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CES: New “Better” TV Sets?

Steve Fravel — Fri, 13 Jan 2012 14:54:55 +0000

The Leichtman Research Group recently released some interesting data concerning television set ownership in the United States. There is an HDTV-capable TV set in 69% of U.S. households. Further, 48% of U.S. households have more than one HDTV, and one-third have more than two HDTVs. On the analog side, 45% of TV sets in households are not HDTV-capable, and nearly 60% of all TV sets in the United States are non-HDTV.

What all of this really means is that TV is an important fixture in U.S. households. There is ample market to whom manufacturers can sell more HDTVs.

From all reports, there were a lot of TVs on display at the 2012 International Consumer Electronics Show (CES) in Las Vegas. Like all things television, being “better” is subjective. Will the advances shown this year turn into the consumer trends that the manufacturers predict?

Approximately two years ago, the manufacturers were touting 3D as the “must-have” technology moving forward in home entertainment. Unfortunately, there still aren’t very many sources for 3D content available. This year Toshiba demonstrated a TV that does not require the glasses to see the 3D effects.

According to sales figures, only 3% of the viewers in the U.S. own a 3D television. At CES there were 3D monitors on display which were bigger, thinner and more expensive than conventional view screens. According to a poll taken by Parks & Associates, nearly half of those who indicated a willingness to buy a new television in 2012 prefer an Internet-connected set over a 3D TV.

Showing at a few of the vendors booths in Las Vegas were “next generation” 4K screens. Here again, there isn’t much content to speak of, but the pictures look nice. We are told they are brighter and that four times the resolution makes a great picture. Even with features like automatic up-converting of current HD video, the price tag on the 4K sets will be a problem for most people.

There are LCDs and LEDs and plasma screens and all of them have better, newer and different features. Then there is OLED (organic light emitting diode). Sony had one a few years back. It was an 11-inch screen and very expensive, but it had a great picture. Sony has dropped out of the OLED business and now offers “crystal” LED screens. LG, Samsung, Toshiba manufacture OLED in 50-inch screens. Those who have seen the OLED and compared it to the Sony “crystal” set give the edge to the OLED.

I keep coming back to the idea that people want their television connected to the Internet. Having surveyed the content that is available, I know there is more than Hulu, Netflix and You Tube available “over-the-top (OTT).” With Samsung joining the Google TV crowd and Roku coming up with smaller and smaller devices to direct OTT content to the set, the question I have is still, ” Is OTT in addition to pay-TV – or is it eventually instead of pay-TV?’

Time and technical advances in the electronic equipment we buy will tell.

Amazon and NBC Announce Streaming Deal

Steve Fravel — Fri, 29 Jul 2011 19:48:15 +0000

Just a week after announcing a similar arrangement with CBS, Amazon on Thursday announced that it had reached agreement with NBCUniversal. The arrangement provides for streaming rights and nonexclusive access to NBCUniversal’s film library.

The programming will be available through Amazon Prime, the annual membership service. For the price of $79, Amazon Prime members are allowed two-day shipping on purchases. The streaming service is available to the members at no additional cost.

ION TV to Air Starz Movies

Steve Fravel — Fri, 15 Jul 2011 13:48:12 +0000

For the first time, ION has acquired first run rights for films. In a deal with Starz Media, ION will run six films in its “Big Movie Weekend” starting in November.

ION Chief Operating Office Brandon Burgess said that the arrangement provides an outlet for independent content creators. The Starz-owned films are distributed through Anchor Bay Films and Overture Films, also owned by Starz Media.

In related news, ION’s prime-time numbers are encouraging. Total viewers is up 17% while the critical 18-49 demographic increased 12.5%. The movie roll out with Starz will run through 2013.

Hulu Up for Sale, 1M Paid Subs within Reach

Jesse Ward — Mon, 11 Jul 2011 17:41:52 +0000

For several weeks now, the trade press has been buzzing with rumors that Hulu is up for sale. Last week Disney CEO Bob Iger confirmed that the three media companies that own the online video portal — News Corp., Disney and Comcast’s NBCUniversal — are “committed to selling” the site. Iger did not reveal when a sale would occur, but predicted it was inevitable.

Nearly a dozen companies are rumored to be actively involved in discussions with Hulu, including Amazon, AT&T, Google, Microsoft, Netflix, Verizon and Yahoo.

Google is predicted to be a front-runner. Although the Internet giant already has a vested interest in video through its YouTube division, Hulu would provide the company with something it does not have — access to Hollywood contracts.

Amazon may be the most well-suited as a Hulu buyer since its business model is based on selling and distributing content. In addition, Hulu CEO Jason Kilar is a former Hulu exec, bringing a certain level of familiarity to the deal.

