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<title>Techdirt. Stories filed under &quot;cable&quot;</title>
<description>Easily digestible tech news...</description>
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<image><title>Techdirt. Stories filed under &quot;cable&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
<item>
<pubDate>Fri, 3 May 2013 10:46:00 PDT</pubDate>
<title>Why The Networks Are Really Afraid Of Aereo: Time Warner Cable Says It Might Offer Aereo-Like Service</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130502/16064822930/why-networks-are-really-afraid-aereo-time-warner-cable-says-it-might-offer-aereo-like-service.shtml</link>
<guid>http://www.techdirt.com/articles/20130502/16064822930/why-networks-are-really-afraid-aereo-time-warner-cable-says-it-might-offer-aereo-like-service.shtml</guid>
<description><![CDATA[ The TV networks' fight <a href="http://www.techdirt.com/blog/?company=aereo">against Aereo</a>, including their recent hilarious <a href="http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml">threats</a> to pull their networks off the air and put them on cable always seemed really exaggerated.  Aereo is a tiny startup, with a questionable business model and not that many customers.  It does some nice things, but how many people were really going to sign up?  Of course, the truth is that the networks aren't that scared of Aereo itself, but if what they're doing is shown to be legal, others might follow.  Others like... the big cable companies.  Like Time Warner Cable.
<br /><br />
Time Warner Cable's CEO, Glenn Britt, just <a href="http://www.washingtonpost.com/business/technology/2013/05/02/f6b43b84-b27b-11e2-baf7-5bc2a9dc6f44_story.html" target="_blank">admitted that they're watching the Aereo case closely</a>, and might offer an Aereo-like service themselves, if Aereo continues to win its lawsuit.
<blockquote><i>
&#8220;What Aereo is doing to bring broadcast signals to its customers is interesting,&#8221; Time Warner Cable chief executive Glenn Britt said in an interview with The Washington Post. &#8220;If it is found legal, we could conceivably use similar technology.&#8221;
</i></blockquote>
There's a lot more behind the scenes here.  Britt is posturing, in part, because every few months or so we see yet another flare up between the networks and various cable providers over how much the cable guys <a href="http://www.techdirt.com/articles/20101018/02335511463/fox-extends-cablevision-blackout-to-hulu-temporarily.shtml">need to pay</a> to retransmit the networks over their wires.  If you have a TV service, you've probably lived through one of these fights, where you're told you might lose (and sometimes actually do) a popular channel for a while if the company doesn't come to its senses.  Those fees have gone up and up and up and are a big part of why cable bills are so ridiculously high these days.
<br /><br />
What Britt is now saying is that if Aereo is found to be legal, TWC would seriously consider offering their customers a similar service and then they could tell the networks to get lost the next time they demand a crazy amount to be included.  This is why the networks are so freaked out about Aereo.  They're not so concerned about that one company, but that the cable companies will finally realize they've been paying ridiculous sums of money to rebroadcast those channels, when they might be able to deliver the same content, legally, online for free.<br /><br /><a href="http://www.techdirt.com/articles/20130502/16064822930/why-networks-are-really-afraid-aereo-time-warner-cable-says-it-might-offer-aereo-like-service.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130502/16064822930/why-networks-are-really-afraid-aereo-time-warner-cable-says-it-might-offer-aereo-like-service.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130502/16064822930/why-networks-are-really-afraid-aereo-time-warner-cable-says-it-might-offer-aereo-like-service.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>getting-around-their-transmission-fees</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130502/16064822930</wfw:commentRss>
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<pubDate>Mon, 8 Apr 2013 13:52:41 PDT</pubDate>
<title>Hilarious And Ridiculous: Networks Threaten To Pull Channels Off The Air If Aereo &amp; Dish Win Lawsuits</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml</link>
<guid>http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml</guid>
<description><![CDATA[ The entertainment industry has a long, long history of claiming that if copyright law doesn't go their way, they'll all go out of business.  It's the adult version of "if you don't do it my way, I'm taking my ball and going home."  If court cases don't go their way, or if the law isn't changed, we've been told over and over and over again for the last century (and more frequently in the last two decades) that the industry will take its ball and go home, because they won't create under such awful circumstances (even if those circumstances really aren't particularly different than they've operated under for years).  The latest?  First, Fox's COO, Chase Carey, claims that if they lose the <a href="http://www.techdirt.com/blog/?company=aereo">Aereo case</a>, they might shut down Fox, the network TV channel, and <a href="http://allthingsd.com/20130408/news-corp-threatens-to-pull-fox-off-the-airwaves-if-aereo-wins/" target="_blank">move all its content to cable TV channels</a>.
<blockquote><i>
&#8220;If we can&#8217;t have our rights properly protected through legal and governmental solutions, we will pursue business solution. One solution would be to take the network and make it a subscription service. We&#8217;re not going to sit idly by and let people steal our content.&#8221;
</i></blockquote>
That came out about the same time as another quote from a TV exec, Garth Ancier, who has worked at Fox, NBC and WB, basically saying the same thing, arguing that an unnamed "two" of the four major networks <a href="http://www.forbes.com/sites/jeffbercovici/2013/04/08/holy-cow-two-of-the-big-four-tv-networks-are-considering-going-off-the-air/" target="_blank">are considering shutting down</a> if the Aereo case (and possibly the Dish <a href="http://www.techdirt.com/blog/?tag=auto+hopper">Auto Hopper</a> case) goes against them.
<blockquote><i>
&#8220;I know two that are talking about it,&#8221; he says, leaving open the possibility that the others might be as well. He declines to specify which, saying he&#8217;d heard it in a &#8220;talking over coffee&#8221; setting and didn&#8217;t want to betray a confidence....
<br /><br />
&#8220;To say it&#8217;s serious is probably an overstatement,&#8221; Ancier says. Rather, it&#8217;s a contingency plan the networks in question are keeping in their back pockets in case they can&#8217;t prevail over Aereo and Dish in court or find some other way to stave off the threat they represent.
</i></blockquote>
Let's be the first to call bullshit on this.  No networks are stupid enough to shut down over this, and if they are, good riddance.  Put that spectrum to better use.  First of all, network TV shows get a <i>lot</i> more viewers.  By a wide margin.  Yes, there's an occasional cable show (<i>Game of Thrones</i>) that sneaks in to the top ratings, but it's pretty rare.  The cable shows that get the most viewers are still viewed a lot less often than most network shows.  If you look at Nielsen's latest rankings for last week, the top 10 network shows all scored <a href="http://www.nielsen.com/us/en/top10s.html" target="_blank">higher ratings</a> than the top cable show (Walking Dead).  And by the time you're at the 4th most popular cable show, you're talking about a show that's getting just around <i>half</i> of the tenth most popular network show.
<br /><br />
No network with any business sense at all is going to give up that prime position for getting viewers, and shunt themselves off into the hinterlands of cable TV.  And, seriously, if they <i>do</i> want to cede that position, I'm sure there are plenty of smart folks willing to take over that position.  And, of course, nothing that Aereo or Dish Hopper is trying to do does anything to threaten the traditional business model of network TV in the first place: ads.  In fact, both serve to <i>increase</i> viewers.  The real issue is that the networks have gotten fat and happy off of the money they get from cable and satellite companies for carrying the networks, and they don't want that gravy train to go away.  So, an artificial situation came up that let them get lots of money, and now that it might go away (and reality is that it won't go away for a long long time) they're threatening to take their ball and go home?
