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Hulu… by Disney; Comcast Becomes Passive Partner in Streaming Service

Effective today, Hulu is now under the full control of the Walt Disney Company, ending a decade of a sometimes-uneasy partnership between rivals NBC-Universal, 21st Century Fox, Disney-ABC and Time Warner (Entertainment).

This morning, Disney and Comcast, the last two partners in the streaming venture, reached an agreement that will give full operational control of Hulu to Disney, in return for either company having the right to force Disney to buy out Comcast’s remaining 33% interest in the service beginning in 2024. In effect, with Comcast giving up its three seats on Hulu’s board and its veto power, the cable company now becomes a passive partner in the venture. At a Disney-guaranteed value of at least $27.5 billion five years from now, Comcast could eventually walk away from Hulu with at least $9 billion in compensation.

Today’s agreement means Disney will own and control multiple streaming services. Disney today announced it has big plans for Hulu, despite preparing to launch its own Disney+ streaming service and already operating its own streaming platform for ESPN. Disney CEO Robert Iger said Disney+ will now be focused on kids and family-friendly entertainment, while Hulu will be Disney’s platform for adult-focused movies and series. Disney’s recent acquisition of the 20th Century Fox content library and FX’s suite of cable channels gives it plenty of additional content to bring to both of its general entertainment streaming services.

To make sure of a smooth transition, both companies have agreed to a lucrative extension of Hulu’s license to stream NBC-Universal content and networks, as well as a retransmission consent agreement to allow Hulu Live to continue carrying NBC-Universal networks and TV channels until the end of 2024. That will deliver a significant revenue boost to Comcast, which can use the money to help build its own forthcoming streaming platform, launching in 2020.

“We are now able to completely integrate Hulu into our direct-to-consumer business and leverage the full power of The Walt Disney Company’s brands and creative engines to make the service even more compelling and a greater value for consumers,” said Iger in a statement.

NBC-Universal chief executive Steve Burke said in a statement that the deal is “a perfect outcome for us” because the “extension of the content-licensing agreement will generate significant cash flow for us, while giving us maximum flexibility to program and distribute to our own direct-to-consumer platform.”

For consumers, Iger is expected to consider offering a discounted bundled package to Hulu subscribers who also sign up for Disney+. With a combination of Hulu and Disney+, Netflix’s biggest U.S. rival is about to get considerably bigger.

CenturyLink Considering Dumping Its Consumer Landline/Broadband Services

CenturyLink is considering getting out of the consumer landline and broadband business and instead focusing on its profitable corporate-targeted enterprise and wholesale businesses.

CenturyLink CEO Jeff Storey told investors on a quarterly conference call that the phone company had hired advisors that will conduct a strategic review of all CenturyLink products and services targeting the consumer market and is “very open” to the possibility to selling or spinning off its residential business, assuming it can find an interested buyer.

“Let me be clear, we’re early in what I expect to be a lengthy and complex process,” Storey told investors, noting the company’s first priority is to take care of its shareholders. “During our review, we will not modify our normal operations or our investment patterns. I can’t predict the outcome or the timing of this work or if any transactions will come from it at all. Our focus, though, is value maximization for shareholders. If there are better paths to create more value with these assets, we will pursue them.”

CenturyLink’s landline network is similar to those of other independent telephone companies. There are significant markets where extensive upgrades have introduced fiber broadband service and high-speed DSL, but most of CenturyLink’s network remains reliant on copper wire infrastructure that is not capable of supplying high speed internet to customers.

Like most large independent telephone companies, the majority of CenturyLink’s residential customers can only purchase slow speed DSL service offering less than 20 Mbps. A growing number of customers have canceled service after running out of patience waiting for upgrades. CenturyLink executives told investors last week the company is abandoning investments in bonded or vectored DSL upgrades, claiming anything other than fiber optics is not “competitive infrastructure.”

CenturyLink also admitted it is losing customers after deciding to shelve its unprofitable, competing Prism TV product. The only growth on the consumer side of CenturyLink is coming from significant broadband upgrades.

“In the first quarter, we saw a net loss of 6,000 total broadband subscribers. This quarter’s total was made up of declines of 83,000 in speeds below 20 Mbps and growth of 77,000 in speeds of 20 Mbps and above,” reported CenturyLink chief financial officer Neel Dev. “Within those gains, we added 47,000 in speeds of 100 Mbps and above. Voice revenue declined 12% this quarter. Going forward, we expect similar declines in voice revenue. As a reminder, the decline in other revenue was driven by our decision to de-emphasize our linear video product.”

