Michael's Insight

Cablevision customers get Fox back, just in time for Game 3

Cablevision, Fox end retrans stalemate [Multichannel News]

Fox was restored last night to Cablevision's 3 million customers minutes before the first pitch of Game 3 of the World Series.  In an announcement void of the usual kiss-and-make-up language, Cablevision issued the following icy statement:

Cablevision has agreed to pay Fox an unfair price for multiple channels of its programming, including many in which our customers have little or no interest.  Cablevision conceded because it does not think its customers should any longer be denied the Fox programs they wish to see."

And if that wasn't clear enough, the cable operator added:

In the end, our customers will pay more than they should for Fox programming, but less than they would have if we had accepted the unprecedented rates News Corp. was demanding when they pulled their channels off Cablevision"

Fox has maintained that they were only asking Cablevision to pay what others have agreed to pay.  The disupte lasted two weeks.  In addition to Fox's regular entertainment programming, Cablevision customers were denied access to the National League Championship Series, The first two games of the World Series and one New York Giants game.

In response, Cablevision offered their customers a reimbursement if they purchased a post-season package from the Major League Baseball website for $9.95 which would have provided live coverage of the games via a broadband connection.

I'm thrilled that Cablevision customers will be able to watch the rest of the series on their TV's.  However, the problems that led to this unprecedented withholding of such a high-impact event, like the World Series, are still in place.  With networks and local stations demanding higher and higher carriage fees, expect to see more of this type of hardball negotiating tactics.

In case you've missed them, I wrote a number of posts during the past two weeks. They illuminate a multitude of issues that have led to this situation and why something needs to be done to prevent more of these network withdrawals.

FTC ends Google data collection investigation

FTC Closes Inquiry Into Google Street View [Wall Street Journal]

The Federal Trade Commission has closed its investigation of Google's Street View practices that gathered unsecured wi-fi network data.  They determined that Google had modified its data gathering practices sufficiently to protect consumers.

Google had come under fire from multiple state governments and the FTC for using its Street View fleet to collect data transmissions from wi-fi networks that didn't use encryption. After the practice was discovered, Google claimed that it was only collecting SSIDs and wi-fi locations to improve its mapping and location finding products.

However, a company investigation later revealed that its Street View cars collected over 600 GB of data from networks around the world which included user names and passwords.

In the wake of Google's decision to hire a privacy czar and revise its internal controls on private information the FTC decided to end its investigation. The agency sent Google a two-page letter indicating that the company had "mitigated potential harm to consumers."

Hackers exploiting hole involving Flash content within PDF files

Adobe: Flash, Reader hole used in PDF attacks [CNET News]

Adobe has sent a warning to users of Flash, Adobe Acrobat and Adobe Reader about a vulnerability in the company's PDF document software that hackers are using to attack computers. The vulnerability affects the latest versions of Flash and Adobe Acrobat and Reader for Mac, PC and Linux and the latest version of Flash for Android, originating in a function that allows PDFs to display Flash content.

This is not a theoretical vulnerability. Hackers are currently exploiting the issue with a trojan that steals data and installs other malware. While Adobe has released workarounds that offer some protection for users, the hole has yet to be formally patched. The workaround involves the deletion of a file that executes Flash content within PDFs

Since this is a critical issue, users should avoid opening PDF documents from any source other that those that are trusted. Adobe's security notice regarding the issue can be found here.

Cablevision offers to pay Fox the same rate as TWC, Fox rejects offer

Cablevision Offers To Pay Fox 'TWC Rate' For a Year [Multichannel News]

In an effort to finally resolve their retransmission dispute with Fox, prior to the first game of the World Series, which Fox has exclusive rights to, Cablevision yesterday offered to pay Fox the same rate that Time Warner Cable pays for the Fox broadcast stations in New York and Philadelphia. Fox rejected Cablevision's offer stating that they were unwilling to unbundle the negotiations for the over-the-air stations (that have the exclusive rights to the World Series) from the two, far lesser-viewed cable networks, Fox Desportes and Nat Geo Wild.

Fox's response highlights the fact that a free market does not exist in retransmission consent negotiations.

Why? 

Because the law allows big media companies, who own both broadcast TV outlets and cable networks, to use their monopoly power in the negotiations.  In this case, the exclusive (monopoly) rights to the World Series gives Fox the ability to demand that Cablevision carries their lesser-viewed cable networks in order to get a deal for the broadcast stations that are exclusively carrying one of the most important sporting events of the year.

