Michael's Insight

FCC's DTV race car crashes... again

FCC's DTV Race Car Crashes... again [Reuters] 

Last month, the FCC announced that it was paying $350,000 to become a lead sponsor for NASCAR's #38 driver, David Gilliland. The FCC sponsorship was ostensibly to bring public awareness to next year's digital television transition. In it's first race, the DTV car crashed into the wall at Martinsville Speedway. Then, adding insult to injury, the group Citizens Against Government Waste gave the car the dubious honor of "porker of the month" for the use of taxpayer dollars to pay for the sponsorship.

But the tale of the DTV car doesn't end there. In the most recent NASCAR race, held on Sunday, the FCC's DTV car endured a second fiery crash. Thankfully, Gilliland again was uninjured. 

Broadcasters and cable operators have provided hundreds of millions of dollars of free airtime to educate Americans about the impending digital transition. Surveys show that nearly all Americans are aware of the transition, but many still need to know what they need to do to continue to receive television signals on February 17, 2009. Rather than crashing race cars into walls, the federal government should be focused on educating these Americans about the options available to them in order to make a successful transition to digital television.

And if I were David Gilliland, I'd be wondering if that paint job has a hex on it.

More on A-La-Carte; DSL Falls; Young Men and Tech Glitches; The Prez and His BlackBerry

Professor Cory O'Connor, from Chapman University and formerly the Senior Vice President of Communications of The Disney Channel disagreed with my a-la-carte position in a comment he posted on this blog last week. 

I was SVP of Communications for The Disney Channel when it moved from a la carte to basic. I'm not without some loyalties to your industry, but you guys are overplaying your hand to protect your status quo, forcing us to pay for Sumner Redstone's excrement. ....  I am firmly in the camp of a la carte, Michael, and I intend to stay on your case about this. I hope David Lazarus from the Los Angeles Times does also.

To fully review his position I am linking to his entire post as I want to give everyone an opportunity to consider his position.  

Professor O'Conor did not, however, address the economic issue I raised in last week's post.  Instead, he responded to an earlier post of mine in which I argued that a-la-carte would dramatically "dumb down" television by reducing the number of choices people have.

A new era for peer-to-peer applications?

ISPs To Speed Up P2P Transfers [Silicon Alley Insider]   

Peer-to-peer transfers might be getting much faster and more efficient. According to Silicon Alley Insider, some of the country's largest ISPs are set to release the first version of P4P software. P4P is the product of a coalition of ISPs, content producers, and P2P software developers. It's designed to speed up P2P file transfers without consuming more than a user's fair share of bandwidth. It also promises to bring content producers to the table, bringing P2P out of the dark alleys of the Internet and into the mainstream.

Here's how P4P promises to make P2P better: 

It makes peer-to-peer transfers -- a huge chunk of all the bandwidth used on the Internet -- more efficient by sending more traffic, when possible, across the ISP's internal network -- as opposed to across the broader Internet. It can also prioritize P2P traffic from networks with which ISPs have so-called symbiotic "peering" relationships, which could save them money.

.....

Hey Mr. Newspaperman! You Think A-La-Carte Makes Sense?

More Misunderstanding About A-La-Carte [Los Angeles Times]

Here we go again.  Now LA Times columnist and newspaperman David Lazarus thinks consumers would be better off if the Federal government required cable operators to offer all of their channels on an a-la-carte basis. You can read my previous posts and my guest blogger, Gerry Laybourne's, that argue that the cost of television would rise dramatically under government-imposed a-la-carte and the diversity of choices would all but evaporate when scores of niche networks simply cease to exist.

Let's use Mr. Lazarus' example to understand the economics.

The average U.S. home now receives a record 118.6 TV channels, according to a recent report from Nielsen Co. But the dirty little secret of the cable industry is that the average subscriber watches only about 17 channels regularly...

...When I watch TV, it's usually CNN, CNBC or a movie channel. On an a la carte basis, I could probably get the handful of channels I like for pocket change.

Ok.  We believe the studies that suggest that, on average, fewer than 25% of the population would subscribe to any particular channel, like CNN or CNBC.  Let's just say that news and movie channels that are on basic cable, on average, cost cable operators about 50 cents per month, each.  Today, those channels receive that 50 cents per month from all expanded basic customers.  If only 25% of the customers actually were willing to pay for the channel, they would each have to charge about $2.00 per month, just to stay revenue neutral.

But that's only half the story. 

We also know that most networks rely on both subscriber revenue and advertising revenue and about half of their revenue comes from advertising.  We also know that a great deal of a network's viewing comes from channel surfing, so their ratings for advertisers are enhanced by that viewership.  Many people estimate that each channel would lose about 40% of its viewers in an a-la-carte world.  A proportional reduction in advertising revenue, reflective of that lost viewership, would require the network to charge customers another $.80 per customer just to stay revenue neutral.  ...