Hulu reported in a blog post last week that is now has more than 875,000 paid subscribers, and it expects to exceed 1 million users for its $7.99 per-month service by the end of the summer season, earlier than the year-end goal the company initially set. Management expects total revenue of approximately $500 million in 2011.

In comparison, Netflix has 23 million customers and, according to Bloomberg, may generate $3.25 billion in revenue this year.

For more, see this All Things D blog post.

AMC Network in Play?

Steve Fravel — Fri, 08 Jul 2011 17:56:11 +0000

Spun off last week by Cablevision, the former Rainbow Media Holdings may be the acquisition target for one of several media companies. Rumor has it that Disney, News Corp. and Time-Warner each may have an interest in buying the newly renamed AMC Networks.

AMC Networks owns AMC, IFC, WE TV and the Sundance Channel. AMC also owns IFC Films and international programmer and TV program distribution unit. Speculation is that a deal for AMC Networks could run in the $3 billion range.

None of the organizations has commented publicly on the rumor. Of course if a deal is to go through it will provide the wining content provider with even more market power in retransmission consent negotiations.

Major Broadcasters and Baseball Sue ivi TV

Steve Fravel — Wed, 29 Sep 2010 15:36:12 +0000

Citing a commitment to protect their rights, CBS, Fox, NBC, WPIX, Disney, Cox, PBS and the office of the commissioner of baseball have filed suit against ivi TV in the U.S. District Court of New York. The filing indicates copyright infringement and secondary infringement. ivi TV launched its online pay video service two weeks ago claiming that it was within its rights to retransmit TV station signals.ivi TV has argued that it is an online “cable” provider in regard to copyright law, and is allowed to retransmit television station signals. However because ivi TV does not fit the traditional definition of a cable system, it further argues that the requirement to negotiate retransmission consent does not apply.

Todd Weaver, CEO of ivi TV has said that ivi pays the broadcasters according to the law in the same manner as cable companies.

ivi TV filed its own lawsuit last week in Seattle. ivi is requesting a declaratory ruling that will state that ivi TV does not infringe upon the copyrights of the broadcasters.

The broadcasters are seeking a motion to dismiss the ivi suit.

ivi Faces Legal Action from Broadcasters

Jesse Ward — Thu, 23 Sep 2010 14:40:40 +0000

As predicted, ivi, the new online, live TV service is facing legal action.

A group of companies including NBC Universal, CBS Broadcasting, Fox Television Stations, Disney, Major League Baseball and others have sent cease-and-desist letters to the video start-up. The letters allege that ivi does not have permission from the content owners to rebroadcast the programming.

In its letter, NBC Universal attorney Daniel Kummer said that ivi’s claim that it is operating within the law is “nonsense, and has no merit.” Krummer wrote, “As you are surely aware, prior Internet-based television services making similar claims have been enjoined, or have discontinued their unauthorized illegal offerings, following legal challenge.”

ivi responded with a preemptive lawsuit filed in federal court in Seattle affirming that it has rights to the over-the-air broadcasts under the Copyright Act. “The Copyright Act expressly authorizes secondary transmission of copyrighted works embodied in primary transmissions,” the suit said. “For example, the Copyright Act expressly approves of the secondary transmission of an original television broadcast where the secondary transmission is subject to a statutory license.”

ivi further clarified its position in a press release issued earlier this week. The company boldly “challenges ‘big media’ to innovate rather than litigate:”

ivi, Inc., remains steadfastly on the side of the consumer, refusing to allow big media to limit consumers’ choice or its technology. Instead, ivi has responded to the C&D letters with both written clarification explaining how its technology works within the parameters of existing law, and offers to meet with broadcasters to begin a constructive dialogue about implementing ivi’s proprietary technology. The ivi technology is a clear reflection of consumer demand and evolutionary forces in the technology marketplace.

Defendants named in the suit include: Fisher Communications; NBC Universal; CBS Broadcasting; The CW Television Stations; Disney Enterprises; Fox Television Stations; Major League Baseball; Twentieth century Fox Film Corp; WGBH Education Foundation; and WNET.org.

For more, see this Tech Flash post.

ivi Launches ‘Highly Disruptive’ Online Streaming TV Service

Jesse Ward — Wed, 15 Sep 2010 19:48:12 +0000

ivi TV pro — with controller and guide open

A new online video service was launched to great industry fanfare on Monday. ivi offers a live Web feed of more than three dozen broadcast channels, including ABC, CBS, NBC, FOX, The CW, PBS and Telemundo. Ivi claims to have more content then Hulu, with plans to add more channels in the future and also maintain al a carte options.

