April 2014

Senate Committee Revives Federal Film and TV Tax Credit -- for the Final Time

The Senate Finance Committee has revived a package of tax credits that includes Section 181, a lucrative federal tax incentive for the film and TV industry.

The committee renewed a package of more than 60 different enticements, commonly known as the Extenders Bill, and dispatched it to the full Senate. Attorneys said that the bill faces an uphill climb because of a credit for win energy -- not because of Section 181.

The package expired at the end of 2013, and this new bill would apply retroactively to Jan 1, 2014. It would run through the end of 2015, at which point committee chairman Ron Wyden (above) hopes to be rid of it forever. The legislation permits producers to deduct some of their expenses before they see any profit. If it expires, they will not be able to do that. It is even more helpful to television as it lets them deduct for each episode.

Maybe you don’t need a gig. Wireless might bridge the broadband gap

[Commentary] Not every community needs a fiber-to-the-home network. Not every home needs a gig to their doorstep.

In our gigabit crazy era this statement might seem like a step backward, but take note that there’s more than one option for delivering the speed consumers and businesses need. Even Google is hinting that some form of wireless might become part of its goodie bag of services. When people fixate on one technology to the exclusion of all else the people governing cities can make wrong choices that hurt or hinder communities’ ability to fully benefit from broadband.

When investing in technology, users’ needs should dictate technology choices, not media hype. Two other recent broadband developments indicate some broadband decision makers should step back for a minute and re-assess their options.

RST, a new regional ISP, announced it had quietly built and acquired a 3,100-mile 100-gig fiber middle mile infrastructure throughout the state of North Carolina. However, it plans to deliver a 1-gigabit last mile service there and in South Carolina, mostly using Wi-Fi with fiber options available on demand.

In Utah, home security and automation company Vivint threw its hat into the gigabit ring with plans to connect Utah homes wirelessly using gigabit Wi-Fi on rooftops to create a high-capacity mesh network built on customers’ rooftops. But every community is different in terms of demographics, broadband needs, geography, etc.

The lesson people should take from RST and Vivint is that a thorough, objective evaluation of all available technologies is in their best short-term and long-term financial interests. For example, wireless last mile networks can meet peoples’ needs now, then become backup for fiber network later.

[Settles is a consultant who helps organizations develop broadband strategies, host of radio talk show Gigabit Nation]

Why voice is the next big Internet wave

At first glance, few technologies feel as unsexy as voice. From a user’s perspective, little has changed since the days of Alexander Graham Bell. Most see voice as a mature technology that simply connects people in real-time across a distance.

But voice is experiencing a wave of innovation that will fundamentally alter this definition. Jae-woan Byun, the CTO of SK Telecom, condemned current voice offerings as “boring for users” but promised a “second tsunami” that could change everything. The first tsunami was about messaging. Thanks to the elimination of the historical limitations that telephony placed on voice, we are already sensing the shockwaves of the next tectonic shift. Voice will be:

  • Available every “wear.” Voice is fast becoming a primary interface for wearable technology.
  • Private and secure. Encryption of voice will become the default, not the exception.
  • Smartphone-native. Today, the dialer application on a smartphone replicates 1970s touchtone telephony.
  • Application-embedded features. Beyond caller ID, inbound voice calls carry little context today.
  • Beyond the “call.” Future voice communication will mirror the more fluid activity streams on Facebook, Yammer or Google Hangouts. We will invite others into a call as needed, allowing them to jump in and out of conversations seamlessly. Outside calls or cold calls will come with a “conversation request,” where the caller pitches the receiver on why he or she should answer and invest their time.
  • Augmented memory & total recall.
  • Your intelligent voice assistant.
  • Accessible to all. The next generation of voice services will not only have high-definition audio, but also customized acoustic profiles to us individually and our environment. We don’t all speak the same languages or dialects, so automated real-time subtitles and translation will become commonplace.

[Geddes co-founder and executive director of the Hypervoice Consortium]

Next-Gen TV Standard On Track For 2015

The Advanced Television Systems Committee’s work on the next-generation broadcast standard — ATSC 3.0 -- is progressing well and should yield a proposal or “candidate” by early 2015 and a final standard by late 2015, according to the technology experts.

As described by Madeleine Noland of LG Electronics, ATSC 3.0 represents a giant leap forward in the kinds of services that broadcasters will be able to provide and in how they can generate money from them. The standard will allow broadcasters to present 4K ultra HD and possibly 3D programming to big sets with fixed antennas in the home and HD programming to mobile devices in the hand or in the car with some degree of interactivity. Such services are made possible by the combination of a “fatter pipe” and “skinnier content, said Rich Chernock of Triveni Digital, who chairs the top ATSC 3.0 committee.

If President Obama wanted the NSA to quit storing phone metadata, he’d act now

[Commentary] President Barack Obama says he wants Congress to adopt legislation that would end the National Security Agency's bulk collection of telephone metadata, a surveillance initiative exposed by whistleblower Edward Snowden.

As it currently operates, the NSA's collection program gathers and stores the metadata of every call made to and from the United States. "I have decided that the best path forward is that the government should not collect or hold this data in bulk," President Obama said. "Instead, the data should remain at the telephone companies for the length of time it currently does today." Rights groups are applauding the move. But they say it’s virtually a meaningless gesture in its current form.

