The Copyright Office exempted “ripping” short snippets of video for remixes and “jailbreaking” cellphones from the Digital Millennium Copyright Act’s ban on circumvention of rights-protection technologies. The Electronic Frontier Foundation, which had requested the exemptions, called the decision Monday a victory for fair use. The law requires a review every three years of uses that should get three-year exemptions.
With the lower unit cost provision stripped from the Senate version of the DISCLOSE Act, broadcasters’ concerns that the bill would sap political ad revenue this year have largely been put to rest, industry officials said. As the Senate considers a vote for cloture on the bill Tuesday, some in the industry and Congress question its effectiveness and purpose. The Citizen’s United Supreme Court ruling, which the bill was introduced in response to, probably won’t lead to any huge influx of corporate spending on political ads, industry officials said. “You don’t see necessarily a flood now as a result of this decision,” said Kyle Roberts, president of Smart Media Group, a political media planning group: “What you see is an industry that’s probably going to spend 10-20 percent more than it did last cycle, just like it has been trending."
Rural wireless carriers didn’t endorse but some may be open to Universal Service Fund overhaul legislation by House Communications Subcommittee Chairman Rick Boucher, D-Va., and Rep. Lee Terry, R-Neb. The bill (HR-5828) is backed by major wireline associations, the cable industry and AT&T and Verizon (CD July 23 p1). Some expected a competitive bidding rule to alienate rural wireless carriers that compete for USF dollars as competitive eligible telecommunications carriers. Wireless CETCs have concerns, but believe Boucher and Terry listened hard to all stakeholders and came up with a “solid compromise,” said Rural Telecommunication Group General Counsel Carri Bennet.
Wireless issues have gotten some of the most attention at various meetings held by FCC Chief of Staff Eddie Lazarus with industry to discuss a possible legislative proposal for giving the commission authority over broadband, said people who attended the meetings or spoke to others who did. There seems to be more agreement among agency officials and meeting attendees on applying net neutrality rules to wireline broadband, though some issues remain unresolved, they said. Net neutrality advocates and opponents appear to agree on ISP privacy conditions and transparency on network practices, industry and public-interest group lawyers said.
Verizon had a Q2 loss of $198 million versus a profit of $1.48 billion a year earlier, mostly due to a $2.3 billion charge for job cuts. The company continues to look at tiered data pricing options as it moves to LTE, Chief Financial Officer John Killian said on a conference call Friday. Verizon’s headcount is down by nearly 25,000, to 210,000 at the end of the quarter.
AT&T’s Q2 net income rose 26 percent year-over-year to $4 billion, helped by wireless growth and its cost cutting initiatives. Chief Financial Officer Rick Lindner expects improved results from consumer landline services but a slow recovery of business services, he said during a conference call Thursday.
Wireline telcos of all sizes plus the cable industry backed comprehensive Universal Service Fund legislation introduced Thursday by Chairman Rick Boucher, D-Va., of the House Communications Subcommittee and Rep. Lee Terry, R-Neb. The sponsors are upbeat about winning FCC support and getting the long-gestating bill through Congress, they told reporters Thursday. The measure will rein in the size of the fund and spur broadband deployment, they said. The legislation will make USF “durable and sustainable in the long term,” said Boucher.
Digital sales at LIN TV could reach 25 percent of total sales within three or four years, CEO Vincent Sadusky told investors Thursday. That’s the company’s target and would put it ahead of broadcast peers, he said. Sales from LIN’s TV station websites, mobile applications and retransmission consent now make up about 15 percent of revenue, but all those categories have the potential to keep growing, he said. The company’s recent acquisition of RMM, an online ad company, will help it keep selling new online ad products that incorporate geo-targeting and advanced performance metric-based pricing, Sadusky said.
The implications for the fast-growing online video market of a planned deal for Comcast to buy control of NBC Universal were debated in new FCC filings by the two companies and opponents of their multibillion dollar transaction. As in the past, Comcast, NBC Universal and NBCU parent General Electric said their deal won’t stifle the market, because the risks to the combined company of withholding online programming from pay-TV rivals likely would exceed the profit from such a strategy. FCC staffers continue meeting with each other and outsiders to consider the deal, and much work appears to remain before the Media Bureau starts drafting a decision, commission and industry officials said.
Phone and cable companies are pulling out all the stops to defend their markets and defeat net neutrality rules, ColorOfChange.org Executive Director James Rucker said Thursday. At a panel on broadband at the Netroots Nation conference, attended by liberal activists from across the U.S., he called net neutrality a “modern civil rights issue.”