News Views

3 March, 2017

news_views_header

Welcome to News Views, CASBAA’s news round-up culled from sources across the industry for the week ending Mar 3th. Curated by CASBAA, News Views keeps you in the loop. We always value your feedback, so tell us what you think!

Brought to you by:

scripps networks

Christopher Slaughter

Christopher Slaughter

CEO

This week, we held the fourth iteration of the CASBAA OTT Summit, bringing together almost 300 delegates, speakers, panelists, and media as we explored the trends in digital delivery of video here in the region and around the world.  This afternoon, our inaugural CASBAA India OTT Forum kicks off in Mumbai.  Check out the Twitter feed at #casbaaott17 — which was in the top five trending topics in Singapore this week, btw!

 

Christopher Slaughter

Christopher Slaughter

CEO

There were some seriously big numbers in the Frontier Economics report on the cost of counterfeiting and piracy that was released at the recent Hong Kong conference of the International Trademark Association (INTA).  Some headlines put the cost of piracy to “content owners” in the trillions, but those huge numbers aggregated counterfeit goods as well as pirated content (to the tune of $1.13 trillion in 2015).   Most of that was goods. (How many movies can you buy, for the cost of one Louis Vuitton bag?)   But even so, the cost of digital piracy of videos in 2015 was estimated at $160 billion….not exactly small change!  And it’s growing rapidly.

 

Andrew Lin

Andrew Lin

Regulatory Assistant

So here’s what the other shoe dropping sounds like — 40 channels for US$35 a month. That’s what YouTube’s long-rumoured live TV bundle will look like in the US.  It will purportedly include ABC, CBS, Fox, NBC, and ESPN, and while there might be notable omissions from that list, let’s not ignore the real motive — extending Google’s reach in advertising to include (at least) free-to-air TV. Perhaps underwhelming, but actually cable-killing? Let’s see… it’s
definitely an open question
.
John Medeiros

John Medeiros

Chief Policy Officer

Net neutrality continues to be a boiling topic, at least in the US and India.   FCC Chairman Ajit Pai explained to the Mobile World Congress in Barcelona why he thinks old-style telecoms regulation should not be applied to the modern internet (saying essentially the same thing he told the CASBAA Convention in 2015).  Back home, the issue continues to be very polarizing.    Meanwhile, there’s some possibility that the Congress could actually do its job and set policy, by revising the Telecommunications Act (but don’t hold your breath…). And in India, the head of the Broadband India Forum, T.V. Ramachandran, published a very cogent comment, observing that India needs a policy tailored to Indian conditions, and theological approaches that push hard-coded net neutrality risk having the poor subsidize the rich. 

 

Jane Buckthought

Jane Buckthought

Advertising Consultant

Knowing where your on-line advertising is being placed is difficult to manage, but horrifying some advertisers as their ads are appearing on terrorist-supporting content. This affects brands based in Asia as well as in the UK.  Jaguar Land Rover has said it was “very concerned” with online ads being used on extremist sites and it had stopped all UK digital advertising until an investigation had been completed. Ads for the Jaguar F-Pace appeared on YouTube next to a pro-ISIS video that had been viewed more than 115,000 times, but have since been removed.   Meanwhile, in Vietnam, the government is giving advertisers real reason to be alarmed; it’s accused many big brands of allowing their ads to run opposite “offensive, violent, and subversive” videos on YouTube.  “The fact that these enterprises do not manage where their products are being advertised violates the Law on Advertising,” said an official.  And a different ministry threatened to impose heavy fines on YouTube for not complying with the law.

 

Kevin Jennings

Kevin Jennings

Vice President, Programme

Facebook Live has become a serious piracy problem.   We reported on the surprisingly large audience a guy in Australia generated with his Facebook Live stream of a boxing match.  Now, Spanish newspaper El Pais has published a report on huge piracy of soccer matches, with dozens of Facebook pages streaming the matches, which are then linked by for-profit piracy websites.   A most unholy alliance; I bet many of those live streams are part of a for-profit conspiracy.    Elsewhere, I doubt there was any profit motive for the Welsh bloke who’s just gone to jail for a month for streaming a court hearing live (which is not allowed in England and Wales). 
Mark Lay

Mark Lay

Vice President, Singapore

Recode has an article this week with a play on the old adage, “content is king”, Audiences no longer care about platforms. The content creator is ‘king.’ For the most part, recode is right. There has never been a better time for creators to create and distribute content. Hence the gazilion videos available on YouTube by creators of all types. But they only get the chance of views because they are on a platform. In todays world of “simply too much TV” people will gravitate to a platform that suits their budget and viewing preferences, especially if the content is fungible. A testament to this is Fox’s planned new app that will give U.S. consumers access to programming from all of its U.S. networks.

 

Anjan Mitra

Anjan Mitra

Executive Director, India

Those who follow Indian communications issues know that CASBAA has for a decade been pushing for better management of India’s satellite services market.  At a recent conference in Delhi, the matter was re-hashed again, focusing on the country’s need for wireless broadband capacity, the satellite industry’s ability to meet that demand, and the obstacles posed by too-rigid regulation.  This article sums up with a pretty good analysis of the landscape, the history, and the problems posed for a growing India.
John Medeiros

John Medeiros

Chief Policy Officer

In Thailand, the fight over which government agency gets to tax satellite operator Thaicom continues (it has been going on for more than two years).   Satellites Thaicom 7 and 8 were licensed by the NBTC (and its predecessor the NTC), with license fees of 5.75% flowing into the NBTC’s coffers.  But the Digital Economy Ministry wants those two satellites – and any new ones – brought under a concession regime where the license fees will flow to – guess who? – the Ministry.  And the Ministry’s preferred skim is – get this – more than 20 percent!   Perhaps not surprisingly, Thaicom is raising the possibility it just won’t launch any new satellites of its own.

 

Christopher Slaughter

Christopher Slaughter

CEO

If you don’t closely follow developments in the satellite industry, here’s something you should remember:  the industry is morphing and innovating.   Expanding from traditional reliance on geostationary satellites (GEOs), there are now growing networks of vehicles in low earth orbits (LEOs) and medium earth orbits (MEOs) which can have high capacity and flexible targeting to deliver broadband.   And the commercial spread of these new technologies is affecting satellite companies in a big way; this week the big news was the merger between Intelsat (a huge operator of GEOs) and OneWeb (which is launching a fleet of LEOs to offer satellite broadband).   This has some competitors worried, but others, including SES, Eutelsat, Telesat and Skyperfect JSAT, already have their own LEO strategies.  

 

Mark Lay

Mark Lay

Vice President, Singapore

What a difference an election makes.  Before Philippines President Duterte took office, it would have been unthinkable for the Filipino government to sign a deal for collaboration in news and information dissemination with China.   The agreement will see Chinese staff employed at public information agencies in the Philippines, and vice versa, Filipino journalists working in China.   The arrangement is to be coordinated by Duterte’s office directly; no involvement is reported by the Philippines’ large and influential private broadcasters.

 

John Medeiros

John Medeiros

Chief Policy Officer

Blocking of the biggest pirate websites is moving forward briskly in Australia, while Italy seems to be way ahead in getting ISPs to ban access to hundreds of sites.  In the UK, there’s a lot of talk about a police campaign against sellers of ISD “black boxes.”    This produced warnings that a lot of people (who knowingly bought dodgy devices to engage in piracy) could lose the money they paid if the transmission networks stop operating.  Tsk, tsk…..doesn’t your heart just bleed for them?
Kevin Jennings

Kevin Jennings

Vice President, Programme

Last week, Google and Microsoft announced a “voluntary” agreement to downgrade links to pirate sites.   It now seems this came about because the government threatened stiff legislation if they didn’t do something on their own.  In Moscow, nobody’s bothering with such niceties: a piece of legislation moving through the Duma would require the search engines to totally delist pirate websites, period. Hmmmmm……Russian subtlety on display?
Member News
Additional News

24 February, 2017

news_views_header

Welcome to News Views, CASBAA’s news round-up culled from sources across the industry for the week ending Feb 24th. Curated by CASBAA, News Views keeps you in the loop. We always value your feedback, so tell us what you think!

Brought to you by:

091fea29d87611d84731667f912a59d1
Christopher Slaughter

Christopher Slaughter

CEO

Streaming sports will be up for discussion at the CASBAA OTT Summit next week; make sure you’ve registered. In case you wondered what the fuss is about, consider this: Twitter and Showtime announced a deal to run a triple-header boxing card this weekend, simultaneously on the TV network and the social media platform.  And Facebook is reportedly in discussions about live-streaming one Major League Baseball game a week during the upcoming 2017 season.

 

John Medeiros

John Medeiros

Chief Policy Officer

A major breakthrough in the UK this week, with Google and Microsoft agreeing to demote sites hosting pirated content in UK search results.  The industry has been pushing for this for years, and finally, with the support of the UK government’s Intellectual Property Department, a Code of Conduct has been agreed with the US search giants. In addition to moving any sites with infringing material to the second page of search results, the Code also commits both companies to stop using predictive “auto-complete” search terms that promote piracy (such as “watch for free” or “download for free”).  All of which is great news…. BUT.  The Code of Conduct only covers the UK; now we’ve just got to get Google and Bing to implement the same policy in the rest of the world.