As chief executive, President Obama has the power to reform the NSA on his own with the stroke of a pen. By not putting this initiative into an executive order, he punted to Congress on an issue that affects the civil liberties of most anybody who picks up a phone. Every day Congress waits on the issue is another day Americans' calling records are being collected by the government without suspicion that any crime was committed.

“He does not need congressional approval for this,” said Mark Jaycoxx, an Electronic Frontier Foundation staff attorney. Ultimately, congressional action will be necessary even if the President signs an executive order on the issue. Future Presidents are not bound by former presidential decrees, which means the 44th president does not have to adhere to any President Obama promises of ethical and limited metadata use.

Supreme Court passes on NSA bulk phone surveillance case

The Supreme Court declined to resolve the constitutionality of the National Security Agency's bulk telephone metadata surveillance program, leaving intact what a lower-court judge described as an "almost-Orwellian" surveillance effort in which the metadata from every phone call to and from the United States is catalogued by US spies.

The move by the justices comes as the Obama administration and Congress consider dramatically revamping the spy program disclosed in June by NSA whistleblower Edward Snowden.

The petition before the justices, brought by political activist Larry Klayman, concerned a December decision by US District Judge Richard Leon, who wrote in an opinion that America's founders would be "aghast" at the spying. The President George W. Bush appointee stayed his decision, which concluded that the program infringes the Fourth Amendment, pending appeal because of the case's national security implications. Klayman bypassed a federal appeals court and went directly to the high court, which rarely plucks cases from district courts before they're heard at the federal appellate level.

74% of Americans Won't Wear Google Glass Because of Privacy Worries

It’s not Google Glass’ nerdy aesthetics, somewhat douchey reputation or lofty price tag that will prevent a whopping 72 percent of Americans from donning the headset of the future -- it’s concerns about privacy and safety.

A new study from market research firm Toluna found that privacy worries are a major stumbling block for Google Glass, with two in five consumers citing concerns such as the potential for hackers to access private data, the ease with which others could record their actions without their knowledge and the potential for private actions to become public.

“Google Glass is not yet available on the open market, although it is clear that a high proportion of individuals have concerns about the potential impact on their privacy, said Mark Simon, Toluna’s North American managing director. “This is something Google and other tech companies using the technology should address before the product can become mainstream.”

As It Files to Go Public, Weibo Emphasizes Mobile (As You Do, When You Do)

As it prepares to go public, the Sina spinoff Weibo is pitching itself as a “mobile first” product with 70 percent of users accessing the social media service from phones and 22 percent of total revenue in 2013 from mobile advertising.

Weibo is hoping to raise $437 million in a Nasdaq listing, according to a recent filing. Weibo has 143.8 million monthly active users, with $188.3 million of revenue for a loss of $38.1 million in 2013.

Though Weibo is perhaps a little too old -- it started in 2009 -- to be a true mobile-only product, mobile is one of the stronger stories the company is telling.

Weibo has been hurt recently by challenges to user growth including competition from Tencent’s mobile messaging service WeChat (though Weibo still serves a need as more of a public tool), as well as rising government censorship, including arrests of prominent Weibo personalities like investor Charles Xue, which was perceived by many as a form of government intimidation of critics. The company said in its filing that growth has also been hurt by recent government identity verification requirements.

Local TV Plus Radio Equals Advertising Reach

A new analysis done by Nielsen with CBS found that advertising campaigns combining local television and local radio doubled the campaign’s reach in certain markets.

In five markets, Nielsen found that advertisers could reach 84% to 93% of all adults by putting TV and radio together. One effective tactic involved mixing dayparts. For example buying primetime on TV and morning drive on radio reached 75% of adults 18 to 49 in Boston within four weeks.

“Industry-standard measurement is a first step toward showing large advertisers what local advertisers already know -- there is a lot of value to combining local television and radio in a media buy,” said David Poltrack, chief research officer, CBS Corporation, which owns TV and radio stations in a number of major markets. “We will continue working with Nielsen to bring to the industry the rich analytics, reporting tools and planning software needed to prove these benefits to advertisers. The long-term plan is to include online as well. This proof of concept demonstrates the power of broadcasting to quickly and frequently reach mass audiences.”

Zenith Forecasts Better Worldwide Ad Growth

Media agency ZenithOptimedia forecasts that global advertising spending will return to the kind of growth rates seen before the financial crisis.

ZenithOptimedia sees spending growing 5.5% to $537 billion in 2014 and 6.1% in 2016. Spending grew just 3.9% in 2013, according to the agency. Television is the dominant media, representing 40% of global ad spending, compared to 21% for the Internet. ZenithOptimedia forecasts that TV spending will grow 5.2% globally in 2014. Ad spending increases in North America will be smaller than the worldwide growth rate. ZenithOptimedia expects 4.8% growth in 2014, a 4.6% gain in 2015 and 4.3% growth in 2016.

ZenithOptimedia says the Internet is the fastest growing media and that its growth will bolstered by the spread of programmatic buying. The agency sees spending on online advertising growing 16% annually from 2014 to 2016, with display advertising growing at 21% a year through 2016. Mobile Internet advertising is growing six times faster than desktop Internet, according to ZenithOptimedia. With the rapid adoption of smartphones and tablets, mobile advertising is expected to grow 50% a year from $13.4 billion in 2013 to $45 billion in 2016. Desktop Internet advertising is expected to grow just 8% a year.