<br /><br />
This is clearly bullshit whining from the networks hoping that lawmakers will protect their revenues from cable and satellite providers.  It has nothing to do with "stealing content" as Carey claims.  Policy makers would be well served to call the networks' bluff.  Let the cases play out and let's see (1) if the networks really give up their prime real estate and (2) if others don't rush in to make use of it.<br /><br /><a href="http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>call-their-bluff</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130408/12161722625</wfw:commentRss>
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<pubDate>Mon, 3 Dec 2012 07:47:26 PST</pubDate>
<title>HBO Has A Distribution Problem, But Just 'Going Without' Does Nothing To Push Them To Solve It</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20121201/18030921201/hbo-has-distribution-problem-just-going-without-does-nothing-to-push-them-to-solve-it.shtml</link>
<guid>http://www.techdirt.com/articles/20121201/18030921201/hbo-has-distribution-problem-just-going-without-does-nothing-to-push-them-to-solve-it.shtml</guid>
<description><![CDATA[ Many, many posts and discussions have taken place here at Techdirt about content providers and their <a href="http://www.techdirt.com/articles/20121025/20091920851/warner-brothers-redbox-sign-new-deal-rental-blackout-window-cut-ridiculous-56-days-to-equally-ridiculous-28-days.shtml" target="_blank">love of windowed releases</a>. A point frequently made is that there would likely be a lot less piracy and a lot more purchasing if these 30/60/90 day rental/PPV/premium cable windows were eliminated on new releases. Another frequent target are premium cable providers and their original offerings, which suffer from long delays between original airings and their appearance on retail shelves.<br />
<br />
More discussion is on the way!  It started with a piece in the Guardian by Frederic Filloux arguing, as many have, that <a href="http://www.guardian.co.uk/technology/2012/nov/26/films-tvs-global-piracy" target="_blank">release windows lead to more piracy</a> when it comes to cable TV programs.  Megan McArdle responded to that article by arguing that such an argument is totally bogus, and <a href="http://www.thedailybeast.com/articles/2012/11/28/why-are-cable-companies-forcing-people-to-turn-to-piracy.html" target="_blank">the cable execs are brilliant business folks</a> that many of us only dream of being one day.  Then enter Marco Arment, agreeing with McArdle, saying that it's <a href="http://www.marco.org/2012/11/29/forcing-people-into-piracy" target="_blank">wrong to argue that cable companies are "forcing" people into piracy</a>:
<blockquote>
<i>Realistically, nobody&rsquo;s going to stop you from pirating it, but you can&rsquo;t argue that you&rsquo;re justified in pirating it. Admit it: you&rsquo;re ripping it off, it&rsquo;s morally questionable at best (and illegal), but you don&rsquo;t care. You&rsquo;re pirating a TV show because you don&rsquo;t want to pay for it or wait for it to become available in the ways you want. You&rsquo;re not making any kind of statement or participating in a movement &mdash; you&rsquo;re just being cheap and/or impatient. If you don&rsquo;t have the fortitude to cope with that, then don&rsquo;t pirate.</i><br />
<br />
<i>If you want to hit cable companies, HBO, etc. where it hurts &mdash; if you truly want to send a message that there&rsquo;s unmet demand they should be addressing &mdash; don&rsquo;t watch their shows. At all. Don&rsquo;t even pirate them. Don&rsquo;t blog or tweet or face (?) about how good they are. Just don&rsquo;t watch them.</i><br />
<br />
<i>That&rsquo;s a real statement. And if enough people do it, that movement will effect change.</i></blockquote>
There&#39;s a questionable <a href="http://www.techdirt.com/articles/20120928/01061220536/why-its-tempting-troubling-to-use-copyright-as-stand-moral-rights.shtml" target="_blank">moral argument</a> in there, but the troublesome part is in the second paragraph. Not watching a show doesn&#39;t send the message that there&#39;s unmet demand. It sends the message there&#39;s very little or no demand, which is exactly the wrong message to send if you&#39;re trying to motivate HBO, etc. to either speed up its delivery system or offer a la carte service.<br />
<br />
<a href="http://www.marco.org/2012/11/29/the-wrong-movement" target="_blank">Arment expands on this thought process on a followup post</a>, which deals mainly with the "statement" sent by piracy:
<blockquote>
<i>Actually, piracy does make a statement &mdash; it&rsquo;s just the wrong statement. If you truly want to pressure content providers to adapt new distribution channels, and you&rsquo;re not just trying to justify getting everything for free, piracy is hurting your cause.</i><br />
<br />
<i>Most geeks try to justify piracy because the content isn&rsquo;t available on our terms. We can&rsquo;t get it in our country, we can&rsquo;t get it as quickly as we want, it costs more than we want to pay, we can&rsquo;t get it on the device we want, or we can&rsquo;t get it in the format we want. Publishers have a distribution problem.</i><br />
<br />
<i>But when publishers see widespread piracy of their content, they don&rsquo;t see the distribution problem. They think they have a piracy problem.</i></blockquote>
Ament is right. HBO, et al have a distribution problem. But simply refusing to watch or purchase the content sends <i>two</i>&nbsp;messages, neither of which will result in an overhaul of the distribution system. (The following uses HBO as an example, but it could any major motion picture studio, premium cable service or other distributor. But, <a href="http://www.techdirt.com/articles/20120510/10505618869/game-thrones-track-to-be-most-pirated-show-2012-pirates-still-asking-hbo-legitimate-options.shtml" target="_blank">HBO is the most pirated</a>.)<br />
<br />
1. If viewership falls or purchases drop off, HBO may decide there&#39;s no viable market for these programs and simply stop making them. This protects HBO&#39;s bottom line, but it does nothing for its future endeavors as it&#39;s drawing the wrong conclusions from the data.<br />
<br />
2. HBO may simply view the dropoff to be the result of piracy rather than "viewer opt-out" and resort to the actions mentioned by Arment, including pushes for more anti-piracy legislation as well as limiting its exposure through increasingly onerous DRM or windowing.<br />
<br />
Because piracy will <i>never</i> be nonexistent, it&#39;s impossible to create a control group that includes <i>only</i>&nbsp;potential purchasers of HBO&#39;s content. The only course of action left is for HBO is to experiment with faster turnaround and price reductions and see if these "forced pirates" are willing to put their money where their torrent is. To date, HBO has been unwilling to do this, at least in the US. Other premium cable companies have <a href="http://www.techdirt.com/articles/20120924/18074520503/nz-gets-new-homeland-episodes-less-than-4-hours-after-us.shtml" target="_blank">drastically reduced the turnaround</a> of their shows and HBO itself offers a&nbsp;<a href="http://www.techdirt.com/articles/20120902/20364620255/hbo-hooks-up-nordic-cord-cutters-offers-standalone-streaming-service.shtml" target="_blank">standalone streaming service</a>&nbsp;in northern Europe, both in an effort to combat piracy. As its stands now, HBO&#39;s contracts with cable providers are far too lucrative to consider changing up its release strategy by going a la carte or trimming down the wait between debut and retail, at least not on a larger scale.<br />
<br />
The problem with price/window experimentation is that altering these two factors in order to convert more pirates into viewers and purchasers will make cable companies extremely unhappy. HBO may find that it does very well with faster/cheaper releases but it won&#39;t ease its relationship with its most lucrative customers (at this point): cable companies. They already worry about cord-cutting and it&#39;s quite possible that current contracts prohibit HBO from undercutting its core market, which isn&#39;t viewers, but cable providers.<br />
<br />
What piracy <i>does</i>&nbsp;do, regardless of "morality" or "making a statement" or anything else along those lines, is indicate demand. The content providers know people are watching their offerings, many times without paying. What they have to do is make the determination as to whether that audience is worth pursuing. At this point, many seem to believe it isn&#39;t. Very few companies have made any moves to drastically alter the artificial limits of the supply chain in order to capture some of the "un-monetized" market.<br />
<br />
As Arment points out, the "half-empty" view of the content glass usually results in legislation and litigation rather than any serious attempts to solve the distribution problem. Pirating because you&#39;re "forced" into it simply feeds into these companies&#39; dim view of the online market. But, unless these companies begin experimenting with the distribution process, there&#39;s no way to gauge the conversion rate. Doing things the way they&#39;ve always been done will keep the status quo -- and people will continue to exercise the option to get the content on their own schedule.<br />
<br />
So, Arment&#39;s right: pirating because of distribution limitations will continue to send the "piracy problem" message to HBO, Showtime, etc. While other companies view pirates as <a href="http://www.techdirt.com/articles/20090219/1124433835.shtml" target="_blank">underserved customers</a>, the movie and TV industries seem stuck viewing piracy as only a problem, rather than <a href="http://www.techdirt.com/articles/20120404/21120918379/just-how-much-do-shows-like-game-thrones-owe-to-piracy.shtml" target="_blank">an opportunity</a>. Trying to hit them in the wallet by <a href="http://www.techdirt.com/articles/20120815/18483620066/stupidity-just-go-without-argument.shtml" target="_blank">refusing to watch or purchase</a> will send the same message (because piracy will continue to be a "thing") -- piracy is hurting sales/viewership -- or worse, that the audience no longer exists.<br />
<br />
This screwed up situation can&#39;t be solved by asking viewers to sit on their hands and wait patiently for a better distribution system, no more than it can be solved by having every ridiculous delay greeted by visits to The Pirate Bay. But only one of these actions indicates unmet demand.&nbsp;<br /><br /><a href="http://www.techdirt.com/articles/20121201/18030921201/hbo-has-distribution-problem-just-going-without-does-nothing-to-push-them-to-solve-it.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121201/18030921201/hbo-has-distribution-problem-just-going-without-does-nothing-to-push-them-to-solve-it.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121201/18030921201/hbo-has-distribution-problem-just-going-without-does-nothing-to-push-them-to-solve-it.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>at-this-point,-the-content-providers-are-being-deliberately-obtuse</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121201/18030921201</wfw:commentRss>
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<pubDate>Mon, 24 Sep 2012 14:44:00 PDT</pubDate>
<title>When Captain Picard Loses Patience With Your Cable Service, You Need To Run A Tighter Ship</title>
<dc:creator>Zachary Knight</dc:creator>
<link>http://www.techdirt.com/articles/20120922/08432720470/when-captain-picard-loses-patience-with-your-cable-service-you-need-to-run-tighter-ship.shtml</link>
<guid>http://www.techdirt.com/articles/20120922/08432720470/when-captain-picard-loses-patience-with-your-cable-service-you-need-to-run-tighter-ship.shtml</guid>
<description><![CDATA[ As Time Warner Cable continues to <a href="http://www.techdirt.com/articles/20101105/02551711739/oh-look-more-cord-cutters-time-warner-cable-loses-155-000-tv-subscribers.shtml">lose subscribers</a> and its CEO and others remain <a href="http://www.techdirt.com/articles/20110928/02411516123/time-warner-cable-ceo-remains-denial-about-cord-cutting.shtml">in denial</a> over it, it is perhaps time for those in charge to take deep look at themselves. The reason many people end up cutting the cord is that they are tired of the level of disservice they receive for the massive price they pay. You can do web searches for various cable and satellite companies and you can see story after horror story of people&#39;s experiences trying to get television or have their current subscription serviced. This is a serious problem and it never seems to get better.<br />
<br />
So it really shouldn&#39;t be a surprise to learn even celebrities can&#39;t get decent service out of TWC. Many of you probably heard the news about the <a href="http://www.nypost.com/p/news/local/brooklyn/up_to_its_old_treks_nUkY9xv9UhblXqY9D6MRXM?utm_medium=rss&#038;utm_content=Brooklyn" target="_blank">tweet that Sir Patrick Stewart sent after trying to set up cable in his home</a>.
<blockquote>
<i>All I wanted to do was set up a new account with <b>@TWCable_NYC</b> but 36hrs later I&#39;ve lost the will to live.</i></blockquote>
That is quite the statement. You can even see some of the sympathetic tweets of some of his followers <a href="https://twitter.com/SirPatStew/status/246404476657868800" target="_blank">over at Twitter</a>. TWC, for its part, responded to the New York Post with this statement:
<blockquote>
<i>There&rsquo;s no doubt we have a lot of fans at the company, of the actor and &lsquo;Star Trek&rsquo; in general. But the truth is, any customer that reaches out to us . . . we&rsquo;re going to offer them help the exact same way.</i></blockquote>
That really isn&#39;t all that encouraging. If even Captain Jean-Luc Picard, the man who defeated the Borg, loses the will to live when faced with TWC&#39;s customer service, how does it think its everyday customers feel? Could this be part of the reason so many jump ship to either become cord cutters or subscribe to satellite, as was the case with Patrick Stewart?<br />
<br />
It is time for TWC and other television services to really reflect on what they are actually doing to attract new customers. As the <a href="http://www.techdirt.com/articles/20101029/14261611654/turns-out-tv-cord-cutters-are-in-fact-young-educated-and-employed.shtml">rising generation</a> becomes a generation of cord-cutters and cord-nevers, they will have a tough time at keeping their place in people&#39;s homes if they do not change.<br /><br /><a href="http://www.techdirt.com/articles/20120922/08432720470/when-captain-picard-loses-patience-with-your-cable-service-you-need-to-run-tighter-ship.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120922/08432720470/when-captain-picard-loses-patience-with-your-cable-service-you-need-to-run-tighter-ship.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120922/08432720470/when-captain-picard-loses-patience-with-your-cable-service-you-need-to-run-tighter-ship.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>can't-make-it-so</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120922/08432720470</wfw:commentRss>
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<pubDate>Mon, 30 Jul 2012 03:09:50 PDT</pubDate>
<title>Time Warner Cable Is Ready For A 'Conversation' About Rising Costs, But Not The One You Want To Have</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120726/12063919844/time-warner-cable-is-ready-conversation-about-rising-costs-not-one-you-want-to-have.shtml</link>
<guid>http://www.techdirt.com/articles/20120726/12063919844/time-warner-cable-is-ready-conversation-about-rising-costs-not-one-you-want-to-have.shtml</guid>
<description><![CDATA[ It's no secret that lots of internet users <a href="http://www.techdirt.com/articles/20110126/03531712831/metered-bandwidth-isnt-about-stopping-bandwidth-hogs-its-about-preserving-old-media-business-models.shtml">hate</a> the idea of metered broadband.  It adds serious mental transaction costs in using the internet ("will watching this movie actually cost me lots of money in overage fees?") and generally limits innovation by limiting what you can do online.  On top of that, there's little evidence that such metered bandwidth is necessary (contrary to the claims of marketing people, when you talk to the tech people, they <a href="http://www.techdirt.com/articles/20110314/08473413487/as-att-introduces-caps-bt-removes-them-says-investing-network-is-smarter.shtml">don't see</a> any real congestion problems).  However, the broadband providers absolutely love the caps because they basically allow them to make more money without having to actually invest in expanding their infrastructure.
