Diller Makes Headlines with Aereo

Media Mogul Barry Diller is making headlines with his investment in Aereo, a new media company that will provide remote DVR storage and streaming of broadcast content. Aereo announced that it has raised $20.5 million in Series A funding led by Diller’s IAC. Diller also has a board seat.

Aereo plans to provide up to 40 hours of DVR space for $12 per month with the content being streamed to internet enabled devices (smart phones, tablets, web enabled TVs, etc.). For starters, Aereo in intends to offer the service to consumers in the New York City DMA starting in mid March. Initial reports of the technology are that it involves an array of tiny antennas, each dedicated to a single customer, feeding the hard drive (DVR) storage. It seems that the company is taking this tact in order to make the claim that they are an antenna rental service and not a multichannel service provider. In doing so, Aereo hopes to avoid the need to negotiate and pay retransmission consent fees and capture the “cord cutting” segment of the market with a product that would complement a consumer’s ability to receive cable programming via the likes of Netflix and Hulu+.

In the mean time, cable operators are reacting to declining subscriber numbers by starting to test and deploy lower cost packages that that have been stripped of expensive sports programming. Broadcasters are still talking about mobile digital broadcast services without much to show for it in the market. Both the cable ops and the broadcasters continue to arm wrestle over retransmission consent fees with the FCC almost a year into the process of a proposed notice of rulemaking on retransmission consent – but that’s another blog entry.

For now the initial news is out about Aereo’s plans have been announced. It is more than likely that New York area broadcasters are huddling with their attorneys this morning on the news to explore their options. One just has to wonder if the next headline will be “Broadcasters Attempt to Shoot Down Aereo with Cease and Desist Orders”.

DISH Enables TV Everywhere to Android Devices

While Comcast was making noise in advance of CES with a VOD iPad app, DISH Network had their own announcement as the satcaster unveiled its Android app that enables Google enabled Smartphone users to access DISH programming. A former professional gambler, DISH CEO Charlie Ergen has undoubtedly raised the stakes in the TV Everywhere game. While the Comcast model will provide roughly 3000 hours of VOD content plus some streaming networks, the DISH service goes one better and allows customers access to their entire line-up of channels and all of their DVR content via a Sling enabled set top box, allowing for ultimate flexibility.

At a time when cord cutting has become a primary concern among multichannel providers, operators are looking to TV Everywhere as part of the solution to deal with the estimated quarter million video subscribers lost by the industry in the second and third quarters of 2010. While the multichannel sector as a whole as seen subscriber losses, Verizon, AT&T and DirecTV have seen gains. DISH is down about 50k subs in 2 and 3Q while Comcast is down over half a million video subscribers in the same period.

Comcast’s iPad VOD and streaming app will not launch until later this year, so the jury is still out as to whether its streaming to tablets will be enough of a silver bullet to hold on to subscribers or whether digital customers will continue to vote with their feet (and wallets) that they see better value in getting a limited amount of programming for less, or even free, from on-line options like of Netflix and Hulu.

Comcast Announces iPAD Video App

Comcast CEO Brian Roberts got a jump on everyone at CES with an announcement on the eve of the 2011 show. It seems that Comcast will be making nearly 3000 hours of VOD content available for streaming on iPADs later this year with enhancements that will include the ability for users to tap into their social networks. In doing so, Comcast is the first cable MSO to truly take the concept of "TV Everywhere" to heart. Until now, MSOs that have launched so called "TV Everywhere" services have made their VOD content available on their branded websites in an effort to thwart other online video providers like Hulu and Netflix that have been chipping away at their subsription revenue by enabling cord cutting (more on that some other time). This move eliminates the inherent limitation of having a "TV Everywhere" product limited to home PCs and laptops and is an effort to shore up their Xfinity digital subscriber base among iPAD users; those who are aguably the early adopters who are the most prone to being cord-cutters.

Although limited to the iPAD device for now, this app is a great start to the "unleashing" or unteathering of TV Everwhere. For now Comcast is working where the content rights allow them, but I expect that a smartphone app is not too far down the road, of course, programmer rights permitting.