Dev reported that 55% of CenturyLink’s customers have access to speeds of 20 Mbps or less, and the company has ceased spending marketing dollars advertising slow speed DSL. Instead, it “microtargets” service areas where customers can sign up for service faster than 20 Mbps.

Observers note CenturyLink’s interest in its landline business has been waning for some time. The change in attitude can be traced back to CenturyLink’s merger with Level 3, a very profitable provider of connectivity to the enterprise and wholesale markets. CenturyLink’s commercial services are consistently earning most of the revenue the company reports to shareholders every quarter, with residential services declining in importance.

A sale of CenturyLink’s local landline and consumer-focused internet businesses could be hampered because of the likely lack of buyers. Frontier Communications had been an aggressive player in acquiring landline networks cast off by Verizon and AT&T, but that company is now in financial trouble and faces major debt issues. It would be an unlikely bidder. Windstream is still in bankruptcy reorganization and an acquisition is out of the question. Smaller independent phone companies like Consolidated Communications (owner of former FairPoint Communications), also likely lack financing to achieve such a deal, especially as interest rates continue to rise. CenturyLink also has the option of spinning off its residential business into a new corporate entity, but would likely result in a financially hobbled enterprise that may have trouble attracting capital to continue funding further expansion.

Apple iOS Update Includes Apple TV App for Subscribing to Streaming Services

Phillip Dampier May 13, 2019 Apple TV, Competition, Consumer News, Online Video Comments Off on Apple iOS Update Includes Apple TV App for Subscribing to Streaming Services

Apple today released a software update for iOS device owners and some smart televisions that includes a new Apple TV streaming app designed to simplify the online streaming experience. This enhancement highlights the growing demand for innovative solutions in the tech industry, making it a great time to connect with an iOS app developer like the ios app developer sydney who can help bring unique app ideas to life.

The Apple TV app works similarly to Roku’s collection of subscription services. Through the app, viewers in 100 countries can subscribe to individual networks and access them without launching multiple separate apps to watch. Apple TV app also manages billing and collects viewing interests to provide recommended new shows and movies.

At present, most premium channels are available through the app for subscription, but you will pay a non-discounted price for each service, often at a premium. HBO, for example, can be had for as little as $5 a month through some platforms, but costs $14.99 through Apple TV. Other services often run their own discounted specials, but Apple TV customers will not get that pricing. Cord Cutters News reports these networks were available for purchase as of this morning (others are being beta tested):

  • HBO
  • Showtime
  • Starz
  • Cinemax
  • Epix
  • Smithsonian Plus
  • PBS Living
  • Acorn TV
  • Sundance Now
  • Lifetime Movie Club
  • Urban Movie Channel
  • Tastemade
  • Curiosity Stream
  • MTV Hits
  • Comedy Central Now

Apple TV is a precursor to the company’s more elaborate streaming and original content platform — Apple TV+ — expected to launch this fall. For now, Apple is taking a cut from reselling other companies’ content and wrapping it around its own interface. Some early subscribers report Apple TV subscribers get more generous multiple viewer allowances, and a large selection of live streams of certain networks like HBO that are not even available from HBO’s own app. Because finding content across a wide array of subscription services is becoming more complicated, users can also access a search utility to find favorite shows.

By developing its own ecosystem, Apple hopes to build an audience and subscriber loyalty by getting customers accustomed to visiting Apple TV to access their subscription content, which gives Apple an audience to sell other programming and content. In return, customers will not have to install multiple apps, or keep track of usernames and passwords for each of them.

Owners of recent Apple devices, as well as those with 2019 Samsung smart TVs (and some 2018 models) will find software updates including Apple TV starting today. Later this year, customers with certain Vizio, LG and Sony TVs will be able to use the TV app using AirPlay 2.

There are some caveats. Netflix is missing. The largest streaming provider in the world has made it clear it will not be a part of the Apple TV app. Also, only a handful of cable and streaming providers have signed on to allow customers to authenticate their TV subscriptions through the Apple TV app so far: Charter Spectrum, DirecTV Now and PlayStation Vue.

Those looking for convenience might find the Roku or Apple TV platforms a good place to bring content from multiple services together, but those looking for the best price will save money shopping around for subscription deals not available from Apple TV.

Spectrum Mobile Limits Customer to Only One Line Because of ‘Low’ 797 Credit Score

Spectrum Mobile customers who sign up for cell service can expect an inquiry about their creditworthiness, and some customers with near-perfect FICO scores are embarrassed to discover Spectrum considers them too risky, thanks to an Experian credit scoring model developed specifically for utilities, phone and cable companies.

