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May 18, 2012 @ 1:00 AM
Echostar
Under The BRIDGE: Are You Obsolescent?
by Evie Haskell


Welcome to the data deluge and (perhaps) your personal obsolescence!  As illustration, I note that just across the past few weeks we have learned:

• Total U.S. TV households are down -0.5% to 114.1M ...

• 4.8T (yes, trillion) digital display ad impressions were delivered online in the U.S. in 2011 ...

• As a category, Crime & Mystery programming gained by +23% in January 2012 while Men's programming dove by -18% ...

• According to 53.9% of U.S. adults, "Euro" refers to a French dandy,

So I made that last one up.  

But I'm sure you get the idea:  Big data is everywhere these days, coming from multiple directions, in myriad fashions, informing and directing virtually every business decision.  It's something you cannot ... and really should not ... escape.

Still, as anyone who's worked with data knows very well, those streams of numbers are slippery things.  The accuracy of the source, the parsing of the poll question, the differing definitions can significantly alter the outcome.  So data must be treated very carefully.  Especially given one more significant factor:

You, dear reader, are analog.  Maybe the Borg will get us all someday but, traditionally, humans are analog thinkers.  And that strange analog alchemy has come up with some fairly significant moments:  An apple falls and Newton divines gravity ... a nascent cable TV business needs something more to sell and, voila!, HBO comes into being ... some bored college students get together and, bingo!, Facebook.

In short, intuition and imagination have played very significant roles in human history.  As has human interaction and collaboration.  Which brings me, of course, to next week and the Cable Show in Boston and the Media Financial Management show in Las Vegas.

Okay, I can hear you all groaning.  Don't. These are great opportunities ... some of the few remaining ... to get together with your fellow analogs.  To chat, and brainstorm and maybe even dream.  Ignore those sore feet and endless sessions and sometimes over-the-top self congratulation.  These are chances to work some analog alchemy.

In the spirit of full confession, I have to admit that I won't be there.  (Paul and Cody will both be at the Cable Show.)  Instead I'll be in the Colorado mountains with three dogs, one cranky cat and a whole lot of work to do, poring over ... you got it ... data.•
Unity: Another IP-based TV Service

Start-up communications provider Unity Telecom has announced plans to launch a new IP-based TV service that combines OTA broadcast signals with internet video content including the Walmart-owned Vudu VOD platform.  And, because of its unique business model, the company says it has no legal hangups with broadcasters (ahem, Skitter) or regulatory issues with the FCC (um, Aereo).

For starters, Unity says its Unity TV will utilize a hybrid STB that features HD DVR capabilities in addition to internet connectivity for Vudu, Facebook, Twitter and nearly 50 other web services and apps. The company will offer the internet TV service to subscribers along with its own VoIP service, with tentative plans to launch sometime in July 2012.

Unity says its IPTV service employs FusionTV - with TV guide data from Tribune - which enables the company to avoid retransmission fees and regulations. (Fusion uses a local antenna installed in the home to receive free OTAs.) In a statement, Unity CEO Chuck Schneider said UnityTV is different from other broadband TV models that defy the FCC and broadcast industry because FusionTV allows the company to "steer clear of legal gray areas..."

With regards to Aereo, ISI's Vijay Jayant says while the company has avoided an injunction so far, the fact that it's still providing service is a positive for the company's potential... "but by no means a shoo-in for legal victory." The analyst said the most bearish prospect for Aereo disrupting the current retrans reality is a recent court decision that says the service is simply allocating small antennas to subscribers for live TV viewing.

At the end of the day, Jayant says, the question of pay-TV providers being required to pay for signals the FCC mandates be free "will likely be unanswered for years." And while the Aereo case is no legal "slam dunk," the implications for pay-TV, broadcasters and newcomers like UnityTV, would be huge for the entire media industry. •
DIRECTV's Broadband Solution - Genachowski Tempers News Corp. Investigation - More 'Ad-Hopper' Backlash

Strategy: DIRECTV is hoping its latest strategic partnership finally solves its two-way broadband limitations... The satcaster is teaming up with ViaSat to offer subscribers its high-speed Exede satellite internet service. ViaSat says Exede offers speeds of "up to" 12 Mbps downstream and 3 Mbps up for about $50/month; DIRECTV is saying speeds "over" 10 Mbps and "bundled" pricing. The company said more details will be available later this year when the product is nearing launch.

Rules & Regs: Sen. Frank Lautenberg (D-NJ) wants the FCC to investigate News Corp. for alleged misconduct that would impact the company's "fitness" to hold broadcast licenses here in the States. In response, Chairman Julius Genachowski said while the agency is "aware of the serious issues" involving News in the UK, "it would be inappropriate for us to prejudge (the company) and to speak about any investigations."

