First Look: Authentication Backfires

It took less than a week for Fox's authentication move restricting non-paying users of Hulu to watch the net's shows online for free (a day after their original airing) before the plan backfired.

Last week Fox stopped offering new episodes of its shows for free on the video-streaming site the day after they aired on TV. Why?  To keep viewers from cutting their cords and increase revenue from live TV.  The reality? Piracy rates for Fox shows experienced triple-digit increases since the company implemented its authentication strategy.

According to numbers crunched at TorrentFreak, illegal pirated downloads of Fox's "Gordon Ramsay's Hell's Kitchen" and "MasterChef" increased by 114% and 189%, respectively during the first five days after each program aired. The rates are for the network's summer reality programming and pundits are asking: If that many viewers are downloading illegal copies of Chef Ramsay, how many will download actual hit shows like "House" or "Glee?"•

Diversity Questions in TV Land

When Comcast acquired 51% of NBCU in January, the FCC approved the deal on condition that both companies  adhere to several requirements including those regarding diversity. A handful of months later, NBCU's prime-time drama featuring African American leads was canceled, its former diversity chief retired, and some of the company's businesses have taken heat for not following through on the diversity conditions set forth by the Commission.

Not only are there diversity questions being raised at NBCU, but a new study suggests women are also underrepresented across the entire television landscape.

According to the LA Times, NBC's fall season schedule features fewer minorities in major roles than in years past and two separate Latino groups are claiming the company is discriminating against Hispanic anchors in the newsroom. Newly-promoted diversity chief Craig Robinson says the network has long been active in hiring minorities and that the net's talent lineup would look more diversified in the coming months.

The newspaper also reported on a Center for the Study of Women in Television and Film study (San Diego State University) that says the number of women working in prime-time TV as writers plunged from 29% in the 2009-10 season to 15% this year. The report also said women employed in a directorial capacity decreased from 16% to 11% during the same time.

According to the group's research, roles for female actresses varied widely by network, with only the CW (52%) representing women "in accurate proportion to their representation in the U.S. population." The other networks ranked: ABC (43%), CBS (40%), Fox (39%) and NBC at 36%. •

Etc: Cable Lobbies FCC - Mediacom Agrees w/ NFLN - DISH Files for Reg. Waiver

Rules & Regs:  The ACA and NCTA sent a joint letter to FCC Chairman Julius Genachowski Tuesday highlighting their support for the agency's efforts to modernize the universal service fund (USF) and intercarrier compensation management. While the groups applauded the Commission's efforts, the letter also expressed concern that the recently-unveiled USF plan by incumbent telcos does not adhere to four key principles that the FCC established to help reform these programs: 1) modernize USF and ICC for broadband; 2) fiscal responsibility; 3) accountability; and 4) market-driven policies. --- NAB officials say 5 Pittsburgh TV stations could disappear under the federally-mandated expansion of frequencies available for broadband service with the removal of channels 31-51 from the broadcast spectrum.

Distribution: Mediacom spiked an undisclosed, multi-year affiliate agreement with NFL Network just weeks before the regular season kicks off leaving Time Warner Cable and Cablevision as the last big holdouts. Mediacom says it will go live with the net in its midwest and southern markets by Sept. 8. (Reports suggest TWC and Cablevision aren't close to an agreement with the network, yet.)

4G: A new Deloitte report says that if domestic carriers were to invest $53B in 4G technologies between 2012 and 2016, the U.S. GDP would grow by $151B and 771K jobs would be created. Conversely, if carriers invest only $25B, the GDP would increase by $73B and 371K jobs would be created during the same period. --- LightSquared inked a multi-year wholesale agreement with north-eastern CLEC InterGlobe Communications.

Gov't: Federal authorities announced a total of $103M in grant and loan funds through the Rural Utilities Service program for 23 rural broadband projects. Ag Sec. Tom Vilsack said the funds will help bring broadband services to residents living in remote areas across the country to promote education and business opportunities. The USDA website has details on the complete list of recipients.  --- The FCC ordered a freeze on broadcast applications in Ch. 51, the top channel in 6 MHz spectrum. The Commission issued a public notice Monday freezing all new and pending applications for licenses on the channel while encouraging incumbents to relocate. The notice also opened a 60-day window for low-power applicants seeking broadcast space on 51 to amend their filings.

Programming: Cablevision added the African American-centric TV One to its iO TV service.

Advertising: Online video ad network TidalTV is implementing the "Ad Choices" icon to its in-stream vids this month to give consumers enhanced transparency w/ the collection and use of personal data from online viewing.

Mobile: BuzzMob, the location-based social media platform, launched its smartphone app available now on iTunes. --- Ask.com launched its mobile app for the Google Android platform.

Tech: Pace launched a set of new HD STBs for the whole-home network that can be used as standalone boxes (w/ 3D capabilities) or as IP clients for OTT services.

Economy: AT&T said it will hire more than 80 techs across Connecticut in support of its growing U-verse service. --- Juniper Networks plans to hire more than 100 workers in Australia and New Zealand in an effort to meet increasing demand from the expanding national broadband network.

SkyREPORT: DISH filed for a waiver with the FCC that would allow the company to "launch a hybrid satellite and terrestrial mobile and fixed broadband network using 40 MHz of 2 GHz Mobile-Satellite Service (MSS) spectrum." DISH is seeking to combine the S-Band spectrum licensees it acquired from TerreStar Networks and DBSD North America to create a proposed hybrid satellite-terrestrial mobile broadband network using LTE tech. DISH's newly-created subsidiary Gamma Acquisition would operate the proposed network.

Retail: A new study says 47% of tablet owners are using the devices to replace portable DVD players for full-length movies.

Folks: Congrats to C-SPAN founder/CEO Brian Lamb who will receive the Al Neuharth Award in recognition of his lifetime achievements in journalism and media. --- Women in Cable Telecommunications named Bright House Pres Nomi Bergman as "Woman of the Year." The group also named Jennifer Dorian, Turner Entertainment Networks SVP, and Kathleen Finch, SVP and GM of HGTV as "Women to Watch." --- NBCU named Rob Spodek, SVP for its corporate finance group, to SVP and CFO for Syfy and Chiller networks.

Catch today's media market news from The Evening BRIDGE. •