When you inquired about our device(s) and mobile service(s), we evaluated your credit score of 797 and determined we can only offer you a limited number of our available devices for purchase.

This decision was made solely by Spectrum Mobile though such decision was based on the information supplied by Experian, a consumer reporting agency. The terms we are offering may be less favorable than the terms offered to customers who have a better credit score. Experian will not be able to provide you with any information relating to Spectrum Mobile’s decision or any other Spectrum policies, devices, and/or services.

In practical terms, the letter means this Reddit contributor will be limited to just one line of service on his account.

Spectrum Mobile is relying on a special credit risk management product to score its customers. The TEC Connect 2.0™ “risk model” stands for “T”elecommunications, “E”nergy, and “C”able, and was created exclusively for utility and telecommunications companies. It was designed to predict the likelihood you will pay utility and cable bills on time and in full. During times of economic distress, telecom and energy bills often get paid later than mortgages, auto loans, and credit cards. Still, with a score range of 400-900, the recipient’s 797 ranking represents a low credit risk, probably undeserving of a one line limit.

What counts the most towards your TEC Score?

Experian cited four adversities on this individual’s TEC Connect 2.0 report:

00011 – The date you opened your oldest joint revolver is too recent
00070 – Lack of sufficient relevant real estate/HELOC account information
00003 – Credit amount on your open first mortgage account is too low
00058 – Your most recently opened account is too new

That would seem to imply the customer is a relatively young borrower, or someone who closes older credit lines, which can count against your credit score. The report also seems to include conflicting information about any owned property and if it is mortgaged, which might mean the applicant is actually a renter. Recently opened credit accounts will diminish a TEC Score, and having a recent history of opening multiple new accounts could signal you are potentially over applying for credit or are overextended. Even if your FICO score reflects a good credit history, if you are a late-payer of energy or telecommunications bills, your TEC Score will reflect that and expose you to rejection of your application, line limits, and advance deposits.

Critics of Experian’s TEC Connect score note many utility companies do not report or report incomplete payment histories, many accounts are often missing from credit reports, and even those with perfect payment histories and a high FICO score can still run afoul of TEC Connect’s scoring model.

If you receive notice of an adverse credit decision, always take advantage of the opportunity to receive and review your report, free of charge. You are entitled to correct errors and have those corrections sent on to companies like Spectrum Mobile for a credit re-evaluation.

Fox Plans to Substantially Hike Fees for Its Cable News and Broadcast Channels

Phillip Dampier May 9, 2019 Consumer News, Online Video 2 Comments

Your cable or streaming TV bill will increase once again as Fox executives told cheering investors this morning it would hike prices for carrying Fox TV stations and its suite of cable networks, including Fox News Channel, Fox Business, Fox Sports 1 and 2, and the Big Ten Network.

“We plan to meaningfully accelerate growth of both direct retransmission and non-[owned and operated] revenue and we believe the broadcast economics we receive are quite underpriced relative to the quality of the content we are providing,” said Fox chief operating officer John Nallen, speaking at a Fox Investor Day event.

Fox’s contracts with most cable, satellite, and streaming providers are coming up for renewal over the next three years, and it should not surprise providers to see substantially higher renewal pricing than ever before to continue carrying Fox’s networks. Fox plans to leverage the increasing amount of live sports on its broadcast network and the relative popularity of Fox News Channel to demand higher compensation. Fox was already collecting 29% more in retransmission consent-related revenue during the third quarter, but that percentage is expected to grow dramatically as new contracts are signed.

Fox News is already the most costly cable news network, and as other broadcast TV networks demand ever greater compensation from cable and satellite providers, Fox executives feel they are not asking as much as they could for their channels. That is an important consideration for Fox, which slimmed down dramatically after a sale of most of its assets to Disney. The ‘new’ Fox is made up of the Fox television network, 28 owned and operated Fox affiliated TV stations, cable news and business, and three sports channels. Nallen sees no need to expand the network lineup further.

“We are no longer lending the potency of our marketing brands toward any other initiative, brand or channel development,” Nallen said. “The purity of this sustained value opportunity from our Fox brands is critical as we are not tethered to any properties that are just getting harder to defend. This frees us up to capture the full value of all our brands across broadcast and cable.”

Nallen knows some cable operators have grown increasingly disenchanted with selling television service, and acknowledged some cable companies may balk at Fox’s new asking price, especially as cord cutting continues to accelerate. He told investors he is technology agnostic about who he sells Fox networks to, so it would come as no surprise if a streaming TV service eventually breaks into the top four Fox channel distributors. At the same time, as prices continue to rise, some traditional cable operators could eventually stop selling television service altogether.

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