 

 

Christopher Slaughter

Christopher Slaughter

CEO

The Auckland High Court has ruled that fugitive p̶i̶r̶a̶t̶e̶ ̶k̶i̶n̶g̶p̶i̶n̶ “internet entrepreneur” Kim Dotcom can, in fact, be extradited from New Zealand to face trial in the US over his Megaupload website.  No perp walk is expected immediately, because of course, he and his co-defendants are going to appeal. In the meantime, he is nonetheless claiming victory, because the judgement states that under NZ law, he can’t be extradited for copyright infringement, just fraud.  It’s sort of a bizarre claim, but then again, not too much about Kim Dotcom isn’t bizarre.  This story has been playing out since 2012, so don’t expect a resolution any time soon; remember, the Napster trials went on for seven years.

 

 

Mark Lay

Mark Lay

Vice President, Singapore

The realm of streaming media had some particularly interesting stories this week. Walt Mossberg gives a roundup of what he learned at Code Media. A must-see presentation at Code Media is one by Ben Thomson where he explains the great unbundling. The Wrap has a great piece on How Crunchyroll Turned a Niche Audience Into a Streaming Powerhouse. The never-ending speculation and rationalisation doesn’t stop with apposing pieces on why or why not Apple should buy Netflix. And if Netflix hasn’t changed the game enough, they are now doing it with reality TV with the debut of Ultimate Beastmaster. They will release six different versions, featuring 108 competitors with 60 different episodes of the show tailored to local audiences in the U.S., Brazil, South Korea, Mexico, Germany and Japan.

 

 

Kevin Jennings

Kevin Jennings

Vice President, Programme

In South Korea Kakao, operator of the country’s top mobile messenger KakaoTalk and portal website Daum has announced it is upping its game in relation to online video. It has streamilined its multi-platform video services “Kakao TV” to take on foreign services such as YouTube. The company unified its two existing video services and the new video service will be available not only through PCs and mobile devices but more importantly will also be made available on Kakao Talk, South Korea’s  most-used mobile instant messenger app. Kakao also said it was using popular Korean hosts, better known as broadcast jockeys (BJs), as Kakao TV play directors and expects the presence of popular content creators will help the platform attract new viewers.

 

 

Christopher Slaughter

Christopher Slaughter

CEO

As an industry, we’ve worried for years about whether people are watching our ads; now the people who’ve been eating our lunch are starting to get the same stomach ache.  A new study from Interpublic’s Magna Global says 2/3rds of US consumers skip online video ads as soon as possible, and 75% of them do it out of habit.  But even though they’re skipping, Magna has also found that the impressions made in the few seconds viewers are watching are still valuable; which is a good thing, since later this year, YouTube is going to be dropping its “unskippable” 30-second ads completely. Stay tuned for a new standard — the six-second online spot.

 

 

Jane Buckthought

Jane Buckthought

Advertising Consultant

Knowing where your on-line advertising is being placed is difficult to manage. Jaguar Land Rover issued a statement on Friday that said it was “very concerned” with online ads being used on extremist sites and it had stopped all UK digital advertising until an investigation had been completed. Ads for the Jaguar F-Pace appeared on YouTube next to a pro-ISIS video that had been viewed more than 115,000 times, but have since been removed.

 

 

John Medeiros

John Medeiros

Chief Policy Officer

We’ve written a lot about new FCC Chairman Ajit Pai, who spoke at the CASBAA Convention in 2015; now he’s repeating the same “light touch” regulatory message he delivered on our stage, this time on CNBC.  What he says seems pretty sensible to us, but there are still people convinced that internet service supply is a monopoly…….I just don’t see that.  (Every US urban area I know has at least a couple, and sometimes more, of internet providers.)   Of course, Pai has plenty of supporters, too, and even though the broad-gauge “Title II” regulation of internet providers continues to be supported by a powerful lobby of people saying we should be alarmed about the possibility it will be relaxed, Pai is still not saying anything about that yet.

 

 

Mark Lay

Mark Lay

Vice President, Singapore

Every week or so I ask my kids what they have failed at recently because if they aren’t failing some, then they haven’t been pushing hard enough. In the business of re-landing rockets, SpaceX would be a great child. Now, I love seeing rockets blast off but there is something even cooler seeing them land
again
. Out of 11 attempts at re-landing rockets (flying robot that’s great at math), SpaceX has had 3 failures and 8 successes. Their last landing on Sunday, as part of their successful launch of their Falcon 9 with a 5,500 pound payload of cargo to the International Space Station, was spectacular.

 

 

Christopher Slaughter

Christopher Slaughter

CEO

Mainland streaming giant iQiyi has raised a warchest of US$1.5 billion to fund its ongoing battle with Alibaba and Tencent in the mainland China market.  The Baidu subsidiary is expected to use the new funds for content development and building out its subscription business (about which Ericsson might very well have something to say!).  But even though they’ve recently bought 300 hours of CBeebies content, don’t expect iQiyi to go on a shopping spree in Hollywood, especially with Wanda’s billion-dollar purchase of Dick Clark Productions stalled by the Chinese government.  However, despite headlines declaring that deal to be dead, it remains to be seen whether mainland officials have actually killed it, or if they are just pondering if it is as “irrational” as some critics think.

 

 

Kevin Jennings

Kevin Jennings

Vice President, Programme

News from Pakistan that the broadcast regulatory body PEMRA has requested Government funding for the long-awaited transition from analogue to digital.  PEMRA requested Rs75 million as seed capital to set up its own Universal Service Fund for the proposed project and is looking for further funding in excess of US$3 million. The proposed structure promises not only improved services but software would be developed for monitoring up to 250 channels, compared to only 50 being monitored at present. While PEMRA intends to charge registered licence holders to fund the USF, the Pakistani Ministry of Information Technology and Telecommunication has already set up a Universal Service Fund where telecom companies contribute 1.5 percent of their gross annual earnings to establish telecom infrastructure. Regardless, the request from PEMRA is likely to be approved with little resistance. A few people are crying foul but mostly because projects are continuously delayed and costs continue to escalate.

 

 

Christopher Slaughter

Christopher Slaughter

CEO

Next Monday morning here in Asia, expect productivity to drop as the 89th
Academy Awards
 get going; just don’t expect the winners to be mega-blockbusters of years gone by.  And while there is always the chance of a long-shot, maybe don’t push your luck by betting on it.   The show is almost certain to have political overtones this year, but it’s unlikely to be the subject of tweets from the White House, apparently.  Oh, and in case you wondered, La La Land is going to win a few things.

 

 

Member News

17 February, 2017

news_views_header

Welcome to News Views, CASBAA’s news round-up culled from sources across the industry for the week ending Feb 17th. Curated by CASBAA, News Views keeps you in the loop. We always value your feedback, so tell us what you think!

Brought to you by:

pwc
Kevin Jennings

Kevin Jennings

Vice President, Programme

Plans are in full swing for the CASBAA OTT Summit in Singapore on 1st March and the OTT Forum in Mumbai which will follow two days later on Friday 3rd.  We have two packed programmes with a strong speaker line-up at both events. Regular rates for the Singapore event end next week and if you haven’t yet reserved your seat you can download the latest programme and registration form here. Meanwhile thanks to Diagnal and WWE for sponsoring Friday’s invitational event in Mumbai.
Christopher Slaughter

Christopher Slaughter

CEO

Time Warner shareholders have voted to approve the AT&T acquisition, in an overwhelming show of support — of the shares voted, 99% were in favour.  This validates AT&T Chairman Randall Stephenson’s optimism last week that the deal would go through, probably by the end of the year.  Don’t rule out the FCC getting stuck in, though; incoming head Ajit Pai told Fox News that if the deal looks anti-competitive, the agency will “…take appropriate action.”
John Medeiros

John Medeiros

Chief Policy Officer

Fun in Washington:  new FCC Chairman Ajit Pai is not talking publicly about his plans to deal with the “net neutrality” (NN) regulations bequeathed (over Pai’s objections) by previous Chairman Tom Wheeler.    The uncertainty is producing “wild swings of sentiment” about Pai, who is said to be seeking an approach to broadband policy which is both pro-competitive and pro-investment.
And he may not get to decide on NN anyway, as some see the Republican Congress as stepping in to make the rules.  Indeed, the 20-year-old Telecommunications Act may be ripe for revision.    Pai is living in interesting times. 
Kevin Jennings

Kevin Jennings

Vice President, Programme

US TV presenter John Oliver has announced that he is running educational ads on several news networks with the intention of bringing viewers up to speed on information surrounding critical issues.  The ads are aimed at one specific viewer – President Donald Trump. Oliver says he is running the ads in an attempt to bring POTUS up to speed on information he may lack. According to Oliver, the ads will run between 8:30 and 9 a.m. during MSNBC’s Morning Joe, CNN’s New Day, and Fox News’ Fox and Friends—all shows the President reportedly watches. The ads will cover topics such as the nuclear triad, the Geneva Convention, and the unemployment rate, among other things, and will air specifically in the Washington, D.C. area.

 

Christopher Slaughter

Christopher Slaughter

CEO

So he might have kajillions of viewers on YouTube, but PewDiePie has learned that online tomfoolery has real world consequences; he’s been dropped by Disney’s Maker Studios, he’s lost his “Google Preferred” (higher CPM) advertising status, and he’s had his YouTubeRed show cancelled.  All this after the Wall Street Journal exposed (paywall, natch) a bunch of blatantly anti-Semitic videos on his channel.  Okay, so he later “apologised”… sort of.   And while the whole affair isn’t going to suddenly change the Internet overnight, it certainly highlights the fact that as online stars increasingly attract digital ad revenue, like it or not, their business partners are going to be constantly evaluating their brand alignment.

