The 1st U.S. Circuit Court of Appeals affirmed a lower court's preliminary injunction stopping Maine from enforcing its cable a la carte programming law (see 2004300011). In a docket 20-1104 opinion Wednesday (in Pacer), decided by Judges Sandra Lynch and Kermit Lipez and penned by Lipez, the court said there's "no question" the a la carte requirement singles out cable operators' speech and thus burdens their First Amendment rights by not applying the same requirements to competitors like direct broadcast satellite and virtual MVPDs. The 1st Circuit said the state conceded at oral argument that if the law triggers the First Amendment, the existing record doesn't justify the law. It said the case will be remanded to the district court to determine which level of constitutional scrutiny applies, whether there's post-enactment evidence in support of the law, and whether the state law is preempted. The Maine attorney general's office didn't comment. The court said Judge Juan Torruella heard oral argument in the case in September (see 2009160044) and participated in the discussing the case, but he died in October and wasn't part of the panel's opinion.

Discovery and Altice reached a distribution agreement that keeps Discovery networks on Altice's Optimum and Suddenlink systems, Discovery said Tuesday.

Discovery+ is “off and running” to a “fantastic start” seven weeks into its Jan. 4 launch (see 2012020049), said Discovery CEO David Zaslav on a Q4 call Monday, typifying superlatives from top executives about the early fate of the fledgling streaming service. It's on track to reach 12 million direct-to-consumer paid subscribers globally by the end of the week “across our entire portfolio,” a net increase of 7 million since December, he said. “The vast majority of this increase is attributable to discovery+.” Its rollout “has been nearly flawless,” he said. The service launched on all major smart TV platforms and devices, he said. “Stay tuned for further delivery partnerships, such as partnerships with cable operators and other connected TV platforms.” The company is partnering with Verizon on the U.S. discovery+ launch, Sky in the U.K. and Ireland, and Vodafone in some European markets. All “key operating metrics” about discovery+ are “pointing in the right direction,” he said. Strong subscriber “retention” is evident, he said. The company is encouraged by “good numbers about people once they know about” discovery+, he said. Management rebuffed analysts’ requests for discovery+ forecasts. “We’re still not in a position to give long-term or short-term subscriber guidance,” said Chief Financial Officer Gunnar Wiedenfels. “We’re super-happy with what we’re seeing, top to bottom, ahead of expectations. We have a lot of distribution still coming down the pike. We’re really just getting started internationally, so that’s on the positive side. I don’t think there’s a lot of value of us discussing scenarios here.” The stock closed 8.9% higher Monday at $55.29.

Oral argument in the consolidated challenge to the FCC's 2019 cable local franchise authority order (see 1909120028) will be April 15 at 1:30 p.m. before the 6th U.S. Circuit Court of Appeals, said a docket 19-4161 scheduling notice Thursday (in Pacer).

MVPDs will shift from developing their own third-party digital media adapters to developing apps that can run on third-party DMAs such as Apple TV 4K or Android-based alternatives, Colliers' Steven Frankel wrote investors Tuesday. This could remove development delays that have hampered Universal Electronics Inc. over the past few years, said the analyst. UEI's Q4 call is Thursday at 4:30 p.m. EST.

Cable One, a minority owner in Hargray Communications, will buy the rest in a deal valuing the telecom company at $2.2 billion, as it looks to expand its presence in the Southeast, the buyer said Monday. The deal is expected to close in Q2. Cable One said this will give it access to Hargray's fiber expansion capabilities.

Broadband rate regulation isn't a pressing cable threat, although odds are the FCC will reclassify cable operators as common carriers, S&P told investors Tuesday. It noted the lengthy process of drafting an order, the likely appeal and the ability of a future FCC administration to again reverse things. The debt ratings firm said (login required) the FCC likely also will focus more on increasing broadband accessibility and affordability through consumer subsidies, while price regulation could discourage network investments. Longer term, as cable penetration rates increase, operators could come under heavier regulatory scrutiny and face more possibility of rate regulation, it said.

Fifty-five percent of U.S. pay-TV households say availability of live sports is important in their decision to keep the service, said Parks Associates Tuesday. The churn rate for pay-TV services is trending “significantly lower than the rate for [over-the-top] OTT services,” said analyst Steve Nason. Over the past year, churn rates for OTT and virtual MVPD services declined as consumers turned to streaming video services for entertainment.

NCTA and its members urged adopting 3.45-3.55 GHz rules consistent with those in the citizens broadband radio service band, in a call with FCC Wireless Bureau and Office of Engineering and Technology staff. “NCTA noted the successful outcome of the 3.5 GHz CBRS auction, and the role that the service rules for that band played in attracting a diversity of auction participants … and encouraging the widespread deployment of the spectrum,” said Tuesday's posting​​​​​​​ in docket 19-348. Charter Communications, Comcast, Cox and CableLabs participated.

System operators that took part in one or more of the FCC's 2011-15 annual cable TV price surveys have 10 days to object to disclosure of the data in a Freedom of Information Act request, the Media Bureau said in a public notice Monday.