Will The Demise Of Aereo Hurt Broadcasters?

An interesting article in re/code that argues that the shutdown of Aereo is actually bad news for broadcasters.  As the younger generation continues to spend more and more time on their mobile devices, they have made bigger stars of some You Tube celebrities than TV ones.  From Bethany Mota to PewDiePie, to many that my kids know of and I have no clue who they are.  Still, that is who my kids are watching and broadcast, especially linear broadcast becomes more and more irrelevant. 

As the article note, Aereo made broadcast more accessible to that streaming crowd and opened up accessibility to the cord cutters.  Without it, viewers have to either find new ways to access broadcast programming or continue to skip it for Netflix, Amazon Prime, You Tube and others.  And the broadcasters have lost access to the future generation of potential viewers.  It is over the long run then that broadcasters have more to worry about. 

Aereo was admonished for copyright infringement stemming from the rental of an antenna on a remote antenna farm.  Other companies are now trying new ways to skirt the ruling.  Rather than rent, the antenna needs to be purchased and installed in the home; a box attached to it, captures and transmits wirelessly to authorized devices.  Does ownership of equipment change the result?  Certainly, Slingbox has been doing similar capturing and streaming for some time now.

For now, Aereo has lost and the broadcasters believe they have won.  But as viewership shifts from wired to streaming, from linear to on demand, consumers will seek out shows from multiple devices at times that best suit them and on platforms that are easy to access and appeal to their interests.  Tomorrow's audience may simply not care what broadcasters are pitching on old technology.

A battle may be lost, but the war is certainly not over either.  Much can happen to reshift interest back to broadcast.  New technologies, new strategies, new content.  I have consistently argued that linear wins with live programming.  It hits a home run when it is available on every platform.  And there are many examples to justify it including The World Cup matches on ESPN and streamed online, NBC's Sound of Music, NFL Football, etc.  Once broadcasters truly embrace streaming of their content, their future will be much brighter.

New iWatch Uses

An interesting article in Business Insider wonders if Apple's iWatch could possibly share some features that Disney has incorporated in their theme park MagicBands.  The key might just be the radio frequency built into these consumer friendly wearables.  "Want to buy food while you're at the park? Just scan your wristband and enter a PIN. Tired of scrambling for your hotel key? Simply tap the wristband to your door. The wristband is connected to a credit card and is capable of replacing your wallet, keys, and theme park tickets throughout Disney's sprawling campus. It essentially acts as a digital ID that you wear around your wrist."  Could Apple be emulating these features in their own design?  It certainly opens up new possibilities for usefulness for the future device.

Should Apple Buy A Content Company?

Given the power of content over distribution in the recent Aereo decision, other distribution companies might want to start to reconsider owning content to control the whole pipeline.  A unique scenario proposed in the Washington Post is that Apple should buy Disney.  With Amazon building original content to supply its own Amazon Prime subscribers, the idea might not seem entirely foolish.  Especially as its connection extends to its founder Steve Jobs.  But does Apple want to broaden itself so much away from its own closed architecture of products and media store?

Of course the odds against such a deal also seem overwhelming.  Apple tends to create, rather than acquire, and their acquisition strategy, until recently has been minor in size and scope.  An Apple-Disney combo could change the whole culture of both companies.  It could also cause Apple to lose vision on technical innovation as it worked to hard to find synergies of the content and distribution model.  Still, it is interesting to wonder what if. 

Aereo Loses Challenge In Supreme Court

In a strong majority decision, the Supreme Court ruled against Aereo today saying that their business violated copyright by stealing signals.  And I must admit that I am a bit shocked.  I saw the rental of the antenna through Aereo as a proper work around to forcing a homeowner to instal an antenna in the home.  And given that the signals are broadcast free over the air, I would argue that you can't steal what is free.  For those fans of the start up, cord cutters in particular, access to broadcaster signals through their service will be denied. 

So what is next for Aereo?  Shut down completely or start to negotiate individually with each broadcaster in each demographic for license fees to connect to the network.  And given the agreements these same broadcasters make for access to subscribers to Comcast, Charter, DirecTv and other, the license fees for a comparatively tiny subscriber base like Aereo will be too high to continue the business model. 

The other question that should be asked is how will content streaming and capture be treated based on this new ruling.  Will it have a notable effect or be limited to this specific ruling?  Content is king in this scenario and ownership enables content creators to negotiate those rights as they seem fit.  This ruling strengthens that position and places content ahead of distribution. 