 

John Medeiros

John Medeiros

Chief Policy Officer

The EU Commission has finalized its “content portability” rules, which come into effect in 2018.  These will allow subscribers to HBO Go, Netflix, Amazon, Spotify, etc. etc. to stream their bought-and-paid-for content in any part of the EU, despite single-country copyright licensing.  Variety termed these rules the “least contentious” part of the Digital Single Market proposals advanced by the EU.  And Europe’s pay-TV industry had said portability could be acceptable, if done right.  But other, more frontal attacks on geographic licensing seem to be in the offing, and the pay-TV industry doesn’t like that at all. 

 

Mark Lay

Mark Lay

Vice President, Singapore

Snapchat has been getting a lot of attention recently in the financial press about their upcoming IPO, now valued less than their initial guidance. A number of further developments are happening with their Discover/Stories section of the app. Media partnerships have grown from 12, at launch, to more than 40 and it’s now starting to look a lot like TV. Snapchat has recently added ‘Shark Week,’ and other original short form series from Discovery and also just did a multi-show deal with A+E for ‘Second Chance’, and unscripted dating series. Some even believe that Snapchat could bring back TV’s golden age and even be the “HBO of the Smartphone”.

 

Kevin Jennings

Kevin Jennings

Vice President, Programme

It may have been a bit slow off the blocks but Apple has announced it will launch its first foray into original content in the “next few months”. The claim comes from Eddy Cue, the company’s SVP of internet software and services. Speaking at this week’s  Code Media conference in California, Cue revealed that Carpool Karaoke and Planet Of The Apps will become available “in most countries in the world” on Apple TV. Mac and iOS devices as part of Apple Music, the company’s subscription music offering. This crowded space is going to get very interesting very fast.

 

Christopher Slaughter

Christopher Slaughter

CEO

Usually, it’s ME who toots Apple’s horn, despite Kevin’s disapproval; but this week, like a lot of others, I’m feeling kinda contrarian about Apple TV— especially after hearing investor Ross Gerber declare it’s “…actually worse than using cable TV used to be, and… the whole goal was to make it better.”  And when you read headlines like “Apple’s First TV Show Looks Like a Cry for Help”, and other decidedly luke-warm reviews, it’s hard not to succumb to the snark.  Which, in turn raises questions about just how serious Apple is about online video, and what failure in this space would mean for the company.

 

John Medeiros

John Medeiros

Chief Policy Officer

The mundane case of internet piracy relating to Facebook streaming of a boxing match in Australia (which I mentioned last week) became quite a cause célèbre – from both sides.    Foxtel made a fuss (saying it was the first time they had come across live-sport piracy of their broadcasts) which BBC called “risking a public backlash.”    The usual coterie of academics and internet “experts” cluck-clucked that it was all the fault of Foxtel’s high prices.  Foxtel then floated the recording of a conversation by their rep, who called during the match to get one of the pirates to turn off his stream.    The threat of prosecution seemed very real (the guys were clearly guilty), but in the end Foxtel decided to get public apologies and drop the idea of prosecutions (to avoid creating martyrs).   And they’re going to work with Facebook to improve the latter’s automated takedown tool.  Everything concluded with a very eloquent op-ed column by Peter Tonagh, Foxtel’s CEO, who had told the press “This idea of allowing people to be heroes from pirating content is a real issue.”

 

Jane Buckthought

Jane Buckthought

Advertising Consultant

The chief brand officer at Procter & Gamble, the world’s biggest advertiser, thinks companies have been blissfully dozing in digital’s warm bath for much too long and it’s time they woke up to the truth. Marc Pritchard says consumers are being bombarded with so much technology-created “crap” that it’s little wonder ad-blocking is growing so strongly. Pritchard believes advertisers have no realistic idea of what bang they are getting for their digital buck because measurement methods are unreliable, giving fraudsters a field day.

 

John Medeiros

John Medeiros

Chief Policy Officer

Exit strategy – it’s all about the exit strategy.   The venture capital firm which owns Taiwan’s second-biggest MSO, CNS, has struck out for a third time in trying to sell control of the cable company.  Regulators got their backs up because the proposed buyer, telco FarEasTone, has a bit of government ownership, and Taiwan has an absolute prohibition on government ownership of “media” companies.  (Except when it doesn’t, as in the case of Chung Hwa Telecom…..)  FarEasTone rightly called the law “obsolete.”  Meanwhile, MBK must be incredibly frustrated.  Calling the CNS sale drawn-out would be a vast understatement; the talks with FarEastTone (never mind the other two rejected buyers, Want Want and Ting Hsin) began in 2009!

 

Kevin Jennings

Kevin Jennings

Vice President, Programme

In India the India Space Research Organisation (ISRO) set a new precedent in launching satellites this week and successfully launched a  rocket which put a record launching 104 satellites into orbit on a single mission. ISRO surpassed its personal best of sending up 20 satellites in one go and it was one for the history books as the previous record was 37 satellites launched by Russia in 2014. All but three of the satellites are from foreign countries, and 96 of them are from the United States. The launch took place from the space centre in east India. Observers say it is a sign that India is emerging as a major player in the multi-billion dollar space market.

 

Christopher Slaughter

Christopher Slaughter

CEO

Don’t expect to see fewer of those anti-smoking messages on TV in India any time soon; in fact, expect even more, if the Ministry of Health gets its way, because of an “…urgent need for better implementation and enforcement.” That comes from a report called “Evaluation of Tobacco-Free Film and Television Policy in India” produced by health-care advocacy group Vital Strategies.  The rule was implemented in 2012, and requires insertion of  anti-smoking messages on-screen any and every time a character lights up, and the report claims it has been a success, just not implemented completely.  And while it’s tough to argue in favour of the tobacco industry, one can wonder whether it’s fair to lay the complete burden of the government’s anti-smoking drive on the shoulders of the media industry.

 

Mark Lay

Mark Lay

Vice President, Singapore

This week’s Economist features a Special Report on Mass Entertainment (at the bottom of the home page), and it’s got loads of takeaways.  Among them: in a fragmented media world, blockbusters are more important than ever;  even as audiences are migrating to digital platforms, linear TV still has staying power; and as long as you put on a good show, nothing beats a live event.  Well worth the read.
John Medeiros

John Medeiros

Chief Policy Officer

So, call me the office Luddite, but I can’t resist pointing out the impending demise of yet another tech product that was long on hype and short on value – the Oculus Rift.    It’s “firmly on the bottom of the pack” in terms of sales.    Anybody wanna buy a 3-D TV?
Andrew Lin

Andrew Lin

Regulatory Assistant

The Philippines Department of Information and Communications Technology (DICT) has announced plans to launch the Digital Terrestrial Television Broadband (DTTB) Migration Plan. The purpose of this plan to shift from an analog broadcasting system to digital in order to provide citizens with a better viewing experience. With the assistance of the Japanese government, this transition to a digital broadcasting system will take around another four to six years.

 

Member News
Additional News

10 February, 2017

news_views_header

Welcome to News Views, CASBAA’s news round-up culled from sources across the industry for the week ending Feb 10th. Curated by CASBAA, News Views keeps you in the loop. We always value your feedback, so tell us what you think!

Brought to you by:

nowTV123
Kevin Jennings

Kevin Jennings

Vice President, Programme

A reminder that the CASBAA OTT Summit is just around the corner and will be held in Singapore on 1st March.  Speakers include Ajit Mohan from Hotstar, Yu-Chuang Kuek from Netflix, Ravi Vora from Hooq, Simon Vella from  MPP Global; Luke Gaydon from Brightcove; Michael Greco from Vindicia and  Irdeto’s Roger Harvey.  If you haven’t yet reserved your seat download the latest programme and registration form here.
Thanks to Presenting Sponsor Brightcove and Sponsors, Diagnal, Irdeto, MPP Global and Vindicia.

 

Christopher Slaughter

Christopher Slaughter

CEO

Earnings season again, and lots of info coming out in various reporting calls: Time Warner had a good Q4, and the company is confident that the deal with AT&T will close by the end of the year.  And on a side-note, the standalone streaming service HBO Now has crossed 2 million subscribers in the US, and sees a “big untapped subscriber opportunity” in the States.

 

 

Mark Lay

Mark Lay

Vice President, Singapore

The first earnings release of Viacom under new CEO Bob Bakish have generally been seen as positive, with revenue rising 5.39 percent to $3.32 billion. More importantly Bakish outlined a Radical Revamp of Cable Operations designed to focus the conglomerate’s resources on six core channels and a decision to rebrand Spike TV as the Paramount Network in early 2018. Core channels being: Paramount Network, Nickelodeon, Nick Jr., MTV, Comedy Central and BET. CNBC provides us with a great interview of Bakish outlining these turnaround plans.