Big media companies often demand big fees and preferential placement for their fledging networks on cable systems in return for carriage of their high demand channels.  The result? Their low-rated networks are forced onto widely distributed tiers, taking up valuable bandwidth that could be used for much more consumer-desired services and causing large numbers of cable customers to pay high fees for channels that they really don't want.

This practice understandably helps consumers arrive to the conclusion that they should have the right to choose and reject each and every channel that they want to receive. I have opposed government mandated a-la-carte in the past and continue to oppose it in a free market. I still believe government mandated a-la-carte would ultimately lead to much higher prices for cable customers in normal market conditions and I stand by that view.

But if network owners continue to drive the price of their channels up in totally uneconomic ways, by using monopoly powers like exclusive rights to the World Series, then maybe a-la-carte begins to make real economic sense for consumers. 

Alternatively, we seem to be living in a world where broadcasters and some networks are increasing their fees by 50 to 200% in one shot and forcing carriage to many viewers who don't really want to watch their channel.

That simply doesn't work over the long term and something has to give.

Spam levels drop after Russian authorities shut down spam sponsor

E-Mail Spam Falls After Russian Crackdown [New York Times]

Concerted efforts to put a stop to the financiers of billions of spam email messages appear to have finally begun in Russia. The New York Times reports that Russian authorities began pursuing an investigation of SpamIt.com in late September. SpamIt.com, which was based in Moscow, paid spammers around the world commissions for traffic directed to a web site hawking pharmaceuticals. But within days of the investigation's launch, SpamIt.com went dark.

The site's operator is now accused of operating a pharmacy without a license and failing to have a business license, but authorities cannot locate him and suspect he may have fled the country. Even though they've failed to capture SpamIt.com's principal, the investigation has yielded significant evidence of SpamIt.com's activities and the resulting shutdown is giving email users worldwide some relief from unwanted spam.

Computer researchers estimate that spam volume is down by 50 billion messages per day since SpamIt.com went dark, a significant decrease. That's dropped worldwide spam averages down to 200 billion messages per day, the lowest rate of 2010. 

Did you know that insightbb email servers actually deliver only 8% of the emails that come into our system addressed to our customers.  That's right -- 92% of all incoming email is spam.  And we all know, no ISP captures all of the spam, so some of the 8% is spam too.  I spoke with some other ISP's just this week and learned that they experience the same exact ratio of legit to spam as we do. 

Think of how much capacity is built into ISP networks and the Internet itself to handle all of this worthless traffic.  That capacity takes real capital resulting in a total waist of consumers' money when that capital gets reflected in rates to fund the necessary investment in capacity.

Broadcasters' Wall Street presentations reveal huge retransmission fee increases

In the midst of the ongoing stalemate between Cablevision and Fox over the cost to retransmit the local Fox TV stations in New York and Philadelphia, I thought it’d be interesting to take a closer look at what's going on behind the scenes. In the current standoff, Cablevision is refusing to pay the more than double their current fee as requested by Fox. There is nothing preventing programmers from demanding unreasonably high rates and threatening black outs.

I decided to read up on some of the investor presentations that some publicly traded broadcast companies have used to update Wall Street on their performance. Many of these presentations are available online, providing detailed information about a broadcaster, its earnings and plans for future revenue growth. Because nearly every broadcaster has identified retrans as a growth area for their business, there's usually several slides about their experience and forecast to increase those fees in their investor presentations.

Here's what I found.

Sinclair Broadcating is the largest operator of local television stations and affiliates in the United States. They run over 50 stations across the country, reaching 24% of American households. Their operating footprint includes stations in Columbus, Cincinnati, and some parts of Kentucky.

In May of this year, representatives of Sinclair presented a comparison at the Jeffries Internet Media and Telecommunications Conference about their current retrans performance against projections they made in 2003 for retrans revenue. 

Here's what Sinclair told conference attendees:

“Sinclair’s current retransmission revenues are 3x-4x greater than our 2003 theoretical value analysis.” (emphasis mine)

This means that in 2003 Sinclair forecasted the amount of revenue they should draw from retransmission fees. Seven years later, their discussions with satellite and cable providers have yielded a 300% to 400% windfall over the original estimate. 

That's good news for Sinclair stockholders - which is why Sinclair executives took pains to point it out in their presentation - but it's bad news for customers every month when they pay the local broadasters through their higher cable bill. And when every broadcaster is aiming to triple and quadruple retransmission revenue every seven years, it puts dramatic upward pressure on the price of basic cable.

What about other broadcasters?