Cable's Dirty Little Word...Leverage

For cable networks, the key to launch multiple channels is to let the most valuable channel help drive the launch of the smaller less desirable ones.  But don't dare say that the networks employed leverage to force the cable operator to negotiate an all or nothing approach to launch the stable of channels.  In the Viacom - Cablevision lawsuit, leverage is precisely what is being argued. And the courts have agreed to hear the case.  "Should the suit continue, and be decided in Cablevision’s favor, it would set a precedent restricting the ability of programmers to force MVPDs to accept bundles of ancillary – and usually unwanted – content in order to get access to premium channels." 

Historically, though always denied, this has been the case.  For Viacom, it has helped to launch offshoots like VH1 Classics and for Discovery, launches of Health and OWN.  Deals are constructed that bundle in such a way that better deals are constructed for line-up access.  What is ironic is that Cablevision once had its share of cable networks before spinning them off into separately traded public companies.  MSG and Fuse (which was just sold to NuvoTV) was once paired with AMC, Bravo (now an NBCU brand), IFC, Sundance, and WE.  Aggregating these brands enabled all to grow and prosper.  And while the leverage word is never used, the value of the bundle was certainly superior to a la carte when license fees were negotiated.

Not surprisingly, it is also the case on the cable operator side.  Networks are packaged together and offered to consumers; like the lawsuit, households do not have the option to subscribe to basic channels a la carte from their cable provider.  It is in essence the same issue that Cablevision is now suing Viacom over.  Ironic, indeed.  Should Cablevision prove victorious in this lawsuit against Viacom, it could open up a new set of lawsuits with consumers requiring cable operators to sell channels a la carte as well.  Perhaps Cablevision should be careful what they wish for. 

World Cup Offers No Ad Interruptions

Even as a casual fan, I am getting hooked on World Cup Soccer and I am not alone.  Ratings have hit records for both ESPN and Univision.  And yet I wonder, how does that translate into revenue for these two networks? 

Yesterdays match between the US and Portugal was over 95 minutes of non-stop action with only one break at halftime.  Each 45 minute plus half had exactly zero commercial interruptions.  Sure there was ad signage around the field and occasionally a small log appeared near the score, but at no point did announcers stop to send to an ad break or announce that the last score was sponsored by someone.  It was all game all the time.

And unlike the four major professional leagues in the USA, the NFL, MLB, NBA, and NHL, the game was non-stop, non-commercial, all-joy.  These other leagues would collapse without all those ad breaks.  Yet soccer has not been changed enough by commercialization to force stoppages in play for commercials. 

No doubt fans of the sport kept the channel on between halves so that the halftime stoppage was the only chance to air traditional commercials.  And not enough of a break to air too many either.  Great for the fans but revenue challenging for the broadcasters.

Is Vivendi A Content Buyer?

With all the talk of media mergers, Reuters thinks that Vivendi might just be the company to start acquiring content companies in order to become a major media player.  "Bankers are honing pitches to buy U.S.-based TV companies like AMC, Starz, and Scripps Network Interactive, or a movie studio such as Lionsgate, said two of the people."    Of course any potential of a deal could ramp up conversations by other US players to prepare their own competitive bids.  This summer could be the start of such announcements.

Aereo Decision Could Come Within Two Weeks

The Supreme Court of the United States has certainly had some time to review their notes and deliver a decision. Can Aereo continue its business model or do the broadcasters have the right to yank away free over the air signals from a company that leases antennas? " There are still two more Mondays in the session, and the court could add a Thursday session next week as it has done the previous two."  Or they could continue to wait till the next session this Fall although the expectation is that a decision will come shortly.

I have no inside track nor have I heard any of the testimony.  In fact, I am not even a customer of Aereo; rather, I still get triple play service from our cable provider.  Simply looking at the information that has played across the media, I am firmly of the belief that Aereo will be victorious and broadcasters will still be able to get license fees from cable operators.  Until a decision is rendered, we can only wait and watch. 

There are still two more Mondays in the session, and the court could add a Thursday session next week as it has done the previous two. - See more at: http://www.multichannel.com/news/technology/no-aereo-decision-yet/375250#sthash.j6P5j5OT.dpuf

Amazon Releases The Fire Phone

• 4.7-inch screen
• 13-megapixel camera with optical image stabilization
• 2.2-GHz processor with 2GB of RAM
• Gorilla Glass on both sides
• 3 D Effects
• One-handed shortcuts
• Firefly
• MayDay
• Starts at $199 on a two-year contract according to AT&T's website 
• Starts at $649 off-contract according to Amazon's website 
• Launches July 25
• Exclusive to AT&T

Apple Offering Lower Cost iMac Desktops

Timing is everything and perhaps today's Apple announcement that they are offering a lower cost iMac on the same day that Amazon is announcing its new smartphone is just that.  While it may not derail the Amazon PR efforts, it certainly tries to keep Apple in the news. 

