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April 16, 2012 @ 1:00 AM
Showtime
Tax Time ... Plus NAB!
by Paul S. Maxwell


We’ve all survived yet another Friday the 13th ... or have we?  Seems politics just gets dumber every day.  Or sillier.  All those politicians have become seduced by reality TV shows.  Few talk about what counts, only one ‘gotcha’ after another.

And then there’s our labyrinthian tax code ... so, Happy Filing Day!  Or is it Happy-Extension-But-Write-a-Check-Anyway-Day today?

The NAB is meeting again in Las Vegas ... watch out for all the whining as if retransmission consent change was really in the wind or they’ll have to give up their “hard-earned” spectrum anytime real soon.  As if they’ll notice their loss at the roulette wheels ... or the sports book (let’s keep the blackout rules!). 

Have you ever seen so many free-enterprise proponents beg for government help? 

(Well, of course ... that’s the true American way ... as that afore-mentioned tax code proves.)

Meanwhile: I’ve been away.  Riding a bicycle most of the way from Charleston to Savannah with Backroads.  Too much rich food.  A lazier outlook pedaling through some nice weather, lunching under live oak trees (very big live oaks) and wandering historic streets. 

A highly recommended way to avoid thinking. 

(And, yep, I know that amounts to a quick rejoinder to the above musings written just for you.) •

Glass 1/2 Full on Pay-TV

While the market is continually in a state of flux, one thing has become clear: the multichannel, multiplatform businesses have been doing OK. And, some say, with a few key factors helping the pay-TV sector, now's as good a time as any to think about investing in video providers.

Canaccord's Tom Eagan says the firm is "cautiously optimistic" on the pay-TV market due to several reasons, namely healthy fundamentals, continued returns to shareholders and low regulatory obstacle risks.

"One the whole, economic metrics from the latest set of reports have been positive," the analyst said. "We believe trends in unemployment and consumer confidence as well as the many housing-related statistics (such as foreclosures, occupied homes and housing starts), are important indicators for payTV operations, including RGU and APRU growth."

Eagan said his "top picks" from the sector include DIRECTV and Time Warner Cable (thanks, in part, to the cable company's cross promo deal with Verizon Wireless), followed by Comcast (which gets a positive nod from its TiVo experiment in SF) and Virgin Media. The analyst also gave DISH a 'buy' rating and advised investors to 'hold' on Cablevision. •

Sony Ditching TVs? - The 'Aereo Effect' - Boucher: FCC 'Wrong' on AT&T-Mobile

Strategy: Amidst its major worker layoffs and corporate restructuring, Sony says it will also concentrate on mobile devices, games and other digital technologies... at the expense of HDTV sets. Bloomberg has the story.

Rules & Regs: A coalition of tech firms, service providers and other groups is seeking a five-year moratorium on new taxes on wireless services. Commenting on the Wireless Tax Fairness Act, Mobile Future says while the benefits of mobile broadband are "evident from the exponential growth in consumer demand... additional taxes on wireless services would most hurt those who can least afford it." Details here.

Op/Ed: A NY-based beta tester of Aereo's TV service says he is "now more certain than ever that my Time Warner Cable bill will come permanently down from the $160 a month I currently pay to $50 a month" Read the entire piece at HuffPost.

In Court: In a court filing late last week, LA Dodgers new ownership said Fox Sports would get the confirmation it has been seeking in that Time Warner Cable is not involved - directly or indirectly - with the team's purchase.

M&A: Former Rep. Rick Boucher (D-VA) said the FCC made the "wrong decision" by not allowing the merger of AT&T and T-Mobile. He added that allowing the Comcast NBCU merger while blocking AT&T-Mobile deal was another "mistake." According to Hillicon Valley, Boucher is now a partner at Sidley Austin, a DC-based lobbying firm.

Service: Mom-and-pop telco Vermont Telephone Company said it is building a 100G fiber network that will enable it to deliver "superfast" broadband speeds, not to mention IPTV and VOD services. Backed with broadband stimulus funds, the new network will utilize Alcaltel-Lucent architecture and solutions.

Research: CTIA says U.S. wireless data traffic grew 123% from 2010 to 2011. The group's latest study says the number of active smartphones and wireless-enabled mobile devices increased 43% last year (111.5M) compared with 78.2M in 2010. "With almost 95 percent of these devices capable of transmitting wireless data, Americans' voracious appetite for anywhere and anytime mobile access is why the wireless industry needs more spectrum," the group says. Other key findings from CTIA's latest study includes: Wireless subscriber connections in 2011 reached 331.6M (104.6% penetration); and average local monthly wireless bills (including voice and data) remained relatively flat at $47. --- eMarketer estimates that by 2016, more than 110M Americans  (one-third of the total US population) will watch video content on a mobile phone at least once per month. This year, just under 20% of the population, or 25.2% of US mobile phone users, are expected to watch mobile video monthly, the firm said. --- NPD Group says retail sales of video games totaled $1.1B in March, a 25% y/y decline. --- According to reports, SiriusXM and Pandora account for 90% of SoundExchange's royalty revenues. Seems to bode well for the two companies come negotiation time...

Programming: The new Julian Assange project "The World Tomorrow" will premiere on all RT channels on Tuesday, April 17 in English, Arabic and Spanish. --- Comcast has teamed up with the Tribeca Film Festival to give Xfinity VOD subs access to three films before they screen at this year's festival, plus other current and past festival content. Cool.

WebTV: Comedic content creator SMOSH said it will include "Shut Up! Cartoons" as part of its YouTube channel launch on April 30. SMOSH is owned by Alloy Digital (EVP of which is former Disney Television Animation chief Barry Blumberg).

Over, Up, & Under: Reuters is reporting that a British parliamentary investigation into News Corp.'s phone-hacking scandal may lead to the company cutting ties with BSkyB. --- Hulu said it is lowering its subscription price in Japan from ~$18 to ~$12. --- Lower tiers of the pay-TV landscape could become more important to operators' bottom lines over the next few years. According to new data from Enders Analysis, growth and competition within lower-cost tiers will drive some erosion across all pay-TV platforms, but the shift in funds should favor cable and satellite.

People: ACA President & CEO Matt Polka commended ACA members Edward Holleran, Jr. (Atlantic Broadband) and James Penney (Wave Broadband) on their induction into the 2012 Class of Cable Television Pioneers.

D'oh!: Comcast accidentally aired some porn Thursday morning on the ABC-affiliate KRDO in Colorado Springs, home to Focus on the Family and several other mega-religious groups. The cable company apologized for the error, blaming the glitch on "human error." Talk about a "Good Morning America."

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