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DirecTV Hires FreeWheel, Hopes to Monetize Digital Content

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February 4, 2013

Video ad company FreeWheel announced DirecTV as a new client last week. The satellite TV giant chose to work with “the startup to improve monetization on new digital platforms, and has taken an equity stake in FreeWheel to help make it happen,” writes TechCrunch. DirecTV — and other cable, satellite and telco companies — are making investments in services that promote TV Everywhere. Continue reading DirecTV Hires FreeWheel, Hopes to Monetize Digital Content

Royalties for Satellite Radio Companies to Increase Through 2017

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December 20, 2012

The Copyright Royalty Board has ruled to increase royalties for satellite radio services. Sirius XM Radio currently pays 8 percent of its gross revenue in royalties, but this will increase to 11 percent by 2017, reports The New York Times. The satellite radio companies will pay the royalties to nonprofit SoundExchange, which then distributes the royalties to labels and musicians. Continue reading Royalties for Satellite Radio Companies to Increase Through 2017

In-Flight Satellite Wi-Fi Coming to United and Continental by Next Year

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November 7, 2011
  • Through an agreement with Panasonic Avionics Corporation, United and Continental travelers will be provided in-flight Wi-Fi connectivity on more than 300 aircraft beginning in mid-2012.
  • According to the press release: “Panasonic’s Ku-band satellite technology offers faster speed than air-to-ground technology (ATG) and will provide connectivity on flights worldwide. The system will also enable wireless streaming of video content.”
  • The system will initially be installed on Airbus 319 and 320 and Boeing 747, 757, 767, 777 and 787 aircraft.
  • Additionally, United Continental Holdings expects to have its entire mainline fleet equipped with Wi-Fi access no later than 2015.

Will Cable Operators Switch to A La Carte or Will Programmers Resist?

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October 3, 2011
  • The weak economy is leading cable operators to reverse their opposition to so-called “a la carte” programming. Comcast and Time Warner have lost 1.2 million customers in the last 12 months.
  • Programming costs have risen 6-10 percent annually over the last decade. And the fear is that it will continue as they see ESPN, for example, sign a $15 billion, 8-year deal with the NFL. Cable and satellite operators are also now paying to retransmit local broadcast channels.
  • “There is a growing recognition that the current model is broken,” says Craig Moffett, cable analyst at Bernstein Research. He expects smaller, less costly programming packages to emerge as Time Warner is doing with its TV Essentials pack.
  • “The specter of unbundled programming is likely to encounter fierce resistance from network owners such as Viacom Inc or Discovery Communications Inc, which are keen to maintain the economics of selling their most popular channels as a package with their smaller, nascent networks,” reports Reuters.

Hollywood Suite: Will New Canadian VOD Service Compete with Netflix?

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August 26, 2011
  • Hollywood Suite is a new video-on-demand service with plans to launch in Canada this November.
  • Available via cable, the Internet and satellite TV, the service will offer 450 titles per month in HD from MGM, Warner Bros. and others.
  • The Toronto-based platform will also feature independent action, romance and relationship films.
  • According to Home Media Magazine: “Movie titles, subscription fees and rental programs, which are expected to rival rates charged by Netflix, will be announced closer to launch date, according to industry veteran Jay Switzer, co-founder of Hollywood Suite.”
  • “These channels are designed to meet the strong audience demand for movies across all platforms and support Canada’s television service providers,” Switzer said.

Cord-Cutting: Record Numbers in Cancelled Pay TV Subscriptions

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August 12, 2011
  • The six largest cable and satellite TV providers lost 580,000 customers in the second quarter. This marks the largest such decline in U.S. history.
  • The number of pay TV subscribers has declined in three of the past five quarters.
  • “Rising prices for pay TV, coupled with growing availability of lower-cost alternatives, add to a toxic mix at a time when disposable income isn’t growing,” explains Sanford C. Bernstein analyst Craig Moffett. “For younger demographics, where in many cohorts unemployment is north of 30 percent, and especially for those with limited or no interest in sports, the pay TV equation is almost inarguably getting less attractive.”
  • Netflix and Hulu provide lower cost options. Competition from AT&T and Verizon is also having an effect.
  • Providers are struggling to deal with the trend. Dish, for example, is re-positioning itself away from lower income customers. Instead, the company plans to focus on more expensive offerings to increase average revenue per user.

Murdoch Urged to Drop BSkyB Deal, Hacking Scandal Widens

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July 12, 2011
  • UK Deputy Prime Minister Nick Clegg publicly urged News Corp. to drop its bid to acquire BSkyB, Britain’s largest satellite TV provider.
  • The announcement was delivered in the wake of the News of the World phone-hacking scandal, which continues this week with allegations involving additional News Corp. publications, possible classified information regarding the royal family, bribery of police and other illegal methods to obtain information.
  • Murdoch’s decision to shut down News of the World apparently has not muted the public outcry.
  • A group of disgruntled News Corp. shareholders has reportedly filed a lawsuit alleging nepotism and accusing the company of governance failures.
  • BSkyB’s stock posted a 5.5 percent drop on the news.

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