Broadband 100.0? Not Yet

As reported in the Lexington Herald Leader and on Broadband Reports, Insight is testing a 100 meg broadband service at one location in Louisville.  We are pushing the limits of speed on our network as an early part of a process that will lead to more extensive hypersonic speed testing in the future.  In this test, a doctor's office is using the service to electronically transfer medical imaging to and from his office.

Our business services group, Insight Business Services (IBS), is conducting this test for us.  We are able to provision for just about any bandwidth requirement for IBS customers and what better result is there -- to help doctors treat their patients more efficiently and effectively.  In order to increase speeds to 50 or even 100 meg for residential customers, we plan to utilize the new cable modem open standard of DOCSIS 3.0.  We're doing a lot of preliminary work to get ready for DOCSIS 3.0 but don't yet have a timetable. 

Meanwhile, we are watching DOCSIS 3.0 tests that are underway in other markets and we're extremely encouraged with the performance of the new technology.  A couple of questions being asked by interested customers have do do with upstream speeds (some are testing 5 to 10 meg) and whether you will need a new modem (yes). 

We have been a leader in pushing the limits of speed having been one of the first cable ISP's to break the 10 meg barrier followed by our early launch of our premium 20 meg service.  Going much beyond that requires a whole new standard for cable modems which eventually will increase speed capabilities into the triple digits.  We are going to be absolutely sure DOCSIS 3.0 works well in a large-scale deployment before we launch.  However, knowing us, after we take it out for a test drive, I wouldn't be surprised if we find we can't help ourselves and look to press the pedal to the medal soon after we break in the new speedster. 

Two congressmen asking questions about DTV issues

Congressmen look to resolve expected DTV problems [CNET News] 

Two more members of Congress are expressing concerns that the FCC, broadcasters and the federal agency responsible for the digital converter box coupon program need to do more to prepare the public for the digital transition. House Telecommunications Subcommittee Chairman Ed Markey and Commerce Committee Chairman John Dingell have written letters to broadcasters and the federal agencies asking them to detail plans to remedy concerns that arose during the September digital transition test in Wilmington, NC. 

The letters noted that the FCC's trial conversion in Wilmington, N.C., this September "revealed many problems related to the transition, including consumers who did not know they needed to rescan their boxes to search for new channels after the switch, needed to obtain or adjust antennas to receive digital signals, or were no longer able to receive a station's signal because the station's digital signal contour differs from its analog coverage area."

While a majority of Americans are well aware of the digital transition, primarily because of a public service campaign by cable operators and broadcasters, there are still lingering issues for many over-the-air television viewers. It's critical that the FCC continue to focus on solving these issues prior to Februrary 17 of next year.

Remember, if all the televisions in your house are connected to cable, you're already prepared for the digital transition. If you choose to use an over-the-air digital converter, you will need to determine if your antenna is receiving the digital signals and that the converter is properly programmed to the frequencies in your local area.  Come next February, your televisions will continue to work normally during the switch from analog to digital broadcasts as long as they are connected to cable. 

New customers choose cable two-to-one over DSL

Cable Beating Back DSL [Broadband Reports]

Third-quarter results are showing that new broadband subscribers are choosing cable broadband at a 2-1 rate over DSL. The gap between cable broadband and DSL continues to grow because of the significant speed differences between the two. Cable broadband is faster than DSL, and promises even faster speeds as cable operators begin to roll out DOCSIS 3.0 technology.  Another BBR report declares that DSL has cemented its title as the next dial-up.

Unlike phone companies, cable companies do not view technology as the end-game of their services.  Instead, it's a means to an end.  Do customers really care if they receive their blazing Internet speeds via a network that delivers their service via fiber to the curb or fiber to the node?  No.  Unless there is a difference in the quality of service.  With DOCSIS 3.0, cable has put to rest the belief that a complete fiber optic rebuild is needed to compete effectively with Verizon's FIOS technology.  Instead, both Verizon and AT&T remain burdened with huge capital investment requirements in order to compete with cable's already-installed platform that easily adds DOCSIS 3.0 to it.

The remaining question is when does Wall Street figure it out and start reflecting these economic differences in the values of wireline phone and cable companies.

Facebook to take their election tools overseas

Facebook's political squad looks overseas [CNET News]

Having had a major influence in the presidential election this week, Facebook is looking abroad to provide the social networking tools that allowed campaigns to organize their supporters and to recruit additional supporters. 

"This week is definitely all the post-election aftermath, but I'm definitely looking forward to jumping right into some of the international politics (and) international elections," said Zuckerberg (who is, in case you were wondering, CEO Mark Zuckerberg's sister). "It's a little more fun to work on some of those because they don't draw out their elections for a year and a half."