<br /><br />
So it's interesting to see that Time Warner Cable has set up a site, called <a href="http://twcconversations.com/" target="_blank">Time Warner Cable Conversations</a>, which they claim is a conversation with consumers about how to "fight rising costs."  Except... they really only want the conversation to be about rising costs caused by what the TV networks charge to carry the channels.  If you want to talk about fighting rising costs by arguing against broadband metering, well, too bad.  The whole site is <a href="http://www.dslreports.com/shownews/Time-Warner-Cables-OneSided-Conversation-on-Usage-Billing-120516" target="_blank">moderated and limited</a> and it appears that only conversations about TV networks and such are allowed.  That's not much of a "conversation" now, is it?<br /><br /><a href="http://www.techdirt.com/articles/20120726/12063919844/time-warner-cable-is-ready-conversation-about-rising-costs-not-one-you-want-to-have.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120726/12063919844/time-warner-cable-is-ready-conversation-about-rising-costs-not-one-you-want-to-have.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120726/12063919844/time-warner-cable-is-ready-conversation-about-rising-costs-not-one-you-want-to-have.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>choose-your-friends</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120726/12063919844</wfw:commentRss>
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<pubDate>Thu, 26 Jul 2012 08:45:57 PDT</pubDate>
<title>An Explanation For Why Verizon Is Driving DSL Users To Competitors' Cable Lines</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/wireless/articles/20120724/03084419805/explanation-why-verizon-is-driving-dsl-users-to-competitors-cable-lines.shtml</link>
<guid>http://www.techdirt.com/blog/wireless/articles/20120724/03084419805/explanation-why-verizon-is-driving-dsl-users-to-competitors-cable-lines.shtml</guid>
<description><![CDATA[ Karl Bode has an interesting story explaining how Verizon is <a href="http://www.dslreports.com/shownews/Verizon-is-Willfully-Driving-DSL-Users-Into-the-Arms-of-Cable-120473" target="_blank">willfully pushing its DSL customers over to cable broadband "competitors."</a>  It's worth reading the whole thing, but the short version is that Verizon wants desperately out of the DSL business.  Now, some of that is to drive people to its popular FiOS fiber service.  However, the company has basically <a href="http://www.techdirt.com/articles/20100312/1855128547.shtml">stopped expanding</a> FiOS entirely.  The fact that most of the competition is gone couldn't possibly have anything to do with that, right?  But the bigger vision appears to be to push people over to the company's wireless solution, LTE.  Bode suggests a few reasons for this, with a big one being that LTE is much more expensive, and has relatively low caps and high overage rates.  In other words, it makes a lot more money for Verizon, but is much more limiting for users (there's also the bit about how it switches from a "unionized" business to a non-unionized one).
<blockquote><i>
In other words, Verizon will cut off copper in FiOS markets first (which makes sense given the lower maintenance costs of fiber). They'll then leave users in DSL-only markets un-upgraded, forcing them to buy a costly landline so that remaining on Verizon DSL becomes less attractive. Those customers will flee to the same cable companies Verizon just <a href="http://www.dslreports.com/shownews/FCC-Set-to-Approve-Verizon-Cable-Deal-120316">signed a massive new partnership with</a>, with Verizon planning to sell those users more expensive LTE connection later. Verizon will continue to "compete" in FiOS areas for now, if you call <a href="http://www.dslreports.com/shownews/Verizon-Expect-More-FiOS-Price-Hikes-120466">winking and nodding when it's time to raise prices competition</a>. <br /><br />
Rural areas could see the biggest impact from the shift, as Verizon pulls DSL and instead sells those users LTE services with at a high price point ($15 per gigabyte overages). Verizon then hopes to sell those users cap-gobbling video services via their upcoming <a href="http://www.dslreports.com/shownews/Verizon-Will-Aim-Red-Box-Service-at-Wireless-Users-119039">Redbox streaming video joint venture</a>. Expect there to be plenty of gaps where rural users suddenly lose landline and DSL connectivity but can't get LTE. With Verizon and AT&#038;T having killed off regulatory oversight in most states -- you can expect nothing to be done about it, despite both companies having been given billions in subsidies over the years to get those users online.<br /><br />
The entire amazing transition becomes clearer still when looking at Verizon's <a href="http://www22.verizon.com/investor/">quarterly earnings</a> posted yesterday. The company added a whopping 3.2 million LTE users during the second quarter, a record for the telco. In contrast, thanks to a frozen FiOS expansion (with the exception of franchise obligations in urban markets) and their disdain for DSL, Verizon managed to add just a net 2,000 broadband users in the quarter, despite adding 134,000 FiOS users. Verizon CFO Fran Shammo gave several excuses during yesterday's conference call ranging from the economy to aardvarks -- but the reality is that DSL users are fleeing in droves, and Verizon wants them to.
</i></blockquote>
Now, there is something reasonable about a company actually being willing to cannibalize its own older offerings with something more modern.  But a key warning sign that something is wrong is that they're not moving customers to something that's <i>better</i> and <i>cheaper</i> -- which is what you normally see in a truly competitive, innovative market.  Instead, they're moving them to a more limited, more expensive offering.  That's what you tend to see when there's not nearly enough competition in the market, and a few established players whose customers have little choice.<br /><br /><a href="http://www.techdirt.com/blog/wireless/articles/20120724/03084419805/explanation-why-verizon-is-driving-dsl-users-to-competitors-cable-lines.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120724/03084419805/explanation-why-verizon-is-driving-dsl-users-to-competitors-cable-lines.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/wireless/articles/20120724/03084419805/explanation-why-verizon-is-driving-dsl-users-to-competitors-cable-lines.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>dumping-dsl</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120724/03084419805</wfw:commentRss>
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<pubDate>Mon, 25 Jun 2012 09:09:00 PDT</pubDate>
<title>The Short-Sightedness Of Wall Street When It Comes To Broadband Infrastructure Investment</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120615/11560919345/short-sightedness-wall-street-when-it-comes-to-broadband-infrastructure-investment.shtml</link>
<guid>http://www.techdirt.com/articles/20120615/11560919345/short-sightedness-wall-street-when-it-comes-to-broadband-infrastructure-investment.shtml</guid>
<description><![CDATA[ Karl Bode, over at Broadband Reports, <a href="http://www.dslreports.com/shownews/Craig-Moffett-Whines-DOJ-Cap-Investigation-Will-Raise-Rates-119947" target="_blank">absolutely destroys stock analyst Craig Moffett</a> for doing his usual song and dance.  If you're unfamiliar with Moffett, Bode has the details:
<blockquote><i>
Like any good short-sighted investor, Moffett <a href="http://www.dslreports.com/shownews/97086">has urged companies to not upgrade their networks</a>, insiting that caps and overages are the "<a href="http://www.dslreports.com/shownews/Moffett-ATT-Caps-Herald-Next-Generation-of-Communications-114234">next generation of communications</a>." The irony of course is those telcos who listened and didn't upgrade their networks are now <a href="http://www.dslreports.com/shownews/Cable-is-Eating-DSLs-Lunch-in-UnUpgraded-Markets-118077?nocomment=1">having their lunch eaten by cable providers</a> on a massive scale, which, if Moffett's firm and client investment interests lean heavily toward cable operators, is something that's working out rather well for him and them. <br /><br />
Less network investment, less competition, higher prices. Great for investors, not so great for you
</i></blockquote>
Bode's piece focuses on Moffett's silly analysis that the <a href="http://www.techdirt.com/articles/20120614/01292519313/doj-realizes-that-comcast-time-warner-are-trying-to-prop-up-cable-holding-back-hulu-netflix.shtml">DOJ's interest</a> is in how Comcast and Time Warner are trying to stifle Netflix and Hulu and that will somehow increase prices (huh? what?!?) because they'd take away Moffett's preferred solution of anti-consumer data caps.
<br /><br />
However, I wanted to focus in on the larger issue here: the idiocy of short-term Wall Street thinking over long term strategy.  Wall Street functions on a quarterly basis mostly -- with an occasional nod to looking out a full year, but rarely anything further than that.  This creates stupidly short-sighted incentives that are deathly towards anyone with any long term goals or strategy.  It argues that any big strategic investments don't make sense, because they cost lots of money in the short term, but you won't see payback until outside the myopic window of vision of these Wall Street analysts.
<br /><br />
Perhaps that's great for day traders, but as Bode notes, it's bad for the public.  And here's the thing: it's actually even worse for companies.  It's unfortunate how many companies find themselves slaves to Wall Street analysts views in making their strategic planning efforts.  Because that holds them back from actually making the important big strategic investments they often need for the future.  Every so often you have a more visionary leader who simply ignores the folks like Moffett.   You get situations like Ivan Seidenberg at Verizon, who ignored Moffett and <a href="http://www.techdirt.com/articles/20030725/1524210.shtml">invested in fiber</a> -- which is why it's still competitive today.  Unfortunately, as Seidenberg got closer and closer to retirement (which happened last year), the company <a href="http://www.techdirt.com/articles/20100312/1855128547.shtml">backed away</a> from continuing its build out.  Short term thinking over long term thinking.
