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August 12, 2011 @ 1:00 AM
WildBlue
Volatility Continues to Rock Markets

In yet another day of triple-digit swings, the Dow Jones Industrial Average soared Thursday gaining 423 points helping investors recoup some of the losses they've experienced this week. The 400+ point rise softened the blow of Wednesday's 520-point loss closing at 11,143, but not all media stocks recovered as many had hoped.

Below is a recap of how some multiplatform companies fared during yesterday's market madness...

Cable: Cablevision, $18.47 (+9.5%) --- Charter, $46.96 (+5.9%) --- Comcast, $20.50 (+4.1%) --- Time Warner Cable, $64.74 (+3.9%).

Satellite: DIRECTV, $43.07 (+3.5%) --- DISH, $22.72 (+4.9%) --- EchoStar, $25.13 (-2.6%) --- SiriusXM, $1.86 (+7.5%) --- ViaSat, $34.17 (1.8%).

Media: AOL, $11.47 (+12.23%) --- Liberty Global, $39.10 (+7%) --- News Corp., $16.59 (+16.7%) --- Viacom, $55.41 (+6.43) --- Yahoo!, $12.86 (+9.3%).

Others: AT&T, $28.44 (+2%) --- Disney, $32.12 (+1.8%) --- Netflix, $243.13 (+4.6%) --- Sprint Nextel, $3.12 (-1.3%) --- TiVo, $7.65 (+6.4%) --- Verizon, $34.62 (+2.8).

The S&P closed at 1,172.64 on a 52-point (+4.63%) gain while the Nasdaq finished Thursday at 2,492.68 on a 111-point (4.69%) upswing. Make sure to get all of the market's news today in The Evening BRIDGE. •
Verizon: FiOS "Less-Profitable" than Copper

Spanning the past handful of years, Verizon has dropped nearly $23 billion on building out its FiOS fiber-optic network. However, it seems the company may be coming to terms with the idea that fiber will never make as much money as good 'ol copper.

According to Verizon CFO Fran Shammo, returns from the company's fiber-based high-speed internet and TV service will be limited now and possibly forever. Citing intense competition within the pay-TV landscape, in addition to high and rising fees for digital content, Verizon will never reap same benefits from fiber as the copper incumbent.

"Let's face it," the exec said during a webcast, "the FiOS cost structure will never be as profitable as the legacy wireline structure."

The company has and will continue to transition video customers from copper to fiber, Shammo said, especially in markets where the company has a strong FiOS footprint. •
ETC: Disney Takes Nod from Fox - Groupon "Unprofitable" - Lopez Canceled

Strategy: GigaOm says Fox might not be the only one to restrict access to content... Disney is said to be negotiating deals with distributors that would allow viewers to watch shows sooner if they logged in with a TV Everywhere-type ID. Details here. --- SiriusXM wants to license music directly from record labels and avoid paying royalties to SoundExchange. Billboard has more. --- ABC affiliate WABC New York will start using sportscast from ESPN Radio into its morning news. Sharing: it's a thing now.

$$$: Groupon updated its IPO filing from June this week, omitting an odd accounting practice that was said to hide company losses, and the new numbers aren't good. The company now admits what many already knew... Groupon isn't profitable. The painful details at CNNMoney. --- AOL says it will buy back $250M of stock during the next 12 months.

Rules & Regs: Today is the deadline for the FCC to deliver a "how-we-did-it" version of the gestation of the Net Neutrality "Lite" set of rules to the House Energy & Commerce Committee led by newly appointed gang of 12 SuperCongressperson Fred Upton (R-MI).

Gov't: National Journal has details on how Congressional decisions to name Senate Commerce
Communications Subcommittee Chair John Kerry (D-MA) and Energy and Commerce Chair Fred Upton (R-MI) will affect the debate over spectrum legislation and finding $1.5T in deficit savings. --- The FCC won't reverse its earlier arbitration decision in favor of cable-op Armstrong Utilities in its dispute with DIRECTV over the cost of Fox Sports Net Pittsburgh.

4G: Towerstream is targeting Verizon subs during the latter company's union workers' strike by
waiving install fees for customers who switch to Towerstream's high-speed broadband service. --- LightSquared says the GPS industry's failure to comply with DoD filtering standards is the root cause of potential interference with the company's 4G-LTE wireless network. --- The NetAmerica Alliance said Panhandle Telephone of Oklahoma is joining the rural 4G-LTE consortium.

Research: Leichtman Research says connected TVs represent 10% of all sets in US HHs. Including video game consoles, 30% of those homes have at least one net-connected TV device, the firm says. --- IMS says the share of STBs shipped to emerging digital TV markets (China, India, Russia and Latin America) will blossom to more than 45 percent of global STB shipments between 2011-15.

Programming: TBS is canceling George Lopez's late-night talk show "Lopez Tonight" - the final episode aired last night. --- The LA Times reports Cinemax green-lit "Banshee," a new series from Alan Ball, the creator of HBO's "True Blood" as part of the premium net's new emphasis on original programming. --- Lions Gate's first run of premium VOD? "Abduction" starring Taylor Lautner will be available on pay-TV 3 months after its theatrical release for $6.99.

Mobile: Weather on the go... The Weather Channel and Twitter are launching The Weather Channel Social - an integration of local weather tweets across TWC's TV, web and mobile platforms. --- Facebook launched Facebook Messenger, an app for iPhone and Android allowing users to IM and text w/o having to go through the Facebook.

SkyREPORT: Citing the current business environment, EchoStar said it will start shutting down its wholesale IPTV MPEG-4 transport service ViP-TV this month with the service going black by the end of September. --- According to Euroconsult, the fixed satellite sector grew in both transponder demand (4.4%) and revenue reaching $10.8B last year. But while the encouraging numbers are set against the backstory of slowing growth rates and "a more challenging business environment," the firm says TV broadcasting and emerging markets will continue to drive expansion and HTS capacity. --- NSR says the transition of voice to data and other advanced services in the MSS sector is a way for companies to "enter the mouth-watering 'personal device' segment as a way to sustain growth going forward in the face of increasing competition." --- Stratos Global is working with SkyWave Mobile Communications to serve as the first Inmarsat distribution partner for IsatData Pro products and service.

Up, Down & Over There: The European Broadcasting Union (EBU) is calling on the EU's Satellite & Cable Directive to be extended to all forms of broadcast including interent TV to simplify retrans agreements across the continent. Broadcast Engineering has more. --- News Corp.-owned SkyItalia is creeping toward 5M subs, the company said in its Q2 reports. --- AP says Hulu will launch a subscription video service in Japan this year. --- Online forums hint that Bell TV is shuttering all iTV on the Bell TV DTH platform. Read what people are saying here.

Folks: IAC/InterActive said CFO Thomas McInerney plans to leave the company in the coming months. --- Former France Telecom Orange EVP Anne Bouverot was named new Director General of the GSMA. --- Univision named Victoria Vitarelli as VP of marketing, and Sharon van Zwieten as senior EP of news, both at Univision Deportes.

Misc:  --- The SCTE and Women in Cable Telecommunications (WICT) unveiled "Women's TechConnect," a joint initiative to support the career growth of women in tech positions. Details can be found here.

Editor's Note: Evie Haskell's weekly SkyBOX column will return to its regular schedule next Friday.
 
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