

“Now you can stream DirecTV on your devices, anywhere—without using your data. Now with AT&T,” the app’s update notes say under the heading “Data Free TV.” This feature requires subscriptions to DirecTV and AT&T wireless data services.

It sounds like the data cap exemption may not apply to all data downloaded by the app, as the update notes further say that “Exclusions apply & may incur data usage.” The service is also “Subject to network management, including speed reduction.” We’ve asked AT&T for more information and will provide an update if we receive one.

Customers can also use the app to download shows recorded on their home DVR straight to their mobile device(s) for viewing. Updates to the DirecTV apps for Android and iPad devices introducing similar exemptions are still pending as of this morning.

A description of "what's new" in the DirecTV app released this morning in the iTunes app store.

A description of “what’s new” in the DirecTV app released this morning in the iTunes app store.

AT&T is engaging in a practice known as “zero rating,” which exempts certain provider-preferred or owned content from that provider’s own data caps or allowances. Critics call zero rating an end run around Net Neutrality because users are more likely to use services that don’t count against their data allowance over those that do. The FCC’s definition of Net Neutrality prohibits providers from artificially enhancing the performance of certain websites at the expense of others, but says nothing about data caps or zero rating.

Chima

Chima

“All forms of zero rating amount to price discrimination, and have in common their negative impact on users’ rights,” said Raman Jit Singh Chima, policy director of Access, a group fighting for global preservation of Net Neutrality. “Zero rating is all about control. Specifically, control over the user experience by the telecom carrier — and potentially its business partners. We can see this is true when we look at how zero rating is implemented technically. Technologically, it is about manipulation of the network, where you guide or force the user to change the way they would otherwise use it.”

The FCC seemed to agree with Chima, specifically banning AT&T from exempting its own streaming video services and those of DirecTV from AT&T’s data caps in the agreement allowing AT&T to acquire DirecTV. But the FCC only mentioned AT&T’s caps on its DSL and U-verse home broadband services, not AT&T Mobility. AT&T took full advantage of the apparent loophole for its mobile customers.

AT&T has previously stated it does not discriminate against online content and is happy to exempt other video services from its data allowances and caps if those companies pay AT&T for the privilege.

The benefit of zero rating is obvious for AT&T. The company can now market its cell phone services to DirecTV customers with a significant advantage over competitors — free access to DirecTV video not available from Verizon, Sprint, or T-Mobile. It can also strengthen its earlier promotion offering unlimited DSL/U-verse service to those who bundle either product with a DirecTV subscription, by pitching zero rating for customers on the go.

AT&T’s competitors T-Mobile and Verizon also engage in zero rating on their mobile service plans.

Warner Bros. Demands Google Remove Its Own Website from Search for Copyright Violations

Phillip Dampier September 6, 2016 Consumer News, Online Video, Public Policy & Gov't 2 Comments

WBP-3D-99A company hired by Hollywood giant Warner Bros. to manage online piracy reported the studio to Google for violating U.S. copyright laws and demanded its website be stripped from Google’s search results.

The request was submitted on behalf of Warner Bros. by Vobile, a company that regularly reminds search engines it is authorized to represent the studio’s interests in the war against online copyright violations.

Torrent Freak scanned through a very large Vobile database of hundreds of thousands of takedown requests it files every month, but among the torrent and illicit streaming sites Vobile usually targets, the online security firm turned on its own boss in August.

Vobile filed formal requests to remove Warner Bros.’ own website from Google search results, along with official websites for films like Batman: The Dark Knight and The Matrix. Also on the hit list: legitimate movie streaming websites run by Amazon and Sky that sell access to Warner Bros.’ movies, and IMDB, a well-known film database.

Critics contend the war on online piracy has now gotten so out of hand, it is targeting legitimate content.

“Warner is inadvertently trying to make it harder for the public to find links to legitimate content, which runs counter to its intentions,” said Torrent Freak’s Ernesto van der Sar.

Vobile has filed more than 13 million requests for websites to be de-listed, according to Google’s transparency report. But most of the work ultimately falls on Google employees who wade through takedown requests. Thankfully for Warner Bros., an eagle-eyed Google employee reviewing Vobile’s submissions decided not to honor the takedown request involving the studio’s own website, at least this time.

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

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.

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