<br /><br />
In some ways, this is the flipside to <a href="http://www.techdirt.com/articles/20091116/2307256958.shtml">the Innovator's dilemma</a>.  It's an explanation for why big legacy companies fail to respond to disruptive innovation: because they can't.  Because they can't put in the effort to be ready for disruption and instead leave themselves wide open to such disruption by not investing in their future, but rather by listening to the Craig Moffetts of the world -- such that the money that could be building a company for the future instead ends up in the hands of Moffett's real clients: the short-term investors.
<br /><br />
If we want to build a stronger economy that builds jobs and continues to innovate, we have to figure out a way to diminish the power of Wall Street's short-term focus, and how to incentivize companies to understand what investing for the long run means.<br /><br /><a href="http://www.techdirt.com/articles/20120615/11560919345/short-sightedness-wall-street-when-it-comes-to-broadband-infrastructure-investment.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120615/11560919345/short-sightedness-wall-street-when-it-comes-to-broadband-infrastructure-investment.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120615/11560919345/short-sightedness-wall-street-when-it-comes-to-broadband-infrastructure-investment.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>short-term-thinking</slash:department>
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<pubDate>Thu, 14 Jun 2012 07:16:00 PDT</pubDate>
<title>DOJ Realizes That Comcast &#038; Time Warner Are Trying To Prop Up Cable By Holding Back Hulu &#038; Netflix</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120614/01292519313/doj-realizes-that-comcast-time-warner-are-trying-to-prop-up-cable-holding-back-hulu-netflix.shtml</link>
<guid>http://www.techdirt.com/articles/20120614/01292519313/doj-realizes-that-comcast-time-warner-are-trying-to-prop-up-cable-holding-back-hulu-netflix.shtml</guid>
<description><![CDATA[ For quite some time now, we've been <a href="http://www.techdirt.com/articles/20110415/01524013905/why-does-entertainment-industry-seek-to-kill-any-innovation-thats-helping-it-adapt.shtml">reporting</a> on how the big television players were so upset that Hulu and Netflix were dragging them kicking and screaming into the 21st century (even though they owned Hulu) that they were working on <a href="http://www.techdirt.com/articles/20110324/17421513618/hollywood-continues-its-plan-to-kill-netflix.shtml">plans</a> to <a href="http://www.techdirt.com/articles/20110930/13341216152/tv-companies-plan-to-make-hulu-suck-even-more-making-it-more-difficult-to-sell-hulu.shtml">kill off</a> both services -- or at least cripple them.  Mostly, what this goes back to is the inevitable fact that the internet is going to <a href="http://www.techdirt.com/articles/20120604/04210719187/duh-tv-business-is-verge-collapse.shtml">subsume</a> television.  But, these days, there's <i>so much</i> <a href="http://www.techdirt.com/articles/20101022/17112211553/mark-cuban-it-s-okay-for-broadcasters-to-block-access-based-on-browsers-because-they-re-making-billions.shtml">money</a> in TV, thanks to the ability to be a gatekeeper, that all efforts are on holding back the internet for as long as is humanly possible.   Want to know <i>why</i> HBO <a href="http://www.techdirt.com/articles/20120606/19135519231/correction-earn-my-money-hbo.shtml">refuses</a> to offer a standalone internet streaming option?  It's because of the monopolistic power of cable.
<br /><br />
This has all been pretty obvious for years, but the Justice Department has finally <a href="http://www.bloomberg.com/news/2012-06-13/u-s-said-to-probe-cable-company-competition-with-online-video.html" target="_blank">begun investigating Comcast/NBC Universal and Time Warner Cable</a> to see if any of their actions with regards to Netflix and Hulu trip the antitrust wire.  In particular, they seem focused on whether or not tiered broadband plans are actually designed to keep people from using competing online services, and preventing people from cord cutting.  For Comcast, the risk may be much higher.  As part of the merger with NBC Universal, it made certain promises to the government concerning how it treats online services.  If it's not living up to those promises, it could mean trouble.
<br /><br />
Unlike some <a href="http://www.techdirt.com/articles/20120523/04204919033/antitrust-complaints-against-google-still-dont-make-any-sense.shtml">other</a> antitrust investigations, this is one where you can make a strong case that these companies are making life worse for consumers, by using their natural monopoly positions to keep prices artificially high.  That said, I have little faith that the DOJ will get things right with the investigation.  I think it's likely that the natural economic pressure of cord cutting (which, despite <a href="http://www.techdirt.com/articles/20120531/03352019133/hollywood-super-agent-ari-emanuel-mystified-that-google-doesnt-just-invent-magic-stop-piracy-button.shtml">denials</a> from Hollywood and the cable industry, is very very real) is going to have much more of an impact on the eventual massive reconfiguration of the television market than any antitrust lawsuit.<br /><br /><a href="http://www.techdirt.com/articles/20120614/01292519313/doj-realizes-that-comcast-time-warner-are-trying-to-prop-up-cable-holding-back-hulu-netflix.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120614/01292519313/doj-realizes-that-comcast-time-warner-are-trying-to-prop-up-cable-holding-back-hulu-netflix.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120614/01292519313/doj-realizes-that-comcast-time-warner-are-trying-to-prop-up-cable-holding-back-hulu-netflix.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>took-'em-long-enough</slash:department>
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<pubDate>Wed, 4 Apr 2012 15:51:00 PDT</pubDate>
<title>Appeals Court: Bundling Cable Channels Together Isn't Anticompetitive</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120403/02585818343/appeals-court-bundling-cable-channels-together-isnt-anticompetitive.shtml</link>
<guid>http://www.techdirt.com/articles/20120403/02585818343/appeals-court-bundling-cable-channels-together-isnt-anticompetitive.shtml</guid>
<description><![CDATA[ Over the years, one topic that seems to engender extremely passionate responses around here is the question of cable TV bundling.  People <i>hate</i> bundled cable TV packages -- usually because they hate paying for a bunch of channels they don't want just to get the four channels they do want.  I still tend to think this complaint is overstated -- if the cable guys priced things out a la carte, the pricing would basically come to the same thing anyway (the channels you do want would be super expensive, and the ones you don't would be pretty cheap or free with other channels).  Either way, the complaint also seems increasingly antiquated in an internet world.  More and more TV shows are moving to the web anyway (through both authorized and unauthorized means).  While it's certainly not perfect yet, you can create your own a la carte solution for many TV shows/channels.
<br /><br />
Still, some folks sued over this bundling, claiming that it was anti-competitive.  However, as <a href="http://blog.ericgoldman.org/" target="_blank">Eric Goldman</a> alerts us, an appeals court has upheld a lower court decision and <a href="http://www.ca9.uscourts.gov/opinions/view_subpage.php?pk_id=0000012132" target="_blank">outright rejected the idea that bundling is an antitrust issue</a>.  The court points out that "tying" arrangements are only illegal if they lead to clear anticompetitive behavior and consumer harm, but that's missing here:
<blockquote><i>
The complaint does not allege that Programmers&#8217; practice of selling  &#8220;must-have&#8221; and low-demand channels in packages excludes other sellers of low-demand channels from the market, or that this practice raises barriers to entry into the programming market. Nor do the plaintiffs allege that the tying arrangement here causes consumers to forego the purchase of substitutes for the tied product.... Nothing in the complaint indicates that the arrangement between the Programmers and Distributors forces Distributors or consumers to forego the
purchase of alternative low-demand channels.
</i></blockquote>
The court notes that the only real complaint is that the contract between the parties limits what kinds of offerings can be made by the cable companies, but the court notes that third parties suing over others' contracts that limit some actions "is not sufficient to allege an injury to competition."
<br /><br />
I think it's pretty silly that cable companies haven't innovated to the point that a la carte offerings are regularly available.  I recognize that the issue here is more about programmers requiring the bundles to get the "must have" channels, so the cable providers are a bit hamstrung, but sooner or later the cable companies need to convince the programmers that lumping stuff together just pisses off consumers, and they might as well offer up an a la carte solution instead.<br /><br /><a href="http://www.techdirt.com/articles/20120403/02585818343/appeals-court-bundling-cable-channels-together-isnt-anticompetitive.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120403/02585818343/appeals-court-bundling-cable-channels-together-isnt-anticompetitive.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120403/02585818343/appeals-court-bundling-cable-channels-together-isnt-anticompetitive.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>and-it's-outdated-anyway</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120403/02585818343</wfw:commentRss>
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<pubDate>Tue, 4 Oct 2011 09:54:33 PDT</pubDate>
<title>Adult Swim, Cartoon Network Piss Off Fans By Removing Free iPad Streams; Now Only For Cable Subscribers</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110930/14413316153/adult-swim-cartoon-network-piss-off-fans-removing-free-ipad-streams-now-only-cable-subscribers.shtml</link>
<guid>http://www.techdirt.com/articles/20110930/14413316153/adult-swim-cartoon-network-piss-off-fans-removing-free-ipad-streams-now-only-cable-subscribers.shtml</guid>
<description><![CDATA[ It's amazing how frequently legacy entertainment industry companies look to screw up a good thing.  Cartoon Network and its alter ego Adult Swim launched iOS apps in the last year that received a ton of praise for offering <a href="http://www.geekosystem.com/adult-swim-ios-app/" target="_blank">full streams of shows</a> in their free apps.  This made them useful apps for plenty of fans of cartoons (and, really, who isn't a fan of cartoons?).  But, it appears things have changed.  A practicing intellectual property lawyer, who prefers to remain anonymous (he apparently doesn't want the world to know of his cartoon obsession), alerted us to the news that the two apps have now <i>removed</i> the free streams.  The deal is you can now only get free streams <i>if you subscribe to a partner cable/satellite provider</i>.  In fact, they're even <a href="http://www.adultswim.com/mobile/faq.html" target="_blank">pitching it</a> as if they're doing something new -- totally ignoring that the free streams used to be available for everyone, and now are limited to just people who have cable/satellite subscriptions.
<br /><br />
Yes, this is weak attempt by everyone to try to hold back the flood of people <a href="http://www.techdirt.com/articles/20110928/02411516123/time-warner-cable-ceo-remains-denial-about-cord-cutting.shtml">cutting the cord</a> -- but it's the absolute wrong way to go about it.  Rather than providing <i>more value</i>, they're trying to <i>take away value from others</i>, and in the process pissing off a lot of people.  It's not going to make cord cutters any more interested in re-subscribing to cable or satellite TV, but may make the Cartoon Network and Adult Swim lose some of its most valuable audience -- the young, employed, well-educated folks that advertisers crave... who have been leading the charge in cutting the cord.   Here's what the attorney wrote to me:
<blockquote><i>
I do not have cable. and, just to make it clear, I am a late 20-something, practicing intellectual property attorney, and I cut my cable not because the economy is bad, but because it is an outrageously overpriced, single direction service that forces me to choke down a ton of content I do not care about, in addition to forcing me to watch ads. 
