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No Surprise, No Deal for Hulu. Here's What Changed.
Last evening, Hulu's owners announced in a short statement that the company will not be sold after all. The news came as no surprise to me. VideoNuze readers will recall that back on June 22, when the first rumors of Hulu potentially being up for sale surfaced, I posted, "Here's Why Any Deal for Hulu is Unlikely."
In that post I explained how Hulu's primary asset - next-day distribution rights to ABC/Fox/NBC programs - would be at the heart of its valuation. The
big challenge with selling Hulu was that its owners would have to pass these rights (albeit likely reformulated) to an unaffiliated and uncontrollable 3rd-party, at the same time as online video delivery has injected massive uncertainty into their businesses. This issue, rather than lower-than-expected bids as some have tritely suggested, is why Hulu's owners ultimately decided to pull Hulu off the block.
Though this was always the central issue in any Hulu deal, I believe 3 things happened in the past 4 months that crystallized the importance for Hulu's owners of maintaining full control of their distribution rights:
Categories: Aggregators, Deals & Financings
Topics: Comcast, Disney, Hulu, News Corp.
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Xbox 360 Poised to Deliver Pay-TV Service In Shift to Video App Model
If you believe the rumor mill, Microsoft will announce as early as today that Xbox 360 will be able to deliver pay-TV services from Comcast and Verizon, as well as additional content from HBO, Sony, Amazon and others, as the
gaming console continues its transformation into a full-fledged entertainment hub. Focusing specifically on the Comcast and Verizon aspects, the integration would mark a milestone for the pay-TV industry in moving from a services model delivered through the traditional, set-top box control point to one where video becomes more like an app (albeit an expensive one!) to be delivered through multiple CE devices.
Categories: Cable TV Operators, Devices, Telcos
Topics: Comcast, Microsoft, Verizon, XBox
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New Social TV Network "Vidblogger Nation" Rolls Out On VOD
Independent video producer SimplyNew Studios has unveiled "Vidblogger Nation," featuring 3-5 minute episodes from video bloggers in 10 local markets
around the U.S. Each of the video bloggers is creating 12 episodes for the first season of Vidblogger Nation which will be carried by Comcast On Demand Local. The idea is for the video blogger to each tap into their social networks to help generate audience and engagement.
Categories: Cable TV Operators, Indie Video, Video On Demand
Topics: Comcast, SimplyNew Studios, Vidblogger Nation
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So Far Fox is Alone Among Networks With Authenticated Pay-TV Window
With the fall TV season upon us, Fox is alone among broadcast networks in deciding to create an 8-day authentication window for pay-TV subscribers. In fact, NBC appears to be taking the opposite posture, announcing last Friday
that its iPad app would now include all the same episodes that it makes available online (and I've confirmed they'll all be available in the iPad next day as well). CBS hasn't announced any plans to change its distribution through its web site or TV.com. And despite some vague signals to the contrary by Disney CEO Bob Iger, ABC, which has been the leader among broadcast networks in embracing online/mobile distribution, hasn't announced any changes either.
Categories: Broadcasters
Topics: ABC, CBS, Comcast, FOX, NBC
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Hulu Sale Process Has Become One Big Leak-a-thon
Late last week when Bloomberg reported that Apple is "considering making a bid" for Hulu, it inevitably ignited a series of follow-on articles and tweetsfrom other outlets, amplifying the perception of seriousness. How meaningful "considering making a bid" actually is nobody but the insiders really know. However, the Apple "news" underscored how the process of selling Hulu has become one big leak-a-thon, with bankers and others involved with the process continuously leaking selective nuggets of information to major media outlets as unnamed sources, no doubt with an eye to shaping how the sale process plays itself out.
In fact, even the decision to sell Hulu has never been officially acknowledged by Hulu itself; rather, the LA Times reported that bankers had been retained. That news was preceded by leaks that Yahoo had approached Hulu about an acquisition, that Hulu was considering selling itself, and that Fox, one of Hulu's owners and key content suppliers had renewed its license deal. In the month since these tidbits were released, there have been numerous other leaks, which I have listed below with links, noting the anonymous references each article cites (apologies to any I may have missed).
Categories: Aggregators, Broadcasters, Deals & Financings
Topics: Comcast, Disney, Hulu, News Corp.
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First Fox, Now Disney, Reportedly Renewing Hulu's Distribution Rights
As if this week's intrigue around Hulu putting itself up for sale hasn't been enough, Bloomberg is reporting that Disney has tentatively agreed to renewHulu's distribution rights for ABC programs. The deal is said to mirror another tentative deal, between Fox and Hulu, which Variety reported earlier this week. Both deals are believed to require Hulu carry an increased ad load.
