During The Cable Show last week, Light Reading’s Jeff Baumgartner interviewed NCTA President & CEO Kyle McSlarrow. FCC Chairman Julius Genachowski had spoken earlier that day (coverage here) and so Jeff asked Kyle about proposed Title II regulation of broadband. They also discussed the AllVid NOI and the CableCARD fix (see this previous post for background). Finally, they talked about the SOC waiver recently granted by the FCC.

Yesterday, former FCC Chairman Michael Powell led Marc Andreessen, Time Warner’s Jeffrey Bewkes, CBS’ Leslie Moonves, Comcast’s Brian Roberts, and Fox Filmed Entertainment’s Tom Rothman through a wide ranging, free flowing, and spirited discussion of the future of content at The Cable Show’s second general session.

To start the conversation, Powell asked Brian Roberts if cable should be worried about online video.  Roberts responded that every new medium presents a new opportunity, but said they all present avenues to deliver lawful content; the more opportunities for that, the better.

Andreessen (who shared details of his 36 port HDMI switch with 36 different inputs and a $4,000 per month commercial Internet connection) said that was the right way to look at the future – since every device is now expected to be Internet-enabled, and to allow content consumption.

Rothman chimed in to agree, but said that creates a requirement that content be compelling.  Without compelling content, you just have a bunch of devices to check baseball scores.  Rothman says the key to content online is two-fold.  First, the most important piece of content is good storytelling.  Second, that storytelling must be accompanied by a way to protect and monetize content.

The various models of monetization became a hot topic and Powell noted that customers may have different thoughts about the monetization process – so cable operators may end up fighting with consumers.

Moonves answered by noting that, for his company, there used to be one source of revenue – advertising – but now there are many more, such as syndication, retransmission fees, DVDs,  iTunes, Hulu, etc.  That presents more options to address the monetization question.

The introduction of the topic of advertising led Powell to ask what impact services like Facebook will have, since they present a new, and possibly competing, set of audience segmentation data.  Powell noted the industry no longer has the exclusive on audience data.

Bewkes suggested all the different entities must become partners in the sharing of audience data, and Moonves said one of the essentials is accurate eyeball measurement – and we don’t have that yet.

Andreessen suggest Facebook can be an enabler of content by providing data, and also by sharing content with friends.

Roberts said people may go to other providers  – not because the content is different, but because the experience is different or cooler.  As a result, it is incumbent upon cable to stay fresh and cool, and spend more time on the interface.

Asked what makes them nervous, the panelists suggested that the uncertainty of regulatory change was a great challenge.

Moonves joked, “Whenever they say it’s not about the money, it’s all about the money.”

In a discussion involving the people responsible for wireless strategies at America’s largest cable companies, one thing was clear – there is no single path they are taking to deliver wireless.  Cathy Avgiris of Comcast, John Bickham of Cablevision, Stephen Bye from Cox Communications, Frank Miller of Bend Broadband, and Mike Roudi from Time Warner Cable spoke today at The Cable Show in Los Angeles, on the panel “Spectrum of Possibility: Technology & Strategy for the Business of Wireless Communications.”

While most noted the agreement between industry players Sprint and Clearwire to provide mobile outside their service areas, there were differing business plans on display.  Stephen Bye noted Cox Communications plans to build its own wireless network using current 3G technology, but also noted the ease of upgrading to LTE in the longer term.  That approach puts Cox at odds with most of the other operators.

Comcast’s Avgiris, for instance, noted the different approach cable operators had taken to telephony years ago.  Rather than try to develop a circuit-switched network, many cable operators began pursuing a VoIP solution that would allow them to be competitive without high upfront costs.

Similarly, Avgiris said companies like Comcast and Time Warner are looking at Wi-Fi networks and dual mode smartphones to deliver their wireless offerings.

Cablevision’s Bickham discussed the deployment of their Optimum WiFi service in the New York area (see this earlier post), and the agreement between Time Warner, Comcast, and Cablevision to allow Wi-Fi roaming across each others’ networks (see this Multichannel News article).

All agreed that wireless would be a key part of the bundle of services offered by cable operators, but most spoke to the consumer benefits of that.  It’s no longer about bundling services just to save money, it’s about the experience.  When customers can use their mobile device as a gateway and player for their home based services, that becomes a powerful driver for consumer interaction.

Yesterday’s opening session of The Cable Show 2010 featured a line up of cable heavy hitters in free-flowing discussion across a wide variety of topics.  Starting with the FCC’s recent decision to pursue reclassification of ISPs under Title II, moderator Tyler Mathisen questioned the CEOs about regulations, business models, consumer interests, and the future.