<br /><br />
I was happy to watch my favorite cartoons, for free, but with ads, ostensibly, the profits of which go directly to the stations with less dilution than if they had been broadcast, but now I will probably go back to doing what I did before my iPad: not watch stuff, wait for it to come out on DVD and Netflix/Qwikster it, or, potentially, even 'infringe' it.
</i></blockquote>
The way to compete in this market is to add value, not take it away.  That just pisses people off.<br /><br /><a href="http://www.techdirt.com/articles/20110930/14413316153/adult-swim-cartoon-network-piss-off-fans-removing-free-ipad-streams-now-only-cable-subscribers.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110930/14413316153/adult-swim-cartoon-network-piss-off-fans-removing-free-ipad-streams-now-only-cable-subscribers.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110930/14413316153/adult-swim-cartoon-network-piss-off-fans-removing-free-ipad-streams-now-only-cable-subscribers.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that's-not-helping</slash:department>
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<pubDate>Tue, 22 Feb 2011 16:03:32 PST</pubDate>
<title>Court Not Impressed With ivi's Legal Loopholes, Shoots Online TV Broadcaster Down</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110222/11395313211/court-not-impressed-with-ivis-legal-loopholes-shoots-online-tv-broadcaster-down.shtml</link>
<guid>http://www.techdirt.com/articles/20110222/11395313211/court-not-impressed-with-ivis-legal-loopholes-shoots-online-tv-broadcaster-down.shtml</guid>
<description><![CDATA[ A few months back, we wrote about a company called ivi, which was trying to use some legal loopholes to <a href="http://www.techdirt.com/articles/20100921/11173011095/company-claims-legal-right-to-stream-broadcast-tv-online-broadcasters-disagree.shtml">stream broadcast TV online</a>.  It was basically trying to use a part of the law (<a href="http://www.copyright.gov/title17/92chap1.html#111" target="_blank">Section 111</a> for those playing along with the home game) that was designed to make it easier for cable stations to rebroadcast network TV.  However, the court <a href="http://www.publicknowledge.org/public-knowledge-disappointed-court-ruling-shuttin" target="_blank">is not buying it and has issued a preliminary injunction</a> ordering the site to shut down its service.  The court points out that ivi isn't just playing a single loophole game, but it's really trying to thread the needle through <i>two</i> separate loopholes.  For the strategy to work, not only does Section 111 have to apply to the internet provider, but at the same time, it has to exempt itself from the Communications Act.  The court suggests this tapdance is too much to take:
<blockquote><i>
In other words,
defendants argue that ivi is a cable system for purposes of the
Copyright Act, and thus may take advantage of the compulsory
license, but that it is not a cable system for purposes of the
Communications Act, and thus it need not comply with the
requirements of that Act and the rules of the FCC promulgated
thereunder.
</i></blockquote>
The thing is, the more I read the details, the more I actually think that ivi's legal argument makes sense, even if the court disagrees.  The problem here is the way the laws are written.  A strict reading of Section 111 certainly suggests that ivi probably qualifies and can rebroadcast network TV with a nominal payment to the Copyright Office.  At the same time, it's true that the Communications Act almost certainly doesn't apply to ivi, because it doesn't cover the internet.  In other words, ivi's careful loophole threading seems to make sense.  The more reasonable response from the court wouldn't have been to shut it down, but to allow it to go forward -- and for Congress to determine if that loophole should or should not exist (meaning the TV industry lobbyists step in and Congress shuts the loophole).
<br /><br />
All that said, this whole fight seems pretty silly.  I still don't understand why the TV networks are that upset by ivi, and I still don't see how ivi has a business model that's particularly compelling or sustainable.  The networks might have been better served by just letting ivi flop on its own.  I can't see too many people willing to pay up just to get broadcast TV...<br /><br /><a href="http://www.techdirt.com/articles/20110222/11395313211/court-not-impressed-with-ivis-legal-loopholes-shoots-online-tv-broadcaster-down.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110222/11395313211/court-not-impressed-with-ivis-legal-loopholes-shoots-online-tv-broadcaster-down.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110222/11395313211/court-not-impressed-with-ivis-legal-loopholes-shoots-online-tv-broadcaster-down.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>playing-games-with-the-law</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110222/11395313211</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 16 Feb 2011 01:57:34 PST</pubDate>
<title>Cable And Hollywood Fight Having Their Gatekeeper Status Taken Away</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110214/00060613076/cable-hollywood-fight-having-their-gatekeeper-status-taken-away.shtml</link>
<guid>http://www.techdirt.com/articles/20110214/00060613076/cable-hollywood-fight-having-their-gatekeeper-status-taken-away.shtml</guid>
<description><![CDATA[ Matthew Lasar has a nice writeup about how the big cable lobbyists, NCTA, and movie studio lobbyists, MPAA, are <a href="http://www.wired.com/epicenter/2011/02/cable-google-tv-revolution/all/1" target="_blank">fighting as hard as possible to stop an FCC proposal</a> to create a standard, called AllVid, that would allow any consumer electronics maker to tap into their content (legally, and for those actually subscribed), and display it via the device.  Right now, of course, if you get cable TV, you're limited to the hardware they give you, which means if they don't want to let some other manufacturer come in with a more innovative system, you're stuck.  Google -- who is pushing its Google TV product, and Sony, who has a variety of plans for set-top boxes, would prefer a standard so that they can sell you the boxes, and you can access the TV content you're already subscribed to, along with wider content from the internet.
<br /><br />
But, if there's one thing that's become clear over the years, it's that gatekeepers will go to amazing lengths to keep those gates in place.  So while the FCC seems very interested in moving forward on such a standard, NCTA has announced that it will pretty much destroy all of civilization:
<blockquote><i>
Sony/Google are asking the Commission to ignore copyright, patent, trademark, contract privity, licensing, and other legal rights and limitations that have been thoroughly documented.
</i></blockquote>
Of course, almost none of that is actually true, but boy does it sound impressive.  Sony and Google aren't asking for any of those things.  They're simply asking for a way that they can provide devices that can tap into an account holder's legally authorized content, and add additional services around it.  Think of it like a Carterphone for cable TV -- meaning that you no longer have to get your phone from AT&#038;T, but can buy a third party phone.
<br /><br />
But, of course, even the MPAA is against that, as it's siding with the NCTA with a "but... but... piracy!" argument that also makes no sense:
<blockquote><i>
"legitimate MVPD and online content sources will be presented in user interfaces alongside illegitimate sources (such as sites featuring pirated content)," MPAA warns. "In essence, this 'shopping mall' approach could enable the purveyor of counterfeit goods to set up shop alongside respected brand-name retailers, causing consumer confusion."
</i></blockquote>
Yes, think about what you're reading for a second, and then shake your head at the level of confusion coming out of the MPAA.  They want to block an FCC plan to make it <i>easier</i> to access authorized and legitimate content, because it's also easy to access pirated content.  In the MPAA's twisted view of the world, it's <i>better</i> to leave just the pirated content as easy to access, because if the authorized content was just as easy to access, people might think it's legit.  Are they really serious over there?
<br /><br />
Who knows where all of this will lead, but the key thing that becomes clear in all of this is that cable does not want to give up its gatekeeper status.  Even though a system that would better integrate cable content with additional internet content would clearly be a benefit to consumers, it would also mean a loss of gates, and we're dealing with yet another industry that incorrectly thinks it needs gates to survive.  So, rather than add value to the consumer experience, it's actively fighting against it.<br /><br /><a href="http://www.techdirt.com/articles/20110214/00060613076/cable-hollywood-fight-having-their-gatekeeper-status-taken-away.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110214/00060613076/cable-hollywood-fight-having-their-gatekeeper-status-taken-away.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110214/00060613076/cable-hollywood-fight-having-their-gatekeeper-status-taken-away.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>inevitable-is-coming</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110214/00060613076</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 31 Jan 2011 04:28:39 PST</pubDate>
<title>Hulu Owners Looking To Make Hulu Even More Useless</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110130/01074712886/hulu-owners-looking-to-make-hulu-even-more-useless.shtml</link>
<guid>http://www.techdirt.com/articles/20110130/01074712886/hulu-owners-looking-to-make-hulu-even-more-useless.shtml</guid>
<description><![CDATA[ It's been almost two years since we suggested it might be <A href="http://www.techdirt.com/articles/20090223/0055373860.shtml">impossible for Hulu to survive</a>, given that it was in a bit of a "rock and a hard place" situation.  The only way for it to really succeed long-term online was to disrupt the existing TV business.  Because, if it didn't do that, others could and would kill Hulu.  However, Hulu is owned by the existing TV business, and that means the company <a href="http://www.techdirt.com/articles/20100630/13034310026.shtml">can't</a> do what it needs to do.  The WSJ is reporting that NBC management is upset with the way Hulu is undercutting its current business model, and is now pushing <a href="http://online.wsj.com/article/SB10001424052748703779704576074283037958472.html" target="_blank">to change Hulu entirely into an "online cable channel"</a> rather than an aggregator and service for watching television shows.  Of course, as many are pointing out, this would almost certainly <a href="http://www.wired.com/epicenter/2011/01/hulu-lost-place-netflix-world/" target="_blank">kill off Hulu</a>.
