The New York Department of Public Service staff’s recommendations for public interest conditions that the state Public Service Commission should include in any approval of the Comcast purchase of Time Warner Cable doesn’t change Common Cause New York’s opposition to the deal, said Executive Director Susan Lerner in an interview. Common Cause New York has said in comments that the PSC should reject Comcast/TWC outright (http://bit.ly/VkBKKy). “Our argument is that this entity would be so large that it can’t be regulated, and its prior conduct raises real concerns about its willingness and likelihood of abiding by any conditions,” she said. Industry observers have seen the DPS recommendations as a sign the PSC is likely to approve the transaction (CD Aug 14 p2).
CableLabs representatives sidestepped our questions Wednesday on how 4K.CableLabs.com came together and whether CableLabs thinks the site can help alleviate the lack of available native 4K content. CableLabs launched 4K.CableLabs.com as a dedicated website “to demonstrate the latest in video content evolution and technology,” and give budding 4K content creators a chance at global exposure, said the cable industry’s research and development consortium Wednesday (CD Aug 14 p6). As for how many 4K-resolution uploads 4K.CableLabs.com has the capacity to hold, “at this time, we do not have any estimates as to how much content will be on the site,” a CableLabs spokeswoman told us: “The site will evolve as necessary for the benefit of the cable industry. With regards to space, we will continue to evaluate the space requirements as necessary to support our members relative with our goals for the site.” -- PG
The FCC review of Comcast’s planned buy of Time Warner Cable should focus on transaction-specific issues rather than general consolidation, Comcast Executive Vice President David Cohen told FCC General Counsel Jonathan Sallet and several other members of the commission’s task force overseeing the transaction, said an ex parte filing in docket 14-57 Thursday (http://bit.ly/1pPNJL5). The combined Comcast/TWC won’t harm broadband and won’t have a 50 percent of the national broadband market as critics maintain, Comcast said. Recent data show that the combined company would have a 35.5 percent share of fixed broadband connections, and 15.5 percent if wireless broadband is included, said Comcast. National broadband market share is irrelevant anyway, because Comcast and TWC serve distinct geographic areas and mostly don’t compete for Internet service, Comcast said. “The transaction will change nothing about competition for such services.” The deal also doesn’t pose competitive concerns in the video programming market, Cohen said. The commission’s review shouldn’t focus on “the claims of programmers intent on using this proceeding to secure new or different business arrangements,” the filing said. Comcast’s per-subscriber programming costs increased more than 120 percent between 2004 and 2013, a sign that content providers have strong bargaining leverage, Cohen said. The deal doesn’t pose a competitive threat to advertising markets where Comcast’s cable systems and NBCUniversal’s stations overlap because “cable spot advertising and broadcast advertising are not close substitutes and, therefore, constitute two separate product markets,” Comcast said. Cable doesn’t have a strong role in the ad market, and only 7 percent of local ad revenue goes to cable, Comcast said. The deal will also have the benefit of facilitating the deployment of addressable ad technology that will be compatible with Comcast’s X1 platform and existing Comcast digital set-top boxes, Cohen said. Comcast has a number of successful initiatives connected to diversity “enhanced over the past three years by a variety of voluntary commitments Comcast made in connection with the NBCUniversal transaction,” Cohen said. “Comcast is a demonstrated leader in this area and stands by its ongoing efforts and partnerships, which will extend to the acquired systems,” the filing said. “Beyond that,” the initiatives connected to Comcast/NBCUniversal should not be linked to Comcast/TWC, Cohen said.
Eliminating the sports blackout rule could have negative impacts on communities with “some of the greatest economic needs,” said Rev. Jesse Jackson, president of the Rainbow PUSH Coalition, in a letter to FCC Chairman Tom Wheeler Wednesday. “In large urban areas, NFL stadiums tend to be located within communities where the unemployment rate is high and the need for jobs is even greater,” said Jackson. Though eliminating the rule could be seen as an adjustment to increasing competition in video, communities without many pay-TV subscribers shouldn’t “bear the brunt of the harm” he said. Though Jackson conceded the rule appears “outdated in the current ecosystem,” he said its elimination could have a “disproportionate impact on the communities and residents that seek to work, and not simply watch an athletic event."
The FCC Media Bureau extended the comment period on Mediacom’s petition for rulemaking to amend rules for video programming vendors. Initial comments are due Sept. 29, and replies Oct. 14, the bureau said Monday in a public notice (http://bit.ly/1opIKCE). Deadlines were extended by one month, it said. American Cable Association requested an extension (CD Aug 5 p8). Granting ACA’s request “is necessary to facilitate the development of a full record,” the notice said.
The New York Public Service Commission shouldn’t seek a voluntary agreement from Comcast to expand its rural service area as part of its review of the proposed Comcast/Time Warner Cable deal, said Stop the Cap Founder Phillip Dampier in a filing posted Monday. The filing repeats Stop the Cap’s opposition to Comcast/TWC. The public service benefit of asking Comcast to voluntarily expand its rural service area “must be weighed against the interests of millions of existing subscribers in New York who are likely to see further rate increases, usage-limited broadband service, and worse service from Comcast,” Dampier said in the filing. “Unless Comcast was compelled to wire the entire state, any proposal seeking a voluntary agreement to expand Comcast’s service area in New York is likely to be insufficient to solve the pervasive problem of rural broadband availability. It would also saddle millions of New Yorkers with a company unwelcomed by consumers, with no alternative choice.” The New York PSC’s review should also include a “careful analysis of exactly what Comcast is proposing to offer New York,” Dampier said, saying many of Comcast’s proposals are expensive. Attempts at behavioral remedies as part of merger reviews have “spectacularly failed to protect consumers from rapacious rate increases after the merger deals are approved,” Dampier said (http://bit.ly/1ujPJiO).
Charter Communications and ESPN have a distribution agreement for ESPN’s SEC Network, the companies said in a news release Wednesday (http://bit.ly/1y6a8p8). The new channel, focused on showing live Southeastern Conference college sporting events and related content, will launch Aug. 14, and be available in all Charter markets, they said. Authenticated subscribers will also be able to watch games on SEC network’s digital outlets, which include WatchESPN and SECNetwork.com, they said. DirecTV recently agreed to carry the network (CD Aug 6 p16).
21st Century Fox withdrew its proposal to acquire Time Warner, it said. Time Warner “refused to engage with us to explore an offer which was highly compelling,” 21st Century Fox CEO Rupert Murdoch said Tuesday in a news release (http://bit.ly/XBlgiC). 21st Century Fox offered Time Warner about $80 billion (CD July 17 p12). The reaction in the share price for 21st Century Fox since the proposal was offered “undervalues our stock and makes the transaction unattractive to Fox shareholders,” he said. The 21st Century Fox board authorized on Tuesday a $6 billion share repurchase program, he said.
Samsung, the PGA and Turner Sports are teaming to offer
The FCC should extend the deadline for comment on Mediacom’s petition for new rules for programmers and negotiation for content (CD July 25 p13), said the American Cable Association in a motion for extension of time posted online in RM-11728 Monday (http://bit.ly/1ufJpWP). The deadline is now Aug. 28, with replies due 15 days later. ACA wants those deadlines extended an extra month because the petition involves “key areas of reform,” including program carriage and program access rules, the motion said.