Some news is already speculating that the exclusivity distribution for Amazon of its new smartphone on the AT&T platform will hurt them.  I don't tend to agree and think that exclusivity, especially if the product delivers unique value, will serve them well.  Still, until we hear the official news, we can only wait and see.

As to the Apple iMac announcement, it is limited to the desktop.  More and more people have found the power and flexibility of the laptop far more important.  It may just be a way to lower inventory while more future effort will be focused on a new line of laptop computers. 

Tomorrow's Amazon Announcement

It is expected to be announced tomorrow that Amazon will extend its communication footprint past the tablet to now include its own smartphone.  How this handset differentiates itself from Apple and Android based phones remains to be seen.  One rumor is that the screen will deliver a 3D like experience.  Whether that proves valuable to the consumer remains to be seen.  It hasn't worked with past products, from gaming systems to HDTVs, but perhaps the timing and the technology is finally right.

The other news is that AT&T will be the exclusive carrier for the new Amazon phone.   Of course, the primary use of the phone is calling and texting, but consumers also like a large library of apps for games, news, weather, video, music, and other needs.  Amazon might just have its own app that further eases the transaction process along with easy access for Amazon Prime customers to all its subscription services.  Along with subscription and advertising, e-commerce is the third leg of revenue streams that Amazon continues to conquer. 

Its certainly been a long time since Apple first did its iPhone exclusive deal with AT&T; now the iPhone can work on almost every carrier.  Loyal Amazon customers could follow a similar path.  And should the product prove highly desirable, could give AT&T a nice bump in subscription.

Tomorrow's Amazon announcement could be broader than just a phone.  Updating its Kindle line of tablets, e-readers, and Fire set top box, and creating a stronger synergy of its product line could be viewed very positively by consumers and investors.  Integration, communication, and commerce could just be the buzzwords we hear by CEO Jeff Bezos. 

The Necessity Of Media Mergers

Friday, I mentioned that the Univision news regarding possible suitors was the tip of the iceberg.  In today's Wall Street Journal, more speculation abounds.  Given the consolidation of cable operators, the slowing growth of TV advertising, and the threat of cord cutting to reaching more subscribers, content companies need to consolidate as well to leverage their value to a smaller base of operators.  In order to continue to raise subscription fees, content companies need to leverage their size as well along with the threat of loss of valuable programming.  That Time Warner Cable lost a significant number of subscribers during one such negotiation demonstrates how important that leverage can be.

While larger media entities like ABC and FOX may have the resources to weather a changing entertainment landscape, midsize media companies may need to consolidate to assure their long run stability.  The article looks at AMC, Scripps (HGTV, Food), Discovery, Viacom (MTV, Comedy Central) and even Time Warner (home of CNN, HBO, TNT) as smaller companies needing bigger parents. 

And while Netflix has been focused on digital distribution, they might also seek acquisition of a content creator to help fill their pipeline.  "Among studios Lions Gate Entertainment, maker of "Mad Men" and "The Hunger Games" movie franchise, is seen as a potential target. Sony Corp.'s studio is also viewed as a possible target."   Who is next to announce is anyone's guess.  But the authors agree with me that there should be more announcements coming. 

Merger Mania Part II

Just last week, following the third announced merger news of Sprint and T-Mobile, I speculated that the next would be a cable network.  Well, the pace of media merger mania is not slowing down.  According to The Wall Street Journal, Univision is having preliminary for sale discussions.  As its major competitor, Telemundo, is owned by NBC, another broadcaster could be interested in acquiring the broadcast network and its sister cable nets.  "Univision has been seeking to expand its offerings to attract more advertising and subscription revenues from pay TV operators. In the past two and a half years alone, it has launched nine cable channels, bringing the total to 12."  Given the growth of the Hispanic community and the great ratings that Univision continues to get, the network would be a fine addition for folks like CBS, FOX, and ABC.  Some think that Time Warner, home to the Turner property of networks, would be a great fit as well.

That a deal has not yet been struck may be a function of price/value.  Univision last turned over 7 years ago and the current owners may be seeking a bigger ROI.  Should a buyer be found, the FCC will have a very busy summer as they decide on all the merger matters before them, including Comcast -Time Warner Cable, AT&T - DirecTv, and Sprint-T-Mobile. And who will be next to sell.  I expect more to come this year. 