Since company representatives aren't quoted, it's hard to know how legit the renewals are, or whether they're just another leak to support one of the many agendas players involved in Hulu have. Of course, that's how the week began - with the WSJ citing unidentified sources saying that Yahoo had made an overture to acquire Hulu. That was followed by news that Hulu had retained 2 investment banks to explore a sale, and then with the Fox renewal news.
Categories: Aggregators, Broadcasters
Topics: Comcast, Disney, Hulu, News Corp.
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OK, Hulu's for Sale; Can a Deal Get Done and Who are the Frontrunners?
Following yesterday's rumors, the LA Times is now reporting that Hulu has hired two investment banks, Guggenheim Partners and Morgan Stanley, toexplore a potential sale. As I described in Here's Why Any Deal For Hulu Is Unlikely, the banks have their work cut out for them. The critical issue is that Hulu's main asset - exclusive next-day distribution rights to 3 of the 4 broadcast TV networks' programs (ABC, FOX and NBC) - will be at the heart of Hulu's valuation. (Note that just 6 months ago Hulu's plan to go public was undermined by these same rights not being viewed as sufficiently long-term).
To the extent that the rights get diluted (e.g. become non-exclusive, limit monetization opportunities, delay program release windows, reduce the number of programs, etc.), acquirers will ratchet down their valuations accordingly. And this is where the banks' task will become especially complicated; each of the networks' owners (Disney, News Corp. and Comcast) has very different strategic objectives which are further clouded by all the uncertainty that online and mobile video has created. Pinning down if and how they would work with each specific bidder will be quite the Rubik's cube exercise.
Categories: Aggregators, Broadcasters, Deals & Financings
Topics: Comcast, Disney, Hulu, News Corp.
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Here's Why Any Deal For Hulu Is Unlikely
Late yesterday, the WSJ reported that an unnamed company made an unsolicited offer to acquire Hulu, prompting Hulu's board to consider soliciting other offers. Following up, the LA Times reported that Yahoo is the bidder. However, neither article cited any named sources and so it's unclear how legit any of this is. But even if it is legit, the odds of any Hulu acquisition at this point are actually quite low. Here's why:
Categories: Aggregators, Deals & Financings
Topics: Comcast, Disney, Hulu, News Corp.
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Comcast's CEO Roberts Downloads 23 Episodes of 30 Rock in 1.39 Minutes at 1Gbps
At the Cable Show in Chicago today, Comcast's CEO Brian Roberts showcased the company's ability to deliver 1 gigabit per second throughput by downloading a full season of 23 episodes of 30 Rock in just 1 minute, 39 seconds. Putting the 1 Gbps throughput in context, Roberts noted that back in 1996, delivering 1-2 megabits per second was state of the art, and that as recently as 2007, 100 megabits per second was the limit.
Increasing speed has been a core value proposition of cable's broadband ISP efforts for years. It has taken on even greater importance recently as consumption of high-quality video has soared. An emerging theme in the pay-TV industry is delivering not just on-demand streams, but full lineups of live TV over IP as well. All of this will drive ever-higher consumer needs for bandwidth.
Categories: Broadband ISPs, Cable TV Operators
Topics: Comcast
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Comcast's CEO Roberts to Showcase Xcalibur Platform at Cable Show
As expected, Comcast announced this morning that its CEO Brian Roberts will demo the company's new "Xcalibur" video delivery platform on Thursday
morning at the Cable Show in Chicago. Xcalibur has been in trial in Augusta, GA and is meant to deliver a new, more web-like experience to the TV, complimenting what Comcast has been doing online with Xfinity TV and in mobile with its iOS and Android apps. A new interactive guide will be unveiled as well as "MyTV" which is a central location for storing recordings, favorites and recommendations.
In addition, apps for traffic, weather and social sharing through Facebook will be available. Comcast announced a handful of technology partners - using Intel chips with higher graphics performance for the UI in new set-top boxes, Pace as the first hybrid set-top box manufacturer and wholly-owned subsidiary thePlatform for content management (thePlatform just unveiled yesterday a joint solution with Alcatel-Lucent to deliver similar IP-based video services).