The service is available via a downloadable application for $4.99/month, with a free 30-day trial. Subscribers can add-on DVR functionality for an additional 99 cents per month.

The ivi TV player currently is available in Windows, Apple and Linux formats, and soon will be available on other platforms, including mobile devices, tablets (such as the iPad) and set-top-boxes.

The Seattle-based start-up describes itself as “highly disruptive,” taking aim at pay-TV providers and specifically cable subscribers. “The cable industry has spent countless millions of dollars on so-called ‘TV Everywhere‘ solutions in a blind effort to prop-up outdated technology and business models” said Todd Weaver, founder and CEO of ivi, Inc. “However, ivi empowers its users to experience ‘TV Anywhere’, offering them major broadcast channels delivered live to their laptop or desktop, anywhere on the planet. Whether eventually integrated into Google TV, Apple TV, or meshed with an existing platform’s digital strategy, ivi makes the set-top-box and any ‘Web to TV’ products obsolete. Instead of attempting to bring the Web to the TV, ivi intuitively brings TV to the Web.”

ivi TV offers corner-to-corner television.

Weaver continued, “Recognizing the fate of the landline telephone and the digital debacle experienced by the music industry, ivi offers the broadcast and cable industries innovation they do not have time to build …Forcing consumers to pay for undesired content did not work for the music industry, and it is equally unsustainable for the cable and satellite industries. There is no incentive to fight us, when they should simply join us.”

In its release, ivi quotes statistics from SNL Kagan which reported that cable companies lost a staggering 711,000 subscribers in the second quarter of 2010 alone–the biggest quarterly loss in cable TV’s history.

The company appears to be striving for a collaborative spirit from its cable counterparts but I imagine most cable providers will see it as foe, not friend.

Perhaps most importantly, you might ask, how is ivi acquiring its content? According to media reports, ivi has not negotiated programming contracts with broadcasters. Instead the company claims it doesn’t need to since it’s an “online cable system,” and it’s a legit operation as long as it pays fees to the U.S. Copyright Office. I’d venture to guess the company will be facing legal action in the near future.

Also keep in mind that although ivi offers HD streams, many user’s connections will not support it.

TelcoTV 2011 will feature more on over-the-top content, friend, foe or both?

AT&T Reaches Agreement with Rainbow Media

Jesse Ward — Mon, 19 Jul 2010 16:48:36 +0000

AT&T U-verse announced last Thursday that it reached a new carriage deal with Rainbow Media.

Rainbow, part of Cablevision Systems, owns AMC, IFC and WE tv. The agreement with U-verse expired July 1, but was extended another 14 days for negotiations.

“We are happy to report that AMC, IFC and WE tv will remain on AT&T U-verse,” AT&T said in a statement. “We’re very satisfied that we were able to reach the fair deal we wanted for our customers – one that includes the right content, across platforms, at prices that are in line with the marketplace, and that helps us with important strategic content initiatives. We are very grateful to our customers for their support.”

Rainbow also released a statement: “We’re pleased to have reached an agreement with AT&T for AMC, WE tv, IFC and Sundance Channel that truly recognizes the value of our networks. We look forward to continuing our partnership with AT&T and are excited to continue to bring their subscribers our award-winning programming, including the new season of AMC’s Mad Men on Sunday, July 25.”

90% of Network TV Shows Available for Free Online

Jesse Ward — Thu, 15 Jul 2010 19:33:50 +0000

Approximately 90% of network TV episodes are available online, but taken down after six weeks or less, this according an exhaustive study performed by online video search site Clicker.

Clicker’s study includes shows that came online at any point during the fall or spring seasons from ABC, CBS, FOX, NBC and The CW. Clicker narrowed its focus to free streaming only—the study does not include paid downloads or video on demand (VoD) streaming from Netflix, Amazon or iTunes. Clicker determined that a surprisingly high percentage of episodes on broadcast TV were made available on ad-supported video websites.

According to the Clicker, about half of all TV episodes posted online were available over the Internet within one day of the original broadcast, and nearly all were posted within two weeks of their original air date.

But consumers must act quickly. Of the 4,420 broadcast episodes that graced the Web for free during the 2009-10 season, more than 90% (3,980) were later removed. Approximately 60% of these episodes were taken down within three weeks of being published, while over 90% of them came down within six weeks.

Primetime series made up the majority of shows posted online, with 84%, compared to daytime (10%) and late night (6%).

In the battle to retain video subscribers, content is king. Clicker reminds us that over-the-top content is growing, and pay-TV cord cutting is a budding concern for video and broadband providers.

For more, see Clicker’s website.