 

 

Christopher Slaughter

Christopher Slaughter

CEO

Elsewhere, 21st Century Fox reported a 27% jump in profits, driven by higher US ad sales around baseball and politics; making it “…the star of the quarter.”   Meanwhile, CEO James Murdoch dangled a direct-to-consumer carrot on his earnings call, saying that it was an option — stronger wording than his December comment that Fox was “in no hurry” to go direct-to-consumer.  Oh, and Peak TV?  Fox expects to produce more than 20,000 hours of entertainment worldwide this year.  Just sayin’…

 

 

Mark Lay

Mark Lay

Vice President, Singapore

Also releasing earnings this week was Disney, with earnings of $1.55 per share, vs expected EPS of $1.49. “Chairman and CEO Bob Iger said more deals are on the way with over-the-top providers, including pacts that could help boost penetration rates for the sports channel.”   And while he didn’t exactly clear up the succession question, Iger told analysts he was open to extending his contract, due to expire in 2018, “…if it’s in the best interests of the company.”

 

 

Christopher Slaughter

Christopher Slaughter

CEO

And finally in our earnings review, online retail giant Amazon is touting the success of its Prime Video product; users more than doubled their consumption of digital media on the platform in 2016.  CEO Jeff Bezos described “tens of millions” of new paid members, but didn’t give specific sub numbers, so it’s hard to tell whether their overnight launch in 200 markets outside the US has paid off yet.  One thing that is clear, however, is that Amazon is going to continue to bet on original programming; investment in programming and marketing will “…continue in 2017 and likely beyond.

 

 

John Medeiros

John Medeiros

Chief Policy Officer

In European piracy news:  Copyright industries want to implement piracy site blocking in Belgium, as in other EU countries – and in Ireland, too.   Italian police busted an online retransmission piracy ring.   Sweden is looking for ways to tighten up its anti-piracy enforcement, recognizing they are playing catch-up because “when most country’s copyright laws were first laid down, the Internet simply did not exist.”   Torrentfreak complains that even “weak” antipiracy measures give pirates a pain in the behind.  (I feel so bad for the poor, frustrated pirates.)   On the bad-news front, in the Czech Republic, a court let the Pirate Party off the hook, for operating a piracy linking website…..with the “reasoning” that it wasn’t a commercial enterprise, and maybe they didn’t realize it was pirated material.    Right; that’s believable.    Meanwhile, the UK police have been out knocking on doors of ad industry players involved in placing ads on pirate websites.   The policemen have a cup of tea, and then advise their hosts that their ads are supporting illegal activities.   No threats…..it’s just about awareness, y’see…..but people seem to listen more when it’s a person in blue making them aware.

 

 

Kevin Jennings

Kevin Jennings

Vice President, Programme

As we mentioned last week, at no other time of year are TV ads such a hot topic of conversation in the US as they are before, during and after the Super Bowl. And according to Fox, this year, the Big Game was the most-watched program in US television history.  A bold claim, but one that also acknowledges that broadcast viewing slipped for the second year in a row.  Despite that, this year’s game carried the second-heaviest ad load in Super Bowl history, with 51 minutes and 30 seconds of ads and promos in the 3 hour 47 minute game.  And while some of them were considered quite good, plenty of them were underwhelming, and some were rather divisive, giving pundits the opportunity to vent their opinions and slice and dice the TVCs every which way.

John Medeiros

John Medeiros

Chief Policy Officer

Last week, we noted that a UK test case was being pursued to establish clearly that sales of “fully loaded” ISD boxes are illegal.  While the case is moving through the courts, the police are remaining active; this week there were five new raids and five new arrests of sellers of “fully loaded” boxes.

Christopher Slaughter

Christopher Slaughter

CEO

Not only has Space X returned to launch, as we mentioned a couple weeks ago, but the company is planning an aggressive schedule of launching its Falcon 9 rockets every two to three weeks this year.  In order for that pace to be met, its new launch facility in Florida needs to be up and running, but even so, there are still questions about how realistic the schedule will turn out to be.

 

 

John Medeiros

John Medeiros

Chief Policy Officer

Two Aussie lads are facing potential legal trouble for using Facebook Live to stream a recent boxing match.  Awww….how much damage could two blokes do?  One of them reported that 153,000 people were watching his feed.  Foxtel was trying to commercialize that event on VOD at A$59.95 – so that’s A$9.2 million worth of damage.  Just a couple of blokes having fun, eh?

 

 

Andrew Lin

Andrew Lin

Regulatory Assistant

Virginia lawmakers have recently brought up the interest of passing a “Virginia Broadband Deployment Act.” However, this bill would instead limit broadband deployment , as municipalities would be prohibited to offer internet service if an existing network already provides 10Mbps download and 1Mbps upload speeds under the proposed legislation. Municipal internet advocates were unhappy with this proposed bill and it even got Google and Netflix chiming in on this issue. Due to heavy opposition, the bill has been withdrawn just hours ago.

 

 

John Medeiros

John Medeiros

Chief Policy Officer

Well! Two of the major Pakistan media groups, ARY and GEO, have been going at each other tooth and nail in courts in both the UK and Pakistan, and now the UK regulator has closed ARY down in that lucrative market.   The Ofcom decision to revoke the licenses for six ARY channels comes after Dubai-based ARY placed its UK company in voluntary liquidation, after a UK court entered an expensive libel judgement against it, in a suit brought by GEO owner Mir Shakil ur Rahman (MSR – also based in Dubai).  The UK high court found ARY had seriously defamed MSR in broadcasts which accused him of being “a traitor to Pakistan who had conspired with Indian intelligence agencies and the CIA to publish fabricated stories maligning Pakistan’s armed forces.”  Apparently, ARY wasn’t able to produce any evidence justifying the claims.  The judgement and channel shutdown are a first, and they are a cautionary note for “the bare-knuckled Pakistan media industry,” as the Guardian put it.   Geo had brought 18 actions in Pakistani courts, and only one in the UK – but legal processes in Pakistan rarely produce results, and the UK court sure did!

 

 

Member News
Additional News

3 February, 2017

news_views_header

Welcome to News Views, CASBAA’s news round-up culled from sources across the industry for the week ending Feb 3rd. Curated by CASBAA, News Views keeps you in the loop. We always value your feedback, so tell us what you think!

Brought to you by:

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Christopher Slaughter

Christopher Slaughter

CEO

Further confirmation (if needed) of the shift in ad-spend toward digital, Facebook’s Q4 ad revenue was up by 53% over the previous quarter, “raking it in” despite all the negative press about it being a purveyor of fake news.  The earnings report comes along side other news of the social media giant’s plans to “suck more dollars into its social maw” by launching a marketing mix model tool to facilitate comparisons between Facebook ad campaigns and campaigns using other media.  (Clearly an effort to redress its previously distorted usage metrics.)

 

Mark Lay

Mark Lay

Vice President, Singapore

Meanwhile, Facebook is extending its empire-building to new territory, reportedly building an app that will bring its video onto users’ TV screens  as part of its efforts “…to shift itself from a mobile-first to video-first entity.” Just last week Facebook told us they were tweaking their algorithm to start showing more longer form videos in their news feed, as it “gears up to launch original shows”. Hmmm… we are in the long-form video business, and on users’ TV screens. Interesting times, for sure.

John Medeiros

John Medeiros

Chief Policy Officer

The Kodi video software has been much in the news lately.  (It is frequently used for piracy, by means of easy add-ons.)  Law enforcers and content owners are seeking ways to curtail Kodi-powered piracy, but it’s not easy, as laws haven’t caught up.   Now there’s a significant test case under way in the UK, where a box seller has pleaded “not guilty” to copyright violations, despite selling boxes that were fully loaded with Kodi pirate add-ons.  A legal blog said this case “is likely to be monitored closely by broadcasters and sports bodies eager to preserve the value of their rights in sporting content.”  And normally pro-piracy (oh, sorry, pro-“sharing”) website Torrentfreak says it’ll be “nothing short of a miracle” if the seller wins the case.

 

 

Christopher Slaughter

Christopher Slaughter

CEO

At the risk of looking like the fan-boy Kevin accuses me of being, I do watch Apple rather closely; this week, CEO Tim Cook rewarded my gaze by hinting about further efforts in the content space.  With Services (which includes the App Store, iTunes, Apple Music, iCloud, etc) helping fuel a record quarter, there’s plenty of speculation (again) that the division could soon be more than just dabbling in original content.  And although Cook said he’s happy with it, the new Apple TV is reportedly not selling well, which probably explains his comment that “…we have more things planned for it.”

 

 

Kevin Jennings

Kevin Jennings

Vice President, Programme

Remember back in 2015, when the BBC wound up cutting a deal with the Conservative government to get its charter renewed?  One of the strings that came attached to that renewal was the funding of local reporters across the UK; at the time, details were thin, but now the full plan has been released.  Meantime, the incoming Chairman Sir David Clementi (the man who originally proposed scrapping the BBC Trust) has started work, already warning that the terms of that renewal deal are going to put the Beeb under “severe financial pressure.”

John Medeiros

John Medeiros

Chief Policy Officer

Vibrations from India’s cultural machine are felt throughout Asia, but particularly in its neighboring countries, where people like Indian movies and TV a lot.  In Pakistan this week, the government confirmed that Indian films can once again be exhibited, after a ban of a few months last year.  And in Bangladesh, a judge nixed a moralizing lawyer’s request for a ban on three Indian TV channels.

 

Meanwhile, here’s an interesting review of India’s mobile telecoms industry.  Some of the statistics are striking:  Out of 218+ million people with access to broadband, 200 million get that access through mobile phone networks!