According to Facebook, more than 5.4 million users clicked on the "I Voted" button on their Facebook account on Election Day. Over three-quarters of Facebook users live outside the U.S., so there are plenty of users that can take advantage of Facebook in their home country's elections. 

 

Hollywood movies you can watch on YouTube?

Feature films coming to YouTube [CNET News]

After Google acquired YouTube, they began looking for ways to create a revenue model for the ultra-popular video sharing site. Now, news is leaking out that YouTube may be bringing advertising supported feature films to the site. According to an anonymous Hollywood executive quoted in this article, Google's negotiations with Hollywood studios are paying off, and we can expect to see movies on YouTube within the next three months.

This move will position YouTube to move into the space occupied by Hulu, a joint venture between NBC Universal and News Corp. Hulu offers users a variety of TV shows from NBC Universal and Fox, along with a few feature-length films. 

The fact that there's a lengthy discussion in this article about whether Hulu's superior video quality gives it a competitive advantage over YouTube tells me that we've crossed a threshold with web video. This format's popularity is already expanding exponentially, and there's every sign that popularity will only increase over the coming months. 

An Internet President-Elect, Broadband Caps Come to DSL and White Spaces Approved

America elected Barack Obama as the 44th president of the United States yesterday. Obama changed the way campaigns will be run in this country forever. While candidates had used the Internet as part of their campaign strategy in some part before Obama, he was the first to fully leverage its potential to raise enormous sums of money in political contributions and communicate his message to millions of mostly-younger, connected Americans.

In the days to come, the pundits will analyze the results of the election and try to figure out how and why Barack Obama won. I feel, with great certainty, they will find that the turnout among young voters was higher than ever and the Obama campaign's near-perfect execution of an Internet strategy made that happen.

If you're interested in a deep-dive recap, the New York Times site has a good state-by-state map of the results. The map will allow you to drill all the way down to county-by-county results.

Web developments have changed the way campaigns are run

Campaigns in a Web 2.0 World [New York Times]

Here's a neat article that summarizes many of the changes that the web has made in the way presidential campaigns are run since the last presidential election. Candidates use social networking applications like Facebook to organize their supporters, and the explosion of web video sites like YouTube have allowed candidates to package video nearly instantaneously for connected voters.

The new media politics is also having an impact on how people consume traditional media. Cable news outlets have attracted audiences on par with broadcast throughout the major events of this political cycle. This article posits that will likely be true for election coverage tomorrow night - as news consumers check the latest results on the web, while watching their favorite cable news network.

Today, I'm speaking with students at the University of Kentucky School of Journalism and Telecommunications. One of the topics I'll be discussing is this article. I'll write more tomorrow about the discussion.

Speaking to the Lexington Rotary Club

Q & A with the Lexington Rotary Club

I had the good fortune to speak to the Lexington Rotary Club yesterday at the beautiful Fasig-Tipton Catering Center where the warm welcome from Rotarians, the peak-color Autumn leaves, and magnificent horses made the visit truly special.

My main goal was to advance the awareness of the February 17 digital transition and to explain what, if anything, consumers need to do in order to continue to watch broadcast television after the date.  After receiving a couple of questions about the transition, we discussed other cable-related subjects, all of which we've addressed right here on this blog since we began it last spring.

 There was lots of interest about the launch of Digital 4.0.  In addition to wanting more clarity on what to expect, they were also interested in when.  As I told the group of 200 or so community leaders and activists, we expect Digital 4.0 to launch in a couple of waves in late November and December, depending on where you live.

I also explained the reason we use the software industry's policy of numbering service upgrades -- so you can always be assured that by the time we are rolling out our latest version of our products, we're already well into the development cycle of the next release.

Other questions included:

• a-la-carte programming (it would make television prohibitively expensive);

• can we ever get rid of set-top boxes in the digital world (new Tru2Way sets can go box-free but older TV's will need one);

• why do cable rates increase (because our costs are going up, especially for programming, but customers can choose to bundle their voice, video and broadband services and save);

• when will customers have their computer on their TV or their TV on their computer (they can now and more device overlap is on the way, but only for those who want it);

Thanks to the Lexington Rotary for the invitation to speak and thank you even more for the great things you do!

More stations conducting digital transition testing

The Great Two-Minute Television Blackout [NYT Bits Blog] 

We're just over 100 days away from the digital television transition, and in an attempt to increase awareness of the transition and how to prepare for the transition, many broadcast television stations are performing digital transition tests. Earlier this week, broadcasters in New York City turned off their regular analog signal for two minutes as part of one of these tests. During the test, viewers prepared for the digital transition continued to see normal programming, but viewers still watching the analog signal received a message telling them that they needed to make changes to continue receiving a television signal after the transition. 