Amazon Prime Adding Music Subscription

The Amazon Prime consumer has one more reason to stay a loyal subscription.  Not only do they get free shipping of their retail purchases and movie steaming, but now they can access a music subscription service as well.  Given all the noise of Apple buying Beats and Google building its music business, Amazon was quick to act.  Surprisingly, no one has tried to acquire any of the big players in the business, notably Spotify or Pandora. 

How will the Amazon Prime Music service compare against the others, I will leave that to the music experts.  But for those current Amazon customers that may have groused at the recent increase in their monthly fee, this offer may calm their concerns.  And for those potential Amazon Prime subscribers, the addition of music creates another valuable value-add to the mix to encourage someone to become a Prime customer.

The rise in music subscription streaming services will have ramifications verse download and purchase of albums and singles.  How much of a disruptor it is to the music industry remains to be seen.  But if you can access your songs at any time with a subscription, why own. 

Amazon Tough Negotiations Go Public

Most business negotiations go on behind the scenes between vendors and distributors; as consumers will only see the product on the shelf and the price we should pay.  Sometimes, those negotiations become public and consumers get engaged and enraged at the process, especially when it affects them personally. 

We have seen it with cable networks and distributors, but now we are seeing it between digital retailers and their vendors.  The big news concerns the largest digital retailer, Amazon, and their fight with not one, but two vendors.  The first has been with book publisher Hachette, regarding terms for selling their books.  Their next big release is with JK Rowling, a potential must have summer read.  And now we hear of another negotiation gone south with Warner Bros. on the sale of their movies, including the DVD release of The Lego Movie. 

Of course, we as consumers don't know all the details of the negotiation, we only know that it limits availability of getting this content from this distributor.  While it may be difficult to switch cable providers to assure receiving content, it seems much easier to simply buy these books and movies from other retailers.  The same clicks can get you the JK Rowling novel or Lego movie from multiple other retailers including Barnes & Noble, Target, and Walmart.  Perhaps that it is Amazon, the largest digital retailer, that is in the middle of such controversy, makes us pay more interest.  For whatever the outcome, consumers can still get their content.  And that might hurt the Amazon customer experience in the long run. 

Live Well Network Won't End Well

When broadcast television networks were told that they had to convert their analog signals into digital ones, it opened up new distribution opportunities on network "subchannel" frequencies.  NBC Owned and Operated Networks experimented with news and weather, creating a network called NBC Nonstop.  But when that went nowhere, it was rebranded as Cozi TV, a collection of old classic shows and cheap original programming.  The ABC O&Os tried a similar path.  Their network, called Live Well, a health and lifestyle channel, existed on the ABC sub channel frequency, and like NBC was also carried on cable TV, mainly where its O&O had negotiated channel space with the cable operator.  And while both Cozi and Live Well had distribution, they were usually on harder to find channel positions. 

For Live Well, the end is near.  The network will cease operations the beginning of 2015.  Given the growth of other channels, like Me-TV negotiating for carriage and living in the subchannel space, this might offer opportunity for them to expand.  Smaller cable networks, like Veria Living, a health and wellness network, have also tried to increase distribution through sub channel carriage.  But as Live Well and I'm sure Cozi have found, it is extremely difficult to get discovered, yet alone viewed.  Live Well had the national ABC network to offer promotional marketing support, yet it failed to grow in stature.  Cozi needs the constant promotional support of NBC for it to stay around, too.  Its hard to expect another network to pay for carriage in the subchannel marketplace and attract the necessary eyeballs to charge enough ad dollars to cover all its expenses. 

So a fond farewell to Live Well Network.  I never actually watched you or knew what channel number to find you on, or what shows you carried, but with so much choice out there, its harder and harder to grow this fragmented audience into a real ratings powerhouse. 

Apple More Affordable For Small Investor

Unfortunately, perhaps, for many lovers of the Apple brand, it was more expensive to own 1 share of Apple stock, then an iPod, iPhone, or even a iPad.  But today, the small investor, who likes owning shares of companies that they are passionate about will be able to own Apple, too.  With the 7 for stock split, the price for a share of Apple stock goes from just under $650 to just over $90.  Given the interest in future Apple wearable products plus a dividend rate of about 2%, an investment in Apple likely means a better rate of return than a savings or money market account and hopefully a continued growth in the share price. 