 

Christopher Slaughter

Christopher Slaughter

CEO

Since the New Year, my morning ritual has changed; I now begin each day with a cold cup of outrage, flavored with a heaping teaspoon of disgust, as I read about what happened in Washington overnight.  And while it’s possible that I’ve been slightly overdoing it lately, I’m not quite burnt out yet.  So when a National Prayer Breakfast becomes all about Celebrity Apprentice (or was it really all about Ivanka?), and the announcement of a Supreme Court Justice becomes reality TV, frankly, I’m not surprised.  I just lean back and take another sip.

 

Meanwhile, the manager of CNN’s international desk was detained at Atlanta’s airport because of the Executive Order on immigration, and is suing.  But at least the Administration’s boycott of CNN seems to be over, with a White House aide (and child of refugees) appearing on the network, its first interview with an Administration official since the inauguration.  (Oh, and that same aide will be sentenced next week for attempting to carry a handgun onto a commercial airline, but that’s another story.)

 

John Medeiros

John Medeiros

Chief Policy Officer

Going in different directions:   while the UK ISP industry has just begun implementing its “three-strike” notice system, under which ISPs send notices to consumers caught downloading pirated programming, in the US the stakeholders have abandoned the parallel “Copyright Alert System” (CAS). The CAS was informally known as a “six-strike” program, and it generated more than a million alerts in its first 10 months.   But it was expensive to operate, and its major proponents in the MPAA and RIAA don’t seem to think it was doing enough good, as hard-core downloaders are simply not deterred by nice little notices, no matter how many they get.   It seems to me that unless you give repeat offenders a concrete incentive to comply (for example, tell them their bandwidth would be throttled back after a certain number of notices), they are never going to pay attention.  (In practice, neither the UK nor the US system gave people the necessary incentives to comply.)

Andrew Lin

Andrew Lin

Regulatory Assistant

Thailand’s NBTC will be getting restructured later this year; the number of Commissioners will go down from 11 to 7, and there will no longer be a separate “broadcasting” committee that governs our industry.

Kevin Jennings

Kevin Jennings

Vice President, Programme

The US is gearing up for the NFL Super Bowl this weekend, and while gridiron might not be to everyone’s taste, the Big Game is almost as much about the ads as what happens on the field. And with Kantar estimating that Fox could earn up to half a billion dollars in ad revenue from the game (with 30-second spots reportedly going for a cool US$5 million) , a lot of brands are maximising their ad spend by rolling out online PR campaigns for their Super Bowl ads ahead of the game (or in other words, advertising their adverts).  But while sport and advertising have always gone hand-in-hand, this year, politics is entering the mix; Super Bowl Sunday is going to make for an interesting Monday morning here in Asia.

Christopher Slaughter

Christopher Slaughter

CEO

And in case you don’t understand American football, you’re not going to understand it any better after watching “NFL 2017 – A Bad Lip Reading of the NFL”, but it might get you into the Super Bowl spirit!

 

Member News
Additional News

27 january, 2017

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Welcome to News Views, CASBAA’s news round-up culled from sources across the industry for the week ending Jan 27th. Curated by CASBAA, News Views keeps you in the loop. We always value your feedback, so tell us what you think!

Brought to you by:

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Christopher Slaughter

Christopher Slaughter

CEO

At the risk of normalising what’s going on in the US, I decided to stop focusing on the White House for a while, and take a look at the latest on the AT&T Time Warner deal, remember that?  It turns out, I needn’t have worried, because AT&T boss Randall Stephenson is normalising just fine, thank you: “I’ve got to say, I was impressed,” he said about his meeting with the new President.  That conciliatory tone might be simply because despite all of Trump’s campaign posturing, the Administration might not actually be able to block the deal.  And that’s despite questions being raised by various Democratic Senators about the acquisition, and shareholder lawsuits to stop a 15 February vote among Time Warner shareholders on the deal.

 

Mark Lay

Mark Lay

Vice President, Singapore

Speaking of big mergers, a MEGA-merger has been rumored between Charter Communications and Verizon. This comes roughly a year after Charter swallowed up Time Warner Cable and also while Verizon is deciding how to ingest Yahoo! “Verizon serves 114 million cellphone subscribers, 4.6 million TV customers and 7 million Internet subscribers; Charter has 17 million TV customers and 21 million Internet subscribers.”  Pundits believe that the Trump administration is a lot more amenable to such mergers and that we could see more shortly. This desired “quad play” is something that us in Asia have been familiar with for years.

 

 

John Medeiros

John Medeiros

Chief Policy Officer

The NN (Net Neutrality) Wars are raging again in the USA.   The nomination of Ajit Pai as the new FCC chairman has been greeted with an internet-media Greek chorus singing of doom, doom, doom.  “It’s a disaster for you and me!”  “A death sentence.”    There’s anger and alarm!  Pai is a “right-winger”, who will destroy.  Kill.  Hate.  The hype is pretty nauseating; as Forbes columnist Larry Downes put it, “the misinformation bandwagon has opened an ugly new front.”  Downes earlier wrote that the media chorus was abetting a set of vested interests:  “The “analysts” that tech reporters are relying on are the same advocates who have pushed for the rules for a decade, often misrepresenting technical and legal realities in efforts to whip Internet users into a frenzy.”  Where have we seen this before?  Hmmmm.  The word begins with C and ends with opyright.

 

But seriously, Ajit Pai is a guy we actually know.  We invited him to speak at the 2015 CASBAA Policy Roundtable and CASBAA Convention.  He’s not a Trumpian “outsider;”  he’s been working on communications issues in Washington for over 15 years.  He impressed me as a very smart, earnest and forthright guy who understands the need for safeguards so the internet remains accessible to all – but he does oppose the Tom Wheeler “full-on regulation” approach for ISPs, because he also understands the value of regulatory forbearance. “I prefer less regulation,” he told me onstage. “In 1995, the United States government made a bipartisan and historic commitment to allow market forces to govern how the internet would develop, and not to regulate as it had the telephone monopolies of old.  The results speak for themselves……the way these (NN) regulations were adopted, it essentially treated every internet provider, big or small, as if it were a 19th-century railroad.”  People in our industry – struggling to escape from the legacy of antiquated broadcasting rules designed for the world as it was in the 1950s – should cheer.
And if you look at the details, the internet chorus is sure that Pai’s appointment means the end of government supervision to prevent blocking of access to lawful content, intentional slowing of network traffic for anti-competitive purposes, etc.   But those principles were being defended by the FCC and the FTC before the Wheeler “full-on regulation” was enacted, and they will remain part of the policy direction.  Pai may well resume the task (abandoned by Wheeler) of looking for ways to enshrine the principles without full-on regulation.  In reality, the Republican-dominated Congress is likely to be a much greater threat to NN regulations or other FCC powers, than Chairman Pai.

 

Anjan Mitra

Anjan Mitra

Executive Director, India

India’s Broadcast Audience Research Council of India (BARC India) is attempting to shield itself against critics of its penalty-imposing actions against alleged manipulation of viewership trends by subscribing-TV channels. Move is afoot within BARC to completely review and legally overhaul contracts it signs with subscribers and also enforcing the opt-out clause mentioned in agreements. Aim: streamline the whole measurement process and safeguard against increased litigation.

 

 

Christopher Slaughter

Christopher Slaughter

CEO

Let’s have a closer look at that report from Irdeto last week, shall we?  The one that said one out of three US consumers watch pirated content, and almost 40% don’t care about the revenue damage it causes the media industry.  We sort of skated over it last week when the report came out, but it’s sort of a chilling conclusion; even if illegal streaming might not be on the rise, when a consumer wants to see a piece of content badly enough, they are willing to bend the rules a little to get it.  And while we know the fight against piracy is by no means a new thing, here’s an interesting look back at anti-piracy ad campaigns of the 90s.  Ahhhhh, youth.

 

 

John Medeiros

John Medeiros

Chief Policy Officer

Last week I reported on a “fair use” copyright case involving Paramount and CBS, who own the rights to the Star Trek series/movies.   Now we hear the case has been settled; the fan-flick producers have agreed to shorten their planned videos, and make them available for free.  That’s apparently close enough to the desired guidelines of the plaintiffs (who don’t want professional-quality knockoffs) that they agreed to settle the case (and thereby saved a gazillion dollars in legal fees).  But without a court pronouncement there’s no guidance on the boundaries for others who might want to produce fan-flicks.  That’s the problem with the “fair use” system:  nobody has any clarity unless they want to lawyer up and get a court to rule.

 

 

Anjan Mitra

Anjan Mitra

Executive Director, India

Judicial review has its pros and cons. While broadcasting community few weeks back petitioned the court to review regulator TRAI’s validity to rule on tariff-related issues, another Indian court has asked two State governments as also New Delhi why they were compelling TV subs to switch over to digital services by making people buy STBs. Can’t analog and digital co-exist? This poser came from a high court a day before when MIB reiterated there would be no extension to digitisation’s phase III deadline of January 31, 2017. One step forward, two backwards?

 

 

 

John Medeiros

John Medeiros

Chief Policy Officer

Regulatory asymmetry between traditional broadcasting and OTT TV sounds like a dry topic, but it’s come in for some serious discussion in Thailand, with detailed scrutiny of Facebook Live.  Companies that paid a zillion dollars for digital broadcasting licenses are worried that Facebook Live could turn into a serious competitor.  (In mid-2016, Facebook reported it had 37 million users in Thailand.  Some have turned the platform into a marketplace for trading counterfeit goods…..)