Nexstar Broadcasting Group is another large operator with roughly 50 stations across the nation. Nexstar executives gave a presentation to Barclays Capital in March that showed a 68.5% increase from 2008 to 2009 in retransmission revenue.  They predict 2010 negotiations will result in “substantial double digit growth.” The numbers are astounding. In 2008, Nexstar brought in $3.9 million in Retransmission Consent Fee Revenue. Just one year later, that revenue increased to $6.4 million. Give them a few more years at that rate, and Nexstar will be turning in the triple digit growth that Sinclair talked about.

Media General, which owns 18 television stations, told UBS in December 2009 that they pushed their retransmission fees from $7 million in 2008 to $16 million in 2009. At that time, they estimated an increase up to $18-19 million for 2010. If they met their $19 million goal, that would represent a 270% increase in just two years.

If I'm paying for this, how do the broadcasters get away with triple digit retrans fee increases?

Unfortunately, under the current retransmission process broadcasters have the right to demand double digit and triple digit increases when an agreement comes up for renewal. Of course, cable providers can say no. But one only needs to look to the current standoff between Cablevision and Fox to see what happens when a cable provider stands up to a broadcaster in an effort to negotiate a lower rate. The broadcaster can pull the signal right when the World Series begins, an event that they have secured exclusive (monopoly) rights to.

Cable providers aren't looking to deny broadcasters a reasonable rate. 

However, negotiating carriage renewals while an exclusive right to air the World Series is being used as leverage is fundamentally a flawed process.  Remember, huge increases in fees that end up getting passed on to customers represent an unfair, anti-consumer result.

Broadband usage indicates growing popularity of online video

Video Tops P2P Filesharing Traffic: Cisco [NewTeeVee]

Network equipment manufacturer Cisco has released its latest Visual Networking Index, looking into trends of Internet usage. Its findings? Video accounts for over 26 percent of all Internet traffic worldwide, surpassing P2P file sharing at 25 percent. Cisco reported that P2P file sharing comprised 38 percent of traffic last year, indicating that it had a significant relative fall compared to other types of network protocols.

Cisco finds that video usage varies substantially across all hours of the day, but reaches its peak during the 9pm to 12am window local user time. Video usage during its peak hour is 91 percent higher than its usage during the average hour. 

Other interesting facts from Cisco include measurements of the traffic per broadband user. According to the Index, one percent of worldwide broadband connections account for more than 20 percent of traffic globally and 10 percent of connections are responsible for a whopping 60 percent of network usage.

Only six percent of gamers streaming video on their game console

Study: Consoles being used for more than games [CNET News]

Research from Knowledge Networks indicates that gaming consoles are being employed by many users as video playback devices with over 20 percent of all gamers reporting that they used their console at least once in the past month to watch a movie or television show. However, only a few of those users are streaming video through a broadband connected game console as most of those watching video on their device watched it from a DVD.

Seventeen percent of all gamers said they watched DVDs on their game console compared to only 6 percent who streamed video via broadband. Netflix offers streaming movies on the three most popular consoles - Microsoft's Xbox 360, Sony's Playstation 3 and Nintendo's Wii. Younger gamers are more likely to stream video. Eleven percent of gamers ages 13 to 31 used their console for streaming video at least once in the previous month.

I posted last week about the fact that Netflix consumes over one-fifth of all peak Internet traffic in North America. While the concept of streaming video continues to grow in popularity, this study indicates that it still has a long way to go to gain widespread adoption among gamers.

Samsung creating prescription 3D glasses

Prescription 3D Glasses On Their Way Soon, For Samsung 3DTVs [Gizmodo]

Are you interested in watching 3DTV but wear prescription glasses, making it difficult to use 3D glasses? Samsung is working on a solution for you - prescription 3D glasses.

The glasses will be manufactured by the consumer electronics company, will only be compatible with Samsung’s 3D televisions and will be sold separately of 3D sets. If you’re one of the 120 million Americans who wears glasses you won't have to worry about choosing between a crisp picture and 3D.

This is a good example of one of the two major hurdles 3DTV is working to overcome before it can gain widespread adoption. It's the glasses (the other being a lack of 3D content).

At least one survey has shown that viewers aren't ready to watch television with a set of glasses yet. The fact that current glasses wearers are forced to chose which pair of glasses - 3D or prescription they're going to use. Samsung has decided to address this concern. Unfortunately, because there's not a universal 3D glasses standard, these viewers won't have any choice but to use them with a Samsung television which, frankly, isn't so bad -- they make great LED TV's.

