SiTV Media bought Fuse Network from Madison Square Garden Co. for $226 million. Fuse, a national music network, reaches 73 million Nielsen subscribers, MSG said in a news release (http://bit.ly/1efFyQs). The transaction enhances MSG’s distribution relationships and expands its aggregate subscriber base, it said. Under the terms, MSG will receive 15 percent equity of the combined company, it said.
The FCC Media Bureau granted an unopposed request from TiVo for an extension for manufacturers of the deadline for interactive HD set-top boxes to include Internet Protocol outputs, said an order released Friday (http://bit.ly/1oyIpxL). The deadline is now June 1, 2015, one year after the previous June 2, 2014, deadline. Small cable operators with fewer than 400,000 subscribers have until Sept. 1, 2015. TiVo, NCTA and others had requested a waiver or extension of the deadline because the Digital Living Network Alliance has not released industry standards for the boxes; standards were expected to come out in 2013. “Waiving the IP-based output rule to allow development of the new DLNA standard is in the public interest because it will assist the introduction of a new home networking technology,” the bureau said. TiVo had also asked the bureau to issue a clarification that the rules requiring IP outputs in HD boxes are still in effect and not vacated by the EchoStar decision in the U.S. Court of Appeals for the D.C. Circuit, which wiped away several FCC rules involving set-top boxes (CD Nov 19 p6). NCTA and several pay-TV companies opposed that request, and the bureau decided to defer a decision on the matter. “To provide the Commission time to resolve the issue concerning the continued effectiveness of the rule,” the bureau granted the extension “without determining whether the rule remains in effect after EchoStar,” said the order.
The FCC Enforcement Bureau cited hotels for exceeding signal leakage limits in aeronautical bands and failure to file aeronautical usage notifications. Super 8 and Silo Inns in Portland, Ore., didn’t notify the FCC before operating multichannel video programming distributor systems and exceeded the leakage limits, the bureau said in citations and orders (http://bit.ly/1mNoLMP), (http://bit.ly/1lEjXJq). Country Inn & Suites by Carlson, Best Western in Portland, Ore., and Homewood Suites by Hilton in Vancouver, Wash., failed to notify the FCC before operating MVPD systems with carriers in the aeronautical radio frequency band, the bureau said (http://bit.ly/1eezrfm),(http://bit.ly/1sdAZPU), (http://bit.ly/1dVTjsP). The hotels have 30 days from April 3 to respond to the commission with specific actions taken or planned to correct the violations, the bureau said. The rules provide that cable and non-cable MVPDs transmitting carriers with certain characteristics within frequency bands of 108-137 MHz and 225-400 MHz “must comply with specific technical requirements delineated in the rules in order to avoid interference to other licensed operations,” the citations and orders said.
With Viacom programming blacked out for Cable One subscribers, cable operators are ratcheting up complaints about fees charged by programmers, while one programmer insists its fees remain low. Cable One CEO Tom Might said total programming costs for the cable operator have gone up 50 percent in four years, “while total viewing is exactly flat.” This increase has to be passed through to Cable One customers, “who now have to pay a lot more for their same viewing,” he said in a press release. Video subscribers are starting to make other choices, like accessing content online or through other over-the-top solutions, he said. Viacom channels were dropped from Cable One’s lineup this week due to a retransmission consent dispute (CD April 2 p16). Disney/ABC, Viacom, NBCUniversal and other large companies represent the majority of Cable One’s programming increase, and broadcast retransmission demands make up the rest, he said. “As a result, an increasing number of lower income consumers are being priced out of the video subscription marketplace each year.” Several of the programming groups, including Viacom, “have substantially less viewership than they did when we last negotiated, yet they still ask for enormous increases at renewal time,” he said. Cox Communications offers a comprehensive video package and balances the specific programming provided with the cost of that programming, a Cox spokesman said. “Programming acquisition represents our highest operational cost and it is increasing at levels that cannot be sustained long-term.” Most of the increase is due to retrans and sports programming, he said. To keep programming costs down, broad distribution for emerging independent networks is key, said Charles Herring, Herring Networks president. Herring, a smaller programmer, tries to find opportunities to fulfill customer programming needs at a cost-competitive price, he said. “With broad distribution, required programming operational revenue can be spread out across a larger base of subscribers, thus reducing the affiliate fees … charged to each” multichannel video programming distributor. Herring’s newest channel, One America News Network, gained national distribution on Verizon FiOS TV and smaller regional cable providers, he said.
The U.S. District Court for the District of Columbia granted Sky Angel 30 days to again amend its complaint against C-SPAN. The complaint stems from an affiliation agreement between Sky Angel and C-SPAN to carry two C-SPAN channels on FAVE-TV, a subscription service, Judge Rudolph Contreras said in a memorandum opinion (http://1.usa.gov/1ecWYxj). A few days later Sky Angel was asked to remove the channels from the FAVE-TV lineup, the memorandum opinion said. Sky Angel’s complaint was dismissed previously for failing to state a claim against any defendant and “to plead both a relevant market and C-SPAN’s power over that market,” it said. C-SPAN filed a motion to dismiss the complaint, the opinion said. “Because the amended complaint fails to rectify the deficiencies identified in the court’s earlier opinion, the court will grant the motion to dismiss the amended complaint.” The court “will give Sky Angel one more opportunity to amend its complaint within 30 days,” it said. Sky Angel didn’t comment.