 

 

Mark Lay

Mark Lay

Vice President, Singapore

A few interesting articles in the world of streaming this week.  Netflix and Amazon, with ballooning programming budgets, are set to poach more content from SVOD rivals, media companies. Apparently, “given the high cost of scripted originals, Netflix will need to incorporate more unscripted content in these efforts. As a result, Netflix (and the other SVOD players) will start to bid away name brand non-fiction shows from cable networks.”  And, Hearst’s Esquire TV network is ditching its traditional linear TV business and will “restyle itself as a digital only channel.”

Jane Buckthought

Jane Buckthought

Advertising Consultant

Snapchat may or may not become mobile television for younger generations. But the app’s parent, Snap Inc., which appears to be on the cusp of an IPO, wants TV advertisers to think about it that way and spend their money accordingly. Today, it signed a partnership with Nielsen’s mobile Digital Ad Ratings (mDAR) unit, giving brands the ability to buy guaranteed Snapchat audiences by age group and gender. For the most part, it’s the same kind of system—from ordering to measuring the results—that marketers are accustomed to with Nielsen’s TV offerings.

 

Member News
Additional News

20 january, 2017

news_views_header

Welcome to News Views, CASBAA’s news round-up culled from sources across the industry for the week ending Jan 20th. Curated by CASBAA, News Views keeps you in the loop. We always value your feedback, so tell us what you think!

Brought to you by:

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Christopher Slaughter

Christopher Slaughter

CEO

The fun just keeps getting funner: we’ll be sending this out before the inauguration in Washington, which I’m sure will provide even more fun, but over the past week, the incoming President’s relationship with the media has definitely continued to make headlines. (Of course, that might just be because the media are the ones who come up with those headlines, but let’s not get too recursive before the weekend).   The White House Press Corps is likely to stay in the White House after all, it seems, although they are most definitely not welcome at the President-elect’s new Washington, DC hotel.  And while the outgoing President used his last press conference to thank the media for doing its job, the incoming Administration is asking CNN to retract a story about one of its Cabinet picks and tweeting misinformation about morning news shows.  CNN chief Jeff Zucker has some interesting insights into last week’s news conference and how to cover the White House: “…the era of access journalism as we’ve known it is over.”  Oh, and if you want to know how real fake news is made, here’s a great NYT story, with a great WaPo punchline — the kid got fired.

 

John Medeiros

John Medeiros

Chief Policy Officer

The cogs are still turning on Net Neutrality (NN) issues, in both the US and India – but they seem to be turning in opposite directions.   In the USA, outgoing FCC Chairman Tom Wheeler made an impassioned plea to keep the NN rules he wrote.   And the FCC accused AT&T of violating those rules, in its DirectTVNow data plan.  But both the accusation and the plea seem to be falling on deaf ears, as opponents of the Wheeler approach take positions of power in both Executive and Legislative branches.  (It’s important to keep in mind that there is a lot more consensus about keeping the internet open, than about the Wheeler approach, which imposed unprecedented full-on regulation of ISPs in order to achieve that aim.)  Meanwhile, in India, the TRAI is moving forward to formulate the details of its approach to NN
issues.   (It’s under plenty of pressure from the NN mullahs.)  Meanwhile, Star-TV filed a brief with strong argumentation on one aspect of NN — that ISPs shouldn’t be allowed to charge differently for different-origin data.

Kevin Jennings

Kevin Jennings

Vice President, Programme

According to a report in the New York Post Verizon CEO Lowell McAdam recently said that he wants to buy into one of the major cable companies. According to the Post’s sources, it could be a company as huge as Charter or Comcast.  Any cable deal would help the company grow the demand for its wireless data products and answer rival AT&T’s moves to buy DirecTV and Time Warner. McAdam has already given Wall Street and investors an indication that he’s looking for the right opportunity, telling Wall Street analysts it “makes industrial sense.”

 

 

Mark Lay

Mark Lay

Vice President, Singapore

As someone who has been known to dabble in stocks, I noticed a huge move in Netflix yesterday as it was up about 8%. According to CNBC, “The company said it added 7.05 million subscribers during the fiscal fourth quarter…that figure well above its own expectations of 5.2 million…was the largest-ever quarterly subscriber growth in its history….added 1.93 million memberships in the U.S. and 5.12 million internationally ” But maybe the “Bulls Are Making A Big Leap of Faith.” As is Jerry Seinfeld who just inked a deal with Netflix encompassing new stand-up specials, scripted and non-scripted series as well as new episodes of Comedians in Cars.

Christopher Slaughter

Christopher Slaughter

CEO

It took a little longer than expected, but Space X has successfully returned to flight, launching an Iridium satellite this past weekend.  Having completed the investigation into last year’s explosion (which it refers to as an “anomaly”), the launch company is about to get very busy; and that’s even before it begins its ambitious (understatement) plan to launch 4,425 satellites to provide “a ubiquitous global service”. It still has to absorb the cost of the explosion, though, and it’s still got a way to go before it proves to NASA that it is safe enough to launch astronauts into space.

John Medeiros

John Medeiros

Chief Policy Officer

There’s been some attention this week to the corollary damage done by piracy.    In the UK, the Industry Trust spoke out, warning that “the vast majority of parents who engage in digital TV piracy have no idea of the associated risks to their families.”  Kids who got ISD boxes and sticks for Christmas are exposed to pornography and malware, said the trust.  In South Africa, there was a different warning: a consultant’s report warned that 1 in 3 torrent sites contain dangerous malware, and 45 percent of the malware found on the sites was of the “drive-by” type that infected a computer just from viewing the material – no supplementary clicks required.

Mark Lay

Mark Lay

Vice President, Singapore

Stratechery has a very thoughtful piece this week titled The Great Unbundling.  It looks at media models of the past and present and then tries to define how the future will look. It’s fantastic piece for those responsible for taking their media business forward. “Once those (behavioural) shifts start to happen in earnest there will be feedback loops in everything from advertising to content production to consumption that will only accelerate the changes, resulting in a transformed media landscape that will impact all parts of society. I’m starting to agree that the end is nearer than many think.”

 

 

John Medeiros

John Medeiros

Chief Policy Officer

True Visions is still being threatened with big fines by the consumer advocate lobby in Bangkok, over its rejiggering of its content bouquet.   The platform operator pointed out that relatively few consumers seem upset, as only 500 subscribers (of 300,000) have cancelled their contracts and asked for a refund.  But the upset ones are the loud ones, it seems.

Andrew Lin

Andrew Lin

Regulatory Assistant

Taiwan’s National Communications Commission (NCC) is preparing a draft media funding bill for public discussion in the next legislative session. Currently, the government military, and political parties are banned from investing in media companies, and NCC Chairwoman Nicole Chan says there is no plan to change that in the near term.  However, the NCC acknowledges that media companies need access to funding to produce high quality content, and is therefore proposing a public fund be established to invest in content development.  In other Taiwan cable news, the NCC is predicting that the island’s cable networks will be full digitised by the end of 2017.

John Medeiros

John Medeiros

Chief Policy Officer

A little light reading:  Paramount and CBS are pursuing a copyright action to block production of a feature film using the world of “Star Trek” and made by a so-called fan-fiction outfit.  But this outfit was aiming to make money, by using professional actors (including some who actually appeared in previous Star Trek series), paying lavish attention to detail, achieving high production values and marshalling a proposed production budget of just under US$2 million.   So…..is this “fair” use of the established copyrights?????   I sure don’t think so…..but in the U.S., only the court knows for sure.

 

 

Member News
Additional News

13 january, 2017

news_views_header

Welcome to News Views, CASBAA’s news round-up culled from sources across the industry for the week ending Jan 13th. Curated by CASBAA, News Views keeps you in the loop. We always value your feedback, so tell us what you think!

Brought to you by:

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Christopher Slaughter

Christopher Slaughter

CEO

So how can we NOT write about the televised trainwreck that the US President-elect’s first news conference in 168 days became this week? (In case you missed it, it’s here in full.)   Theatre of the absurd, anyone?  Regardless of whether you think that by releasing the dossier in question, Buzzfeed was absolutely in the right and even performed a public service, or whether you feel they crossed the line and sidestepped basic journalistic principles and were not actually engaging in journalism at all, there’s no question that CNN has paid the price.  Although the network first broke the news, they didn’t go into lurid detail about what it contained, but that didn’t seem to matter.  Among the lessons learned, perhaps, is that not only do news organisations need to figure out a new strategy to deal with this Administration, but they also need to stick together
John Medeiros

John Medeiros

Chief Policy Officer

Actually, there are two plots to the storyline of TVB giving up its Hong Kong pay-TV license.   One is the piracy story; the channel pointed out that its content is widely available online in HK for free, and HK’s antiquated copyright laws don’t provide protection against unauthorized online distribution.   The other story, however, is about regulatory arbitrage.   TVB has not abandoned pay-TV; its myTV SUPER service is reported to have 2 million connections – far more than TVB Pay Vision ever had.   But myTV SUPER is an OTT service, meaning it is virtually totally unregulated.  One of HK’s legislators was quoted in the press making a key point:  a pay-TV license comes with rules and regulations and burdens.  An OTT service does not; in HK it doesn’t even require a license.   TVB decided to serve its audience by putting its investment dollars where the compliance burdens are less.   That is no surprise, and there is a real lesson here for Asian governments:  if regulatory asymmetries are distorting investment decisions even in Hong Kong’s notoriously light-touch environment, what kind of incentives are heavy-regulation governments offering investors?   And how long will it be before other Asian markets see disinvestment, because of those incentives?   I think the canary in the mineshaft just died.

