May 2014

NBC Extends Olympic Rights Through 2032

Comcast's NBCUniversal extended its deal to broadcast the Olympic Games through 2032, paying $7.75 billion for an additional 12 years of US broadcast rights, the International Olympic Committee said.

Comcast will pay $7.65 billion for the broadcast rights across all media platforms -- including free-to-air and subscription television, Internet and mobile -- from 2021 to 2032, plus an additional signing bonus of $100 million.

NBC has broadcast every summer Olympics since 1988, making it one of the network's signature franchises. By 2032, NBCU will have covered a total of 23 editions of the Olympic Games, since its first Games broadcast in Tokyo in 1964, the IOC said.

Political data, once the reserve of presidential campaigns, is spreading to local races

The November midterms aren't the only race Republicans and Democrats are running in 2014. As Election Day approaches, both parties are rushing to put new political technology into the hands of smaller campaigns that may lack the resources or staff of a major presidential effort.

Candidates competing for seats in state and local races are increasingly gaining access to sophisticated databases and predictive modeling tools, much like those that earned President Barack Obama so much attention in 2012. As a result, the 2014 election season is likely to see a much wider use of data to target likely voters, organize volunteers and consolidate voter lists.

The Republican National Committee said that it's trying to persuade conservative campaigns to adopt a suite of free tools it has developed in recent months to give candidates an edge. The package includes a massive voter file known as OneData, which contains information on 190 million active US voters gathered from all 50 states.

Republican campaigns will have access to information on another 63 million Americans through data gathered from commercial sources such as Axiom and Experian, the committee said. Altogether, the data tracks nearly two decades of Americans' voting history, including whether they own hunting and fishing licenses that could indicate their positions on political issues.

SEC warns investors to be careful with bitcoin

The Securities and Exchange Commission warned investors to be wary of the virtual currency bitcoin.

The financial regulator cautioned that bitcoin has historically been volatile, subject to hackers, and a potential target for fraudulent schemes. While the regulator did not say people should steer clear of investing in bitcoin or other virtual currencies, it did note that there are several unique challenges to consider.

For example, since bitcoin transactions are not backed by any government or routed through traditional financial institutions, it could be difficult to trace money should something go awry, the SEC said. The SEC also said that since some early bitcoin investors have enjoyed a windfall as the virtual currency gained value compared to dollars, they could be ripe targets for people peddling fraudulent or high-risk schemes. Promoters could also lean on the personal interest many bitcoin investors have in the success of the currency to get them to invest poorly.

After Google win, NARAL targets Yahoo ads

Abortion rights advocates are asking Yahoo to take down “crisis pregnancy center” ads that they say discourage women from having abortions.

The petition from NARAL Pro-Choice America and the women’s rights group UltraViolet comes fresh off of a victory with Google, which NARAL said took down similarly “deceptive” ads in April.

“We hope that Yahoo CEO Marissa Meyer will follow Google's example and remove deceptive crisis pregnancy center ads so that women can continue to trust Yahoo to provide the accurate resources we are seeking when we use their platform,” NARAL President Ilyse Hogue said. “No search engine should allow themselves to be complicit in such a manipulative campaign to lure women into ideologically driven facilities by masquerading as actual abortion service providers.”

Abortion rights advocates say that the pregnancy center ads violate search engines’ advertising policies by targeting people searching for abortions while, in fact, discouraging those services. “These ads use the search term ‘abortion clinic’ when they don't provide those services,” NARAL said in the online petition.

New America: Incentive Auction Bidding Limits Are Pro-Competition

The New America Foundation hosted a briefing in Washington in which it argued that the Federal Communications Commission has the authority and duty to set spectrum limits on wireless carriers in order to "ensure that the upcoming broadcast incentive auction maximizes competition and innovation in the wireless industry."

Carriers and public interest groups assembled for the pitch on competitive auctions said that aggregation limits were necessary and appropriate.

Michael Calabrese, who directs the Wireless Future Project at New America's Open Technology Institute, said that the FCC's proposal to set aside some low-band spectrum for carriers who don't have at least a third of the low band spectrum in a market was hardly a severe limitation on participation in the auction and that AT&T and Verizon were looking to foreclose competition.

Chip Pickering, president of COMPTEL, evoked one of FCC Chairman Tom Wheeler's favorites, Abe Lincoln, in saying that score years ago competitive auctions were created and have since spurred investment and innovation and should not be allowed to perish from the earth by duopolists looking to foreclose that competition.

HR 4572, the STELA Reauthorization Act of 2014

Extension of Retransmission Authority for Distant Signals: The bill reauthorizes the retransmission consent provisions for distant signals for five years, ensuring that 1.5 million subscribers in hard-to-reach areas continue to receive vital broadcast programming.