Categories: Cable TV Operators
Topics: Comcast
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Comcast and Skype Partner for TV-Based HD Video Calling
On the eve of the Cable Show, Comcast and Skype are announcing a partnership that will enable TV-based HD video calling. Comcast subscribers using the new service will be able to make Skype video and audio calls while at the same time watching TV. On-screen caller ID will pop-up when a Skype call is received. A Comcast spokesman told me last week that customer trials are set to begin soon (word actually began leaking out last week).
For Skype, the partnership is another route into the living room as it seeks to become a ubiquitous communications platform. Early last year Skype
announced it was working with Samsung and Panasonic to embed the Skype app in certain connected TV models, and it also offers a variety of HD web cams for sale on its site. For Comcast, Skype is an enhancement to its Xfinity TV service and mobile app that creates some interesting new integrated communications and social media experiences.
Categories: Cable TV Operators, Communications
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@ELEVATE: 75% of Cable TV Programming to be on TV Everywhere in 2 Years
At the ELEVATE conference earlier this week I moderated a panel with executives from 3 of the leading proponents of TV Everywhere, during which they estimated about 75% of cable TV programming could be available on connected and mobile devices within 2 years. That amount would be a huge increase from what's currently available and would also represent a massive shift by the pay-TV ecosystem to delivering content to IP devices. It would also represent a huge game change in the overall TV advertising ecosystem depending on what ad policies are implemented (full ad load, partial load, etc.).
The panelists included David Preschlack, EVP, Affiliate Sales and Marketing, Disney & ESPN Networks Group, Jeremy Legg, SVP Business Development & Multi-Platform Distribution, Turner Broadcasting and Matt Strauss, SVP & GM, Comcast Interactive Media.
With the rise of over-the-top competitors (e.g. Netflix, Hulu, iTunes, etc.), TV Everywhere has emerged as the pay-TV industry's number one priority. No doubt at next week's Cable Show in Chicago it will be the most pervasive topic of discussion. Yet significant issues remain for TV Everywhere's rollout. Chief among them are lack of adequate audience measurement systems, limited rights and caution among cable networks. We discussed each on the panel.
Categories: Cable Networks, Cable TV Operators
Topics: Comcast, ELEVATE, ESPN, Turner
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Four Comcast Announcements Show Importance of Digital Video
Last week brought four rapid-fire announcements from Comcast,underscoring how the company is ramping up its digital video delivery efforts and the PR surrounding them. The announcements were:
5/23 - Xfinity TV App version 1.5, with video streaming capability, available on iPhone and iPod Touch. Leading off the week was news that Comcast's Xfinity TV app had been updated so that iPhone and iPod Touch users can now watch streaming video on these devices (Xfinity TV streaming was made available on the iPad in February, and is not yet available on Android, though other features of the app are). Comcast said this was the number one most requested feature from users.
Categories: Cable TV Operators
Topics: Comcast
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Comcast's TiVo Deal Breaks New Ground, Unifies VOD, OTT Navigation
Yesterday, Comcast and TiVo announced an interesting deal that allows TiVo Premiere owners who subscribe to Comcast's digital video service to also receive Xfinity TV VOD alongside over-the-top choices like Netflix, Hulu Plus, Amazon, etc. It's a little bit of an alphabet soup situation to understand,
which will make marketing it a challenge, but if the two companies are successful, it could actually be quite meaningful to consumers who choose to take advantage of the offer. I caught up with TiVo's EVP Jeff Klugman and had a slew of questions answered by Comcast to understand things better.
Under the deal, TiVo Premiere owners can have Comcast come to their home at no charge and install the box and a CableCARD, making sure everything is working properly with the video service and their broadband connection (this will start in the SF area, with other markets to follow). One of Premiere's primary benefits is that when a user search is conducted for a TV show or movie, the results include all potential sources - Comcast linear and VOD as well as OTT options. That's beneficial to users because as long as rights are granted according to studios' adherence to windows, trying to understand what's available on which service/device at any particular time is virtually impossible for any average consumer.
Categories: Cable TV Operators, Devices, Video On Demand
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4. Comcast Gets Hit Shows from FOX and ABC for Xfinity TV
This week brought yet another twist in the intriguing relationships between pay-TV operators and broadcast TV networks, as Comcast announced deals with both FOX and ABC to add recent episodes of over 20 hit shows from the networks to its Xfinity TV video-on-demand line-up. The move is a solid step forward for Comcast, giving it access to all 4 major broadcast networks' programs, a first. This is also content that isn't available on Netflix, providing another good differentiator.