 

Mark Lay

Mark Lay

Vice President, Singapore

According to the Wall Street Journal, Apple Inc. is planning to build a significant new business in original television shows and movies(L.A. Times take on it.) This comes 10 years after the launch of Apple TV, (same day as that other little product of Apple’s, the iPhone, was launched). It’s nice that they have finally (maybe) figured out what to do with Apple TV, as their earlier attempts at skinny bundles never really came to fruition. Though, this original programming push may have a lot more to do with taking market share from Spotify than unseating the existing video streaming giants. 
Christopher Slaughter

Christopher Slaughter

CEO

The annual rite that is the Television Critics Association winter press tour has been underway in Pasadena this week, amidst anticipated kvetching about the lack of network suits onstage to take questions. Apart from FX chief Jon Landgraf, that is, who warns that “peak TV” hasn’t quite peaked yet.  But hey, director David Lynch dropped in to make cryptic statements about “Twin Peaks”, another 90s phenom “The X Files” is getting another instalment, and “Scandal” is going to be quite different in Season 6.  The tour continues through next Wednesday, so look for more headlines — but expect them to be about the shows, not the business. 
Kevin Jennings

Kevin Jennings

Vice President, Programme

There’s good news, and bad news, from South Korea. The Korean government says it is going to deregulate the domestic pay-TV industry and apply the same rules to cable, satellite and IPTV. But it’s not at all clear whether any or all of the rules will apply to OTT TV. Koreans are watching more and more OTT video (a government survey found 27% of people said they watched TV online last year, up from 14 percent the previous year).  But they don’t want to pay, and it is the free services that are reaping the eyeballs. So major Korean
content companies are rolling out free OTT services to compete. 
 
John Medeiros

John Medeiros

Chief Policy Officer

Judicial proceedings are under way in India that are crucial to the future of the industry there.   Since roughly 2004, India has had extensive and very restrictive of rate regulations on supply of TV packages to consumers.  TRAI has been preparing new regs that would expand the rate regulation framework, making it more applicable to digital packages AND extending detailed regulation to wholesale contracts between channels and network operators!   (Unlike most governments, India holds that content carriage relationships are “interconnections,” governed by telecom-industry principles.)  To the great joy of broadcasters, the Madras High Court stayed the introduction of the new regs, and is to consider beginning next week the substantive case that the extensive and restrictive regulations would violate content owners’ right (guaranteed by copyright treaties and India’s own laws) to determine their own conditions of sale.  Meanwhile, no regulator likes to see its authority challenged, so TRAI is trying to get the Supreme Court to overturn the Madras court’s stay.   Stay tuned…this one is important.

 

Christopher Slaughter

Christopher Slaughter

CEO

Facebook has been making some changes lately, reportedly getting ready to introduce mid-roll advertising to videos it serves up, borrowing a page from YouTube’s playbook.  It has also hired former TV journalist Campbell Brown to address the “fake news” brush it’s been tarred with; which may or may not actually turn out to work, since she brings a fair bit of baggage with her to the role.  Oh, and apparently, the company is also working on reading users’ brain waves to send posts — really, you can’t make this stuff up. 
Mark Lay

Mark Lay

Vice President, Singapore

A few more interesting stories in the world of streaming video this week. Amazon is rolling out its first branded on-demand subscription service for Amazon Channels: Anime Strike. This is significant as it’s the second Amazon OTT “channel”, other than Amazon Prime. More to come? Backchannel has a thorough story about How Netflix Lost Big to Amazon in India…though the game is nowhere near to being over yet. And if viewers don’t already have enough choice for video viewing, Facebook just launched their Facebook Live Map. Brings a whole new meaning to Bruce Springsteen’s “57 Channels (And Nothin’ On)”.

 

John Medeiros

John Medeiros

Chief Policy Officer

US cable company and ISP Cox Communications has made itself the center of a real legal storm, about what ISPs have to do in order to qualify for “safe harbor” treatment.   Most big US ISPs are part of the “Copyright Alert System” which provides for warnings and sanctions against repeat-offender customers who are tracked downloading pirate content.  Cox refused to join that system, saying that “only courts can decide if someone is an infringer.”   A federal court whacked the ISP with a $25 million judgement; the company is appealing now and – no surprise – the entire copyright industry has joined the case, urging the judges not to let the company get away with evading its responsibilities.  The case may end up in the Supreme Court.   Meanwhile, UK ISPs are about to implement a slightly “softer” system of notices to consumers whose accounts are used for illegal downloads.

 

Christopher Slaughter

Christopher Slaughter

CEO

BBC Director General Tony Hall has set an ambitious goal — to make the BBC iPlayer the top UK streaming service by 2020.  In order to achieve this, the service is likely to require a complete reinvention, “…to make the leap from a catch-up service to a must-visit destination in its own right.”  Among the features that need to be incorporated into the iPlayer are personalisation, AI, and voice recognition, along with broader and downloadable content.  Lord Hall’s comments came as the BBC kicked off the start of its latest 11-year charter, an accomplishment that took much of his three year tenure as DG to achieve.

 

Member News
Additional News

6 january, 2017

news_views_header

Welcome to News Views, CASBAA’s news round-up culled from sources across the industry for the week ending Jan 6th. Curated by CASBAA, News Views keeps you in the loop. We always value your feedback, so tell us what you think!

Brought to you by:

HBO Asia
Christopher Slaughter

Christopher Slaughter

CEO

I’m in Las Vegas for the 50th anniversary of the Consumer Electronics Show, along with 150,000 of my closest friends, and I must say, it’s all a bit overwhelming.  Of course, it’s much more than just consumer electronics these days, so people from every peripheral industry have descended on the town.
Meanwhile, I can count the number of times I DIDN’T hear the terms “VR” or “AR” on one finger, there have been more product announcements and cool gadget launches than any one person can possibly keep track of,  and if I see another self-driving car I’m not sure I can be held responsible for my actions.  The show runs through the weekend, so look for a lot more news in the days to come.
Mark Lay

Mark Lay

Vice President, Singapore

Following on from Chris’ stories about CES, Barry Diller was there and had a number of interesting things to say in his keynote. “The media world has been closed since radio….Scarsity was always the thing that kept people controlling media in very few hands” and the internet “changes all of that,” he says. “And we’re just at the beginning of that.” “This is thought to be the best year for content, and most of that content is not on linear television and broadcast networks.” “A lot of people, most people I think, are going to opt for commercial free television.” Full article available on Deadline.

 

John Medeiros

John Medeiros

Chief Policy Officer

Interesting development in Thailand, where the NBTC has asked ISPs to block several dozen pirate websites, based on their distribution of pirated videos.    The action came after a request by a Thai movie industry association.   The group noted this is just the tip of the iceberg, and there are many more sites out there, distributing illegal content on a subscription, or ad-supported, basis.  So far the NBTC request has only been conveyed orally, and it is not clear whether the ISPs will follow the request.   (There’s already talk about “you have to tell us which movies are illegal, and we will just take down those links.”)     And if one or more ISPs refuse the request, there may or may not be a penalty on them.

Anjan Mitra

Anjan Mitra

Executive Director, India

Though in a year of media disruptions and demonetisation bomb that made all business segments yelp with pain, the government is confident 2017 will bear fruits for policy decisions taken previous year. But goalposts continue to change as there was yet another analog sunset date extension. Though TRAI vows to continue pushing for an ambiguity and litigation-free regulatory mechanism, a section of the industry moved the court questioning whether TRAI can issue guidelines at all or not on issues related to broadcast industry and copyrights. New Year has brought fresh episodes in the Indian soap opera’s new season.

 

 

Kevin Jennings

Kevin Jennings

Vice President, Programme

Government officials in Bangladesh have announced that they have imposed a ban on foreign TV channels airing local ads. The ban is supported by a clause in the 10 year old Cable Television Regulation Act, which states foreign channels downlinked in the country cannot air local advertisements. The decision comes against the earlier demand by Media Unity, a guild of local TV station owners and professional units of the stations who announced a protectionist 6-point charter of demands in November, including closure of downlinks of illegal foreign TV channels in Bangladesh, stopping broadcast of dubbed foreign serials in local channels and imposing a ban on advertisements in foreign channels.

 

 

Mark Lay

Mark Lay

Vice President, Singapore

The holdout of big four US networks, CBS, has finally done a deal to become part of Hulu’s live streaming service. “With 21st Century Fox, Disney, Turner and now CBS on board, our new live service will offer one of the most valuable sports, news and entertainment lineups anywhere — from ESPN, Fox Sports, CBS Sports and TNT to ABC, CBS, FOX and The Disney Channel”, said Mike Hopkins, CEO of Hulu. Hulu is owned by The Walt Disney Company, 21st Century Fox, Comcast and Time Warner.

Kevin Jennings

Kevin Jennings

Vice President, Programme

The American NFL says its games are now being LEGALLY streamed live in China, and will also be streaming the Super Bowl. The league has partnered with Sina Weibo, one of the largest social media platforms in China with almost 300 million monthly active users. The NFL now has more than 1.5 million online viewers across China each week. The deal marks the first time a sports league will live stream games on the Chinese service. Unlike the earlier NFL Twitter deal, the Sina Weibo partnership also includes coverage of the Super Bowl and a ton of non-game video content such as the top 10 performances in a bid to really cement support and growth in the Chinese market.

