The Future Of Net Neutrality

Are all video streams created equal or do some have more power over others?  And should money dictate who gets the right -of-way on the information highway?  That certainly may be part of what comes from the District Court case between Verizon and the FCC.

What is true is that yesterday's laws regarding telephone access and telecommunication have changed dramatically with the rise and growth of the internet.  The influx of more devices, broadband and, video streaming have created a more complex superhighway that no longer abides by the old rules. And the result has been a concern about access, speed, and preference.

According to "Susan Crawford, a tech policy expert and professor at the Benjamin N. Cardozo School of Law who served as Special Assistant to President Obama for Science, Technology, and Innovation Policy. 'The question presented by the case is: Does the U.S. government have any role in ensuring ubiquitous, open, world-class, interconnected, reasonably priced Internet access?'” If not, then should the businesses that have built these highways and access points, companies like Verizon, AT&T, Comcast, Time Warner Cable, and others, have the final say in issuing access, speed limits, and right of way?  Ultimately, is the web a regulated, open highway or a private turnpike?

Net neutrality laws were designed to assure that all web traffic was treated equally by the provider of broadband and wireless services.  No favoritism or HOV lanes to the ones that pay an extra fee.  For the companies that have spent huge amounts of capital building these online highways, they believe that "they should have more latitude in deciding what content travels over those networks."  It is a classic case between private business and public policy.  Which way the District Court decides matters little; it is the kind of case that ultimately must find itself in front of the Supreme Court.  Concerns on both sides of the issue are plenty and the final decision will have huge repercussions.

 

Samsung Smartwatch Getting Great Press From Today Show

Thanks to Hoda Kotb and the Today Show, the Samsung Smartwatch has been getting some great press.  While demonstrating the new watch, Hoda accidentally shared her cell phone number as well.  The result, she began to receive call after call as well as voice mail messages.  The resulting flub has led to more press on the Today Show as well as across media.  Great stuff.

Aereo Competitor Shut Down By The Courts

Federal courts sided with the broadcasters against FilmOn X, an Aereo type of product that offers consumers broadband access to broadcast channels.  While not completely stopped, FilmOn X can not continue to operate its business under their lawsuit is settled.  "The injunction issued by (U.S. District Judge Rosemary) Collyer applies nationwide, except in the jurisdiction of the 2nd Circuit, which includes New York, Connecticut and Vermont. The 2nd Circuit's decision in the Aereo case applies in that geographical region, Collyer said."  

How different the Aereo business model is from the FilmOn X model may be at the center of each of their lawsuits.  Can an antenna be an antenna whether it is in the home or situated in another area and operated by a third party?  Can these companies each claim that they are charging for the ancillary service that they offer and not for the broadcast signal itself.  Certainly in the world of digital media rights, these and other concerns need to be addressed.  For now, Aereo may be a bit concerned by this recent ruling. 

TiVo Seems Ready for IPTV And The Cloud

Great news from the TiVo camp on their partnership with Entone.  "The agreement appears to represent TiVo’s first that will factor in potential cloud DVR services. Last week, TiVo CEO Tom Rogers said his company doesn’t care whether DVR storage is based in the cloud or in the home, but still believes that local storage still hold some advantages."  It also clearly shows that TiVo is following the trend toward more IP based and OTT content opportunities.  There is clearly more push toward IP based distribution and this partnership will foreshadow the direction the cable companies need to proceed.

What To Expect From Next Apple Announcement

Apple is prepping for its next announcement on Tuesday and speculation of its agenda goes from big to small.  Will they finally announce an Apple television set or will the next new thing finally be the apple iWatch?  With Samsung preparing to announce its own smartwatch, Apple might need to as well or be seen as late to the party.  There are others don't expect much more than the planned upgrades to iOS and the next iteration of the iPhone, with cheaper prices and multiple colors.