As we get closer to the transition, I expect additional broadcast stations will conduct this type of testing. Remember, if you're an Insight customer, after the digital transition you will have no problem continuing to receive everything you receive today on all your televisions that are connected to cable. If you have additional TV's that receive their signals with an antenna, just give us a call.

NCTA favors public comment period on white space rules

NCTA: FCC’s white space approval “inexplicable” [CED Magazine] 

As the FCC considers a public comment period prior to a vote on white space devices, the National Cable and Telecommunications Association (NCTA) is weighing in. In a formal letter addressed to the FCC, the NCTA joined in the call for a public comment period prior to the adoption of final rules for white space technology.

From CED Magazine:

The NCTA reiterated its support for the notion of white space broadcasting, but noted that though the Commission is supposed to balance the benefits of new technology with protection of established broadcast systems: “Recent reports of imminent Commission action in this proceeding do not reflect this balance. Instead, there seems to be a complete disconnect between what the Commission’s technical analyses have shown and what the Commission is proposing to adopt.”

 

TV prices falling fast for the holidays?

TV Prices Falling Faster [NYT Bits Blog]

Are you looking to buy a new HDTV during the holidays? If you're looking to get a new television for the digital transition or getting hooked up to high definition content, the NYT's Bits blog indicates that television prices may be falling fast in the next six weeks due to the challenging economic situation we find ourselves in. Retailers are very concerned that consumers are keeping a tighter grip on their wallet, and are expected to respond by slashing TV prices.

An expert on TV prices is quoted in the NYT article, telling consumers to look for these prices.

Paul Gagnon, DisplaySearch’s director of North American TV market research, predicts the following prices in the coming weeks: 

• 19-inch high definition LCD: $199
• 32-inch HD LCD: $399-$499
• 40-inch 1080p LCD: $799-$999
• 42-inch HD plasma: $599-$699
• 50-inch HD plasma: $899-$999

I hate to tell you what I paid for that 50-inch plasma TV in my living room only 3 years ago.  Ouch.  But the NY Giants sure looked great yesterday, coming from behind to beat the Steelers in high-def!

Survey says that majority of upstream Internet traffic is P2P

61% Of All Upstream Traffic Is P2P [Broadband Reports]

Sandvine, the company that manufactures network management equipment and software, has released a survey detailing Internet usage in the U.S. The key finding in the survey is that 61% of all upstream traffic on the Internet is peer-to-peer file trading. P2P applications compose 22% of all downstream traffic on the Internet.

“Bulk bandwidth applications like P2P are on all day, everyday and are unaffected by changes to network utilization,” said Mr. Caputo [of Sandvine].  “This reinforces the importance of protecting real-time applications that are sensitive to jitter and latency during times of peak usage.  Effective network traffic optimization techniques use sophisticated policies that balance network capacity, application requirements and subscriber quality of experience in real-time.”

Members of Congress Support a Meaningful Moratorium on Retransmission Consent Disputes, Internet Regulation, and other Links

Lawmakers Troubled by Cable - LIN TV Spat  [Multichannel News]

Representatives Anna Eshoo (D-CA) and Nathan Deal (R-GA) wrote a bipartisan letter to FCC Chairman Kevin Martin asking him to join with the other four commissioners to implement a short moratorium on the right of local broadcasters to pull their signals off of cable and satellite systems.  The moratorium would last for about three months during the digital transition. 

The Representatives are right to be concerned because the government is receiving an increase in applications for digital converter coupons from cable customers.  From who?  From cable customers  who lost LIN TV signals, many of which are major network affiliates.  They lost them when LIN declined to renew carriage rights or extend their old deal while they continued to negotiate with two cable operators, Time Warner and Bright House. ...

Studies say net neutrality regulations will raise broadband prices

‘Net neutrality’ could raise broadband prices [Financial Times]

As the European Parliament considers changes in telecom law, two studies are set to be released that indicate that imposing net neutrality regulations stands to drive up the cost of broadband to consumers. One study has been commissioned by the telecom industry and another was written by the Centre for European Policy Studies.

An industry-commissioned report from consultants at Copenhagen Economics, due to be published next week, is set to warn that imposing net neutrality in Europe will “pass on the cost of scarcity to all consumers” and significantly increase broadband prices. That, in turn, could depress broadband demand.

It appears that Europeans have discovered that creating additional regulations that restrict responsible network management has a deleterious effect on broadband consumers. I'm looking forward to seeing both of these upcoming reports on this issue.

Racing toward the digital transition?

DTV NASCAR Campaign Off To Bumpy Start [Broadcasting and Cable]

In an effort to raise awareness about the transition to digital television, the FCC has decided to sponsor NASCAR driver David Gilliland's #38 Ford. The race car features the phrase "Is your TV ready for digital?" on the hood. The cost to taxpayers?  $350,000!