While nothing is guaranteed, the small investor might be thrilled.  Of course these are the same kind of investors who like to purchase share of Tesla because of the appeal of the car or Microsoft because of the Xbox.  Perhaps they buy shares in Lulu because they like the clothing. It may not be smart investing all the time, but many put their investments where their brand engagement is concerned.

Please Don't Call It An iWatch

Although there is no formal release from Apple regarding the sale of a wearable device, there are numerous reports indicating that a Fall release is likely.  Should it come in October 2014, the device, expected to be called an iWatch, is expected to become a huge Holiday hit.

But I beseech you Apple, don't cave in and call it an iWatch.  Given all the news from your recent WWDC event, the operating system being developed and integrated across Apple products, is meant to do so much more.  From health monitoring to communication, the potential seems enormous.

Yet the term watch, even though the cute little "i" is before it, seems to keep it old school.  Brands need to be future focused and a watch is very old school.  Just look at how a brand name limits.  Example one, Boston Chicken needed to rebrand to Boston Market because consumers didn't know they sold more than just chicken.  Example 2, Radio Shack is stuck in retail hell because the "radio" label limits what the want to sell.  Example 3 and more, every cable network has replaced their name with initials to broaden their appeal.  AMC is no longer American Movie Classics, Arts & Entertainment is now A&E, and The Learning Channel is TLC.  The list of brand names that needed changing is a long one.

Brand names matter when focusing on future growth.  A name that is too limiting often hurts the long term appeal; some can be easily changed and rebranded, others cannot.  To limit the forthcoming Apple wearable devices with a brand name that combines old school with interactive may be cute but there must be more appealing alternatives that better capture the full brand value that you intend to sell to the consumer.  Since most of your brands use an "iP" (iPhone, iPod, iPad), how about "iPulse" or "iPlus".  Surprise us please with a brand name that makes your release of a new generation of wearable devices that much more appealing.  As to iWatch, I say it should not be considered.

Microsoft Fails Barnes & Noble, Samsung Succeeds

Despite an investment in Barnes & Noble, Microsoft seems to have done nothing to support its investment.  No connection between the Surface Tablet and Nook and no retail presence; its a wonder Microsoft got involved at all.  So it comes as a small surprise to see another tablet maker, Samsung, actually create a significant partnership opportunity with B&N.  "The device will be a 7-inch Samsung Galaxy Tab 4 co-branded as a Nook with Nook's digital reading software already on it. The tablet will be available at Barnes & Noble's 700 U.S. stores in early August."  A terrific idea for both companies.  In fact, with such a large retail footprint, I hope that Samsung and B&N extend their partnership to include all Samsung products. 

Yet I am somewhat surprised that the news is about Samsung when Microsoft actually put real dollars toward working with B&N.  It can only be described as a real missed opportunity for Microsoft.  With Samsung now on board, I suspect that Microsoft is a lost cause.  And I am excited to see how the Samsung and B&N partnership expands. 

Aereo Keeps Pushing Forward

Aereo continues its rollout even as the Supreme Court of the United States decides its fate.  As broadcasters argue that Aereo has been stealing and reselling its signals, Aereo maintains that it simply lets consumers use its antennas to access free, over the air signals.  A negative court outcome could spell the collapse of the company, but Aereo is not slowing down.

Their latest move, availability in the markets the serve, on the Google Chromecast device.  "The move adds another significant Aereo player to a lineup that includes browsers for Windows PCs, Linux PCs and Macs, iOS devices, Apple TV and Roku set-top boxes."  At the same time, Aereo must be eager to continue its geographic rollout as well.  A favorable outcome will provide them with a ton of PR and brand awareness to drive subscriptions ahead.  And that ruling could come soon.

Merger Mania Adds Another Pair

The FCC will have a busy Summer and perhaps the rest of the year too.  Not only do they get to review the Comcast Time Warner Cable and ATT DirecTv deals, they may also get the proposed Sprint T-Mobile merger as well.  Quick, hire more staff, the FCC will have their plate full.  They may have seen their webaite explode after the John Oliver call to write them regarding net neutrality.  And should a cable network consider announcing a possible acquisition target, the FCC might have to throw up their hands in defeat.

But back to the proposed plan for Sprint to acquire T-Mobile.  Facing a communication and wireless industry industry dominated by two major players, Verizon and ATT, the number 3 and number 4 players were no match.  Yes, they created choice for the consumer, but couldn't match for service and coverage.  And while a merger reduces the number of competitors, it actually helps to make them a more formidable competitor as a much larger number 3 wireless provider.  And frankly, they need all the help they can get. 