And what about the Apple TV set top box that has been around for some time but not nearly as popular as other set top devices.  One news article suggests that a new upgrade is coming to the device with more functionality and additional streaming video partnerships.  Could this be enough to increase demand for the $99 box or will a price cut also be in the strategy? 

I think Apple has more potential working with their set top box then trying to build a TV set, especially as cable and broadcast networks remain firmly in bed with cable operators.  We are a decade or more away from a time where serious cord cutting has enough impact that consumers are buying TVs with direct connections to broadband services.  Consumers have become increasingly comfortable with boxes sitting on top, on the side and even behind their TV set, providing additional controls and ergonomic features.  In fact, I think it might be smart for TV manufacturers to go the opposite route and build a monitor only big screen device that requires the functionality of a third party box as its brains.  One less remote to clutter the coffee table and a better consumer experience. 

For now, it is one week till the next Apple announcement. Let's enjoy watching its stock price rise and fall on speculation and expectation. 

Microsoft Making New Acquisition Into Smartphones

If you can't make it, buy it.  Microsoft has announced that it is buying Nokia's handset business in order to take more control over the manufacturing process and build on their past success.  "Microsoft is betting it will have a better chance of narrowing the gap if it seizes complete control over how the mobile devices work with its Windows software."  Given the fickle nature of phone lovers, the race for dominance in the market is fierce.  Where once Nokia held the top position, now it is Apple and Samsung, but that doesn't mean tat Microsoft and Nokia can't get back in the race.  At the same time, it is more than just the device; it is the apps that run behind it.  Microsoft has much more work ahead of it to gain a foothold against the Android and Apple libraries.  Still, anything is possible and the race is far from over. 

CBS And Time Warner Cable Settle At Last

As of 6pm ET last night, Time Warner Cable customers in NY, LA and other markets got their CBS networks turned on.  And with NFL a week away, just in time.  "The companies didn't disclose specific terms of their new retransmission contract, which spells out the amount of money that TWC pays CBS for the rights to carry the CBS-owned TV stations."  And as all their customers know, that means to expect another subscriber rate increase.  So what happens to all those over the air antennas that customers may have bought?  Perhaps back in the closet till the next broadcast network follows the same playbook. 

Could Microsoft Spin Off XBox?

With Steve Ballmer's announcement that he will retire within the next 12 months as Microsoft's CEO, investors may be clamoring for more value from the stock.  According to the report, a possible scenario could have Microsoft spinning off XBox into a separate business.  Certainly, XBox has been one of the true winners in recent years for Microsoft.  And while their operating system has been their main source of revenue, the decline in computer sales has put pressure on the business.  Microsoft needs XBox as well as other new innovations.  Whether their Surface Tablet can achieve that status remains to be seen, but till then, a spin off of XBox seems quite short sighted. 

Amazon Seeks New Wireless Connections to Its Content

The biggest challenge facing OTT content companies like Amazon and Netflix, OTT boxes like Roku, Apple TV, and Aereo, and even smart TV manufacturers like Samsung, is that they all rely on existing broadband providers.   That means that even cable cord cutters still must get their broadband service from their cable or telco provider.  We've seen that when a customer drops cable service, the price of their broadband service rises because they no longer get the discount advantage.  I continue to say that new competition in broadband service is needed to keep price points low.  Well Amazon might just be on the same page. 

"The wireless network, which was tested in Cupertino, California, used spectrum controlled by satellite communications company Globalstar Inc. (GSAT), said the people who asked not to be identified because the test was private."  How far Amazon wants to get into this space remains to be seen although it might make sense, give the capital costs, to partner with other OTT companies to create a wireless/broadband competitor to cable and the telcos.  And while Google is building a fiber based business in Kansas City, a wireless competitor that can effectively handle video streaming would be ideal.  Certainly Dish had been trying this route in trying to acquire Clearwire.  Should GSAT have the spectrum to handle such capacity, Amazon may have found a new business model and a seamless connection from consumer directly to their content.