May 2013

LRG: More Than 1/4 of U.S. Adults Watch Video Daily on Something Other Than a TV

More and more Americans are turning to TV set alternatives to watch video, according to a new report from Leichtman Research Group (LRG).

Twenty-seven percent of U.S. adults watch video daily on devices other than TV sets and 53% do so on a weekly basis. The latest results are up from 14% daily and 37% weekly two years ago. Alternative TV devices include home computers, mobile phones, iPads and other tablets, and eReaders, which weren’t included in LRG’s research of two years ago. The use of TV set alternatives varies widely among different age groups, LRG found: 42% of those 18-44 watching any type of video on alternatives on a daily basis and 77% weekly. That compares to 14% daily and 33% weekly among those 45 and over. Furthermore, though mobile devices and mobile broadband services enable viewers to watch video outside the home and while on the move, much of the viewing on non-TV devices is taking place in the home. Sixty-three percent of respondents said they usually watch video on their mobile phones at home, while 89% said they usually watch video on alternative devices in general at home.

Subcommittee on Communications, Technology, and the Internet
Senate Commerce Committee
May 14, 2013
10:30am

Read more about State of Video

Personal Information Is the Currency of the 21st Century

[Commentary] The currency of the 21st century digital economy is your personal information. It has no transaction costs and does not decrease in value when the supply increases. Contrary to the laws of economics, it may even increase in value with greater supply. The more information you provide to companies, the more value they can extract from it. Now that 21st century digital behemoths such as Facebook and Google have discovered how to make personal information the most valuable resource in the history of humanity, they are strip-mining mountains of it into completely unrecognizable states. Conversely, we tend to ignore this process because the most magnificent, technologically advanced and socially connected digital city is being built from it.

[Tom Cochran is CTO at Atlantic Media, publisher of the Atlantic, Quartz, National Journal and Government Executive]

Liberal Groups Launch Ad Boycott of Facebook

Mark Zuckerberg's push for immigration reform may have hit a snag. A coalition of nine liberal grassroots organizations—including Progressives United, the Sierra Club, and Democracy for America—pulled their ads from Facebook after Zuckerberg's political advocacy group, FWD.us, began running ads through subsidiaries for conservative causes like the Keystone Pipeline, drilling in the Arctic National Wildlife Refuge and attacking Obamacare.

While the liberal groups support immigration reform, the strategy used by FWD.us—meant to curry political favor—really rankles. And although the boycott is unlikely to make a dent in Facebook's balance sheet, the groups are hoping to drive home a political point. "We're under no delusion that we'll bankrupt Facebook," said Josh Orton, Progressives United's political communications director. "We wanted to send a political message. We know we're not sending anyone to the bread lines."

AT&T Settles FCC's TRS Billing Probe for $18.25 Million

AT&T Inc. has agreed to pay $18.25 million to settle an investigation by the Federal Communications Commission’s Enforcement Bureau into whether the company improperly billed the Telecommunications Relay Service (TRS) fund for certain IP Relay (Internet-based TRS) calls.

Among the issues under investigation were whether AT&T billed the fund for IP Relay calls by persons whom the company registered for the service without first requiring them to provide such basic information as their names, and by persons whose registration information the company failed to adequately verify. These registration and verification requirements are designed to protect the program against waste, fraud and abuse. In the consent decree, AT&T agreed to reimburse the TRS Fund $7 million, which includes interest. In addition, AT&T agreed to make a voluntary contribution of $11.25 million to the U.S. Treasury. AT&T must implement a robust compliance plan including new operating procedures, comprehensive training of its employees and contractors, and periodic reporting requirements.

Speaker Boehner suggests House will take its time on Internet sales tax

House Speaker John Boehner (R-OH) suggested that the online sales tax legislation that easily cleared the Senate this week was not one of the House's top priorities.

Speaker Boehner referred reporters at a news conference to House Judiciary Committee Chairman Bob Goodlatte (R-VA), who has expressed concerns about the Senate bill. “I think they have jurisdiction over this. I've not talked to him about it,” Speaker Boehner said. “I don't know what his intent is, in terms of whether he's interested in moving it through his committee or not.” “I'm for regular order,” Speaker Boehner added, when pressed about whether he is personally interested in the bill.

