YouTube Eyes Pay-TV Service

YouTube execs are apparently eyeing a subscription TV service that could revolutionize (theoretically) the way consumers pay for premium content. Speaking at the All Thing's D conference this week, YouTube CEO Salar Kamangar said not only would the company explore VOD sales more, but it could create a service that would enable content creators to develop their own subscription channels on the YouTube platform.

"We've learned from our experience with YouTube that you can't predict what's going to be big," he said. So "we're trying to place our bets far and wide."

In his remarks, Kamangar said of all video revenues, about 40% comes from advertising, 40% comes from subscriptions, and 20% comes from sales and rentals. YouTube has focused mostly on the advertising part of the pie, which the CEO says, could grow exponentially if providers enhance their current video offerings.

Enter a YouTube pay platform - one that content partners could leverage for their own subscription revenues while boosting YouTube's ad sales (even more) in return. Seeing as how the company is ambitiously launching a 100-channel original programming line-up online, and is currently developing subscription streaming channels for live sporting events, YouTube is beginning to look like more like a service provider than website anyway...

Bottom line, Kamangar proclaimed, "We're a media platform." •

FCC Revamps Rural 'Lifeline'

In an effort to "modernize" affordable communications for low-income, rural consumers, the FCC is overhauling its Lifeline program to keep pace with the growing popularity of wireless services. The agency adopted a handful of updates to the 25-year-old program designed to trim the fat, cut the abuse and save up to $2B during the next 3 years.

Among the most significant changes is the creation of a national "accountability" database that will prevent multiple carriers from receiving support for a single subscriber. The FCC found (and eliminated) 270K duplicate subs last year after a 12-state program review saving $33M. Additionally, the program will employ new automated eligibility standards, a "one-per-household" rule, performance audits, and the phasing out of subsidies for 'toll limitation' (long-distance restrictions) and LinkUp (initial connection charges).

On the broadband front, the new-look Lifeline will create a pilot program using $25M (from other reforms) to determine how best to increase broadband adoption among eligible citizens. The program hopes to reduce monthly costs of service while requiring providers to address costs of devices and to bolster "digital literacy."

To assist with education, the program will promote digital literacy training at schools and libraries in rural areas. The FCC said it would continue its efforts to close what it calls the digital "gap" through its Connect-to-Compete initiative, and by allowing Lifeline support for bundled service plans combining voice and internet. •

Etc.: Dolan 'Disappointed' w/ CVC Union - Viacom CEO: A la Carte is A-OK? - Facebook Ticker Symbol?

Labor: One week after Brooklyn-based Cablevision techs voted to unionize, company CEO James Dolan said he was "disappointed" in his employees actions and fired the SVP and HR manager in charge of that unit. According to reports, Dolan held an impromptu speech this week for employees saying he was available (via email) if they had any complaints. Ironically, the 180 workers who voted to unionize (out of 282 total) were excluded from viewing the internal communications.

Rules & Regs: Netflix is pushing for legislation that would enable the company to launch its Facebook app here in the States. It hasn't done so already due to "ambiguities" in the Video Privacy Protection Act. Netflix officials spoke to a Senate subcom on tech this week. AdWeek says it's an uphill battle. --- As more officials seem to support eliminating the sports black-out rules, the vocal Sports Fans Coalition has written an open letter to broadcasters saying the two entities are actually on the same team when it comes to keeping professional sports from migrating to pay-TV. --- Does unlicensed spectrum have a future? Cable360 says, "Not if the House of Representatives has its way." Read more.

Strategy: "Enjoy Better." Better what? Well, that's Time Warner Cable's new slogan to push not only video services, but broadband, TVE apps, VOD channels and whatever else it sells next. Watch for the company's new ads during the Super Bowl on Sunday. NYT's Media Decoder has more. --- Comcast and Verizon Wireless made official their cross-promotion relationship with joint offerings in San Francisco. --- Viacom CEO Philippe Dauman told attendees of the All Things D conference that he'd be down with a la carte if the price was right. Hmmm... Meanwhile, Variety is reporting that News Corp. Chase Carey called TV Everywhere a "pain in the neck." Said he: "Authentication is a pretty poor execution to date... The process is way too difficult, way too unfriendly." --- Redbox owner Coinstar ended its agreement to buy Warner Bros. titles directly from Time Warner over the studio's plans to delay access to DVD and Blu-ray discs for two months. Redbox said it will instead get discs from third-party suppliers. --- We mentioned Wednesday that Amazon's Kindle Fire has become the most-used Android-based tablet on the market since launching just 3 months ago... We also linked to an article asking how Barnes & Noble was going to compete. Answer: Stop selling Amazon books across the company's entire retail chain. HuffPost has more.

$$$: Yes Facebook is going public. But what's the company's stock ticker symbol going to be? FACE is taken... but LIKE? ZUCK? Sound off.

QRs: Q4 sales for Amazon were up 35% to $17.4B, compared with ~$13B during Q410, but quarterly profit sank 58% from $416M to $177M. HMM has full details.

Programming: Preschooler net Sprout is premiering a new 2-hr. programming block called "The Super Sproutlet Show" focusing on healthy living. New content starts Feb. 14, 2012 daily at 2 p.m. ET.

Tech: Level 3 said its Vyvx VenueNet+ technology will provide the live, HD TV broadcast services to NBC for the Super Bowl on Sunday.

