Connected TVs, Connected Ads, Connected Future

The number of TVs featuring internet connectivity will hit 551M globally during the next few years. A new report says in the 5-year window from now until 2016, connected TV penetration will increase by 20%, a growth rate that will see the next-gen technology in 43% of all TV households worldwide.

Digital TV Research says at the end of last year, there were more than 31M installed connected TV sets around the world. The firm's Connected TV Forecast report says that number will skyrocket to 244M by 2016.

The report notes that there are several ways a TV can be "connected" to the internet - the most popular of which tend to be via fixed consoles like gaming devices (PlayStation, Xbox) and more recently OTT boxes (Apple TV, Roku). However, what will fuel the connected growth is not increased penetration rates of fixed consoles but sales of TV sets with built-in ethernet connections and pre-installed widgets and applications.

On the heals of the report comes news that LG Electronics linked up with online video ad technology firm YuMe for a multiyear agreement to develop their own connected advertising platform. Details were sparse, but the plan is to integrate YuMe's ad placement technology directly into LG's Smart TVs.

With internet-connected TVs poised for so much growth (separate reports say the new sets could make their way into nearly half of American HHs by next year), don't expect marketers and agencies to be far behind. The LG/YuMe deal has already banked a major sponsor in Toyota Motor Sales USA.  And, just so you really get it, TWC's Glenn Britt keeps touting broadband as the the base business and now Charter's Mike Lovett says Charter is "an ISP."•

TWC v. Viacom: Round 2

Time Warner Cable and Viacom seem to be headed for another round of litigation as the two sides failed to reach a settlement in their "iPad iMpass." Court papers indicate the cable operator is threatening to "terminate" carriage of Viacom channels and "cease paying license fees" if it doesn't get the deal it seeks.

The media companies are entangled in a dispute over in-home streaming on the iPad - a similar conflict Viacom had (and settled) with Cablevision. With those two parties reaching an agreement, TWC believes it deserves a comparable compromise.

A court will now take up the case in which TWC says it has the rights to simulcast nets such as MTV, Comedy Central, Nickelodeon while Viacom holds that said streaming is a violation of copyright and trademarks. TWC filed court documents saying it wants "identical rights" Viacom gave to Cablevision or it will dump other products like MTV2 and VH1 Classic. •

Etc.: DIRECTV's Last-Minute Belo Deal - The "End of Piracy" - 'No' DISH Layoffs

Disputes: DIRECTV came to its second last-minute agreement in as many days with a "long-term" deal to keep 18 local Belo stations. Terms of the new deal were undisclosed.

Rules & Regs: Legal representatives for the ACA wrote to the FCC this week seeking "a blanket one-year hardship waiver with a possible one-year extension" for smaller MVPDs to comply with the CALM (loud TV commercials) Act. The group also wants the FCC to pass legislation that requires OTT services to comply with similar closed-captioning rules that small cable operators operate under. --- The House passed the Wireless Tax Fairness Act this week which levees a 5-year moratorium on wireless service taxes. --- Tech. Policy Institute President Tom Lenard says granting the FCC with authority to hold voluntary incentive auctions for spectrum will "boost the economy and advance (the country's) progress toward a more efficient, market-oriented spectrum regime." Check out his blog post at The Hill.  Meanwhile, House Communications SubCom Chair Greg Walden (R-OR) and Sen. Dean Heller (R-NV) intro'd what they're calling a "sensible" bill for FCC reform. The pair said the bill is designed to improve operations at the agency by promoting transparency and predictability ensuring the FCC is focus on job creation, investment and innovation. --- Texas Republican Sen. Kay Hutchison said a Senate vote to overturn the FCC’s net neutrality rules could come as early as next week… just days before Nov. 20 when the rules are scheduled to take effect.

Q3: Comcast reported Q3 net income of $908M ($.33 per share) up from $867M ($.31 per) during Q310 with revenues reaching $14.3B. The cable company posted a loss of 165K video subs (v. -275K Q310), but netted 261K broadband customers and 133K phone adds. Total ARPU spiked 8% y/y to $138.58. On the NBCU front, cable revenues jumped 12% during the period to $2.1B but increased expenses weighed on CF by 9.3% to $951M. --- Time Warner Inc. posted solid results with revenue increasing 11% to $7.07B with adjusted earnings up 27% to $.79 per share. --- Sinclair reported Q3 net broadcast revenues of $151.7M, a 4.5% y/y decrease with operating income dipping to $52.2M from Q310's mark of $56.1M. The company said local net broadcast revenues, which includes retrans revs were up 1.2% during the period while national broadcast revenues (which do not) were down 19.2% y/y. --- Sony posted its forth straight annual loss of $346M thanks to flat sales of flat TVs and continued problems with the company's PlayStation gaming platform. AP has a story.

M&A: Sinclair Broadcasting announced plans to buy Freedom Communications’ eight-station broadcast TV division for $385M. The deal gives Sinclair two additional "duopolies" in West Palm Beach-Fort Pierce, FL and Albany-Schenectady-Troy, NY.

Mobile: The latest installment of "the end of privacy" saga comes via CNNMoney's report about how wireless carriers (and others) treat privacy concerns and profit from user data… Detailed in the piece include everyone: Verizon, AT&T, Sprint, Apple and Google.

Online: YouTube was named "Social Media Brand of the Year" over Facebook by a recent Harris Poll. The firm's study also says that when social media is compared to TV, kids programming and broadcast networks get higher scores in "brand equity" (i.e. familiarity, quality and purchase consideration). --- Google redesigned Gmail with new features like "streamlined" conversations, better search capabilities and easier navigation. Details at the company blog.

SkyREPORT: NSR's new satellite industry assessment report says global satellite operators saw a strong revenue increase of more than $550M in 2010. The firm says by 2020, capacity leasing revenues will hit $17.2B, up from $10.1B last year. --- Inmarsat reported quarterly revenues of $364.1M, an ~18% y/y increase with total active customer terminals up 12.5%.

Up, Down & Over There: comScore says smartphone usage in the UK increased 46% y/y with smartphone owners making up almost half of all mobile data subscribers in the region. --- ITI and TVN entered a partnership with Canal+ in Poland and are now expect to combine their pay-TV businesses to create a DTH platform with more than 2.5M subs. BroadbandTV News has details. --- Local reports say new investment fund Elbrus Capital has plans on creating one of the largest pay-TV/broadband service providers in Russia that will encompass 250K high-speed internet and 80K cable subs.

Labor: We caught wind that DISH had plans on cutting staff by 20% before the end of the year. Not so, says company spokesman Marc Lumpkin, who clarified by saying a small percentage of workers weren't laid off but "separated." He also said the company will "rehire" most of the jobs.

Dist.: The Liquidation Channel, 24/7 programming on "rare and exotic gemstones, jewelry (and) platinum, silver and gold" launched on Verizon FiOS this week. The network incorporates an web portal for viewers to make purchases online or watch live simulcasts. (LC is also available on DIRECTV, DISH and Roku.)

Wha?: Remember Janet Jackson's 'wardrobe malfunction' in the 2004 Super Bowl? We all do. But did you know that the case wasn't settled yet? Ugh. A federal appeals court yesterday AGAIN threw out the FCC's $550K fine against CBS (as another court had already done in 2008) after the Supreme Court ruled in a separate case that the agency could nail broadcasters for isolated offensive incidents.

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