Expect more ISPs to join small cable operators in considering the switch from traditional cable TV service to streaming service offerings, CCG Consulting President Doug Dawson blogged Friday. Operational cost savings are a big motivator because ending traditional cable means far fewer customer service calls and truck rolls and the expenses of set-top boxes, he said. That would also mean cable operators can quit collecting local franchise fees assessed on cable service, and also avoid all the local obligations that come with a cable franchise, he said.
TiVo and Xperi, on course for a June combination, got regulatory OK, their executives told investors on quarterly calls Wednesday. On the International Trade Commission’s latest limited exclusion order (see 2004280028) banning import of Comcast X1 set-top boxes, TiVo CEO David Shull called his firm's two victories against the cable operator, finding the cabler infringed on TiVo-owned Rovi patents, "significant." He said they confirm the ITC will continue to be a venue where the company can protect intellectual property. Comcast had to remove features and functionality from the X-1, Shull said. The administrative law judge's initial determination for a third ITC case is due by June 29; the commission's final determination is due by Oct. 29, he said. Comcast didn't comment Thursday. Chief Financial Officer Wes Gutierrez said TiVo is fortunate COVID-19 hasn’t had a significant impact on revenue. Most sales come from agreements with pay-TV operators and others in the video delivery industry, he said. The company expects Android TV-based IPTV deployments to drive footprint growth this year, said Shull. Eleven North American MVPDs agreed to deploy the self-install process, he noted. TiVo had a 58% boost in entertainment viewing across the TiVo platform beginning March 23, Shull said, regarding COVID-19. TiVo Q1 revenue of $160 million was up 1% over the year-ago quarter, it reported. Xperi Q1 billings were $112.8 million vs. $104.3 million. Materials for its latest quarter are here, including information on the conference call. For TiVo's call, see the event here.
The average household is watching eight more hours of TV per week than in early March, at 66 hours, said Comcast Wednesday. Due to self-isolation during COVID-19, distinctions between weekend and weekday viewing behaviors are blurring, with a rise in weekday viewing to levels resembling weekends, it said. Monday has taken over from Saturday as second most popular day to watch TV, behind Sunday. Comcast cited a 40% uptick in late-night TV viewing, especially 11 p.m.-2 a.m.; less viewing is happening 6-8 a.m. It cited a 64% bump in news viewing, peaking the week of March 30. Dramas led genres at 30%, followed by news (29%), comedy (28%), reality (15%), and action and adventure (15%). DVR usage decreased and VOD rose 50%. Comcast cited double-digit growth in discovery-related voice commands as consumers look for new content.
TiVo added Pluto TV to its platform, it said Tuesday.
Cable interests didn't agree about possibly eliminating the rule that cable operators maintain records in online inspection files about attributable interests in video programming services, in docket 20-35 comments posted this week. An NPRM on axing or modifying the rule was approved at commissioners' March 31 meeting (see 2002280044). Verizon said Tuesday there's "simply no basis" for requiring cable operators to keep attributable interest records in their public inspection files because the agency or local franchise authorities can just request records from operators, and responding to those requests is less burdensome for operators. NCTA called the rule "regulatory underbrush [that] serves no meaningful purpose." ACA Connects said vertical integration information could be useful in bringing a program access complaint but urged the FCC to find "a less burdensome" means for making it available. It suggested such possibilities as eliminating the part of the rule requiring reporting carriage of a particular system, or revising rules to require cable operators post the information only once and then make updates when it changes.
Having received OMB approval of FCC information collection requirements, the 2017 cable TV technical and operational standards order is in effect, said Monday's Federal Register. Asked about the three-year delay, the FCC didn't comment.
A slowdown in video customers canceling service might be temporary, resulting from shelter-in-place orders, Charter Communications CEO Tom Rutledge said Friday, announcing Q1 results. He said the company expects residential broadband demand to stay strong, but unemployment and economic issues could be a headwind. Nonpolitical advertising in March was down 18% year over year in large part due to sports cancellations (see 2005010011), Chief Financial Officer Chris Winfrey said. Q2 for advertising “will be challenging,” he said, saying Charter expects ads to pick up when the economy picks up. He said 140,000 customers are in its disconnection protection program, with 65,000 of them carrying past-due balances beyond the point of normal disconnection. He said those numbers are likely to grow in Q2. Charter has 25.47 million residential broadband customers, up 1.45 million; 15.55 million residential video customers, down 400,000; and 9.36 million residential voice customers, down 655,000. In Q1, it lost 70,000 video customers compared with a loss of 152,000 in Q1 2019. Revenue was $11.7 billion, up 4.8%. Rutledge said the FCC's April 6 GHz order (see 2004240011) was "a transformational step for broadband," but it didn't affect what value Charter might see for citizens broadband radio service auction spectrum.
A lower court erred in granting Comcast and programmers a preliminary injunction on First Amendment grounds enjoining enforcement of a state law requiring cable operators to offer programming à la carte, defendant-appellants Maine Gov. Janet Mills (D) and Attorney General Aaron Frey said in a docket 20-1104 brief Wednesday with the 1st U.S. Circuit Court of Appeals. "The law does not implicate the First Amendment [as it] neither stifles nor requires speech." Outside counsel for appellees Comcast, A&E, C-SPAN, ViacomCBS, Discovery, Disney, Fox and New England Sports Network didn't comment Thursday.
As of March 31, 437,965 CableCARDs were in service across the Comcast, Charter Communications and Cox footprints, NCTA reported. It posted Wednesday in FCC docket 97-80. In Q1 2019, there were 474,032.
Radio.com is available to Comcast Xfinity customers on the X1 and Flex platforms, said the broadcaster Wednesday. Last week, Entercom announced its digital platform will be available on Sonos Radio (see report, April 24). Xfinity customers can get hundreds of Entercom-owned radio stations; in the future, they can see video.