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FCC Approves Comcast-NBC Universal Merger

Jesse Ward — Tue, 18 Jan 2011 23:58:33 +0000

Update: The deal is now done. The FCC and the DoJ have both approved the transaction, imposing separate but overlapping conditions on the merger.

The Department of Justice (DoJ) still has to approve the transaction, although industry analysts largely view DOJ’s approval as a given.

As part of its approval, the commission stipulated certain conditions and “enforceable commitments” which will require Comcast-NBCU to take affirmative steps to foster competition in the video marketplace. In addition, Comcast-NBCU will increase local news coverage to viewers; expand children’s programming; enhance the diversity of programming available to Spanish-speaking viewers; offer broadband services to low-income Americans at reduced monthly prices; and provide high-speed broadband to schools, libraries and underserved communities, among other public benefits.

For more, see this FCC release.
Washington Report will have more analysis later this week.

Networks Block Google TV: The End of Free TV?

Steve Fravel — Mon, 25 Oct 2010 15:45:52 +0000

Are free episodes of popular television network programs going away? With Hulu Plus and other possible solutions, they just may be. The notion of “cutting the cord” and staying online for program content may just be a passing fad. ABC, NBC and CBS have made their content at TV.com and ABC.com unreachable by the Google browser, and, as a result, by Google TV.

The indication seems to be that ad-supported, free episodes may soon be a thing of the past. During the heat of the Fox/Cablevision dust-up on retransmission, Fox blocked Cablevision subscribers from accessing popular network programs such as Glee online. Although online access was restored within hours, this added fuel to the fire and may be the direction that the networks will take.

From all appearances unless you are getting your free, over-the-air signals from an antenna, the whole idea of “free TV” is quickly becoming a thing of the past. The broadcast networks realize that to keep cable subscribers from consuming what they miss online for free, they need to add a fee perhaps in addition to limited advertising.

The downside is that as a consumer if you desire to see the episodes you want to see for free it will mean a return to “appointment” viewing. Every other means of time shifting is going to have a cost associated with it.

FCC Institues a Temporary Delay in the Comcast-NBC U Merger Examination

Steve Fravel — Fri, 25 Jun 2010 13:23:42 +0000

Due to errors in filings provided to the FCC, the commission has halted the NBC Universal – Comcast merger vetting process. According to reports, the paperwork submitted by NBC U and Comcast did not comply with instructions provided by the FCC. This is the second delay in the action that began on March 18.

The FCC requested information concerning organizational structure of the companies, channel line-ups, content acquisition and content distribution. The FCC sent letters dated June 24, 2010, informing NBC U and Comcast that the process would be stopped until they had provided the requested information in compliance with the instructions they had given.

The pause will not affect the the “pleading cycle.” The next group of filings will be due on July 21 and the replies on August 5.

No timetable has been indicated for the revised information to be re-submitted.

VOTW:Free Press Releases ‘Comcastaction’ Video

Steve Fravel — Thu, 20 May 2010 20:25:58 +0000

The media advocacy association FreePress has released a video on YouTube to help illustrate the facts of the Comcast-NBC Universal merger. While humorous in concept, the video is a serious work and provides details that show just how enormous the Comcast – NBCU conglomerate would be in terms of networks and properties.

Additional information and tools for adding comments on the merger are available via the Free Press website.

Hulu Plans Subscription Service

Steve Fravel — Thu, 22 Apr 2010 15:21:58 +0000

The popular and trendy on-line video site Hulu has released information concerning a test of subscription service that is likely to begin near the end of May.

According to the subscription proposal; the plan calls for Hulu to continue offering “free” access to the five most recent episodes of programs like Lost, Saturday Night Live, Grey’s Anatomy, Parenthood and Glee.

Those who may want to “dig deeper” in time and look at older episodes from previous seasons would be required to pay a $9.95 monthly access fee. This fee would allow the viewer to choose from a more complete catalog of program episodes. The pay service is reported to be named “Hulu Plus.”

Hulu which is jointly owned by NBC Universal, New Corp and the Walt Disney Company is currently second in monthly video stream consumption to the number one ranked YouTube service.

The subscription for Hulu is a major change in the way in which Hulu has been doing business over the past two years. The Hulu owners are concerned that too much free access to content will dilute the value of on-line television in a manner similar to the music industry whose revenues dropped due to free access to songs on-line.

Studios, Cable Companies Partner to Promote VoD

Jesse Ward — Mon, 22 Mar 2010 19:14:30 +0000

Eight Hollywood studios and eight cable companies have joined forces for a $30 million advertising campaign during the next three months to promote awareness of movies available on cable video on demand (VoD). This is the first time rival studios have come together to push consumers to rent more movies through their cable boxes.

The TV, print and online ad campaign will feature the theme “The Video Store Just Moved In” and will promote the ease of ordering movies at home, via the click of a remote. It also includes a dedicated Web site at CableVideoStore.com and a Movies on Demand logo.

The studio partners in the Movies on Demand initiative include Time Warner’s Warner Bros Entertainment, News Corp.’s 20th Century Fox, Sony Pictures Entertainment, NBC Universal’s Universal Pictures and Focus Features, Rogue, Lionsgate and Summit Entertainment. Notably absent are Paramount and Walt Disney. The cable partners include Comcast Corp., Time Warner Cable, Cox, Cablevision’s digital service iO TV, Insight, Armstrong, Bend Broadband and Bright House Networks.

Visit the website.
The New York Times has more.

