Viamedia's complaint Comcast used market dominance in Detroit and Chicago to force the competing third-party advertising rep out of business there fits into the class of cases requiring a monopolist show its refusal to deal with a competitor-customer was motivated by legitimate competitive reasons, Viamedia said in its redacted appellant brief (in Pacer, docket 18-2852) filed Thursday with the 7th U.S. Circuit Court of Appeals. It said it's a Sherman Act violation to deny a rival something voluntarily provided others and sacrifice short-term profit to achieve long-term monopoly. Viamedia said the lower court that rejected its complaint against Comcast (see 1808210001) erred when it agreed ad rep services and collective ad selling "interconnect" services are separate, but then said jurors likely wouldn't find Comcast tied those services together even though evidence showed otherwise. Comcast didn't comment Friday.
Cord-cutting “continues to alter the TV landscape,” said Roku CEO Anthony Wood on a Wednesday-evening earnings call after reporting Q3 results that led to a stock plunge. “We believe the trend will accelerate as more consumers understand the choice and value that streaming offers.” With 24 million “active accounts,” the “scale” of Roku’s customer base “now rivals large traditional U.S. cable and satellite companies,” he said. The chief predicted "more content will move to streaming" as pay-TV bundles shrink. Though executives said the streamer again raised its 2018 outlook, it now expects Q4 net to range between a $4 million loss and profit of $3 million. That's reportedly less profit than expected. The company "tightened our Q4 outlook slightly," Chief Financial Officer Steve Louden told analysts.
More localities are expressing opposition to the Further NPRM approved in September that would treat cable operators' in-kind contributions required by local franchise authorities -- such as public, educational and government channel transmission -- as franchise fees (see 1811050002). In an FCC docket 05-311 posting Wednesday, the California State Association of Counties said it could lead to limits on or even elimination of local PEG access channels. It worries the proposal could bar local governments from regulating facilities and equipment used in providing non-cable services. The Illinois Municipal League said franchise obligations like PEG channels are better considered community benefits, not contributions to local franchising agreements.
U.S. Court of Appeals for the D.C. Circuit Judges Judith Rogers, David Sentelle and Robert Wilkins comprise the panel overseeing DOJ's appeal of the District Court approval of AT&T's buy of Time Warner, said a docket 18-5214 Pacer update. Oral argument is Dec. 6 (see 1810170062).
Two regional cable installation firms with which Comcast didn't contract make "only conclusory and irrelevant assertions and invective" in their claims it opted not to use them because of their white ownership and because Comcast colluded with two other firms that did make the cut, the cable operator said in a docket 18-2316 brief (in Pacer) last week with 3rd U.S. Circuit Court of Appeals. It said plaintiffs Cable Line and McLaughlin Communications don't plausibly allege anticompetitive agreement among the defendants, and the argument Comcast ceased doing business with them because of the owners' race "is devoid of substance." Comcast and the defendant-appellee installation companies "clearly had an agreement," since Comcast had no legitimate business purpose to shut out other installation companies, destroying competition, the plaintiff-appellants said in their brief (in Pacer) in September. They said they were never given an opportunity for discovery.
U.S. District Court in Chicago wrongly dismissed Viamedia's refusal-to-deal claim vs. Comcast (see 1808210001) with an "overly demanding test," the American Antitrust Institute (AIA) and Public Knowledge said in a docket 18-2852 amicus brief (in Pacer). Filed last week with the 7th U.S. Circuit Court of Appeals, AIA/PK said Comcast needs to prove, not just posit, its alleged pro-competition justification for not renewing spot advertising sale interconnect agreements with Viamedia. They said the court was overly demanding in standards for Viamedia to avoid summary judgment on its antitrust claim when it demanded evidence tending to exclude the possibility a defendant engaged in lawful conduct. Comcast outside counsel didn't comment Monday.
NCTA continues to meet eighth-floor staffers about a possible clarification to rules on how certain notices are provided to subscribers, meeting with an aide to Commissioner Jessica Rosenworcel, said a docket 17-317 posting Monday. That meeting included executives from Charter Communications and Comcast. It follows a similar meeting with Chairman Ajit Pai's office (see 1811010047).
Localities are raising red flags about the FCC Further NPRM approved in September that would treat cable operators' in-kind contributions required by local franchise authorities as franchise fees and subject to a cap (see 1809250017). The FNPRM "threatens to limit or eliminate public, educational and government access channels all meant to better help inform and empower the public" through smaller franchise fee payments, Oakdale said in a docket 05-311 posting Monday. Malibu and Colma, California, were among the many sending nearly identical letters. With some cable operator expenses like institutional network capacity costs and access channel costs passed along to subscribers, letting those MVPDs deduct the fair-market value of those costs from their franchise fees would essentially let them double-recover, giving them a windfall, the Massachusetts Municipal Association said. MMA said the proposal could hurt PEG channel access because municipalities would be forced to move resources from other areas to PEG programming or see the scope of the channels reduced or eliminated. It said letting operators install equipment for non-cable services such as small cells in rights of way without local regulation or compensation would also be a windfall at taxpayers' expense.
Media Bureau waivers of FCC rules requiring accessibility of user interfaces on navigation devices for some small and mid-sized MVPDs is "very welcome" since those systems would have racked up $100,000-plus to comply, the American Cable Association said Monday. Those expenses could have forced operators out of business, driving up customers' monthly bills in others, ACA said. The bureau's Friday waiver order said the limited circumstances waivers will provide relief to small cable systems that can't do the network upgrades, and the limited nature of the waivers -- covering only cable systems subject to the Dec. 20 deferred compliance deadline -- also justifies the waivers. In a public notice Monday, the bureau reminded entities not covered by the waver that the two-year deferred compliance deadline is Dec. 20.
The FCC should clarify cable operators can give subscribers written notice directing them to websites where some required information like rate cards and channel lineups can be found, NCTA, Comcast and Charter Communications representatives urged an aide to Chairman Ajit Pai, recounted a docket 17-317 posting Thursday. The cable interests pushed the agency to allow flexibility in electronically providing mandatory notifications.