Categories: Broadcasters, Cable TV Operators, Video On Demand
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Netflix Now In Virtual Tie With Comcast as Largest U.S. Video Subscription Service
Netflix just reported its Q1 '11 results, gaining 3.3 million subscribers in the U.S. to end the quarter with 22.8 million U.S. subscribers, in a virtual tie with Comcast as the largest U.S. video subscription service as measured by total subscribers. The 22.8 million total met the top end of its guidance range.
As I previously noted, Netflix ended 2010 with just over 20 million subscribers, but that amount included just over 500K international
subscribers (in Canada) which Netflix has now broken out for the first time. In the quarter Netflix also added 290K international subscribers to end the quarter at 800K subscribers. In total, Netflix now has 23.6 million subscribers. On another encouraging note, trial subscribers in Q1 '11 fell to 1.392 million, vs. 1.566 million at the end of 2010, accounting for 6.1% of ending subscribers, down from 8%.
Categories: Aggregators
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Netflix is Likely to Become the Largest U.S. Video Subscription Service When It Reports Q1 '11 Today
Netflix is likely to become the largest U.S. video subscription service - as measured by total subscribers - when it reports its Q1 '11 results at 4:05pm ET today. The milestone would be the latest evidence of Netflix's rapid accent as a major force in online distribution of Hollywood films and TV programs, as well as a central player in the unfolding battle for the digital living room.
Netflix ended 2010 with just over 20 million subscribers, and provided Q1 domestic ending subscriber guidance of between 21.9 million and 22.8 million subscribers. If Netflix slightly beats the high end of its guidance range it will eclipse Comcast, currently the largest video service provider, which ended 2010 with 22.802 million video subscribers.
Categories: Aggregators, Cable TV Operators
Topics: Amazon, Comcast, Netflix
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Senior Comcast, ESPN, Turner Executives to Discuss TV Everywhere's Game-Changing Role at ELEVATE
I'm delighted to announce that TV Everywhere's game-changing role in the TV and advertising ecosystems will be the topic of a marquee panel of cable
industry executives at ELEVATE: Online Video Advertising Summit on Tuesday, June 7th in New York City. The panel, which I'll moderate, is titled "TV Everywhere: Game-Changer for Premium Online Video and Advertising" and includes:- Jeremy Legg - SVP, Business Development and Multi-Platform Distribution, Turner Broadcasting System
- David Preschlack - EVP, Affiliate Sales and Marketing, Disney & ESPN Networks Group
- Matt Strauss - SVP and General Manager, Comcast Interactive Media
As I've written since it first burst onto the scene almost 2 years ago, TV Everywhere is the most significant initiative in the TV industry today because it aims to untether all of the most popular programs from cable TV networks that have traditionally been locked to the set-top box in the TV room, making them available on myriad connected and mobile devices. In this respect, TV Everywhere is a strategic imperative for the pay-TV industry; as new entrants like Netflix, Hulu Plus and others have strongly embraced delivery to connected and mobile devices, they have raised the competitive bar for all others.
Categories: Cable Networks, Cable TV Operators, Devices, Events
Topics: Comcast, ELEVATE, ESPN, Turner
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Comcast Rolls Out 105 Mbps Tier; Is This a Glimpse of the Future?
Comcast is officially rolling out 105 Mbps residential broadband Internet service this morning, dubbed "Extreme 105 Xfinity Internet." The service is available to more than 40 million homes in the U.S. and also features 10Mbps upstream speed. Initial promotional pricing is $105/mo when bundled with triple play (voice, video, Internet) or $200/mo standalone. Comcast told me that post-promotion pricing hasn't been determined yet, with various price points being tested.
With Extreme 105, Comcast becomes the latest broadband ISP to introduce speedier tiers for higher monthly fees. Although I haven't seen any research yet that breaks down how many broadband subscribers have migrated to these premium tiers, for now the amount is probably relatively small. However, that could change fast, as an extremely interesting substitution dynamic between video service and broadband service starts to take hold.
Categories: Broadband ISPs
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Still No Consensus On Broadband ISP Usage Cap Policies
AT&T made big headlines this week for unveiling a plan to cap monthly usage by its DSL subscribers at 150GB and its U-Verse subscribers at 250GB. Whereas other broadband ISPs like Comcast have long had a 250GB cap in place, what's different about AT&T's plan is that it is proactively saying it will charge $10 for every 50GB users exceed the limit. Other ISPs have tended to use the cap solely as a mechanism for throttling the tiny portion of users who exceed the cap, rather than as a way of generating extra revenue.
Categories: Broadband ISPs
Topics: AT&T, Comcast, FCC, Netflix, Verizon
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