Viacom and the National Cable Television Cooperative reached a deal to renew carriage of Viacom’s networks by NCTC’s member companies. The deal was reached late Tuesday after some NCTC member distributors stopped carrying Viacom channels in their lineup (CD April 2 p16). Viacom and NCTC couldn’t reach an agreement by the time the previous deal expired March 31. Terms of the agreement aren’t being disclosed, the companies said in a news release.
The FCC should revisit Tennis Channel’s carriage complaint against Comcast, using evidence already in the record that shows Comcast’s decision not to carry Tennis Channel on the same tier as the Comcast-owned Golf Channel was not in the cable company’s financial interests, Tennis Channel argued in a comment filed Monday (http://bit.ly/1gLIXv3). The U.S. Court of Appeals for the D.C. Circuit ruled in Comcast’s favor in May (CD May 29 p1) because the FCC hadn’t based its arguments in support of Tennis Channel on evidence showing that carrying the channel on that tier would be in Comcast’s interest. That amounts to imposing a new test on the evidence, Tennis Channel said. However, applying new tests to evidence already in the record would violate “basic principles of administrative law,” Tennis Channel said. “The court’s mandate therefore must be read as having returned the case to the Commission to make the factual findings required by the court’s holding regarding the legal standards,” said the reply comments. Though Comcast argued in its own filing (CD March 20 p24) that the court did not explicitly remand the case back to the FCC, “there is no reason for the Commission to assume that it is foreclosed from exercising its normal responsibility when an appellate court vacates an order,” Tennis Channel said. The FCC should take up the case again, and set a new briefing cycle limited to the “narrow issues left unresolved by the court’s opinion."
Viacom programming is no longer part of the Cable One or Cedar Falls Utilities line-ups. Customers of neither company can access BET, Comedy Central and other channels as a result of their cable providers’ inability to reach carriage agreements with Viacom. The programmer demanded an increase of more than 100 percent to carry all 15 of its channels, Cable One said in a news release Tuesday (http://bit.ly/ObY05x). Cedar Falls Utilities began offering replacement channels Tuesday, including Disney Junior, FXX and MeTV, it said in a news release (http://bit.ly/1omYyGu). The blackout affects some members of the National Cable Television Cooperative (CD April 1 p6). Viacom is continuing negotiations with some NCTC members, including Massillon Cable TV, MCTV President Robert Gessner said in a statement.
The FCC Media Bureau shouldn’t grant Buckeye Cable’s petition for a waiver of the integration ban until it acts on TiVo requests to reconsider the similar waiver already granted to Charter Communications and to clarify its CableCARD rules, said TiVo in a comment filed Thursday (http://bit.ly/1dV1PDa) in response to Buckeye’s waiver petition (CD March 6 p18). “There is no policy or factual context for action on this petition” until those pending matters have been addressed, TiVo said. Buckeye wants the waiver so it can deploy its new set-top “Hybrid Box,” which it says will allow customers to receive digital video and easily transition to receiving IP video without having to get a new box. The IP portion uses downloadable security, necessitating the waiver. Since the Buckeye waiver petition’s “core legal and factual arguments rest directly on the Media Bureau’s grant of a waiver to Charter,” the commission should rule on TiVo’s application for review of that waiver before taking up Buckeye’s waiver, TiVo said. Similarly, since there’s still an open proceeding on which of the commission’s rules governing CableCARDs survived the EchoStar decision, the commission should clear up that matter before handling Buckeye’s petition, TiVo said. “The commission should clarify its CableCARD expectations, by acting on TiVo’s petition, before it considers waiving them,” TiVo said. If the bureau does approve Buckeye’s petition, it should require the company to submit for comments “a specific demonstration of why and how its system will support interoperability with other systems, and how it would support IP-based retail products on a national basis,” TiVo said.
Cox Media began an effort to conduct addressable TV advertising trials. It is part of an ongoing strategy “to develop advanced advertising products and new programmatic sales capabilities,” said Cox Communications, the cable operator that owns the Cox Media ad company, in a news release Wednesday (http://bit.ly/1rBhPDe). Cox Media entered an agreement with Invidi Technologies to measure the effectiveness of addressable ads delivered according to specific viewer geographic, demographic and other predetermined qualifiers, said the cable operator. Cox Media will use Invidi’s technology platform “to explore the benefits of serving uniquely tailored advertisements to individual Cox Communications video subscriber households,” it said. “Cox viewers will benefit from this new technology through increased relevance of the advertisements they view."