Insight launching DOCSIS 3.0 broadband

50 Mbps speeds coming soon for Evansville and Bowling Green

I've talked for some time about how we’ve been readying our network to support the rollout of DOCSIS 3.0. Today, I'm happy to announce that the rollout of the next generation of broadband will begin soon.

In our Evansville/Henderson and Bowling Green districts, customers will be able to order our first speed enhancement on the DOCIS 3.0 platform -- 50Mbps download/5 Mbps upload -- before the end of this year. 

Obviously, this will take the already fastest Internet speeds available in this area to an entirely different level.

And of course Broadband 50.0 customers will also receive free internet security, webmail, ESPN3.com access, personal web pages, and an “always on” connection, all of which is standard with Insight Broadband.

Now, if you live in other Insight markets, I already know what you’re thinking. “When can I get it?”

The best answer I can give you today is that you’ll be hearing from us in just a few short weeks that we’ll be rolling this service out in other districts, as well, shortly after the first two districts.

This is just the start of some really exciting developments we’ll be announcing in the coming months. It's been a little quiet on the new product front while we worked to ready our networks for the coming launches.  Watch for many new HD channels, multi-room DVR's, exciting new programming on cn|2 and more in the coming months.  We’re going to be rolling out some very advanced features and services which will be available to all Insight customers.

Keep checking back as we’ll be making more announcements soon. 

Networks block online programming from Google TV users

Networks Block Web Programs From Being Viewed on Google TV [WSJ]

If you’ve jumped on the Google TV bandwagon by picking up either a Sony Google TV or Blu-ray player, or a Logitech Revue set-top, you will have some trouble finding primetime broadcast programming with the Google TV. Searchable online video is one of the key features of Google TV, and while you can find broadcast network programming with Google TV, don't count on being able to watch it.

Reports have surfaced that indicate Google was having trouble locking down partnerships with some of the big name programmers. That has translated into a full blocking effort  from NBC.com, ABC.com, CBS.com, and Hulu for Google TV users. The networks are able to identify Google TV devices from their web browser signature. When a Google TV user visits any of the broadcasters' sites that are currently blocking, online episode playback is disabled.

Currently, Fox is the only major broadcaster not yet blocking Google TV. That may be a result of the outcry from policy makers when Fox recently blocked its Hulu content for Cablevision broadband customers as a result of the ongoing retransmission dispute between Cablevision and News Corp.

As recently as Wednesday broadcasters' online programming was available on Google TV.  Users could freely access these sites and watch the wealth of programming on these sites through their televisions.  Since that time, the content on the sites has been blocked.  Users can still access the web sites via Google TV and read articles or watch short clips from NBC and ABC, but all full-length shows are blocked.

To be clear, Google TV still allows users to watch traditional NBC, ABC, or CBS programming via their cable or satellite provider, but the key benefit of Google TV was set to be the convergence of online and traditional video.

"TV meets Web. Web meets TV," proclaimed Google at the launch of Google TV. A significant portion of that selling point is now seriously in doubt.

Fox vs. Cablevison -- No end in sight as the World Series approaches

Cablevision customers won't be missing any baseball today as the Phillies and Giants take the day off and travel back to Philadelphia.  Six Fox channels were pulled off of Cablevision while the two companies try to negotiate a new carriage agreement. 

At this point, the prospect of the World Series being available to everyone in the nation except 3 million Cablevision customers in Metro New York is growing ominously more real.  The dispute between Cablevision and Fox raises the question of whether a company has a public interest responsibility when they secure exclusive rights to such an important event. 

There is no question in my mind that Fox indeed has a corporate responsibility to refrain from withholding such an important event from consumers while they battle a distributor over money.  They should do the right thing and simply call a cease fire during the week of the World Series and return the channel carrying the games to Cablevision customers.

If they don't, they simply prove that Congress should consider these types of exclusive rights, to be monopoly power in the marketplace.  And monopolies by their very nature, require some level of government oversight to ensure that consumers are not being harmed.

Meanwhile, "Insight Customer in Louisville" posted a comment on this blog asking why I'm spending so much time on this subject:

"The dispute between Fox and Cablevision is interesting, but extended discussion of it seems a bit out of place on a blog that concerns Insight, unless we ALSO get some Insight-related posts."

Two reasons.  First, this blog is written to discuss the cable industry, not just Insight.  But, more importantly, this issue absolutely does affect Insight.  The spiraling cost of programming is a serious challenge for all distributors and, in the end, it affects every cable and satellite customer in the rising rates for basic and classic video services. 