In its first race, the #38 DTV Ford crashed into the wall at the Martinsville Speedway on Sunday, with 13 laps remaining in the race. Car and driver David Gilliland will be fine but just think about it; in a world where the Federal government is spending a trillion dollars to save the economy, how could the FCC write a check for $350,000 to paint a slogan on the side of a racecar?

White space opponents request public comment period

Broadcasters challenge FCC 'white space' report [CNET News]

The National Association of Broadcasters (NAB) has filed a formal challenge to the FCC's recent report finding that white space devices meet the "proof of concept" burden. The NAB has asked for a period of public comment on the report's findings, claiming that those findings aren't supported by the details contained within the report.

Last week, the NAB issued a press release listing failures of the prototype devices tested in the FCC's report. Generally the devices that relied solely on signal sensing to determine whether they would interfere with broadcast television signals had trouble either detecting the signals, detected them when they didn't exist or both. The FCC has ordered white space device prototypes that use only signal sensing to undergo another round of tests.

Nonetheless, the FCC is poised to vote early next month on the white space proposal unless the public comment period requested by the NAB delays that vote.

Drowning in Spam and other Friday Links

Authorities Shut Down Spam Ring [New York Times]

The Federal Trade Commission has announced that a spam ring that sent up to one-third of all spam email has been shut down. This news comes after a federal court has frozen the assets of the group. Have you noticed a difference in the amount of spam you receive?

Well, I did some checking and was shocked to find out what I did.  Insight, a company with less than a half million Broadband customers (not all of whom use our email servers) currently processes over 2 billion emails a year for our customers.  That got my attention so then I confirmed what the Times article said -- that over 90% of all email arriving into our email servers is spam!  That doesn't even count the ones that slip through and get into your inbox.

Imagine how much more efficiently our equipment could be deployed and utilized if we could cut spam in half or more.  Our email servers have to be configured to handle all incoming email, including the stuff that goes right into the garbage.

I've asked our broadband folks to keep an eye on whether or not we experience a meaningful drop in spam over the next couple of weeks.  2 billion emails a year translates into about 40 million a week.  In case you're curious like I am, check back here.  I'll let you know whether or not we notice a meaningful drop.

FCC: White space devices interfere with cable but meet proof of concept

FCC report: White space devices work as "proof of concept" [Ars Technica]

The FCC's Office of Engineering Technology has released it's report on field testing of white space device prototypes, and while the FCC has decided the prototypes have met the "proof of concept" burden, there's not much good news in the report with regard to the interference the devices cause for cable systems. For those of you new to this issue, white space devices are potential receivers of wireless Internet using parts of the spectrum reserved from broadcast television signals. Here's one excerpt from the report:

"The cable converter (set-top) box was inserted into the signal path and connected to the DTV’s tuner input. The set-top box was tuned to virtual channel 220 (cable channel 77) and a good quality digital picture was observed. The Adaptrum transmitter was tuned to channel 26 and activated at full power (no external attenuation). Interference was immediately observed in the form of a complete loss of picture."

This is exactly the type of interference that the NCTA warned about when it filed a letter with the FCC on this issue. The interference from the device test cited previously was so bad that the testers couldn't stop the interference until they installed "laboratory-grade" cabling between the cable box and the wall outlet. That's not the type of cabling found in most homes. If a device like the one above were to make it to market, cable television viewers might as well forget watching television while they (or their neighbors) use their white space device.

Even though it certified the devices as meeting "proof of concept," the report said that white space devices require a second round of testing.

Concern about a "messy" digital transition comes from FCC commissioner

Digital TV Switch Will Be Messy: FCC Official [Reuters]

FCC Commissioner Robert McDowell believes that next February's transition from analog to digital television will be "messy." McDowell made that comment after returning from a digital transition awareness campaign in Montana, Oklahoma, and Alaska. FCC commissioners are visiting a number of cities with large percentages of over-the-air television viewers - those that will be affected by the digital transition.

According to this article McDowell goes on to request that broadcasters continue their efforts to educate the public about the transition and what they need to do to make sure their television continues to work after February 17, 2009.

It's also important that the FCC continue to make a successful digital transition the focus of its efforts. At this critical time, it's important that we all keep our eye on the ball.

Study reveals most P2P pirates stop with a warning

72% Of P2P Pirates Would Stop With ISP Warning [Broadband Reports]

Broadband Reports writes on a study released by Entertainment Media research which indicates that 72% of those sharing copyrighted material on p2p networks would stop if issued a warning from their ISP. The warning - asking illegal file sharers to choose between file sharing or their Internet connection - appears to be a strong deterrent.

