Lots of progress ... of a sort.

    The FCC approved the acquisition of 51% of NBC Universal by Comcast from GE ... and perhaps illegally required the acquiring entity to produce certain kinds of content.  Of course, it is hard to argue that with more local news, children’s programming and a Spanish-language multicast channel.  Then again, maybe this is just the FCC formally indicating that broadcasters really do need to provide a public service for all of that free spectrum and, after all, they aren’t really and truly free to invoke most company’s 1st Amendment rights.

    The FCC had earlier issued an order on net neutrality ... crafted in part by not 100% happy companies.  So, one of the companies - Verizon - has challenged the FCC’s right to issue the report & order.  Using much the same arguments that Comcast used to stifle the FCC’s regulatory instincts earlier, it seems like a fair bet.

    Just to make it interesting, every other Republican in Congress is threatening this or that to overturn the 3rd Way.

    And, the hot potato of retransmission consent is beginning to work its way to a non-conclusion.

    All of that “progress” and only Brian and Steve are particularly happy about any of it.  And to them, credit for great timing, great price and great upside.

Meanwhile, we toned down our language, too.

     Speaking of which, all of the noise surrounding Keith Olbermann's departure from MSNBC makes it official that "cable" nets have parity with broadcast nets ... and, one other thing: Comcast had absolutely nothing to do with it, really, no kidding (they couldn't be bothered) ... ••

Verizon Stacks the Net Neutrality Deck

Verizon has challenged the FCC's net neutrality order to the D.C. Circuit Court of Appeals with an interesting self-advantage (or three):  By filing under a statutory provision (Sec. 402b) before the FCC order is published in the Federal Register, Verizon has boosted the odds that the D.C. court will hear the case, rather than having the venue chosen by lottery, note Stifel Nicolaus analysts Rebecca Arbogast and David Kaut. 

That D.C. court, notes Fletcher, Heald & Hildreth's Harry Cole, is "the same panel of judges who slammed the FCC in the Comcast (v. BitTorrent) decision."  Even more interestingly, Verizon has "filed a separate motion asking that the Comcast panel be assigned to Verizon’s appeal."•

DIRECTV v. Northwest Heats Up

Northwest Broadcasting is turning up the heat on DIRECTV saying that the DBS service "rejected" its proposal to end its broadcast feed blackout.  The company is also complaining that DIRECTV "may be violating FCC rules" by offering distant stations to some households that (allegedly, of course) cannot receive the feeds over the air.

For its part, DIRECTV notes, "Negotiating through the media and issuing press releases every day will not get a deal done."

Besides, the DBS giant notes, it has been using FCC guidelines to determine who legally qualifies for distant network signals.  And, the company huffs, it has successfully resolved deals with seven different broadcast groups, of all sizes, in the past couple of months.  Northwest should restore the channels and let an independent arbitrator decide the issue, DIRECTV says.•

Etc: A "Skin" Too Far? Cable's Viewer Advantage; GPS Industry Targets LightSquared

Programming:   Has MTV finally taken a step too far with its quasi-porn teen show "Skins"?  The latest news lists three advertisers (Taco Bell, GM and Wrigley) who have put the show on their "do not buy" lists – all at the behest of the Parent Television Council. --- Ad supported basic cable nets continue to boost their audience share over the broadcasters, says the Cable Advertising Bureau.  Based on Nielsen data, cable prime time viewing has soared to more than 60% of the audience, with the cable v. broadcast spread doubling in five seasons. 



The Deal:  "Not our fault!" Comcast protested after MSNBC's Keith Olbermann told viewers he'd been dumped by the network.  "We have not and we will not" interfere with news operations, said spokesperson Sena Fitzmaurice. --- At the same time, NBC saw the departure of another top level exec as Angela Bromstad, president of prime-time entertainment, told her staff that she's out.

Analyze This:  comScore says that 172 million U.S. Internet users watched online video content in December for an average of 14.6 hours per viewer. Google took the lion's share (as usual) but notable for its growth is music video player VEVO, with 50M viewers after just one year.

People: Viacom's Philippe Dauman netted a cool $84.5M last year, the company revealed in a SEC filing.  COO Tom Dooley did okay too:  $64.7M. 

Over (Up & Under) There:  Turkey's biggest media group – Dogan Yayin Holding – saw its shares rise after Time Warner's Jeff Bewkes told Bloomberg he's considering a purchase of the company's assets. 

Markets & Money:  NBCU's 4Q profit jumped by 38%, thanks largely to increases at its cable nets and broadcast stations plus hefty sales for its "Despicable Me" DVD.  Cable net profits were up 16% to $740M.  Comcast, which is due to close on the NBCU deal this Friday, got a halo effect from the report as its shares rose 2%.

SkyREPORT:  "The GPS industry has launched a full frontal assault on LightSquared’s application to modify its MSS-ATC license to authorize a wholesale hybrid service, with retailers permitted to offer terrestrial-only handsets," note Stifel Nicolaus analysts Rebecca Arbogast and David Kaut.  Add to that the weight of the Defense, Homeland Security and Transportation Depts. and fears that LightSquared's technology might interfere with GPS services could put the kibosh on the whole idea.  However, write Arbogast and Kaut, the issues "may be resolvable" and LightSquared has several potent arguments in its favor.  Most likely (and best) outcome?  LightSquared's modification gets the okay, with lots of codicils on the interference issue.  --- The Space Foundation has added three new members to its board including Northrop Grumman's  Gary W. Ervin, Pratt & Whitney Rocketdyne's James Maser, and Intelsat General's Kay Sears.  Robert A. Bednarek and Alexis C. Livanos have retired from the board.

Strategies: Sony Music is working on mobile entertainment apps to highlight its artists and labels.•