Reading Cable Act Section 621, which lets cable operators use easements when constructing networks, in a constrained, technical sense flouts the language and stated purpose of the act and runs contrary to the its legislative history and FCC interpretation. That according to NCTA in a 7th U.S. Circuit Court of Appeals amicus brief (in Pacer, docket 19-2442) Tuesday backing defendant-appellee Charter Communications in an appeal by Stephen West, who sued over the addition of fiber cable to a utilities transmission tower on his Indiana land. West, appealing a lower court dismissal, said (in Pacer) reference in 621 to a dedicated easement is to be understood as indicating transfer of a specific property right, and franchises like Charter can't access a private utility easement without the property owner formally deeding the right to use the easement for utilities to the public.
Massachusetts Department of Telecommunications and Cable's argument DirecTV Now rebranding makes Charter Communications' effective competition petition moot (see 1910210040) is erroneous, since the service itself remains the same, Charter said in an FCC docket 18-283 posting Wednesday. It said the state is using some redacted data in its argument about DirecTV Now/AT&T TV Now availability in the cable ISP's franchise area and doesn't explain why it couldn't file earlier. The cable operator said the extreme lateness of the state's submission, the day the FCC sunshine notice, doesn't give the commission enough time to evaluate it, so disregard it. The state didn't comment.
NATOA wants to intervene on behalf of locality petitioners challenging the FCC cable TV local franchise authority order before the 9th U.S. Circuit Court of Appeals. In a docket 19-72391 unopposed motion Monday (in Pacer), it said its members will be "adversely affected" by the order, which pre-empts local authority over cable operators' non-cable services and hurts those authorities' ability to maintain nondiscriminatory treatment of service providers operating in public rights of way. New York City just sought similar (see 1910210076).
Music labels' claims that Charter Communications profited from direct copyright infringement by its internet subscribers and didn't stop or limit the infringing activity are plausible, U.S. Magistrate Judge Michael Hegarty of Denver said in a docket 19-cv-00874 recommendation Monday (in Pacer), responding to a Charter motion to dismiss the vicarious music piracy complaint (see 1905290002). Hegarty recommended against dismissal. Charter outside counsel didn't comment Tuesday.
New York City asked for 9th U.S. Circuit Court of Appeals OK to intervene on behalf of locality petitioners challenge the FCC's cable TV local franchise authority order. In a docket 19-72391 unopposed motion Monday (in Pacer), New York said it will be "significantly impacted" by the order, which exceeds FCC statutory authority, but its interests aren't adequately represented by the petitioners. The court last week consolidated complaints brought by multiple communities (see 1910150015).
That AT&T no longer offers DirecTV Now makes Charter Communications' broadband subscription data in Massachusetts irrelevant, the Massachusetts Department of Telecommunications and Cable said in a docket 18-283 FCC posting Monday. MDTC said Charter data is immaterial to a LEC having to be physically able to deliver the service to all potential customers in a franchise area, not just Charter customers. The state agency said much of the Charter data is about statewide broadband subscriptions, not data about the specific franchise areas. MDTC argued Charter's petition on effective competition due to DirecTV Now is moot due to AT&T now offering a different over-the-top service, AT&T TV Now (see 1910160022).
A finding of effective competition via AT&T TV Now in parts of Massachusetts and Hawaii would let Charter Communications almost double what it charges for basic cable TV in some instances, hammering subscribers on fixed incomes, the Massachusetts Department of Telecommunications and Cable told an aide to FCC Commissioner Jessica Rosenworcel, said a docket 18-283 posting Friday. It said Charter hasn't demonstrated it faces effective competition under the LEC test. It said putting online video distribution on regulatory par with MVPDs is better addressed in the FCC's open proceeding on that issue. Charter didn't comment. Its effective competition petition is on commissioners' Friday agenda (see 1910030061).
Netflix forecast a year-over-year decline in Q4 paid net subscriber additions, and factored into that projection that “a few new competitors” are launching streaming services “in the near term,” said Chief Financial Officer Spencer Neumann on Q3 Wednesday evening. “Inevitably, there is probably going to be some curiosity and some trial of those competitive service offerings,” said Neumann. “We're just trying to be prudent about our Q4 forecast.” The outlook for 7.6 million paid net adds includes a 61 percent decline in the U.S. Overseas paid net adds are expected to decline 4 percent. That Netflix will have recorded nearly 27 million net paid adds in 2019 makes this “a tremendously strong year,” said Neumann. It had 5 million paid net adds in the U.S. in 2018 and this year is forecasting a decline to 2.6 million, said CEO Reed Hastings. “So the gap's almost entirely in the U.S.” Disney “is going to be a great competitor,” and so will Apple, he said. “All of us are competing with linear TV.” Just as “multiple cable networks” competed with broadcast TV and not with one another over the past 30 years, “it's the same kind of dynamic here,” he said. The stock closed 2.8 percent higher Thursday at $294.30.
Quality of user interface plays a major role in whether U.S. video subscribers recommend their over-the-top service, Parks Associates said. Seventy percent of U.S. broadband households with a major video service consider the interface good, with nearly half rating it “very good,” Parks said in a blast emailed Wednesday and dated Monday, with quality of UI and ease of finding content the most relevant factors driving willingness to recommend a service. A fifth of households that canceled an OTT subscription cited inability to find something to watch. Netflix, Hulu, and Amazon “have largely set the standard for content navigation and ease of use,” said analyst Kristen Hanich. "As new OTT services launch with greater and greater expectations, innovations in UIs could be an even greater differentiator." When searching for something to watch, 12 percent of OTT users consider recommendations from the service as their first step, said Parks. Apple TV owners give high marks to that UI.
The FCC local franchising order clearly follows the Cable Act, with reasonable interpretations where the statute is ambiguous, NCTA said, opposing a motion by the National League of Cities and others (see 1910080041) seeking a stay of the LFA order pending outcome of legal challenges. In a docket 05-311 posting Wednesday, NCTA said the National League of Cities and others didn't show they need a stay to prevent irreparable harm, especially since they waited more than two months from the order's adoption to seek the stay. The cable association said having to reallocate resources based on a decline in franchise fees isn't irreparable harm but "a core function of state and local government." And it said the ask for a stay doesn't acknowledge the irreparable harm it would cause the cable industry and customers.