One of the most compelling reasons to quit would be if a consumer received a cease and desist warning notification from their ISP. 7 out of 10 currently accessing un-authorised content state they would stop if this happened. Interestingly, some of the most likely to be dissuaded are teenagers (78% for male teenagers and 75% for female teenagers). Nonetheless people are concerned about stories of prosecution, and nearly 2 in 3 say they would stop if they felt there was more chance of being caught, and over half are put off pirating by news stories.

Some ISPs are considering the use of filters to target illegal file sharing on p2p networks. And at least one cable operator is already sending the type of warnings detailed in the study.

HD programming viewing patterns and other Monday article links

HD Viewing Patterns Equate To Fuzzy Math [Multichannel News]

I ran across this article in Multichannel News that details how HDTV owners use their HDTV. HDTV ownership appears to have the biggest impact on sports programming viewership. According to a Nielsen study cited in the article, HDTV households had 40% to 120% higher ratings for football games than non-HDTV households. But, it doesn't appear that HDTV owners are more likely to watch HD programming just because it's on.

Leichtman also questions the commonly held assumption that viewers with HD sets are much more likely to watch HD content over standard-definition fare. Last year, his survey found that just 27% of HD viewers “strongly agreed with the statement that they would look to see what was on the HD tier before looking for non-HD programming,” he said.

Horowitz's Waterston agreed. “Our research has consistently found that HD programming has not changed the genres that people are watching,” she said.

The most important takeaway from the article is that most of the research available today on HDTV viewership is likely to change as cable operators expand the number of HD channels and HD VOD available to their customers.

Digital 4.0 -- A followup and other links

Not surprising that I received a lot of comments about our Digital 4.0 announcement.  We named a lot of new linear and on-demand channels and most of you will receive at least many, if not all of your favorite channels in HD.

Adding HD channels, and indeed, improving all of our services is an ongoing task for us.  These are not one-shot deals.  That's precisely why we decided to name our services with release numbers like "Digital 4.0 ".  Like in the software world, we are trying to make it clear that by the time you get an "upgrade" or a new release of our products, we're already working on the next one. 

Running out of digital converter coupons?

Martin Fears Coupon Program Lacks Funds [Multichannel News]

FCC Chairman Kevin Martin has written to Congress about his concerns that the government program that provides citizens $40 coupons for digital converter boxes may not have enough funds to provide coupons to all those seeking them in advance of next year's digital transition.

Part of the problem may be that the government underestimated the demand for the coupons. Here's what this article had to say about the number of coupons needed for the recent DTV test in Wilmington, NC.

In the letters, Martin offered various projections and scenarios showing that NTIA could lack sufficient funding. For example, he said NTIA estimated that in Wilmington, N.C., a test market that made the DTV transition on Sept. 8, the number of broadcast-only homes was 13,759. Martin said 19,187 broadcast-only homes applied for coupons, certifying they didn't have cable or satellite TV. Martin supplied other examples that he said could result in a funding shortfall.

Martin is right to worry about this.  It's also a perfect example of why it's absolutely essential that federal policy makers keep their focus on preparing for the digital transition and not get distracted by other long-term policy issues.  This is the time to leave those decisions to the next administration.

A-la-carte online video and other Tuesday article links

More Media Inaccuracies About A La Carte [Cable Tech Talk]

CableTechTalk takes up the issue of the cost of cable versus a kind of a-la-carte programming proposed by a Washington Post columnist. The columnist proposes turning online video into your own TV service to replace cable. "But would you get the same programming at a cheaper cost?" asks CableTechTalk.

At the $1.99 that Amazon Unbox and Apple iTunes charge for a program, the average TV viewer could run up a bill of over $500 if they try to match their viewing habits with cable television according to CableTechTalk.

I've written about why the a-la-carte programming model is not a good deal for consumers or the diversity of programming currently available. And now, even the online video version of a-la-carte has a hard time living up to the value of cable.

Retransmission Consent Problems and other Monday article links

Cable Operator Sends Viewers to Web [New York Times]

Time Warner Cable and Bright House are in the middle of a contract dispute with LIN TV, which owns several national broadcast affiliate stations retransmitted on both company's cable systems. Due to the dispute, those stations went dark on TW and BH last Thursday. LIN TV is seeking a subscriber fee as part of the contract negotiations - a fee that would make every subscriber's bill go up.

Time Warner offered a solution to customers affected by the broadcast blackout - watch the channels on the Internet.

But Time Warner bristled at the prospect of paying for material “that’s available over the air for free — and now available online for free,” said Alexander Dudley, a company spokesman.