Senate Republicans split roughly down the middle — 21 for, and 22 against — on the proposal. The breakdown underscores that the measure likely faces a rockier path in the GOP-controlled House. But retail groups and state governments, which could gain more than $20 billion in new revenue each year under the bill, have made the sales tax measure a major priority. Because of that, Speaker Boehner, Majority Leader Eric Cantor (R-VA) and other GOP leaders will find themselves under intense pressure to bring the bill to the floor. “I think the overwhelming number of Democrats are for this bill, I think a large number of Republicans are for this bill,” Minority Whip Steny Hoyer (D-Md.) told reporters shortly after Boehner’s comments. “I think they're going to get a lot of pressure from retail people in their states who are having to compete with online sellers who don't pay tax.”

Key lawmaker: House will be 'more thoughtful' on Internet sales tax

House Judiciary Committee Chairman Bob Goodlatte (R-VA) said his panel would take a "more thoughtful" approach to legislation allowing states to force retailers to collect sales taxes on Internet purchases. His comments signaled that momentum from the easy passage of the bill in the Senate won't lead to quick House action on the controversial issue. Chairman Goodlatte said he has problems with the proposed Marketplace Fairness Act, and criticized the Senate for bypassing the committee process by taking the bill straight to the floor.

He understands the concerns of conventional retailers that they are competing with Internet sellers who do not have to collect sales tax. But he said the bill's process for collecting sales tax for hundreds of different jurisdictions and then remitting payments needed to be simplified. Chairman Goodlatte has also echoed concerns of some conservative opponents of the bill that it could set a precedent for states to collect other taxes, such as income or business-use levies, from people or companies outside their borders. "I am open to considering legislation concerning this topic, but these issues, along with others, would certainly have to be addressed," Chairman Goodlatte said. "The committee will also look at alternatives that could enable states to collect sales tax revenues without opening the door to aggressive state action against out-of-state companies.”

Cracks in objections to Internet sales taxes

Taxes on Internet sales have been talked about since the birth of e-commerce. In those early Web days, one major objection was that taxes would be impossible to collect, given all the various local and state sales-tax regimes. Forcing merchants to adhere to the laws of thousands—or dozens if only state sales taxes are considered—of jurisdictions would have made it impossible for even the largest online store to do business. Developments in software and services have long since solved that problem.

If the Internet Sales Tax fails, Expect Higher Gas Prices

What would happen if the push for Internet sales taxes falls apart? In at least a couple of states—Maryland and Virginia—it could mean higher gasoline prices.

One reason the Senate’s Marketplace Fairness Act came up now is that states are hungry for new revenue. Balanced-budget rules and the slow economic recovery have combined to produce a $55 billion budget shortfall affecting all states this year. That hunt for revenue makes online shoppers an appealing target; estimates are that collecting sales taxes on Internet purchases could put an additional $23 billion a year in state coffers. Some states are so anxious for the anticipated revenues they’ve already committed the money to various projects.

Which Way Will Tom Wheeler Take The FCC? Follow The Blog Trail

[Commentary] Interested parties of all types, from hedge fund managers to Silicon Valley entrepreneurs, are pondering how Tom Wheeler will manage the Federal Communications Commission and what he’ll focus on.

A look back at his musings on a personal blog (aptly named Mobile Musings) and on his more formal writings as chairman of an advisory committee to the FCC may provide some insights. Out of the gate, Wheeler will be confronted with several pressing issues, ranging from the FCC’s merger-review authority to the broadcast-spectrum auctions to net neutrality to the IP transition. When it comes to drawing the limits of the FCC’s authority, I have argued that where the conduct under scrutiny fits squarely within the four corners of antitrust (such as mergers), the FCC should take a backseat to the antitrust agencies; for conduct that is not easily recognized as an antitrust violation (such as discrimination by a vertically integrated network owner), the FCC should take the lead. Does Wheeler agree?

Benton

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