Although we have not had any channels pulled off our systems by a programmer in many years, it's a prospect that looms during every contract renewal with broadcasters and programmers.  And, for the most part, their demands are becoming more and more unacceptable making the liklihood of it happening more real than it's been in a decade.

Internet traffic report shows growth in Netflix and P2P traffic during peak hours

Netflix Accounts For 20% Of Peak U.S. Internet Bandwidth: Study [Multichannel News]

Network traffic management firm Sandvine is estimating that a staggering one-fifth of all peak Internet usage in North America is coming from Netflix streaming users. That fact was part of Sandvine's 2010 Internet traffic report, their eighth annual report on the topic. The Netflix traffic percentage still pales when compared to peer-to-peer file sharing during peak hours. P2P represents 36.7% of peak traffic, growing from 31.9% in Sandvine's report last year.

P2P has a much larger impact on the upstream side of the traffic equation. BitTorrent, a popular P2P protocol, takes up over one-third of all upstream traffic during peak usage. But, BitTorrent packets were less than 10 percent of the downstream traffic during the same time period. Upstream, web browsing accounts for 12.4% of peak traffic and 22.7% of downstream. Those percentages don't account for YouTube video viewing and Facebook pages, which account for 9.9% and 2.4% of peak downstream traffic respectively.

While outlets for legal content viewing continue to grow in popularity on the Internet, Sandvine's report indicate that P2P file sharing still is growing as well. 

Google ending wi-fi collection with StreetView fleet

Your Wi-Fi Networks Can Rest at Ease, Promises Google [Gizmodo]

Google’s Street View cars will no longer be capturing details of the Wi-Fi network information.

Lawsuit after lawsuit and complaint after complaint have been targeted at Google for the data that was being collected when the company’s StreetView vehicles were out collecting wi-fi network data. While the company indicated that it was only collecting network SSIDs and location information to improve its location detection services, additional code in the cars' collection devices were able to download significant amounts of data passing over unencrypted wi-fi networks. That raised some serious privacy concerns, and several governments around the world and state attorneys general in the U.S. have initiated investigations of Google's data collection practices.

Now Google has come out and said that the StreetView wi-fi collection process will be discontinued with no plans to resume.

Google will, however, continue to obtain wi-fi information via Android mobile devices that share location information. Android users are prompted about this data sharing when they activate their mobile device for the first time.

The FCC’s new role in the Fox-Cablevision Dispute – baseball play-by-play announcer?

 

As a result of the Fox-Cablevision programming fee dispute, the Major Leauge Baseball NLCS has been blacked out to all Cablevision providers. The series pits the Philadelphia Phillies against the San Francisco Giants to see who will move on to the World Series. The American League Championship Series between the New York Yankees and Texas Rangers is being shown on TBS, which is extremely fortunate for Cablevision and the New York area customers who root for the Yankees.

Still, Cablevision customers are currently unable to watch the NLCS to see who the Yankees would play if they win the next two games against the Rangers.

Have no fear.

The FCC has stepped in to make sure Cablevision subscribers got their baseball updates. During Game 3 of the NLCS, the FCC posted the following updates on Twitter:

Baseball fans disappointed about missing game three? (2-0 SF, top 5th) Cablevision-Fox dispute info at http://FCC.gov/consumer

We’re filling in the baseball void for those without Fox-Cablevision. Matt Cain pitching a beauty. SF up 3-0

Matt Cain relieved after 7 strong, 2 H, 0 ER. Giants scored on two singles, throwing error. SF up 3-0 top 9

That’s a wrap. SF takes game 3, 2-1 series lead. While we urge Fox-Cablevision to resolve the dispute

There you have it. Although the FCC has not taken sides between Cablevision and Fox, they seem to be very simpathetic of the plight of Cablevision's baseball fans.

Cablevision vs. Fox -- FCC Chairman weighs in, again

 

Genachowski to Fox/Cablevision: The time for gamesmanship is over [Multichannel News]

The first pitch was thrown yesterday at 4 pm EDT in Game 3 of the National League Championship Series with no resolution of the dispute between Cablevison and Fox over carriage rates. Fox pulled six channels, including three broadcast stations in New York and Philadelphia when their previous agreement expired on Saturday morning.

Meanwhile, Washington lawmakers and regulators continue their criticism of the ongoing fight. Most are going to great pain not to appear to be taking sides but they do express anger about consumers having lost the programming delivered on the Fox-owned stations. 