Disputes: DISH has reportedly returned Peachtree TV to its service this week after reaching a new carriage agreement with Turner Broadcasting. The channel - which covers Atlanta Braves baseball and SEC collegiate sports - has been off DISH since late January. --- Speaking of DISH, add CBS CEO Les Moonves to the list of those who don't like the satcaster's new ad-skipping technology. "They can't put our content on without commercials," he said. "It's illegal." Will CBS sue? "I hope it doesn't come to that, but you never know." -TheWrap Opining on the sitch, Forrester VP James McQuivey says with DISH's ploy to "please the end customer rather than advertisers, it's clear that in the fight for TV revenue the gloves have finally come off." Ironically, WSJ is running this piece detailing DISH's plans to use... ahem, TV ads to push its TV ad-killing tech. --- Even more from DISH as it is claiming its new wireless initiatives will add $7B to GDP along with 28K new jobs ... more from the Denver Business Journal here.  Mr. Ergen wants an FCC decision soonest.

Service: Comcast said it is dropping its 250Gb monthly data cap currently in place for internet subs in favor of a tiered structure. Specifics and pricing info is coming. --- Comcast also launched Skype service on Xfinity for $10/month for triple-play subs in Boston and Seattle for starters, then Atlanta, Chicago and Miami within days. No Philly or Denver? --- Time Warner Cable said this week that it would allow digital subs to access HBO Go on a handful of devices, including Xbox, Roku and Samsung smart-TVs. --- Netflix says 1/3 of new subscribers are former customers who are coming back. --- Verizon Wireless said it would soon kill off its popular $30/month grandfathered unlimited data plans. --- The four Cox Solutions Stores in Virginia are offering free tech classes this Saturday for customers interested in learning about Cox services and features. Classes include instruction on DVRs, internet security, and video chat/social media.

Footprint: Comcast launched Xfinity Home service in Maryland. --- AT&T expanded its 4G LTE network to Naples, FL and throughout the greater New Orleans and Baton Rouge regions.

Deals: Time Warner Cable selected BlackArrow's advanced advertising system to deliver real-time, dynamic ad insertion throughout its VOD platform.

Research: Google and Nielsen teamed up to research viewers' TV habits... and found some interesting bits: 31% of 18-49ers spend only 39 minutes per day watching the tube. Plus, TV ads alone fail to reach 63% of this age group, while (shockingly) adding online ads to the mix improves brand impression rate by 27%. Details and video at WebProNews. --- BIA/Kelsey says local ad spending will experience a 2.6% CAGR between 2011 and 2016, with revenues climbing from $132B to more than $150B. Expect spending to shift from traditional media and direct advertising to digital alternatives, the firm says, with mobile and online nearly doubling from $11.1B last year to $21.8B in 2016 with a CAGR of 14.4%.

M&A: Berkshire Hathaway subsidiary BH Media Group has agreed to purchase all of the newspapers owned by Media General (excluding Tampa), for $142M. The purchase includes 63 daily and weekly pubs in VA, NC, SC, and AL (Tampa will be sold separately). In a separate deal, Berkshire Hathaway will provide Media General with a $400M term loan and $45M revolving credit line.

Tech: SeaChange and Tellabs will unveil new tech at The Cable Show that delivers ads to iPads based on which websites a user has visited (kinda like Google's use of 'anonymous' data to provide targeted ads). --- Click here to see the coolest new HDTV (and it's NOT from Apple). Seriously.

Programming: BounceTV will air a tribute to Donna Summer tonight at 8pm (ET) with an episode of "Soul Train" where she performs a couple songs, followed by her film "Thank God It's Friday" at 9pm. --- The Documentary Channel will premiere "Warrior Champions" on Sunday, June 10. The story follows a group of wounded American soldiers who compete in the  Paralympic Games. --- So who's killing the upfronts? AdWeek has their take on the 10 Best Presentations (So Far). Conversely, here's TheWrap's 4 Big TV Gambles that Failed.

Over, Up, & Under: Sky 3D will carry Eurosport's live 3D coverage of the 2012 French Open. In other Sky news (lower-case 'n'), SkyNews (capital 'N') will now be available in select taxi cabs throughout London via an agreement with VeriFone Systems. (VeriFone delivers NBC news to 12K taxis here in the States.) --- Reports say Motive Television Group is in negotiations with a handful of English Premiere League clubs to use its interactive Video2Go service for mobile devices.

People: Cox Media Group's Neil Johnston, EVP of strategy and digital, will receive the Distinguished CFO Award from the Media Financial Management Association (MFM) meeting in Las Vegas next week. --- A coalition of Latino leaders, students and activist plan on protesting Carlos Slim being awarded an honorary degree from George Washington University this weekend in Washington, D.C. The group aims to expose the world's richest man for "predatory, monopolistic methods with which he amassed his fortune."

Kudos: The Women's Sports Foundation (WSF), in collaboration with espnW and Women in Cable Telecommunications (WICT), released its 40 FOR 40 list of forty women who made a positive impact on society after playing sports during the 40 years of Title IX. The honorees will be recognized on June 21 at an event sponsored by Scripps Networks Interactive. The full list of honorees can be see here.

--- Catch today's media market news in The Evening BRIDGE.
 
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