<br><br>
This is all pretty unfortunate.  From a technical standpoint, Hulu appears to be a great service.  The only thing really holding it back has been a bunch of owners and licensees who think that the path to the future is to apply all sorts of limitations on what can be done with their content.  That's the exact opposite of the path to success these days.  Putting limitations on content is not the solution.  Enabling people to do more with your content is the solution.  Hulu put in place a platform that could do that... but it's owners are choosing to go in a totally different direction, and they don't even seem to realize that they're making a huge mistake.<br /><br /><a href="http://www.techdirt.com/articles/20110130/01074712886/hulu-owners-looking-to-make-hulu-even-more-useless.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110130/01074712886/hulu-owners-looking-to-make-hulu-even-more-useless.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110130/01074712886/hulu-owners-looking-to-make-hulu-even-more-useless.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>you-can't-disrupt-yourself</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110130/01074712886</wfw:commentRss>
</item>
<item>
<pubDate>Fri, 28 Jan 2011 17:29:49 PST</pubDate>
<title>The Process Of Laying The Very First Transatlantic Cable</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110121/23472212778/process-laying-very-first-transatlantic-cable.shtml</link>
<guid>http://www.techdirt.com/articles/20110121/23472212778/process-laying-very-first-transatlantic-cable.shtml</guid>
<description><![CDATA[ One of my favorite Wired articles ever is Neal Stephenson's insanely long, but wonderfully entertaining account of <a href="http://www.wired.com/wired/archive/4.12/ffglass_pr.html" target="_blank">laying fiber optic cable</a> across oceans from back in 1997.  If you've never read it, set aside a few hours and dig in.  While he mentions, briefly, the first transatlantic cable laid in 1858 -- and suggests reading other accounts of what happened -- he doesn't go into much detail as to what happened.  However, <a href="https://twitter.com/#!/Shocklee/statuses/28619120677228544" target="_blank">Shocklee</a> points us to a (much shorter!) Wired UK piece <a href="http://www.wired.co.uk/news/archive/2011-01/18/transatlantic-cables?page=all" target="_blank">about the laying of the first transatlantic cable</a>.  If you'd like to know the basics, it's basically two boats meet in the middle of the ocean, with each taking half the cable, and they then (slowly, carefully) head back towards their home coasts.   It didn't always go smoothly:
<blockquote><i>
After experiments in the Bay of Biscay had been conducted, the plan was changed -- the Niagara and Agamemnos met in the centre of the Atlantic on 26 June and attached their respective cables to each other, then headed for opposite sides of the ocean. Again, the cable broke -- once after less than 6km had been laid, again after about 100km and then a third time when 370km had been laid. The boats returned to port.
</i></blockquote> 
It's a fun read, reminding you of the massive amount of work that goes into the infrastructure that we rely on every day.<br /><br /><a href="http://www.techdirt.com/articles/20110121/23472212778/process-laying-very-first-transatlantic-cable.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110121/23472212778/process-laying-very-first-transatlantic-cable.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110121/23472212778/process-laying-very-first-transatlantic-cable.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>not-so-easy</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110121/23472212778</wfw:commentRss>
</item>
<item>
<pubDate>Fri, 28 Jan 2011 15:02:58 PST</pubDate>
<title>Netflix Shows Which ISPs Actually Perform Well... And Which Don't</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110128/03144212878/netflix-shows-which-isps-actually-perform-well-which-dont.shtml</link>
<guid>http://www.techdirt.com/articles/20110128/03144212878/netflix-shows-which-isps-actually-perform-well-which-dont.shtml</guid>
<description><![CDATA[ It's always fun to discover some data that reveals some useful info -- and the folks over at Netflix have apparently realized that they're sitting on a treasure trove of data concerning the performance levels of various ISPs, based on all that content Netflix is streaming.  Rather than just keep it all internally, Netflix is <a href="http://techblog.netflix.com/2011/01/netflix-performance-on-top-isp-networks.html" target="_blank">starting to publish the data</a>, showing how well certain ISPs perform, and highlighting how you generally get better performance out of cable than DSL.
<center>
<a href="http://imgur.com/tBiQh" ><img src="http://i.imgur.com/tBiQh.png" width=560 /></a>
</center>
This is smart on Netflix's part, as it actually does a nice job encouraging ISPs to improve their quality, knowing that they can tout these kinds of "independent" rankings to show their overall quality.<br /><br /><a href="http://www.techdirt.com/articles/20110128/03144212878/netflix-shows-which-isps-actually-perform-well-which-dont.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110128/03144212878/netflix-shows-which-isps-actually-perform-well-which-dont.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110128/03144212878/netflix-shows-which-isps-actually-perform-well-which-dont.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>ah,-data</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110128/03144212878</wfw:commentRss>
</item>
<item>
<pubDate>Thu, 11 Nov 2010 05:44:26 PST</pubDate>
<title>Google To TV Industry: 'Yes, Yes, Cord Cutting Is A Myth; Google TV Is Nothing To Fear'</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101110/17390711798/google-to-tv-industry-yes-yes-cord-cutting-is-a-myth-google-tv-is-nothing-to-fear.shtml</link>
<guid>http://www.techdirt.com/articles/20101110/17390711798/google-to-tv-industry-yes-yes-cord-cutting-is-a-myth-google-tv-is-nothing-to-fear.shtml</guid>
<description><![CDATA[ We've already pointed out that the TV industry is in a serious bout of <a href="http://www.techdirt.com/articles/20100823/01204410723.shtml">denial</a> over the fact that people are really starting to cut the cord and go internet only.  However, they know, deep in their hearts, that it's happening.  It explains why they're doing silly things like forcing Hulu to block access to <a href="http://www.techdirt.com/articles/20101022/01384511535/if-google-tv-has-to-pay-to-make-hulu-available-to-viewers-will-mozilla-have-to-pay-to-access-hulu-via-firefox.shtml">specific browsers</a> in a crude attempt to block people from accessing internet television on their actual TVs.  Google TV, for example, has been blocked.  So, it should come as little surprise that Google TV execs are now suddenly claiming that they absolutely agree with the cable industry <a href="http://gigaom.com/video/google-tv-exec-cord-cutting-is-not-happening/" target="_blank">that cord cutting isn't happening</a>.
<br /><br />
That's Google's story, and it's sticking to it.
<br /><br />
Of course, this is all really a rather transparent ploy by Google to convince TV/cable execs to back off the demands to block Google TV, by saying that there's nothing to fear.  Google TV doesn't make more people ditch their cable TV... it just "enhances it."  Uh, yeah, sure.  That's not to say that products like Google TV don't enhance cable TV.  It could.  But the Google folks must know damn well that if they do their job right, Google TV will likely convince more people that it's perfectly fine to cut the cord.  Somehow, I doubt that the cable execs fall for Google's pretty words here.<br /><br /><a href="http://www.techdirt.com/articles/20101110/17390711798/google-to-tv-industry-yes-yes-cord-cutting-is-a-myth-google-tv-is-nothing-to-fear.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101110/17390711798/google-to-tv-industry-yes-yes-cord-cutting-is-a-myth-google-tv-is-nothing-to-fear.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101110/17390711798/google-to-tv-industry-yes-yes-cord-cutting-is-a-myth-google-tv-is-nothing-to-fear.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>feeling-lucky?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101110/17390711798</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 9 Nov 2010 18:49:55 PST</pubDate>
<title>Comcast Buying NBCU Will Lead To Higher Prices... But Is That Really A Bad Thing?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101109/11163811779/comcast-buying-nbcu-will-lead-to-higher-prices-but-is-that-really-a-bad-thing.shtml</link>
<guid>http://www.techdirt.com/articles/20101109/11163811779/comcast-buying-nbcu-will-lead-to-higher-prices-but-is-that-really-a-bad-thing.shtml</guid>
<description><![CDATA[ I've said from the beginning that I really don't understand all of the <a href="http://www.techdirt.com/articles/20100205/1330378067.shtml">complaints</a> about the Comcast/NBCU merger.  It's the modern equivalent of AOL/Time Warner, which really only served to hasten people to move away from crappy old solutions.  So, when I see a report claiming that the end result will mean <a href="http://techdailydose.nationaljournal.com/2010/11/critics-cable-prices-will-soar.php" target="_blank">higher prices for consumers</a> as NBC jacks up its rates, I'm still not convinced this is a bad thing.  As we've seen, there's a <a href="http://www.techdirt.com/articles/20101027/11542311613/comcast-pretends-that-cord-cutters-aren-t-cord-cutters-if-they-cut-cord-because-of-the-economy.shtml">growing trend</a> towards people cutting the cord on cable (even if the cable folks are <a href="http://www.techdirt.com/articles/20100823/01204410723.shtml">in denial</a> about this).  Having prices shoot up even higher seems only likely to hasten the inevitable.  You can't raise prices indefinitely if there's real competition -- and the problem is that the TV companies still don't believe (or simply don't realize) that there's increasing competition every day.  If NBCU/Comcast really does lead to higher prices, it'll likely also lead to more subscribers realizing that there are alternatives as well.<br /><br /><a href="http://www.techdirt.com/articles/20101109/11163811779/comcast-buying-nbcu-will-lead-to-higher-prices-but-is-that-really-a-bad-thing.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101109/11163811779/comcast-buying-nbcu-will-lead-to-higher-prices-but-is-that-really-a-bad-thing.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101109/11163811779/comcast-buying-nbcu-will-lead-to-higher-prices-but-is-that-really-a-bad-thing.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>driving-folks-to-cut-the-cord</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101109/11163811779</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 8 Nov 2010 03:09:50 PST</pubDate>
<title>Oh Look, More Cord Cutters: Time Warner Cable Loses 155,000 TV Subscribers</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101105/02551711739/oh-look-more-cord-cutters-time-warner-cable-loses-155-000-tv-subscribers.shtml</link>
<guid>http://www.techdirt.com/articles/20101105/02551711739/oh-look-more-cord-cutters-time-warner-cable-loses-155-000-tv-subscribers.shtml</guid>
<description><![CDATA[ Back in August, we <a href="http://www.techdirt.com/articles/20100823/01204410723.shtml">wrote about</a> a NY Times article insisting that the cable companies had <a href="http://www.nytimes.com/2010/08/23/business/media/23couch.html?_r=1&#038;src=twt&#038;twt=nytimestech&#038;pagewanted=all" target="_blank">beaten the internet</a> and the idea that people would "cut the cord" and get their TV from the internet was something of a myth.  The centerpiece of the story was a single anecdote of a guy who tried to just watch TV on the internet, but went back to cable.  Because, you know, a single anecdote must represent a trend.  We noted the irony that the day after that article came out, reports broke that cable TV had suffered its first ever decline in subscribers.
