Netflix wants to rest open Internet policy on a solid legal foundation, it said in an FCC ex parte filing. Netflix’s Open Connect content delivery network brings data to the locations of an ISP’s choice, “usually at common Internet exchange points or through localized caches,” it said. The filing pertains to a response to a query from Commissioner Ajit Pai (see 1412020044). Under the Open Connect program, “Netflix bears all of the costs of providing Open Connect equipment to any ISP that chooses to participate in Open Connect,” it said. “Open Connect does not prioritize Netflix data.” It helps ISPs reduce costs and better manage congestion, “which results in a better Internet experience for all end users,” it said. Netflix hasn’t impeded the use of proxy caches by changing protocols, it said. It has obscured certain URL structures “to protect our members from deep packet inspection tools deployed to gather data about what they watch online,” it said. Netflix discussed the points made in its response during an ex parte meeting last week with Pai and his staff, it said.
It likely will take longer to reach 100 million 5G subscribers than it did to reach that many 4G subscribers, an ABI Research study said. It will take more than five years for 5G to hit that mark, which is two years longer than for 4G, ABI said Thursday in a news release. The growth of 4G was fueled by the capabilities of “increasingly powerful smartphones and the availability of 4G devices,” it said. Subscriber growth of 5G likely will be a bit more muted at first due to the increased complexity of 5G cells and networks, but will pick up in 2023, it said. The countries that will lead 5G subscriber volumes are the U.S., China, Japan, South Korea and the U.K., it said. A 5G network will be a network of small cells and it will be practical in urban and industrialized environments “for the population density and the reflections in urban canyons,” it said. But “expect a scaled down version of 5G to use existing spectrum for macrocells as well in the longer term,” ABI said.
A draft NPRM seeking comment on redefining the category of multichannel video programming distributors to include linear online video distributors will be voted on this week, FCC Chairman Tom Wheeler said at Thursday’s meeting. The item is “simple” and similar to the legislation that brought DBS into the MVPD fold, he said.
Toshiba bowed a wireless hard drive designed to work with a Chromecast streaming media stick. The one-terabyte Canvio AeroCast ($219) enables consumers to “cast” video to an HDTV using Toshiba’s Google Cast Ready app, Toshiba said Thursday. Users upload and back up content from their mobile devices to the Canvio AeroCast for “secure, centralized storage,” the company said. Access to stored files is via the hard drive's Wi-Fi connection, the company said. Battery life is five hours and the AeroCast can connect simultaneously with up to six devices, the company said. Toshiba is also shipping the Canvio Cast wireless adapter ($79), which enables users to wirelessly upload, share, download and stream a hard drive video library to a connected mobile device.
Netflix reached 5 million subscribers in Latin America, MoffettNathanson analysts said. It took 36 months to reach about 9 percent penetration of the broadband population, they said Wednesday in a research note. Despite the higher level of penetration, that market was "spooked" by the low number of Q3 international subscribers and Q4 guidance, they said. Netflix previously said Latin America has been the slowest region to penetrate due to several issues specific to the region, including lower broadband Internet penetration, the analysts said. Netflix's difficulties could come from their most recent market entrances, like Germany, they said. "As Netflix expands into Australia, we see similarities to the German market as competition in Australia is already in place before its March launch."
Nexstar and Dish Network extended their distribution agreement allowing Dish to continue airing Nexstar programming until 11:59 p.m. Wednesday. It's the third extension since a previous agreement expired, Nexstar said Monday in a news release. The previous extension expired Tuesday, it said. The companies have been negotiating for two months, Nexstar said. Nexstar said it remains hopeful that a resolution can be reached “without a service interruption to viewers in affected markets.” Dish and CBS reached a carriage agreement last week after CBS channels were pulled from Dish’s lineup for one day, Dish and CBS said in a news release. The agreement will result in dismissal of all pending litigation between the two companies, they said. "As part of the accord, DISH’s AutoHop commercial-skipping functionality will not be available for CBS Television Network-owned stations and affiliates during the C7 window."
Consumers who snatched up 4K TVs in Black Friday deals have more Ultra HD content to watch on them. Amazon announced Tuesday that its long-awaited Ultra HD streaming content is now available to Amazon Prime customers, for free under their $99 annual membership fee, and starting at $19.99 per movie for non-Prime members. Amazon Ultra HD content currently available includes the Tony Bennett & Lady Gaga: Cheek to Cheek Live! Concert -- sponsored by LG -- along with original series from Amazon including Alpha House and Transparent. Other 4K content available on Amazon includes Orphan Black from the BBC; and Sony Pictures movies such as After Earth, American Hustle, Captain Phillips, Crouching Tiger, Hidden Dragon; and This Is the End. Amazon Ultra HD movies and TV shows can be accessed on compatible Ultra HD smart TVs, “including models from LG, Samsung and Sony, with more added next year,” said Amazon. It didn’t immediately respond to questions about compatibility with other brands or streaming media players.
Discovery Communications and Hulu signed a new distribution agreement giving Hulu subscribers access to Discovery programming. Hulu will gain exclusive subscription VOD rights to the Discovery Channel's series Deadliest Catch, Discovery said Tuesday in a news release. The deal also includes programming from several networks, like Animal Planet, Investigation Discovery and TLC, it said.
ISPs provided significant increases in average speeds for Netflix streaming since November 2013. In the U.S., the average speed for the top 10 cable and fiber ISPs increased to 3.07 Mbps, up from 2.03 Mbps in the same period last year, Netflix said Monday in a blog post. That's due in part to Cablevision, Charter, Cox and other ISPs increasing their average speeds significantly "without requiring additional payment to reach mutual customers," it said. "Additional interconnect capacity also helped normalize performance across these ISPs." In the U.K., speeds increased from 2.62 Mbps in November 2013 to 3.31 Mbps since then, it said.
Pay-TV consolidation is a response to programmer consolidation and the large content bundles they require multichannel video programming distributors to buy, said The Weather Channel in a meeting with FCC Media Bureau Chief Bill Lake and other Media Bureau staff last week, according to an ex parte filing in docket 11-131. Independent programmers “have suffered from more limited carriage opportunities and demands for significant price cuts because of the greater role of bundling,” said the Weather Channel representatives, who “expressed support” for a Mediacom petition asking the FCC to restrict programmers’ ability to bundle content. The Weather Channel also attacked some MVPD business practices as hindering independent programmers. “Unreasonable provisions” in affiliation agreements required by MVPDs include prohibitions on alternative distribution methods for content, limitations on the sale of local advertising; and “complex and interconnected most favored nation clauses (“MFNs”) that impede innovation,” the filing said.