Rather than confronting viewers with blank screens on the disputed channels, Time Warner Cable told people how to circumvent LIN TV and receive the network programming directly over the Internet. The company made a video showing how to watch programs on the Internet, and on Thursday — the same day the LIN TV stations were cut off — posted it to the Time Warner Cable Web site. (In place of the channels, viewers saw a graphic with the Web address for the video, Mr. Dudley said.)

This is precisely what I wrote about a couple of weeks ago.  Broadcasters are asking record amounts of money from cable and satellite operators (and therefore their customers) and threatening to pull their signals off if they don't get what they want.  There are a large number of agreements between broadcasters and distributors that expire at the end of this year and this type of activity should not occur anytime during the first quarter of next year when the nation's broadcasters will turn off their analog transmissions and convert to digital only transmissions. Isn't that enough confusion for consumers? Do they also have to be held captive to these commercial disputes right in the middle of the transition?

I say no.

Video providers comment on broadband caps and other Friday article links

Video Sites Not Sweating New Comcast Cap [Yahoo Tech]

One of the main arguments made by detractors of broadband caps is that a cap will prevent users from consuming the ever increasing amount of video content on the Internet. Yahoo Tech features and article with video providers commenting directly on Comcast's 250 GB cap. The consensus appears to be that video providers are following these developments closely, but don't view caps as a hamper on their business.

"The bottom line on the Comcast issue is, we believe the important thing for all cable companies to do is be transparent with their customers," said Steve Swasey, a spokesman for Netflix. "As far as this 250 GB cap, it would take you eight hours of watching content on the Internet, not just from Netflix but YouTube or Amazon or Apple or anybody else, eight hours a day, seven days a week to reach that cap, so it is pretty high."

Insight Digital 4.0 new HD channels update and other articles

Insight Digital 4.0

  Readers of this blog were the first to find out about Insight Digital 4.0 a few days ago. At the time, I didn't give you many details about the new HD channels because they vary by district. Today, I'd like to point you to our new Insight Digital 4.0 web site at www.InsightDigital40.com.

The web site will allow you to see the new HD channels that will be available in your area, the new On Demand programming, and the new HD On Demand programming.

Tracking broadband access and other Wednesday article links

Senate passes broadband data bill [CED Magazine]

America should soon have an accurate picture of consumer's access to broadband service, thanks to a piece of legislation passed by the Senate - the Broadband Data Improvement Act. Currently the FCC tracks broadband access, and defines it as any Internet connection above 200 kbps. That's a lot lower than the speed most consumers consider "broadband." Also, the FCC's broadband tracking was only at the granularity of ZIP code boundaries - leaving out a great deal of detail of broadband availability.

This legislation promises to reform the metrics and process of tracking consumers' access to broadband. I applaud this legislation which should focus the discussion on the reality of the state of Broadband rather than on how we measure its success or failure.

From the article:

NCTA President and CEO Kyle McSlarrow said: “We applaud the Congress for approving this important legislation, which will enable policymakers to have a much clearer picture about the state of broadband in America. Improved data about the availability and speed of all broadband offerings will help accomplish the important goal of universal broadband for all Americans. As the largest broadband provider in America, our industry will continue to support efforts designed to spur broadband adoption and access in those areas where it currently doesn’t exist.”

TiVo comes to the PC and other Tuesday article links

TiVo Goes PC [The Bauminator]

Have you ever wanted to have DVR capability on your PC? TiVo is announcing a partnership with Nero that will produce a software product that records TV bundled with a TV tuner card. The product is called NeroLiquidTV|TiVoPC, and will be hitting the market soon.

CableLabs is working on a similar product called the CablePC. According to this article, the CablePC may see its debut at the upcoming Consumer Electronics Show.

More testing for the DTV transition and other Monday articles

FCC's Adelstein Wants More DTV Testing [Broadband Reports]

FCC Commissioner Jonathan Adelstein has joined a growing chorus of policy makers calling for more DTV testing to iron out issues prior to the nationwide transition next February. While the FCC declared the Wilmington, NC test a success, several issues were revealed. Here's what Broadcasting and Cable said about Adelstein's announcement:

One reason why he [Adelstein] worries is that he feels that the soft test in Wilmington, N.C., Sept. 8 was misinterpreted as a success. He said projecting Wilmington’s 2,272 consumer calls seeking help in the first week to a national cutoff translates to 2.2 million such calls. “And that’s an optimistic scenario,” he added, because the Wilmington test had more manpower and in-market education than the national cutoff.

“While we can take small comfort in what went smoothly, we should fear what didn’t,” he said. “There is no plan remotely comparable for that kind of outreach nationwide … I think the FCC is continuing to underestimate the task ahead.”