Fox pulled their signals and chose not to agree to temporary out-of-contract carriage, a common practice while networks and distributors hammer out an agreement.  This time, Fox has indicated that the parties were simply too far apart.  It also came at a time when the network's leverage was at its height -- during the baseball playoffs, football season and, in a few days, the World Series.

In a tersely worded statement, FCC Chairman Julius Genachowski said,

I am deeply troubled that Cablevision and Fox are spending more time attacking each other through ads and lobbyists than sitting down at the negotiating table.  The time for petty gamesmanship is over.

 

“I have called the CEOs of both companies and reiterated the importance of reaching a deal, as many companies have done before.  I reminded the companies that they share responsibility for consumer disruption, and that they shouldn’t punish consumers because of their unwillingness to reach a deal.  I also insisted that they negotiate in good faith.  We will continue to scrutinize their actions very closely.

 

“We are continuing to work to ensure that consumers understand all of their options, which are outlined at FCC.gov.” 

I haven't seen any public response to his statement from either side.

Apple TV incompatible with some older HDTVs

New Apple TV won't play nice with older HDTVs [EngadgetHD]

If you're the owner of an older HDTV and thinking about buying a new Apple TV set-top, you might want to check the specs on your television to make sure it's compatible. It turns out that some users attempting to connect the Apple TV device to HD televisions via a HDMI to DVI cable or to an HDTV that doesn't support a 720p source are ending up with a distorted picture. 

Apple's requirements for Apple TV indicate users must have a HD television with 720p 50/60Hz compatibility, which makes some televisions that work with the older Apple TV set-top incompatible with the current version. Based on reports in Apple's support forums, some users have had success with an incompatible television by connecting a HDMI switcher between the Apple TV and HDTV.

Google on the hunt for cable partners for Google TV

Google TV Guns for Cable Deals [Light Reading]

Google TV rolled out earlier this month in the form of Sony televisions equipped with the Android-based OS and a Logitech set-top that connects between a cable or satellite provider's set-top and an HDTV. The Logitech device included additional integration with one satellite company's DVR, but according to Light Reading, Google is in search of cable partners to pair their set-tops with Google TV.

It appears that any discussions between cable providers and Google involve technical compatibility between Google's software, the third-party hardware running Google TV and cable set-tops. Google TV offers some interesting features, including search functionality that allows users to search for content by keywords, but the current Logitech set-top only searches online content when connected to a cable set-top. Enhanced integration between the two might include searchable DVR and channel content.

Will cable providers join forces with Google on a product that brings online and traditional video to the television screen? We shall see.

UK vs. Georgia football on Insight

For the second time this year, the University of Kentucky football team is preparing to play on the Comcast Sports Network – a channel Insight doesn’t carry. And for the second time this year, we’re making it available to our customers throughout Kentucky and Southern Indiana. 

This Saturday’s UK-Georgia game will air at 7:30 pm ET on the Comcast Sports Network, and our customers in Louisville, Lexington, Northern Kentucky, Bowling Green and Evansville/Henderson will be able to see it live.

Here’s how you can see the game:

• Louisville - For customers with a digital box, the game can be seen on channel 503. For customers without a digital box, it may be seen on channel 15.
• Lexington - For customers with a digital box, the game may be viewed on channel 503. For customers without a digital box, the game can be seen on channel 14.
• Northern Kentucky - For customers with a digital box, the game can be seen on channel 503. For customers without a digital box, the game can be seen on channel 99.
• Bowling Green - For customers with a digital box, the game may be viewed on channel 503. For customers without a digital box, it can be seen on channel 5.
• Evansville/Henderson - For customers with a digital box, the game may be viewed on channel 503. For customers without a digital box, it can be seen on channel 74.

One note of importance for customers without a digital box is that you may need to run a channel scan on your TV to pick up the analog feed.

Here at Insight, we work hard to make sure our customers get the services they want – especially when it comes to the best in local sports. I’ve mentioned it before, but if you love sports, keep an eye on cn|2.  A regular sports show is in the works and we plan to make an announcement on that very soon.

And of course for the most updates on sports action on the Insight network, don’t forget to log-on to SportsOnInsight.com for the latest news.

Netflix upgrading streaming quality for PS3 users

Netflix Streaming Gets 1080i, 5.1 Surround [DSLReports]

Netflix streaming is getting an upgrade if you’re watching content on a Sony PlayStation 3. PS3 users who stream Netflix movies will now be able to stream in 1080i HD, as opposed to the 720p maximum previously available with the company's streaming product. The streaming movies will also be available in 5.1 Dolby digital surround sound.

