www.CableAdvisoryCouncil.com

For Charter Communications NW CT Area 19

PO BOX 87, Newtown CT 06470

Email Chairman@CableAdvisoryCouncil.com

 

A CLEAR AND PRESENT DANGER TO A SECURE FUTURE FOR THE INSTITUTION OF COMMUNITY ACCESS TELEVISION

 

By Gregory G. Davis

August 2014 Statewide Video Advisory Council Meeting

 

Netflix Surpasses HBO in Subscriber Revenue 8 Aug 2014

Netflix CEO Reed Hastings posted on Facebook that the streaming service generated greater revenues than its premium cable network rival HBO in the most recent quarter.
Why This Matters: The streaming service reported $1.15 billion in subscriber revenue at the end of June, compared with $1.14 billion for HBO. Hastings called it a minor milestone, but acknowledged that, “They still kick our ass in profits and Emmys, but we are making progress.”
5 Takes: Video Ink | Quartz | Fierce Cable | Mashable | Venture Beat

 

Netflix Passes 50 Million Subscribers In its earnings call yesterday, Netflix revealed that it had signed up an additional 1.69 million subscribers during the second quarter, extending its total to 50.05 million. The company also added 1.12 million international streaming subs, giving it a total of 13.8 million in that category.
Why This Matters:
Looking ahead, the company expects to add 3.69 million subs worldwide in the third quarter, including 2.36 million in its international markets – enough to push its subscriber base past 53.74 million.
5 Takes: MCN | L.A. Times | WSJ | Video Ink | The Wrap

 

FCC Report Says Cable Rates Rising Rapidly

According to a report from the Federal Communications Commission, cable bills are continuing to rise, at a rate 4 times faster than inflation, even with competition.
Why This Matters: Programming costs are big part of rising bills and according the FCC study, the price per-channel for subscribers rose 2.1% to an average of 48 cents per channel. The average monthly price for expanded basic service was $64.41 in 2012, a 5.1% increase over 2011, the regulatory agency said. The Consumer Price Index rose just 1.6% during the same 12-month period.
4 Takes: L.A. Times | CED | Fierce Cable | Arts Technica

 

www.CableAdvisoryCouncil.com

For Charter Communications NW CT Area 19

PO BOX 87, Newtown CT 06470

Email Chairman@CableAdvisoryCouncil.com

 

CABLE ADVISORY COUNCIL CHAIRMAN REPORT

Gregory G. Davis

 

August 2014 Statewide Video Advisory Council Meeting

 

Late May 2014

OTT Revenue to Grow Dramatically by 2018

Revenue generated by over-the-top (OTT) video streaming services is set to grow at an annual rate of 28.1%, according to PricewaterhouseCoopers' Global Entertainment and Media Outlook report, released Tuesday.
Why This Matters: The study also predicts that the number of pay-TV subscriptions will to grow to nearly 108 million homes in the U.S. by the end of 2018, fueled in part by new home construction. But the consulting firm added that the pay-TV penetration rate will decline to 77% of homes in the U.S. during the same time period as cord cutters pursue OTT options.
5 Takes: TBI Vision | The Wrap | THR | L.A. Times | Media Post

 

Cord-cutting: Pay-TV companies lose 113,000 customers in quarter

By Meg James , published in the LA Times

November 12, 2013, 4:24 p.m.

For cable-TV operators, 2013 has been a tough year.

This year will probably be the worst for the pay-TV industry in terms of customer retention, according to a report Tuesday by independent research firm MoffettNathanson.

Veteran Wall Street media analysts Craig Moffett and Michael Nathanson calculated that the pay-TV industry — which includes cable, satellite and phone companies offering video service -- lost 113,000 subscribers during the third quarter.

Cable operators lost 687,000 subscribers in the period, according to their estimates. That was a far steeper decline than the year-ago period. And though the satellite TV and telephone companies picked up about 574,000 subscribers, it wasn't enough to erase the net loss for the industry.

 

 

Research and Commentary from the Curated Next TV eNewslettter signup link,  & More:  http://www.b2bmediaportal.com/nbmedia/subscribe.aspx?b=MCN

www.CableAdvisoryCouncil.com

For Charter Communications NW CT Area 19

PO BOX 87, Newtown CT 06470

Email Chairman@CableAdvisoryCouncil.com

 

CABLE ADVISORY COUNCIL CHAIRMAN REPORT

Gregory G. Davis

 

THESE TRENDS HAVE MOMENTUM, AND WILL CONTINUE

 

   1.  BUNDLED PROGRAMMING PAY-TV CORD CUTTING

   2.  INTERNET SERVICE PROVIDER DELIVERED VIDEO OVER THE TOP

   3.  BUNDLED PAY-TV Packages VERY OVERPRICED compared to OTT

 

A CLEAR AND PRESENT DANGER

 

The Institution of Community Access is Now at Severe Risk for its survival over the next few years, due entirely to the substantial loss of the funding source as set forth in CT law. 

 

CGS 16-331a(k) provides that CCFA and CVFA license holders will collect a fee from every multiple video program subscriber specifically for the support of the Designated Community Access Provider.  These fees typically are less than $10 per year – Per subscriber.  This is the ONLY source of financial support for the Independent Institution of Community Access Television. 

 

The threat to this financial support pillar is the customer base shifting en mass to INTERNET ONLY, with video programming delivered a la carte,  “OVER THE TOP”.

 

When Customers select this arrangement, the CCFA or CVFA License requirements to conduct business in CT do not change, only the requirement to collect fees to support the designated community access provider.

 

For a clear confirmation of this threat, The PURA was asked to consider this situation, with respect to the future collection of Community Access Subscriber Fees by CCFA & CVFA License Holders.

 

7:36 AM   12 August 2014

GGDavis to PURA:  Is a CT CVFA or CCFA license holder required to collect community access subscriber fees from customers who ONLY subscribe to Internet service?

 

“Sholtes, Thomas - PURA to GGDavis

Answer:  No, internet is unregulated.

www.CableAdvisoryCouncil.com

For Charter Communications NW CT Area 19

PO BOX 87, Newtown CT 06470

Email Chairman@CableAdvisoryCouncil.com

 

CABLE ADVISORY COUNCIL CHAIRMAN REPORT

Gregory G. Davis

 

August 2014 Statewide Video Advisory Council Meeting

 

Bottom Line:  Every Customer of a CCFA or CVFA License Holder In CT that abandons the Bundled PAY-TV package in favor of INTERNET ONLY, will not count for the purpose of collecting the fees to support the Designated Community Access Providers.

 

LEGISLATIVE ACTION IS ESSENTIAL

TO SAVE THE INSTITUTION OF COMMUNITY ACCESS

 

While a serious laundry list of items to clean up remains after the passage of PA07-253, we MUST focus on the most essential item – Continued Funding for the Designated Community Access Providers.

 

A KEY CONCEPT TO DRAFT INTO LEGISLATION:  Eliminate the MPVD Bundled Program definition which segments the Customer base of the CCFA and CVFA license holders with the following proposed language:

 

Any CVFA or CCFA license holder will collect a fee from each subscriber exclusively for the support of the designated community access provider in the licensed territory.  The fee will be annually set by the PURA in the annual community access support review.   

 

A Call to Action:

 

The October 2014 SVAC meeting is essential for SVAC members to bring their representatives and ask their support for this legislative initiative, which must already be in Legislative Committee for any chance of 2015 adoption.

 

Sincerely,

Gregory G. Davis KB1YHW, Chairman, Area 19 CWAC