  • No More Joint Retransmission Negotiations: Unaffiliated broadcast stations in a single market will no longer be able to negotiate jointly against pay-TV providers. This will help prevent pay-TV subscribers from losing more than one signal during a lapse in retransmission consent agreements.
  • Sweeps Prohibition: The bill levels the playing field for cable operators and broadcasters during “sweeps weeks” by removing a government restriction on cable’s ability to drop broadcast signals during the Nielsen ratings periods.
  • Repeal of the Integration Ban on Cable Operator-Owned Set-Top Boxes: The bill repeals the Federal Communications Commission’s ban on integrated security CableCARDS in cable-leased set-top boxes. The bill does not include any forward-looking restrictions on the FCC’s ability to promote competition and innovation in the set-top box market.
  • Delay on FCC Deadline to Dissolve Joint Sales Agreements: The FCC recently adopted new rules redefining the relationship between broadcasters in a joint sales agreement in a manner that would place some broadcasters over the local television ownership caps. The FCC’s Order would require broadcasters to unwind non-compliant JSAs within two years of the effective date of the order.

The bill changes the unwinding deadline to provide some stability to broadcasters and encourage prompt FCC action on petitions for waiver of the new rules. All broadcasters involved in such non-compliant joint sales agreements (JSAs) will have until the end of 2016 or 18 months after the FCC’s denial of the respective waiver applications to unwind the JSAs, whichever is later. All waiver applications for existing non-compliant JSAs must be filed within 90 of the bill’s enactment.

NAB to FCC On LPTVs: Attention Must Be Paid

The National Association of Broadcasters has joined with the National Religious Broadcasters and others to back low-power TV and translator advocates concerned about their future after broadcast incentive auctions.

LPTVs are essentially second-class citizens in the auction, with no interference protections, a point made to the Federal Communications Commission by the Advanced Television Broadcasting Alliance (one of the aforementioned "others"), which said it took issue with that secondary status.

In the combined filing to the FCC, the broadcasters urged the commission to do everything it could to preserve the benefits of both LPTVs and translators and insure they are not undermined by the auction. LPTVs and translators often provide the kind of diverse programming the FCC has said it wants to encourage, are ownership opportunities for minorities, another FCC priority, and can be the only access to free TV for some viewers in hard-to-reach areas, the groups said, all values the FCC has acknowledged and even highlighted.

David Smith: Congress Must Save TV's Future

David Smith, CEO-president of Sinclair Broadcast Group, sees congressional and/or court action required to rebalance the regulatory environment so that broadcasters can effectively compete with broadband, telephone and cable companies.

In the meantime, Smith said, uncertainty surrounding the regulatory environment is making it tough on broadcasters. Noting that the National Association of Broadcasters recently sent a cease-and-desist order to the Federal Communications Commission over its plan to scrutinize shared service agreements on a case-by-case basis, Smith wondered what's next.

"What, if anything, is the NAB going to do in the legal context?" he asked. "You've got Commissioner Pai standing up making some pretty bold statements -- [in effect] will someone please sue the FCC because they're violating the law. It may be reasonable to assume it will end up in some venue with a judge making the determination. If it's found to be illegal, then what do we do?”

Sinclair is following the FCC’s new marching orders on JSAs, selling three stations so that it can close on its $985 million acquisition of Allbritton. Smith said he views adoption of a new broadcast standard -- ATSC 3.0 -- as an essential tool to maintain competitiveness.

"We need to be everywhere 24 hours a day, 365 on every device," Smith declared, acknowledging details remain to be worked out. "Anything less than that is not good for the industry."

Sinclair’s Smith: Ownership Cap ‘Kind of Ridiculous’

David Smith, Sinclair Broadcast Group president and CEO, voiced his interest in mobilizing broadcasters to petition elected officials to support hopes for a change in ownership limits.

Smith called the 39% US households cap “kind of ridiculous.” People receive content from the phone company, cable and broadcast, he said, yet only broadcast is subject to stiff restrictions.

“The reality is, the phone company reaches 100%, the satellite guys reach 100% and the cable guys do whatever they want to do, and broadcasters are constrained,” said Smith. We think it’s completely lopsided in terms of the ownership cap.” Smith urged broadcasters to use their local democracies to make change.

ACA to Hill: Comcast/TWC Deal Threatens Competition

American Cable Association President Matthew Polka plans to tell the House Judiciary Committee that Comcast's proposed $69 billion merger with Time Warner Cable, and its proposed system spin-off/trade with Charter, will result in a multitude of anticompetitive harms and needs a bunch of fixes if it is to be approved.

Polka is among the witnesses at an oversight hearing on the deal on May 8.

"To put it mildly, the Comcast-TWC transaction is a “big deal” that threatens consumers and competition, likely resulting in higher prices for consumers," he says, according to his prepared testimony.

"As I will discuss, there is more than sufficient evidence already to demonstrate that the proposed transaction will result in significant anticompetitive harms in many ways. ACA is concerned about Comcast as both an MVPD -- the nation's largest --and as a programmer with regionals sports nets (RSNs), cable nets -- USA, Golf, Syfy, Bravo, E!, MSNBC -- as well as TWC as a cable operator with RSNs.

It argues that gives the deal both vertical and horizontal elements and creates potential harms from the combination of the two company's programming assets; from the combination of Comcast's programming assets with distribution assets from TWC and Charter; and from the combination of Comcast's distribution assets with those of TWC and Charter.