Archive for June, 2008

Cable Saves Your Summertime

We’re still about a week away from the summer solstice, but it sure feels like summer already. The massive heatwave in Washington, D.C. this week helped set the tone, but the available programming on broadcast television also contributes.

It’s no secret that cable programming has been doing very well in recent years, especially as compared to broadcast television. Just one example is the growing number of honors that cable has won over the years.

Lost, The Big Bang Theory and The Office have gone bye-bye for a while and instead we can look forward to I Survived A Japanese Game Show and Dance Machine. But one way to make it through the summer TV doldrums is to turn to cable television. I am reminded of this by two items from this week. On Monday, the NY Times‘ David Carr pointed out it’s a Golden Age for TV? Yes, on Cable. Yesterday, Hamilton Nolan noted on Gawker: Cable: The Old New Big Thing.

Carr said this:

However, for anybody with cable — and that includes most of us — television is in something of a golden age. Cable networks other than the fancy subscription services like HBO and Showtime used to be the realm of stupid human tricks and commercials for six-minute abs, but networks have shot by them in the race to the bottom.

Channels like TNT, AMC, FX and others came up with their own versions of “Trading Places” and carved out niches, sometimes huge ones, by letting viewers know that narrative, quality and drama have not gone off the grid.

And Hamilton said this:

Networks must, by design, try for mass appeal. Cable channels can target their audiences much more effectively. The scary thing for networks is that even specialized cable channels no longer represent just a niche audience any more; they are almost as plugged into the mainstream as the networks themselves.

The success of cable is built on serving niches. As Carr said, those niches can get collectively pretty big.

The Cabletelevision Advertising Bureau has a handy chart on its website showing the effect of summer: Ad-Supported Cable Viewing Shares Heat Up In The Summertime. It looks at all dayparts, but if we examine just one metric, we see that primetime ratings for ad-supported cable networks increased 17% from November ’06 to July ’07, while broadcast ratings went down 33% for that same time period.

Categories: Cable Programming

Online Safety Summit

PointSmart.ClickSafeSeveral years ago, the cable industry launched the “Take Control. It’s Easy.” campaign in order to educate the public about TV parental controls. We operated in the belief that the best way to address concerns about what kids watch on TV was to educate and empower parents and caregivers to make decisions about what and when kids watch television.

One year ago, we expanded those efforts into the online environment by launching the PointSmart.ClickSafe. initiative, which focused on media literacy and online safety. At that time, the cable industry promised to collaborate with two nationally-recognized Internet safety expert groups – iKeepSafe and Common Sense – to convene a national inter-industry online safety “summit” meeting.

That promised summit is taking place on Tuesday here in Washington, D.C. What’s interesting about the event is that it brings together representatives from technology companies, child advocacy and parents groups, educators, health researchers and policymakers to share and develop best practices for keeping children safe and smart online. The conversation should be interesting and you can follow the action online, as the PointSmart.ClickSafe Summit will be webcast.

Go to the event website and follow the link, starting at 8:30 a.m. (ET) on June 10.

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Categories: Tech Discussions

“Cable’s Broadband Platform: Innovation for the Consumer”

NCTA President & CEO Kyle McSlarrow will participate in a National Press Club “Newsmaker” Media Briefing today at noon (ET).

In his address, entitled “Cable’s Broadband Platform: Innovation for the Consumer,” he is expected to challenge the notion that there is a rivalry between innovation taking place at the edge of or in the network. In contrast, he will discuss the notion of an interactive “Internet ecosystem.” He will also discuss new developments in tru2way.

His speech will be webcast through this link [Archive available at this link for 6 months].

UPDATE: It’s also being streamed at C-SPAN’s site. The text of the speech has been posted at NCTA’s website.

Time Warner, Broadband Caps, Mark Cuban and ASIVS (That’s DVRs to You and Me)

As Time Warner cable this week begins their trial of tiered Internet pricing in Beaumont Texas, the blogs are aflutter over the various caps Time Warner has proposed.  Time Warner’s plans start with caps at 5 gigabytes and go up to 40 gigabytes. Going over the cap will cost $1 per gigabyte.  Time Warner is also bringing transparency to usage by giving customers a gauge that will allow them to monitor their bandwidth consumption the way cell providers allow you to track your minutes.