<br /><br />
And since then, the evidence of cord cutting has only grown.  We noted recently that <a href="http://www.techdirt.com/articles/20101027/11542311613/comcast-pretends-that-cord-cutters-aren-t-cord-cutters-if-they-cut-cord-because-of-the-economy.shtml">Comcast had lost 275,000 video subscribers</a>, which they tried to explain away by blaming "the economy."  Of course, the economy was a lot worse last year.  And, now, Time Warner Cable has released the news that <a href="http://www.dslreports.com/shownews/Time-Warner-Cable-Loses-155000-TV-Customers-111231" target="_blank">it's lost 155,000 TV subscribers</a>.  But cord cutting isn't real, right?<br /><br /><a href="http://www.techdirt.com/articles/20101105/02551711739/oh-look-more-cord-cutters-time-warner-cable-loses-155-000-tv-subscribers.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101105/02551711739/oh-look-more-cord-cutters-time-warner-cable-loses-155-000-tv-subscribers.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101105/02551711739/oh-look-more-cord-cutters-time-warner-cable-loses-155-000-tv-subscribers.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that-river-in-egypt-keeps-growing</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101105/02551711739</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 2 Nov 2010 01:28:58 PDT</pubDate>
<title>Turns Out TV Cord Cutters Are, In Fact, Young, Educated And Employed</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101029/14261611654/turns-out-tv-cord-cutters-are-in-fact-young-educated-and-employed.shtml</link>
<guid>http://www.techdirt.com/articles/20101029/14261611654/turns-out-tv-cord-cutters-are-in-fact-young-educated-and-employed.shtml</guid>
<description><![CDATA[ So you remember how the cable folks were saying that all those people ditching cable TV were doing it because of <a href="http://www.techdirt.com/articles/20101027/11542311613/comcast-pretends-that-cord-cutters-aren-t-cord-cutters-if-they-cut-cord-because-of-the-economy.shtml">the bad economy</a>, and rather than young, tech-savvy early adopters -- they were <a href="http://www.techdirt.com/articles/20101028/16432111643/new-cable-talking-point-against-cord-cutters-they-may-be-cutting-but-they-re-poor-nobodies.shtml">old poor folks living on dog food</a>?  Yeah, so it turns out: not so much.  A new study shows that they actually <a href="http://www.dslreports.com/shownews/Cord-Cutters-Young-Educated-And-Employed-111157" target="_blank">tend to be younger, well-educated, fully-employed and make a decent amount of money</a>.  Can't wait to see how the TV folks talk themselves out of this one...<br /><br /><a href="http://www.techdirt.com/articles/20101029/14261611654/turns-out-tv-cord-cutters-are-in-fact-young-educated-and-employed.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101029/14261611654/turns-out-tv-cord-cutters-are-in-fact-young-educated-and-employed.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101029/14261611654/turns-out-tv-cord-cutters-are-in-fact-young-educated-and-employed.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>ain't-the-economy</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101029/14261611654</wfw:commentRss>
</item>
<item>
<pubDate>Fri, 29 Oct 2010 06:44:40 PDT</pubDate>
<title>New Cable Talking Point Against Cord Cutters: They May Be Cutting, But They're Poor Nobodies</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101028/16432111643/new-cable-talking-point-against-cord-cutters-they-may-be-cutting-but-they-re-poor-nobodies.shtml</link>
<guid>http://www.techdirt.com/articles/20101028/16432111643/new-cable-talking-point-against-cord-cutters-they-may-be-cutting-but-they-re-poor-nobodies.shtml</guid>
<description><![CDATA[ We already noted that the cable industry is really trying to stick its head as far in the sand as possible when it comes to the fact that many customers are starting to drop their cable TV subscriptions.  First, they <a href="http://www.techdirt.com/articles/20100823/01204410723.shtml">pretended</a> it wasn't happening at all, and that they had somehow "beat" the internet (based on a single anecdote of someone who had dropped cable, but gone back to it a year later).  Then, when news came out of massive numbers of people dropping their cable TV plans, they said that they weren't really cord cutters, because <a href="http://www.techdirt.com/articles/20101027/11542311613/comcast-pretends-that-cord-cutters-aren-t-cord-cutters-if-they-cut-cord-because-of-the-economy.shtml">they were only canceling service due to the down economy</a>.  The latest strategy appears to be to <i>insult</i> the cord cutters, saying that while the idea behind cord cutters was that it would be young, technologically savvy folks, it's actually people who the cable companies just don't care about: poor older folks.  Seriously.  At least that's the argument being made by one of the cable industry's favorite talking heads, who <a href="http://www.dslreports.com/shownews/Moffett-TV-Cord-Cutters-Poor-Eating-Dogs-Breakfast-111134" target="_blank">tries to minimize the cord cutters by saying they're "poor" people who "eat a dog's breakfast."</a>
<blockquote><i>
Mr. Moffett said the image of the cord-cutter had been that of a "cutting-edge technologist" who preferred to bypass cable to watch programming on computers and on an ever-proliferating array of devices. "The reality is it's someone who's 40 years old and poor and settling for a dog's breakfast of Netflix and short-form video."
</i></blockquote>
Sounds kind of like the cable industry is moving from the "denial" stage to the "anger" stage of grief...<br /><br /><a href="http://www.techdirt.com/articles/20101028/16432111643/new-cable-talking-point-against-cord-cutters-they-may-be-cutting-but-they-re-poor-nobodies.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101028/16432111643/new-cable-talking-point-against-cord-cutters-they-may-be-cutting-but-they-re-poor-nobodies.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101028/16432111643/new-cable-talking-point-against-cord-cutters-they-may-be-cutting-but-they-re-poor-nobodies.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>nice-try</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101028/16432111643</wfw:commentRss>
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<pubDate>Wed, 20 Oct 2010 04:34:48 PDT</pubDate>
<title>Democrats Are From Cablevision &#038; Republicans Are From Fox In Retransmission Fee Dispute?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101019/17422111490/democrats-are-from-cablevision-republicans-are-from-fox-in-retransmission-fee-dispute.shtml</link>
<guid>http://www.techdirt.com/articles/20101019/17422111490/democrats-are-from-cablevision-republicans-are-from-fox-in-retransmission-fee-dispute.shtml</guid>
<description><![CDATA[ One of the nice things about <i>most</i> tech issues is that they're not split down typical political party lines.  In practice, tragically, that sometimes means that both of the major political parties side with rent-seeking interests, rather than the public good, but in other cases, it does mean that you can get actually cross-party discussion on the issues, rather than the talking points.  However, it seems that whenever any particular issue gets "big enough," it suddenly has to break down on party lines.  We saw it <a href="http://www.techdirt.com/articles/20060426/1936208.shtml">happen with net neutrality</a>, but now it appears to be happening on the whole silly <a href="http://www.techdirt.com/articles/20101018/02335511463/fox-extends-cablevision-blackout-to-hulu-temporarily.shtml">retransmission fight</a> between cable companies and TV networks.  As mentioned, these fights break out every few months, with both the networks and the cable companies blaming each other.  In the end, consumers end up with higher prices either way.  The whole fight itself is silly, but when TV stations get blocked during key sporting events (football, baseball playoffs), apparently Congress immediately sees an issue worth grandstanding over.
<br /><br />
And, as <a href="http://www.dslreports.com/shownews/FoxCablevision-Fight-Becomes-Partisan-Political-Mess-110985" target="_blank">Broadband Reports notes</a>, at least in the case of Cablevision/Fox, it's become a partisan issue, with <a href="http://voices.washingtonpost.com/posttech/2010/10/senator_kerry_introduces_draft.html" target="-blank">Democrats lining up behind Cablevision</a>, introducing legislation that would bar broadcasters from pulling channels during negotiations.  Meanwhile, Republicans are <a href="http://www.politico.com/news/stories/1010/43839.html" target="_blank">being lobbied heavily by News Corp</a> to take its side.  It could just be that it's because this is News Corp./Fox, which tends to support Republicans.  So it will be interesting to see if similar battles involving other broadcasters split along similar lines...<br /><br /><a href="http://www.techdirt.com/articles/20101019/17422111490/democrats-are-from-cablevision-republicans-are-from-fox-in-retransmission-fee-dispute.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101019/17422111490/democrats-are-from-cablevision-republicans-are-from-fox-in-retransmission-fee-dispute.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101019/17422111490/democrats-are-from-cablevision-republicans-are-from-fox-in-retransmission-fee-dispute.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>republicrats</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101019/17422111490</wfw:commentRss>
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<pubDate>Mon, 18 Oct 2010 06:05:54 PDT</pubDate>
<title>Fox Extends Cablevision Blackout To Hulu... Temporarily</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101018/02335511463/fox-extends-cablevision-blackout-to-hulu-temporarily.shtml</link>
<guid>http://www.techdirt.com/articles/20101018/02335511463/fox-extends-cablevision-blackout-to-hulu-temporarily.shtml</guid>
<description><![CDATA[ These days, fights between the TV networks and cable providers are so common that we stopped bothering to report on them.  Basically, every few months, there's a fight over how much money should be paid to carry the networks, and the two sides get angry, a public relations brawl ensues with threats of channels being removed (or, the channels are removed for some time).  Eventually a price is agreed upon between the networks and the cable providers... and the consumers pay more.  Great, huh?  Of course, some have been suggesting that these fights could drive the push for people to ditch cable altogether, and switch to going purely online.
<br /><br />
Except, in the latest such fight, between Fox and Cablevision in New York, things took an odd twist, with Fox not just pulling its network from Cablevision, but somehow <a href="http://www.publicknowledge.org/public-knowledge-condemns-fox-internet-blocking?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A publicknowledge-main %28Public Knowledge - Blogging%2C Events%2C and Action Alerts%29&#038;utm_content=Google Reader" target="_blank">getting Hulu to block access to Fox shows to anyone accessing the site from Cablevision</a>.  Apparently, after people started asking questions, Fox/News Corp. changed its mind and <a href="http://mediamemo.allthingsd.com/20101016/news-corp-shuts-off-hulu-access-to-cablevision-subs/" target="_blank">let Cablevision subscribers view Fox content</a> on Hulu again.