Wilmington's test took place under the most perfect set of circumstances, and it's results should cause policy makers to work harder to make the transition as smooth as possible. Over the years, I have learned that the easiest mistake to make in management is to focus solely on the silver lining and to ignore the cloud it surrounds.  Kudos to Commissioner Adelstein for articulating his justifiable concern.  No one wants millions American households' televisions going dark next February.

Slingbox for high definition and other Friday links

Sling Places Hi-Def Bet [The Bauminator]

If you're a Slingbox user like I am (I watch our service in each of our districts, no matter where I am), the announcement that you can now place-shift your HD programming is great news. For those of you unfamiliar with the Slingbox, it's an Internet appliance that connects to your cable set-top box, sending your cable signal out to the Internet, allowing you to watch your TV channels wherever there is a high-speed Internet connection.

Now, with the new Slingbox PRO-HD, you can sling not only SD channels but your HD channels. One caveat if you're interested in this new product - you'll need a beefy upstream broadband connection at the Slingbox end (1.5 Mbps). Insight Broadband 20.0 provides this level of upstream speed.

White space testing and other Thursday links

Larry Page: Whitespace Tests Were Rigged [IP Democracy]

Advocates for unlicensed use of broadcast spectrum were on Capitol Hill yesterday to make their case. Google co-founder Larry Page - one of the chief advocates of such a plan - leveled the charge that the FCC's recent interference testing of so-called "white space" devices was "rigged."

While Page is entitled to his opinion, the fact is that the manufacturers of these devices have yet to show that they can reliably avoid interfering with broadcast television signals, cable television operations or wireless microphone systems (all of which operate in this spectrum). The main reason they can't avoid interference? Cable doesn't have any "white spaces" or unused frequency where the devices can operate without interfering with cable television viewers.

It's true that cable signals are enclosed in a coaxial cable, which should shield them from outside interference.  The problem is that many customers have wired their homes themselves and added splitters and other devices.  The wiring and the equipment that customers have installed themselves may or may not effectively shield their connections.  Millions of homes could be affected.

CableTechTalk has posted a good explanation of the issues involved with "white space" device interference here and here.

Focus on digital transition readiness and other articles for Tuesday

Senate to Hear Update on Switch to Digital TV [New York Times]

The Senate Commerce Committee will conduct a hearing today regarding the federal government's readiness for the upcoming digital television transition. The committee will be reviewing the results of the recent Wilmington, NC digital conversion test, and asking questions about the government's digital converter box coupon program and the one-percent of homes that had issues with the digital transition in Wilmington.

This article raises questions about the difference between analog and digital television signals, and how over-the-air television viewers may need antenna upgrades to continue receiving TV signals after the digital transition. I'll be looking forward to seeing the Q&A from today's hearing.

Storm Aftermath -- Still Recovering, One Week Later

Believe it or not, we still have 30,000 customers in our service area who still are without electricity, phone or cable.  The damage by last Sunday's surprise hurricane-force windstorm has been shocking. 

Friday morning, power was finally restored at our Network Operations Center.  Two huge generators kept our network up and running for 5 days, nonstop.  Those generators ran the equipment but the building was largely without lights or air conditioning.  Even though the generators kept the systems powered, it still took people showing up to work, every day and every night, in sometimes sweltering heat, to monitor our storm-stressed network and keep it working as best we could.

Web 2.0 applications, email security and other articles for Friday

How Many Web Services Can One Person Use? [NYT Bits Blog]

A good question to ask, given the proliferation of social networking sites across the web. Every time a new way to spend time on the Internet is introduced, users have to decide whether they're going to make use of the new thing and what current use of time they're going to give up. It's a question that's on the minds of participants in the Web 2.0 Expo in New York as venture capitalists meet up with web 2.0 developers to talk turkey.

Between email, blogging, Facebook and YouTube, my plate is pretty full. As new web applications are developed, how do you decide to manage your time on the web?

Digital 4.0 -- Even better digital TV

We've talked a lot about upgrading our current digital offerings (Digital 3.2) on this blog.  As of today, we are sending out notices with our regular monthly bills announcing the launch of Digital 4.0!  I thought I'd let you know here first.

Digital 4.0 will feature an important expansion of the HD lineup to more than 50 HD channels – most with no additional cost to those already receiving HD. Additionally 4.0 will include the launch of 2 New Standard Digital Channels -- Fox Business News & Chiller -- more On Demand programs and a slew of other new features. Keep an eye out for the notice.   We're sure you’ll love what you see.

Murdoch believes in long term success of cable and other Thursday articles

Murdoch: I Was ‘Frightened’ of Cable Triple Play [Multichannel News]

Multichannel News reports that Rupert Murdoch, chairman of News Corp., unloaded his interest in DirecTV due to his fear that satellite television couldn't compete with cable's superior product. Murdoch is known worldwide for his shrewd investments in media companies.

Murdoch's explains his concern about satel