Despite all this complaints about Time Warner’s trial and claims its caps are way too low have been ringing around the Internet.

Exactly how much bandwidth do you consume?  It’s hard to say as the number various from user to user.  However, Plus.net put together a nice little graphic showing you what a single Gigabyte gives you - including 4 hours per day of web browsing, 10 song downloads per week, e-mail, Internet radio usage, etc.

What does all that equal?  Well, NCTA member BendBroadband operated with a tiered structure and found that 91% of their customers consumed less than 10GB per month.  BendBroadband found that 99.5% of their users consume less than 100GB per month and now uses that as their cap.

Somewhere above the 91% consuming 10GB per month, and the .5% consuming more than 100GB lies the heaviest Internet users.  Estimates in various studies suggest that 5-10% of Internet users consume half or more of all bandwidth.  Much of that traffic – though specific estimates vary greatly – consists of P2P (peer to peer) connections exchanging files.   A study by SafeNet, Inc. suggests the overwhelming majority of P2P traffic may also be illegal content:

But 90 percent of P2P downloads are still of illegally copied content, according to David Hahn, vice president of product management at SafeNet Inc., which tracks the networks.

Hahn said 12 million to 15 million people are file-sharing across the world at any one time, mainly on the BitTorrent and eDonkey networks. The attraction of file-sharing is not just that it’s free – there’s also content available that can’t be had by legal means, like TV shows that haven’t aired in Europe.

Absent an exact figure of P2P usage, and whether or not you accept SafeNet’s 90% estimate, one thing is undeniable – a small percentage of Internet users are placing a burden on other users.  That is one reason a number of P2P applications providers are working to identify ways to make P2P a better and more efficient means of distributing content.  We believe that is a worthwhile pursuit, which is why NCTA and various cable companies are participating in a “P2P Best Practices” effort led by the Distributed Computing Industry Association.

In many of the articles written about the Time Warner experiment, detractors point to the number of movies than can be downloaded as a specific reason the cap is too low.  An average movie downloaded legally from iTunes is around 1-1.5 GB.  A 40GB cap would allow you to download more than 30 movies per month (or one a day) if that’s all you did.  Most people, however, don’t consume one movie per day, let alone 30 per month.

Mark Cuban, one of the founders of Broadcast.com and a web pioneer, points out the folly of this argument in a post on his blog yesterday.

Its been amusing to read all the blog posts with the math telling all of us just how many standard def or high def movies tiered subscribers will be limited to. You can have 2 or 3 of your favorite SD TV shows per day, or X number of HD movies per month. Say what? 

I have news for all of you that want to dedicate their internet connections to downloading movies. There is a new and exciting development. Its called an Application Specific Integrated Video Service (ASIVS). What is an ASIVS ? Its a computer dedicated specifically to downloading and playing both standard definition and high definition video. You connect it to a network that is dedicated to delivering GIGABITS PER SECOND of high quality video with ZERO buffering. It’s amazing, it always works and connects right to your standard def or High Definition TV, easily. Most of the systems I have seen have a pretty good programming guide and scheduling system and they will let you download AS MUCH VIDEO AS YOU WANT, limited only by the size of its hard drive!!

If you haven’t heard of the ASIVS, its because most people call it a DVR.

If downloading TV shows is so important to you, add a DVR to your cable or satellite service for 5 bucks a month and download all you want. If you want to watch those shows on your laptop, connect the composite video out in your DVR to the composite in on your laptop. Same with movies.

Can’t download movies illegally, tough.

The internet is a great resource for unlimited quantities of video. Downloading video is an internet given right. Using the internet to fill up your PC turned DVR at the expense of the performance of every user around you is not.

Mark’s right on the money with this.  Using the Internet to download video is your right and prerogative.   Using your Internet connection to consume all the available bandwidth and degrade your neighbor’s Internet experience simply isn’t.

As for Time Warner’s caps, are they too low?  Time Warner will soon find out.  They have described this as a test and will determine whether the model works and whether the caps are sufficient.  Unlike many of their critics online, Time Warner is unwilling to pronounce something a failure before even giving it a chance to prove itself.

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