<br /><br />
However, this does raise a bunch of pretty serious questions.  First of all, why did Hulu consent to this move?  If Hulu were serious about its offering, it wouldn't agree to take part in a silly fight like this, singling out people on a particular ISP.  Once again, though, this shows how Hulu is way too beholden to the content providers.  Second, while this is <b>not</b> really a "net neutrality" issue, it's somewhat surprising that Fox/News Corp. would take a step like this that <i>undoubtedly</i> will be talked about in "net neutrality" terms.  Any move that specifically restricts content to a certain class of users isn't going to be looked upon kindly.  Finally, in what world did News Corp. think this was a smart move?  Did they actually think that users would be so upset that they'd asked Cablevision to raise their bills to bring Fox on Hulu back?  Of course not.  They're simply going to blame Fox (and Hulu) for pulling their shows.<br /><br /><a href="http://www.techdirt.com/articles/20101018/02335511463/fox-extends-cablevision-blackout-to-hulu-temporarily.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101018/02335511463/fox-extends-cablevision-blackout-to-hulu-temporarily.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101018/02335511463/fox-extends-cablevision-blackout-to-hulu-temporarily.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>doesn't-make-much-sense</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101018/02335511463</wfw:commentRss>
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<pubDate>Wed, 22 Sep 2010 17:50:00 PDT</pubDate>
<title>Company Claims Legal Right To Stream Broadcast TV Online; Broadcasters Disagree</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100921/11173011095/company-claims-legal-right-to-stream-broadcast-tv-online-broadcasters-disagree.shtml</link>
<guid>http://www.techdirt.com/articles/20100921/11173011095/company-claims-legal-right-to-stream-broadcast-tv-online-broadcasters-disagree.shtml</guid>
<description><![CDATA[ Here's a fun one.  Just as Hollywood is getting <a href="http://www.latimes.com/business/la-fi-ct-piracy-20100921,0,1716597,full.story" target="_blank">especially freaked out about TV shows being available online</a>, and is pushing for this new <a href="http://www.techdirt.com/articles/20100920/12460811083/us-senators-propose-bill-to-censor-any-sites-the-justice-depatement-declares-pirate-sites-worldwide.shtml" target="_blank">censorship law</a> to block any site that points people to such video content, a Seattle company named ivi is brashly declaring a <a href="http://thresq.hollywoodreporter.com/2010/09/move-over-hulu-meet-the-new-napster-of-television.html" target="_blank">legal right to stream broadcast TV online</a>.  After the company launched a few weeks ago, it almost immediately received cease &#038; desist letters from NBC, CBS, Fox, Disney, MLB and others.  So, it's decided to step up and file a lawsuit to get a declaratory judgment of non-infringement:
<center>
<object id="_ds_55088380" name="_ds_55088380" width="560" height="550" type="application/x-shockwave-flash" data="http://viewer.docstoc.com/"><param name="FlashVars" value="doc_id=55088380&#038;mem_id=715794&#038;doc_type=pdf&#038;fullscreen=0&#038;allowdownload=1&#038;showrelated=0&#038;showotherdocs=0" /><param name="movie" value="http://viewer.docstoc.com/"/><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /></object>
</center>
The company is clearly trying to milk this for the publicity (they sent us the press release about the lawsuit trying to drum up attention).  What's interesting, of course, is the legal "theory" behind this.  Basically, they point to <a href="http://www.copyright.gov/title17/92chap1.html#111" target="_blank">Section 111</a> of the Copyright Act, which allows for "secondary transmission" of certain over-the-air broadcasts for a nominal fee to the Copyright Office.  The <i>intention</i> behind Section 111 was to let <a href="http://www.law.cornell.edu/uscode/search/display.html?terms=chapter%201&#038;url=/uscode/html/uscode17/usc_sec_17_00000111----000-notes.html" target="_blank">cable providers rebroadcast local network television</a> to cable customers, without having to negotiate with every local TV station.  Whether or not that also applies to a company like ivi broadcasting online... is an open question that the court will have to settle.
<br /><br />
That said, this does seem like a lot of hype over not very much.  While  the company has suggested <a href="http://www.techflash.com/seattle/2010/09/with_comcast_in_its_sights_ivi_unveils_live_tv_service.html" target="_blank">in interviews</a> that it intends to offer cable channels like ESPN at some point in the future, right now it only offers retransmission of <i>broadcast network</i> TV -- as that's all that Section 111 is designed to cover.  If it wants to offer any other channel, it's either going to have to work out some sort of deal (highly unlikely) or come up with some other legal loophole (which probably won't work).  The company's business model is to charge users a monthly fee to get this content -- which seems like a pretty big request, considering most people can get network broadcast TV for free.  Perhaps it's appealing to Americans abroad who want to watch their local news back home, but that seems like a limited market.
<br /><br />
Of course, the company does make the quite reasonable argument that the content it's retransmitting is available for free, they are showing all of the commercials, and they are reporting their viewers to Nielsen, so it is difficult to argue what these networks are actually <i>losing</i> by allowing ivi to go forward.  I'm sure the TV companies' response is that it's somehow "taking" their right to try to charge for programs online via sites like Hulu, but that's not that compelling an argument.  If something like a Slingbox is allowed -- where I can set up a system to retransmit the TV service I receive in my home to my internet connected device, perhaps there is an argument that a network-connected Slingbox is equally legal.  To some extent, you could see a second version of the <a href="http://www.techdirt.com/articles/20090629/1016515400.shtml">famed Cablevision lawsuit</a>, which questioned whether or not you could set up a remote DVR.  If that's legal, perhaps a remote Slingbox would also be legal...  There have been a <a href="http://www.techdirt.com/articles/20081218/0344403162.shtml">few companies</a> that have simply set up remotely hosted Slingboxes, which resulted in some public griping, but I'm not aware of any actual lawsuits.  Thus, it could be interesting to see where ivi goes with this...<br /><br /><a href="http://www.techdirt.com/articles/20100921/11173011095/company-claims-legal-right-to-stream-broadcast-tv-online-broadcasters-disagree.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100921/11173011095/company-claims-legal-right-to-stream-broadcast-tv-online-broadcasters-disagree.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100921/11173011095/company-claims-legal-right-to-stream-broadcast-tv-online-broadcasters-disagree.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>ah,-copyright-loopholes</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100921/11173011095</wfw:commentRss>
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<pubDate>Fri, 17 Sep 2010 15:05:00 PDT</pubDate>
<title>Time Warner Cable Boycotting Epix Movie Channel Because It Did A Deal With Netflix</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100916/14350611043/time-warner-cable-boycotting-epix-movie-channel-because-it-did-a-deal-with-netflix.shtml</link>
<guid>http://www.techdirt.com/articles/20100916/14350611043/time-warner-cable-boycotting-epix-movie-channel-because-it-did-a-deal-with-netflix.shtml</guid>
<description><![CDATA[ Apparently Time Warner Cable can be incredibly petty and vindictive when it wants to be.  The company has said that it's not interested in carrying Epix, the premium movie channel, because that channel <a href="http://www.publicknowledge.org/blog/time-warner-sends-message-video-suppliers-cro" target="_blank">did a deal with Netflix</a> to help stream some movies to Netflix customers.  It's hard to understand how this makes any sense at all.  If I'm a Time Warner customer (and thankfully, I'm not), a move like this is just a reason to drop them (and to sign up with Netflix).  Why treat your customers so badly, just because you don't like a little competition?<br /><br /><a href="http://www.techdirt.com/articles/20100916/14350611043/time-warner-cable-boycotting-epix-movie-channel-because-it-did-a-deal-with-netflix.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100916/14350611043/time-warner-cable-boycotting-epix-movie-channel-because-it-did-a-deal-with-netflix.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100916/14350611043/time-warner-cable-boycotting-epix-movie-channel-because-it-did-a-deal-with-netflix.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>how-petty-can-you-get</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100916/14350611043</wfw:commentRss>
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<pubDate>Tue, 24 Aug 2010 07:05:22 PDT</pubDate>
<title>TV, Cable Companies Convincing Themselves People Don't Want To Cut The Cable</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100823/01204410723.shtml</link>
<guid>http://www.techdirt.com/articles/20100823/01204410723.shtml</guid>
<description><![CDATA[ There's a NY Times article that appears to have a bunch of cable & TV companies <a href="http://www.nytimes.com/2010/08/23/business/media/23couch.html?src=twt&twt=nytimestech&pagewanted=all" target="_blank">congratulating themselves for beating the internet</a> in getting people to keep paying high monthly premiums to get premium TV channels on their TV, rather than using some of the various internet solutions out there.  Like so many awful NY Times "trend" pieces these days, it appears to key off of a <i>single anecdote</i> of one guy who tried to ditch cable, and then went back after a year.  How many people are actually doing this?  No idea.  It's not like the reporters at the NY Times tell us.  They do tell us that not too many people have dropped cable, but that's hardly surprising.  What's much more amusing is the suggestion that the cable and TV companies have somehow "beat" the internet by restricting content:
<blockquote><i>
In part that is because the television business took action to avoid the same fate. Heavyweight distributors and producers have protected their business models by ensuring that some must-see shows and live sporting events cannot legally be seen online. 
</i></blockquote>
Legally.  Yes.  But, just wait until you see what that enables on the less-than-legal side of the internet.  As for the fact that people aren't dropping cable yet, this all really sounds like the cable companies not recognizing <a href="http://www.techdirt.com/blog/entrepreneurs/articles/20100808/00561810539.shtml">how trends accelerate</a>.  They do, indeed, start slow, and as Clayton Christensen has noted for years, the incumbents don't pay attention early on, because the other solutions just don't seem as good.  And... here in the NY Times article we get:
<blockquote><i>
Technology companies are pushing alternatives like Web-connected set-top boxes. But these are still not as easy as signing up for cable or satellite service, particularly for those who want to watch on a big flat-screen TV and not a computer. 
</i></blockquote>
Classic innovator's dilemma statement.  It's certainly true that, right now, it's not as easy to use these internet services as it is to sign up for cable, but it's getting easier all the time, and sooner or later, someone is going to create a breakthrough service that makes it really easy.  We've seen it time and time again.  Napster did it for music file sharing after we were told that people didn't want music online.  Vonage did it for VoIP after telcos insisted that VoIP quality would never sell.  Who knows who it will be, or when, but someone will figure it out, and then we'll see the cable and TV companies freak out, because the cable cutters will shift into high gear.
<br><br>
This is the problem we were discussing <a href="http://www.techdirt.com/blog/entrepreneurs/articles/20100808/00561810539.shtml">recently</a>, where disrupted companies simply don't recognize the speed at which a disruptive offering catches on when it does finally catch on.  They think that they're successfully "protecting" their existing business with things like <a href="http://www.techdirt.com/articles/20100629/13281010005.shtml">Hulu's subscription plans</a>, but that will cause them to miss the truly disruptive innovation.
<br><br>
At least the NY Times article hints at the growing undercurrent, in noting that the younger generation is four times as likely to go without a cable subscription.  That number is just going to grow, and as new offerings come along that make it easier and easier to get what you want, when you want it, without silly restrictions, the idea that the legacy guys "beat" the internet by restricting access to content will seem laughable.
<br><br>
<b>Update</b>: And look... just as this is published, out comes the news that cable TV has <a href="http://www.reuters.com/article/idUSTRE67N1A420100824?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FtechnologyNews+%28News+%2F+US+%2F+Technology%29" target="_blank">suffered its first ever decline in subscribers</a>.  Nice work, NY Times, in pitching a whole story based on a single anecdote, about how cable has nothing to fear... just as the numbers come out to show that people are, in fact, cutting back on cable subscriptions.  I'm sure stories like this will make the upcoming NY Times paywall that much more valuable.<br /><br /><a href="http://www.techdirt.com/articles/20100823/01204410723.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100823/01204410723.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100823/01204410723.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>the-self-delusion-of-the-damned</slash:department>
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