Deals: Comcast extended its software and services deal with Amdocs. Terms were undisclosed.

WebTV: The Wall Street Journal launched its YouTube channel this week featuring "Off Duty," a video series highlighting the pub's popular lifestyle section in its weekend edition. More to come. --- Major League Fishing said its first major event - the Challenge Cup - will be offered on a 7-week, internet PPV plan starting Feb. 13. The league says it's "bass fishing on steroids." So... yeah.

SkyREPORT: SiriusXM is hosting a special Bruce Springsteen & the E Street Band concert to celebrate 10 years of satellite radio. The show will be held on March 9 at the Apollo Theater and air live on The Boss's in-house channel. --- Multiband said it expanded its installation fulfillment deal with ViaSat and now expects to handle almost 40% of the satellite operator's direct retail install contracts in the U.S. --- SES said its SES-3 bird will complete relocation on Monday.  Te satellite is moving to provide better coverage across the Middle East and South Asia.

Mobile: U.S. Cellular is launching a 4G LTE network in March covering 25% of its footprint in Wisconsin, Maine, North Carolina, Texas and Oklahoma. --- TMNG Global is launching MDLx, a 3rd party provider of mobile device leasing with a tech platform for lease administration and accounting. The end-to-end solution is designed to lessen the burden of handset subsidies while enabling consumers to have access to more frequent upgrades. Details here. 

Over, Up & Under: ATVOD (the U.K.'s Authority for TV on Demand) said online video providers must ensure minors do not have access to adult content. The ruling came as the agency found online VOD service Bootybox.TV was providing unrestricted access to hardcore material. ATVOD says providers must either remove such offending content or place it behind necessary access controls. (Bootybox.TV has since ceased operations.) --- Polish cable op UPC Polska added Eurosport HD and Eurosport 2 HD to its channel line-up. --- Wireless broadband network provider NomoTech selected Eutelsat's Tooway satellite-broadband for service in France. --- New SeaChange International CEO Raghu Rau said the company will save ~$5M through a "restructuring" plan that will see an unknown amount of job losses and operating cost reductions.

Charity: Cox awarded $140K in grants to 15 non-profits in VA. Details here.

People: Sony named VP Kazuo Hirai as president and CEO, replacing Howard Stringer who will step down from day-to-day management. Stringer will remain chairman through June. --- Outdoor Channel appointed Tom Allen as COO (while continuing as EVP and CFO), Catherine Lee as General Counsel, and David Bolls as EVP of business & legal and Deputy General Counsel. --- The NY Observer says Natalie Ravitz, communications director for the New York City department of education, will leave her post to join News Corp. as chief of staff to CEO Rupert Murdoch. Last year, New York schools chancellor Joel Klein left to head up a new education division at the media giant.

Um...: Technology on the toilet? Apparently so. A new study says 75% of Americans use their smartphones on the john. Further, 20% of men and 13% of women say they take conference calls while, um, nature calls.

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

ADVERTORIAL: Multicultural Leaders Gather in NYC for Research & Strategy Event

New York, NY – NBC Universal, Telemundo, mun2, Comcast, ESPN, Imagina U.S., History en Español, MGM Networks Latin America, and French broadcaster TV5MONDE are among the media companies that will be represented at the 12th Annual Multicultural Media for Multicultural America Forum on March 21, 2012 at the Marriott Marquis Hotel in New York City.

For over 10 years, the Forum has attracted an audience of about 300 executives in television programming and distribution, marketing and advertising, and technology, as well as advertisers and the trade press.  Among the confirmed panelists are Barry Blyn, Vice President of Consumer Insights at ESPN, Rubén Mendiola, the recently-appointed VP & General Manager of Multicultural Video Services for Comcast, and David Saldarriaga, Director, Sales & Marketing at Charter Communications. Melvin Perez, President of MGM Networks Latin America, will showcase Ella, the new Spanish-language network targeting U.S. Latinas with lifestyle and entertainment programming.  Veteran marketer Jorge Consuegra, Principal of Fearless Multicultural, will moderate one of the morning’s two panels.

Adriana Waterston, Vice President, Marketing & Business Development at Horowitz Associates, will present findings from three Horowitz studies to give attendees a comprehensive, 360° view of multicultural, multiplatform  consumers:  Viewing the Viewer, an in-home videography of multicultural households; State of Cable and Digital Media: Multicultural Edition, a quantitative survey of multicultural consumers across America; and the Consumer Voice Community, an 8-week online research community focused on the media lifestyles of America’s multicultural consumers and how they are adopting to a rapidly changing media world.

"Today, it's crucial to have your finger on the pulse of what consumers have and what they do with their media tools," notes Waterston.  "The survey data will give our audience the hard numbers.  Qualitative insights from the online research community and in-home videographies will provide context, bringing these data to life."

The online research community platform is being provided by Ramius Corporation; for the 8 weeks prior to the event, registrants will be able to log in and follow the community in real-time.  For more about the studies and a preview of Viewing the Viewer, please visit: www.multiculturalmediaforum.com/presentation.

To register or for information, visit: www.multiculturalmediaforum.com or contact Stephanie Wong, (914) 834-5999, stephaniew@horowitzassociates.com. Through February 17, the early bird registration rate is $249.

A limited number of speaking and sponsorship slots are still available.  Contact Manny Ballestero at mballestero@hispanicad.com for sponsorship information. •