 

 

Mark Lay

Mark Lay

Vice President, Singapore

Things are heating up in the smart TV space. Sure, the major brands of Samsung and Sony have been slowly perfecting their interfaces, but it’s the other players who are starting to make some big noise. The original “Netflix Box”, Roku, has its app platform in 13% of all smart TVs sold in the U.S., with 100 Roku TV models available in North America. And now, Amazon, on the heels of its worldwide Prime Video launch, will be integrating its Fire TV platform into TV sets. And get this, “the TVs will include a remote with a microphone that can be used to access the Alexa voice assistant, including content search and control of smart home devices.”  This could bring home shopping to a whole new level.

Andrew Lin

Andrew Lin

Regulatory Assistant

Last year, The Malaysian Communications and Multimedia Commission detected 33 broadcasting violations from just 1000 hours of recorded TV and Radio. These violations were not from vulgar language, graphic violence, or provocative images, but rather from commercials selling products that have not received approval from the Health Ministry or putting out beneficiaries for the product that have not yet been proven. According to the MCMC network security and enforcement Chief Officer, Zulkarnain Mohd Yasin, “broadcasters have been highly compliant. But it is their clients who are airing advertise­ments without approval.”

Kevin Jennings

Kevin Jennings

Vice President, Programme

Even before Christmas 2016 had begun the next slew of festive ads was already gearing up for Chinese New Year. Coca-Cola is the first one we’ve seen and features the animated figurines, A Fu and A Jiao, who first appeared in Coke campaigns in 2001.  They are seen jumping from the bottle and saving the day after a boy enjoying the celebrations with his family is concerned about the solitude of the snowman. Bless

 

Member News
Additional News

23 December, 2016

news_views_header

Welcome to News Views, CASBAA’s news round-up culled from sources across the industry for the week ending Dec 23th. Curated by CASBAA, News Views keeps you in the loop. We always value your feedback, so tell us what you think!

Brought to you by:

FOX-Networks-Group-Logo_Colour2
Christopher Slaughter

Christopher Slaughter

CEO

Can you believe that 2016 is already over?  Okay, there are still a few days left, but really, it’s basically time to stick a fork in it, 2016 is done.  And with that in mind, it’s worth noting that this is the final edition of News Views for 2016.  It’s been a good year —  over the course of it, we’ve put together more than seven hundred items, passed on more than eight hundred Member News releases, and included about the same number of Other Links. Now, one last link for the holidays:  pull up a seat by the fire. From all of us at CASBAA, Happy Holidays!  (See you next year!)
John Medeiros

John Medeiros

Chief Policy Officer

Last week, we reported it was looking like outgoing FCC Chairman Tom Wheeler would stay on as a Commission member. Nope.  Apparently not looking forward to being on the losing side of the next four years of partisan battles, he’s resigned. He has come to be viewed as an advocate of full-on ISP regulation, in order to achieve net neutrality, and much of the blogosphere has forgotten that the pressure for the controversial decision to regulate ISPs came directly from the White House.  (Wheeler had been pushing a less-radical solution.) The Chairman was certainly not viewed as a consumer advocate early in his tenure, when comedian John Oliver generated huge public reaction with a rant comparing Wheeler’s stewardship at the FCC to hiring a dingo as a babysitter.

 

Mark Lay

Mark Lay

Vice President, Singapore

The most lucrative digital ad fraud in history was reported by Internet security firm White Ops.  Dubbed “Methbot” (because of references to “meth” in the code), the scam was faking views of as many as 300 million video ads per day, making advertisers believe their messages were appearing on legit websites including some of the best-known publishers in the business. Here’s how they did it; interestingly it did not duplicate previous botnets, which relied on malware-infected computers of individual consumers.  In this case, the actual “bots” resided on servers in the US and Europe.  White Ops said it had no doubt the management of the fraud net was in Russia.  (Boy, does this “distributed architecture” sound just like an IPTV piracy network!  Is that coincidental?)  Cynics said the scale of this operation impressed, but it is far from unusual.  The US-based Association of National Advertisers reported in January that frauds would cost US advertisers over US$7 billion this year; looks like that number might be conservative.
John Medeiros

John Medeiros

Chief Policy Officer

In piracy news this week:  Canadian cable companies continue to get legal injunctions against sellers of “black box” illicit streaming devices (ISDs).  EU courts are beginning to implement last September’s EU Court of Justice decision requiring commercial website operators to check the copyright status of the links they post.  A UK pirate operator found himself getting death threats from his ex-customers, after enforcement action closed him down and he couldn’t serve up their stolen content any more.  In Australia, Telstra became the first ISP to start blocking the Pirate Bay and other notorious pirate websites, and was promptly ridiculed for using a DNS block, the easiest blocking technology to circumvent.  (Optus, meanwhile, set its lawyers to parsing the site-block court verdict and seeing what is the maximum length of time they could delay complying – they must be seeking more effective technology, right??)  And the helpful folks at Torrentfreak note that pirate service Popcorn Time now comes with multi-language dubbing to make it easier to consume pirated content.  Torrentfreak says this will be particularly helpful for children’s programming……ah yes, what we teach our children.
Jane Buckthought

Jane Buckthought

Advertising Consultant

Coca-Cola’s global chief marketing officer just said some things about television and digital marketing that should have anyone deep in the faux social media marketing revolution scrambling for cover. Marco de Quinto declared that TV advertising for Coke was still the undisputable heavyweight for delivering the highest return-on-investment from advertising across any media channel – US$2.13 for every dollar spent on TV versus $1.26 for digital. He also opined that ads in social media were a very poor proxy for any digital marketing strategy.

 

John Medeiros

John Medeiros

Chief Policy Officer

Thailand’s TV industry finally united on one thing:  urging a court not to accept the proposed “rehabilitation plan” for shut-down pay-TV operator CTH. The restructuring proposal would have had CTH become operator of a biomass-fueled power plant, and the other TV operators (many of whom are creditors) implied this was just a scheme to further delay paying CTH’s debts. Meanwhile, here’s something else that (ahem) smells like biomass: the Kingdom’s digital terrestrial operators were given a huge financial break by the ruling military junta, which issued a fiat decision stretching out payments for their extremely high license auction bids, and also decided to subsidize DTT retransmission costs.  (Such is the state of policy-making in Bangkok that the NBTC commissioners would never dare make such a decision, even if they thought it right, for fear of being personally sued for giving away public benefits.   The generals don’t need to worry about that. )
Kevin Jennings

Kevin Jennings

Vice President, Programme

Samsung Electronics has announced it has started offering the YouTube high dynamic range (HDR) service via a software update to their latest SUHD and UHD televisions. This is reportedly the first time the HDR service has been made available for watching on television. The move comes at a time when global content streaming giants  YouTube, Netflix and Amazon are slowly releasing HDR content  – as yet there is still not a lot of general content available but the technology is slowly gaining traction, as it can express the darkest and brightest parts of an image in more detail.  It’s notable that Samsung should be the first to feature HDR – Not only does its home country South Korea boast the world’s fastest internet but Netflix, Amazon and YouTube are in a tight race to capture a larger market share, with consumers seemingly reluctant to adopt a subscription –based model.

 

Andrew Lin

Andrew Lin

Regulatory Assistant

The Canadian Radio-Television and Telecommunications Commission (CRTC) has declared that broadband internet should be a “basic telecommunications service” for all citizens across Canada.  This action will be supported by a government investment package of up to $750 million in order to ensure that rural areas will be connected and wired up. ISPs will also be required to contribute to a universal service fund to support rural build-out.  In addition, the CRTC has also set new targets for download and upload speeds for fixed broadband services.

 

Mark Lay

Mark Lay

Vice President, Singapore

It’s been about a week since Amazon Prime Video launched worldwide and, oddly, there hasn’t been too much noise about it in the mainstream or any press. I believe the significant aspect of this launch, for our business, is not just the Prime Video programming but the over 100 channels that Amazon offers through its “Streaming Partners Program.” Amazon is slowly setting themselves up to be the world’s platform for OTT delivered video. And having a prime seat in delivering the main source of video entertainment (and possibly news and sports) worldwide is hugely significant. But what’s even more significant is that this all could just be a means for building a billing relationship for every other product sold through Amazon. Bezos is playing the long game.

 

Anjan Mitra

Anjan Mitra

Executive Director, India

Détente in the South Asian cinema world?  Pakistan’s cinema owners have decided to lift the ban on Indian films.  The motivation for the change seems rather commercial: it was costing cinema owners dearly.  But a spokesman said it was also done because the Pakistani cinema owners wanted to support the Indian industry, and hoped for reciprocal support, too.  Indian filmmaker Mahesh Bhatt praised the Pakistan industry for recognizing it had made a mistake, and said “civil society must not give up its cultural space and become a part of the war hysteria.”

 

Kevin Jennings

Kevin Jennings

Vice President, Programme

Throughout December we’ve seen the bouncy John Lewis boxer TVC as well as a couple of very timely and funny parody ads but as to be expected at this time of year its mostly been heartwarming and schmaltzy – with even the UK’s Gogglebox getting in on the act  …And so we come to the final  TVC of the season, minus the cute and sentimental  – It’s the only festive advert we’ve seen that acknowledges the true family festive horror of Christmas, albeit tongue in cheek. Bah humbug til next year…

 

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