When questioned about the FCC’s pursuit of Title II, Time Warner Cable’s Glenn Britt and Cox’s Pat Esser both spoke to the success of broadband and suggested the FCC would be wise to keep interference to an absolute minimum.

The talk quickly turned to business models – both the delivery of products across different media, as well as how the convergence of media may result in changes to the pricing models.  To the former, Britt suggested operators should avoid thinking of every new screen as a different business, and instead focus on the industry’s true business – telling a great story via video – and thinking of new ways to meet that business goal regardless of platform.

On pricing, Esser suggested there will be open models, subscription models and transactional models, and said the goal of the operator is to facilitate them all, in a way that is easy for consumers.

The discussion of pricing led to a brief discussion of retransmission consent.  Both the programmers and the operators seemed largely unconcerned and said the process would get fixed.  However, Viacom’s Philippe Dauman did note that despite the sometimes contentious negotiations, the net result to consumers is positive.  Dauman noted that the increase in fees gets reinvested into new channels, better programing, and more delivery options.

One area where all sides seemed to agree is the role of sports and gaming as drivers of 3D television.  Asked what the adoption of 3D television would look like, Pat Esser suggested that youth and gaming would be key drivers.  David Zaslav from Discovery Networks noted the programmers push to launch the first 24 hour 3D channel as a driver.  Kevin Tsujihara of Warner Bros. spoke of the role of CE manufacturers, and specifically cited studies that indicate consumers are refreshing devices more frequently.  That, he argued, should shorten the amount of time 3D would take for adoption – especially as opposed to HD.

Britt used the mention of hi-def to note that it took 20 years for high-definition television to take off. He suggested that the migration to 3D will be guided by consumers, and said operators need to be sure to let them drive the process.

For additional coverage of this session, see The Cable Show blog.

[EDITOR'S NOTE: This week, we're all out in Los Angeles at The Cable Show 2010. Kyle McSlarrow, President & CEO of NCTA, has written the following op-ed piece, which appears in today's edition of the industry publication CableFAX, kicking off the event. I (this is Paul Rodriguez writing) actually attended the '96 conference, then called The National Show, which Kyle references below and the cable industry has indeed changed dramatically since that time. ]

The Cable Show’s return to Los Angeles for the first time since 1996 provides the perfect opportunity to reflect on the tremendous progress our industry has made since our last visit to Southern California. In fact, there may not be an industry in America that has so dramatically transformed itself so quickly.

In 1996, our distribution platform was a one-way analog system. Our platform today provides an interactive communications network that entertains and informs with tremendous award winning content, connects millions to an amazing broadband Internet experience, provides superior and affordable digital phone service and offers a growing array of interactive services that have changed the way we consume media and entertainment.

Our industry’s transformation has benefited consumers, our economy, and America’s global competitiveness. Since 1996, our industry has invested $185 billion to produce the most creative and widest variety of programming that is available; and, $160 billion in massive infrastructure upgrades, maintenance and equipment that can deliver five gigabits per second of data. And, despite a challenging economy, we continue to invest and innovate.

We should probably stop talking about the “convergence” around the corner. It is here now. Cable service is no longer just video, and content is no longer just viewed through the TV. Broadband has become a “must have,” and the Internet economy has exploded. Consumers are in the driver’s seat as they continue to witness more choice, new platforms, and optimization of their personal telecom services.

Words can hardly do justice to the myriad ways that our industry is now an integral part of life for millions of consumers. So, if you are one of the thousands joining us at The Cable Show, experience yourself cable’s impact by visiting the centerpiece of the show’s exhibit floor, My World—Powered by Cable. It’s an inspiring, immersive journey into the new era of anytime, anywhere, anyway-you-want-it content and communication. Modeled after a Hollywood back-lot, My World leads visitors through a virtual world of buildings, neighborhoods and living spaces brought to life through the connective power of our services. It demonstrates the full breadth of our industry’s ability to provide media and communications experiences the way you want it. And throughout the show floor, you’ll find more than 300 exhibitors displaying our industry’s greatest content, services and technologies

Right next to My World, CableNET highlights the latest emerging services, including ultrafast broadband, advanced advertising, interactive television, 3D TV and much more.

We’ve also got a great line-up of general sessions and panels that will tap into some of the most creative minds from our industry, Hollywood and Silicon Valley. And even though we are far from Washington, you’ll find a robust public policy program featuring top officials from the federal government and the Obama Administration.

So, welcome to Los Angeles and your world.