The PS3 upgrade will allow those users to stream Netflix without the need for a software disc for the service. But, there are no specific details about when these upgrades will be made available to various other Netflix streaming devices that are currently in the marketplace. Netflix has stated that “more devices would be added over time.”

Obviously a 1080i stream will require more bandwidth than the current 720p stream, meaning that Netflix users will need a solid broadband connection like cable for this upgrade.

Cablevision/Fox dispute continues for a third day as customers remain in the dark

Cablevision Baseball Fans Strike Out [Multichannel News]

New York area sports fans are getting some relief today -- but not the kind they're looking for. The relief comes because there are no major sports events on Fox today. Unfortunately, the pain will resume tomorrow if Cablevision and Fox don't agree on a new carriage deal and the Phillies and Giants resume their championship series in San Francisco.

Viewers have been in the dark regarding five Fox owned channels since the stroke of midnight on October 16. They have now missed two baseball National League Championship Series games and one game of the hometeam New York Giants football. 

Over the weekend, the two companies engaged in two days of negotiations that failed to reach a deal. Yesterday at 3:40pm, with no end in sight, Fox and Cablevision negotiators headed home with a pledge to resume talks today with the World Series, exclusively on Fox, looming in the not-so-distant future.

For Fox's other viewers, most of their favorite Fox programs like "Glee" and "House" can be seen on Fox.com or Hulu shortly after their initial airing.  But, for many TV viewers, that is not a simple alternative.

Even with the pressure mounting on Cablevision from customers who can switch providers to get the missing programming and on Fox missing out on millions of viewers that will impact their advertising revenues, negotiations have failed to produce an agreement. 

There should be no doubt in anyone's mind.  This is about how much consumers will pay for over-the-air broadcast signals under the process of retransmission consent created by the 1992 Cable Act.  I have written about how this particular dispute highlights how broken retransmission consent is.  No matter what the outcome, consumers lose -- either they pay a lot more or they lose channels. 

To put this particular dispute in perspective, some reports indicate that Fox is seeking to raise its total fee that Cablevision pays from $70 million per year to $150 million. If you do the the math, that means that Cablevision's 3 million customers will have to pay nealy $2.25 per month more for the same programming they've been receiving previously.  Fox resonds that they are asking Cablevision to pay what others have already agreed to pay for their networks.  And they are only one of many network owners.

Meanwhile, DC is watching this mess, and policymakers are proposing changes that will prevent customers from being caught in the crossfire. 

And not a moment too soon for New York sports fans.

Wall Street Journal exposes Facebook privacy loophole

Facebook Apps Leaking User Info to Third Parties [GigaOM]

The Wall Street Journal has uncovered a significant privacy breach that impacts users of Facebook applications. According to the Journal, several popular applications on the social networking sites, including games like Zynga's Farmville, leak users' Facebook ID to third-parties that assemble databases for resale to advertisers. Each user on Facebook has a unique user ID, which can allow advertisers to link app usage to public information on a user's Facebook page.

Obviously, advertisers can use this type of behavioral information (the types of apps a user likes) to target specific ads and are willing to pay for access to this data. Unfortunately for users who expect Facebook's privacy settings to protect them, many apps passed Facebook IDs even if privacy settings were enabled.

For its part, Facebook has responded to the report by saying that it plans to change its technical systems to limit apps' ability to pass Facebook ID information along to third-parties that collect them.

The question is when.

Fox briefly escalates Cablevision fight to net neutrality

Fox to restore Internet videos to Cablevision customers [Washington Post]

Fox escalated their war with Cablevision yesterday, taking the television battle to the Internet.  For a few hours, in an apparent effort to increase their negotiating leverage for a retransmission deal, Fox blocked all Cablevision's Optimum Online IP addresses from accessing the network's programming posted on websites like Hulu and Fox.com.

The move outraged lawmakers, including Rep. Ed Markey (D-Mass) who are concerned about net neutrality principles, according to Multichannel News.  Fox reversed course and stopped blocking Cablevision customers, stating that they didn't want to punish Optimum Online customers who do not subscribe to Cablevision's TV service.  But the move came right after a flood of harsh criticism was leveled against the network.

Fox's action highlights one of the main arguments that distributors are making against higher retransmission fees to networks -- that television network programs posted on websites shortly after their initial airing devalues the main networks' value to consumers.  They argue that consumers should not be forced to pay high prices for programming they can watch for free within 24 hours.