Comcast, GE Strike a Deal on NBC Universal

Jesse Ward — Mon, 07 Dec 2009 16:30:03 +0000

It’s official. Late last week, Comcast, the nation’s largest cable operator, announced an agreement to acquire NBC Universal from the General Electric (GE) Company. The deal valued NBC Universal at about $30 billion. As expected, the agreement gives Comcast 51%, and G.E. 49% ownership of the new joint entity which will not only produce content, but also control consumer’s access to it.

Comcast will contribute its cable channels to the joint venture, which include Versus, the Golf Channel and E Entertainment, worth about $7.25 billion, and will pay G.E. about $6.5 billion in cash, for a total of $13.75 billion.

Most of NBC’s value is in its cable channels — USA, Bravo, SyFy, CNBC and MSNBC. These networks, along with the channels that Comcast will contribute to the joint venture, will compose 82% of the company’s cash flow. The NBC network and Universal Studios will account for only a small portion of the joint company’s cash flow.

In a joint statement announcing the agreement, Comcast CEO Brian Roberts said the deal was “a perfect fit for Comcast and will allow us to become a leader in the development and distribution of multiplatform ‘anytime, anywhere’ media that American consumers are demanding.”

The merger has a large impact on the future of television programming, which will be viewed via mobile devices, computers and traditional televisions in American living rooms. Bernstein Research has estimated that the combined media giant “would be calling the shots for one out of every five viewing hours in the United States.”

NBC and Comcast have existing online properties that they bring to the table. As to what will become of them, Comcast told the Wall Street Journal that Hulu (the online-video site jointly owned by NBC, News Corp. and Disney) and TV Everywhere (Comcast and Time Warner’s online-video initiative) are complementary products, with broadcast TV shows appearing on Hulu, and premium cable programs on TV Everywhere. As of now, there are no plans to change Hulu’s free content model. (Of note, Hulu attracted 856 million viewers in October, a 47% increase from the prior month, this according to comScore.)

One important footnote: the deal is subject to regulatory approval, a long and potentially contentious process.

View G.E.’s release.
More on TV Everywhere, Hulu and the merger.

GE, Comcast Close to Deal on NBC Universal

Jesse Ward — Mon, 09 Nov 2009 17:39:43 +0000

Comcast Corp. and General Electric Co. (GE) agreed to value GE’s NBC Universal at about $30 billion as they discuss creating a joint venture to own the entertainment division, Bloomberg News and the Wall Street Journal reported today, citing sources familiar with the matter.

Rumor has it that Comcast would start out with a 51% stake in NBC, with an option to increase its ownership position to 100% during the next three to seven years. The only wildcard is Vivendi SA, which owns 20% of NBC Universal and is not yet part of the agreement. According to news reports, the deal would be dependent on the French telecom and media company selling its stake.

According to this morning’s report in the Wall Street Journal, the two companies are ironing out the final details and a deal could come as early as this week.

Bernstein Research has estimated that the combined media giant “would be calling the shots for one out of every five viewing hours in the United States.”

Rumors first surfaced about a potential deal at the end of September, although sources say the talks have been ongoing since the spring.

Of note, any potential deal is subject to regulatory approval, a long and potentially contentious process which The New York Times discussed this morning.

The Wall Street Journal reported on the story last week and this morning.
The New York Times has more.

Hulu May Start Charging in 2010

Jesse Ward — Mon, 26 Oct 2009 15:46:42 +0000

News Corp. Deputy Chairman Chase Carey spoke at an industry event last week on the future of the business, where he maintained that consumers need to pay for online broadcast content.

“I think a free model is a very difficult way to capture the value of our content. I think what we need to do is deliver that content to consumers in a way where they will appreciate the value,” Carey said. “Hulu concurs with that, it needs to evolve to have a meaningful subscription model as part of its business.” (Hulu is jointly owned by NBC Universal, News Corp., The Walt Disney Company and Providence Equity Partners.)

When the press inquired about when he would begin charging, Carey acknowledged there is still no timeline, but suggested it’s at least in 2010. Carey said that while throwing up a pay-wall around all content is not the answer, it doesn’t mean there won’t be fees for some specially-created content and TV previews.

Of note, it has been rumored that Comcast is in negotiations to purchase NBC Universal. If this occurs Comcast will take a seat at the Hulu table, and influence any future pay-for-content offering.

Broadband Reports had a lot to say about this issue, and I tend to agree with their analysis. Hulu is directly competing with pirated content, and in order to maintain eye balls it needs to be more appealing than other avenues. It will be difficult for Hulu to remain competitive with an expensive – and limited – offering, filled with increasing advertisements.

AT&T Launches In-Car Entertainment Platform

Jesse Ward — Mon, 08 Jun 2009 20:49:58 +0000

In early June, AT&T announced the nationwide launch of its in-car entertainment platform, AT&T CruiseCast. AT&T is partnering with Broadcasting Corp. (RBC) to offer the service which utilizes satellite technology to overcome line-of-sight obstacles.

Subscribers now will have access to 42 channels — 22 broadcast video and 20 radio — available on their existing rear-seat entertainment systems. Programming includes a variety of channels including CNN Mobile, MSNBC, Disney, Discovery and ESPN Mobile. The service costs $1,299 to install with a monthly subscription fee of $28.

“In-vehicle satellite entertainment is the next major trend in consumer electronics,” said Winston Guillory Jr., president of RBC. “We are proud to deliver a robust live-TV experience to vehicles.”