Both ATT and Verizon offer more capabilities; ATT with a DirecTv and their U-verse product, have a firm cable and broadband base and Verizon with FIOS has the same.  Neither Sprint nor T-Mobile bring that business to their mix; they benefit only by increased size.  One might hope that a future partnership with Dish could then set them up nicely and make it an even stronger competitive option. 

Some are concerned that the FCC won't like this Sprint T-Mobile pairing but I believe it is in the interest in the economy that it be approved, as should each of the above deals.  The industry has always been an oligopoly; size continues to matter to make these business able to continue to compete. 

Music Is The New Black

With all the buzz of video streaming and platforms like Netflix competing rigorously in the media space, audio has been pushed aside a bit.  Well, it seems it may now be their turn given the recent acquisition of Beats by Apple.  Now music streaming is the hot commodity and competing in this space the place to be.  While downloading music is nice, the cost to own can add up; a music subscription service on the other hand provides a steady diet of new and old music at a low price. 

For Apple, the Beats subscription service may not be the largest, but it had a cache and pool of talent that Apple wanted to own.  According to reports, Google is also interested in owning a larger piece of the music streaming business.  "Some folks speculate that Google’s best option would be to snap up Spotify, which has a $4 billion valuation, 10 million paying subscribers — and a rapidly growing business. It is said to be on track for a fall IPO."  Of course there are other competitors to consider including Pandora and Rhapsody.  Perhaps Sirius would like to extend itself further away from the automobile through acquisition as well.  And Apple may not be done acquiring; music has been a key attribute of their iPod and iPhone brands. 

Where the audio industry, most known as the world dominated by radio, has appeared mature and flat, the rise of digital streaming has fanned the flames of interest.  The iHeart radio app, while free, offers an ad supported way to enjoy your favorite music on these same streaming devices.  Choosing which service to use becomes the consumers challenge.  Download, subscribe, stream, are all options.  For now, music is the hot commodity. 

Net Neutrality And John Oliver

On last Sunday's HBO series Last Week Tonight, host John Oliver, fresh off a successful turn at The Daily Show, took on the cable industry and net neutrality.  It was a very funny description of the monopolistic tendencies of cable distribution and the potential loss of free and equal broadband speed.  Unfortunately, as Oliver points out, the FCC is now chaired by Tom Wheeler, former lobbyist for the cable industry.  A move that clearly stacks the deck for cable operators to control who gets best of class service.  If you have a moment, enjoy the segment from the show:



Now John Oliver's show is shown on HBO, a Time Warner company, along with TBS, TNT, and other networks, on these same cable operators.  So to talk about changing the name from "protecting net neutrality" to "Preventing Cable Company Fuckery",  he is certainly biting the hand that feeds him.  And whether his asking his viewers to visit the FCC website, FCC.com/Comments and raise their voice may soon determine the kind of social power John Oliver can create.

His points are valid.  His insights on the lack of competition resulting in less service is illustrated by the chart he shares that ranks our download speed 31st in the world, below countries like the UK, Israel, and even Estonia.  Yet the cost for speed is higher than most other countries.  The compelling reason for net neutrality is not just that all services are treated equally; rather, that when some are given preferential lanes, the speed for the rest falls further down.

So enjoy the video and if you feel compelled after watching it, let the FCC know. 

The Next Media Merger

From the cable operator side, the road to savings and distribution lies with mergers.  The Comcast - Time Warner Cable and AT&T - DirecTv announcements may only be the tip of the iceberg.  Does Cablevision finally see the writing on the wall and decides to finally sell its Long Island franchise?  And what about Cox Communication and their cable future?

The same thoughts on media mergers should also look to the other side of the table and the cable networks and all their programming.  Yes, NBC and all its cable networks are a powerhouse as is ABC and its handful of mainly sports networks.  But what about the other networks?  Does consolidation and merger help them when dealing with these new operator behemoths?  Is it time for Discovery Networks to look around and what about Scripps, AMC Networks, Time Warner, Inc, and Viacom.  Are they buyers or sellers?  Sure the Fuse sale to NuvoTV was minor, but it did help them to grow their subscriber reach.  It seems the pressure to gain distribution and retain license fees is growing and smaller networks could use the power of larger multichannel networks to promote and pursue full basic distribution.

The FCC may have their hands full with the two recent merger plans, but that may make the timing of a network merger that much more necessary.  So don't be surprised to hear of more media changes.  The pressure to compete is mounting.