Fox's move challenged the principles of Net Neutrality.   Cable and phone companies have voluntarily agreed principles of Net Neutrality for years.  Indeed, every major Internet service provider provides open access to all legal content on the Internet.  As a result, they argue that there is no need for imposing new government regulations to fix an extremely complex issue, raising concerns that unnecessary regulations are fraught with unintended side effects. 

Yesterday's example of blocking should not result in imposing new regulations that impact distributors.  After all, no distributor, including Cablevision, broke their promise of voluntary net neutrality principles.  It does, however, raise the question of whether content providers should be pressured to agree to the same voluntary policy to keep the Internet open.

Meanwhile, back on the main battlefield, Fox remains missing from Cablevision homes this morning.   Customers were not able to watch the Philadelphia Phillies - SF Giants game last night.  Today, unless an agreement is reached, they will miss the NY Giants playing the Detroit Lions this afternoon and Game 2 of the Phillies - Giants series tonight.

Although they can't see the sporting events, at least they can go online and watch their favorite Fox entertainment programs on Fox.com and Hulu.

 

 

 

Fox pulls the plug on Cablevision -- Special Saturday report

Fox goes dark on Cablevision [Multichannel News]

In the wee hours of the night, 3 million Cablevision customers in Metro New York lost Fox owned Channels 5 and 9, Fox Business, NatGeo Wild, and Fox Desportes.  The channels were pulled off the cable system by News Corporation, Fox's owner.

This was a completely predictable situation.  Fox is asking Cablevision to double the total fees they pay for their networks. Fox points out that they are only asking Cablevision to pay what others have agreed to pay. 

Why was this so predictable? 

Because of the timing.  The Phillies are playing the Giants tonight in the National League playoffs, on the road to the World Series where New Yorkers hope to see the Yankees.  The National League championship games and the World Series are on Fox this year.  And let's not forget the Fox coverage of the National Conference NFL games -- tomorrow the NY Giants are playing the Detroit Lions.

I wrote earlier this week that having exclusive rights to these types of events results in monopoly power in the marketplace.  In response to that, someone posted the following comment to that article first quoting my post and then, succinctly offering his or her reaction to my view:

"When a single [network] has the exclusive rights to extremely high-demand product, the laws of monopoly come into play."

Doctor, heal thyself."

Many people believe what this person believes -- that cable operators have monopoly power.  But we don't.

In some markets, where there is no wireline competition, there still are alternative suppliers for every service we provide including video, telephone and Broadband services.  You may prefer to purchase them in a package from one company like us, but that does not give us the type of monopoly power that I am talking about.  Having exclusive rights to the World Series and other highly-desired events like the Super Bowl and the Academy Awards is a monopoly in the truest sense. 

Cablevision customers can now choose between DirectTV, Dish, and Verizon as an alternative to Cablevision if they don't like their current distributor.  Even with that exposure, imagine how desperate Cablevision feels about controlling the spiraling cost of programming, particularly sports, which I also have written about many times.

I never like to see the government get involved in commerical activities when the marketplace is working. 

In this case, it's not.

FCC chairman speaks out on retransmission issues

Genachowski Hoping For Retrans Deals [Multichannel News]

Julius Genachowski, FCC Chairman, has weighed in regarding retransmission battles that are currently heating up, namely a dispute between Cablevision and Fox. The other day, I wrote about how the number of blackouts that have occurred this year was higher than it had been in a decade, and now the FCC's chairman correctly is demonstrating his concern about the state of these negotiations and the impact that programming blackouts have on customers.

Genachowski expressed the FCC’s desire to encourage deals to be reached in these negotiations.

Genachowski also indicated his concern about the level of notice that customers receive when their providers and programmers are in disputes. He suggested the FCC would continue to push for more elaborate notification measures to keep customers informed of potential blackouts that could result from these negotiations. He was particularly concerned about how many of these deals end up causing blackouts just after the New Year, when some prime programming is airing (namely college bowl games).

Did you know that the law protects broadcasters from having their signals pulled off by a distributor during "Sweeps Week?"  That's when the ratings are most crticial to the broadcast companies' future advertising revenue. 

However, the opposite is not true.  Broadcasters can pull their signals off any time they like, and FOX may do just that, this weekend, during some pretty important sporting events.  And it's not just sports.  Remember the Cablevision/ABC dispute during the Acadamy Awards? 

So who should the law protect from the colateral damage caused by these disputes -- the broadcasters' financial interest or consumers' access to important programming? 

I vote for consumers.  Let's see what happens to Cablevision's customers this weekend as the National League Divisional Playoffs begin tomorrow on FOX.