NBC’s 2020 streaming service won’t be very compelling for cord cutters — and that’s by design

The proof is in the details of NBC’s streaming service, coming next spring. And you’ll get a few originals for the streaming service, the quality of which is to be determined. NBC expects its revenue from cord cutters on its streaming service to be “completely immaterial,” according to a person familiar with the matter. Customers who cancel Comcast’s TV service for, say, YouTube TV will still get NBC’s streaming service for free. But at launch next year, the NBC streaming service won’t be a comp


The proof is in the details of NBC’s streaming service, coming next spring. And you’ll get a few originals for the streaming service, the quality of which is to be determined. NBC expects its revenue from cord cutters on its streaming service to be “completely immaterial,” according to a person familiar with the matter. Customers who cancel Comcast’s TV service for, say, YouTube TV will still get NBC’s streaming service for free. But at launch next year, the NBC streaming service won’t be a comp
NBC’s 2020 streaming service won’t be very compelling for cord cutters — and that’s by design Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: alex sherman
Keywords: news, cnbc, companies, wont, cord, disney, thats, live, nbcs, service, hulu, tv, 2020, compelling, nbc, paytv, streaming, design, customers, cutters


NBC's 2020 streaming service won't be very compelling for cord cutters — and that's by design

The streaming wars — the race to launch subscription video products — has been driven by an underlying concept: The traditional pay-TV bundle is dying as millions of U.S. households cut the cord each year and shift their video consumption to services like Netflix.

This has been a hard pill to swallow for legacy media companies, which derive billions of dollars from traditional pay TV. Yet, many of those media companies are coming to grips with reality and beginning to disrupt their own business models, headlined by Disney’s $6.99 Disney+ offering for this year.

That’s not the case for Comcast’s NBCUniversal (the parent company of CNBC and CNBC.com).

NBC doesn’t want you to cut the cord. Maybe this isn’t too surprising since its owner is the largest U.S. cable company. But it’s unusual because it directly contradicts the disruption narrative. Instead of submissively accepting that the pay-TV world is ending, NBC is taking a stand and fighting back.

The proof is in the details of NBC’s streaming service, coming next spring.

NBC’s ad-supported streaming service will be free to all customers who pay for traditional live television — whether through Comcast or any other provider, including virtual pay-TV bundles like Google’s YouTube TV or AT&T’s DirecTV Now, assuming partnership deals are struck, according to people familiar with the matter.

For those who have cut the cord, it will probably be about $10, said the people, who asked not to be named because the discussions on price are still ongoing.

CNBC has also learned that the free version of service for pay-TV subscribers will include live linear channels, same-season episodes and past-season episodes. Customers will be able to watch NBC programming anywhere, on any device, independent of their cable provider’s footprint. NBC will have nonexclusive access to all of the programming it sells to Hulu for the streaming service, as part of the deal with Disney the two companies announced on Tuesday.

But the $10 version for cord cutters won’t include live linear channels and won’t include same-season shows. You’ll get a bunch of reruns, most of which will also be available on Hulu if you already subscribe to that service. And you’ll get a few originals for the streaming service, the quality of which is to be determined.

So what are you getting for your $10 a month? Not much at first. And that’s the point.

NBC expects its revenue from cord cutters on its streaming service to be “completely immaterial,” according to a person familiar with the matter. The company is actively trying to make its cord-cutting streaming service inferior to its pay-TV version. The service is primarily meant as a nice additional benefit for customers who already pay for cable or satellite TV.

NBC’s decision isn’t totally motivated by supporting Comcast’s cable TV business. Now that Disney has full operational control of Hulu, Disney can bundle Hulu (or Hulu with Live TV) with Disney+ to make a compelling streaming offering that should further accelerate cord cutting. NBC is OK with this. Customers who cancel Comcast’s TV service for, say, YouTube TV will still get NBC’s streaming service for free.

NBC will certainly monitor the take rate of its streaming service among non pay-TV subscribers if cord cutting dramatically accelerates. If necessary, it can move content on and off its service thanks to Tuesday’s deal with Hulu, as well as the impending expiration of streaming-rights deals for popular shows it owns, such as “The Office.” And three years from now, when its content deal with Hulu ends, there’s an easy path for NBC to make its streaming service more compelling by making all its content exclusive to it.

But at launch next year, the NBC streaming service won’t be a compelling addition for cord cutters. And that’s the point.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC and CNBC.com.

WATCH: Comcast will sell its Hulu stake to Disney, giving Disney full control


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: alex sherman
Keywords: news, cnbc, companies, wont, cord, disney, thats, live, nbcs, service, hulu, tv, 2020, compelling, nbc, paytv, streaming, design, customers, cutters


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

NBC to launch free streaming service in 2020

Comcast’s NBCUniversal plans to debut a free, ad-supported streaming service to anyone that subscribes to a traditional pay-TV service, including competitors such as Charter, AT&T, Cox and Dish, in the first quarter of 2020, the company announced Monday. NBC will air between three and five minutes of ads per hour of programming, NBCUniversal CEO Steve Burke told CNBC. The company sees an opening because there is no long-form, ad-supported streaming service, the person said. Since it will launch


Comcast’s NBCUniversal plans to debut a free, ad-supported streaming service to anyone that subscribes to a traditional pay-TV service, including competitors such as Charter, AT&T, Cox and Dish, in the first quarter of 2020, the company announced Monday. NBC will air between three and five minutes of ads per hour of programming, NBCUniversal CEO Steve Burke told CNBC. The company sees an opening because there is no long-form, ad-supported streaming service, the person said. Since it will launch
NBC to launch free streaming service in 2020 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: alex sherman, julia boorstin, peter kramer
Keywords: news, cnbc, companies, company, nbc, free, paytv, person, content, 2020, service, launch, nbcuniversal, streaming


NBC to launch free streaming service in 2020

NBC is doing a solid for the traditional pay-TV industry.

Comcast’s NBCUniversal plans to debut a free, ad-supported streaming service to anyone that subscribes to a traditional pay-TV service, including competitors such as Charter, AT&T, Cox and Dish, in the first quarter of 2020, the company announced Monday.

For those that don’t subscribe to a pay-TV service, the streaming product, which will include 1,500 hours of NBC TV shows, such as SNL and Parks and Recreation, and hundreds of hours of Universal movies, will cost somewhere around $12 a month, a person familiar with the company’s plans told CNBC. The service will be run by Bonnie Hammer, the company announced Monday.

NBC’s plans are contingent on striking deals with the largest pay-TV providers, which it hasn’t yet done, the person said. Still, the product will be free for customers of those providers, so NBC doesn’t plan on any challenges when it comes to inking those agreements.

Because the service will be free for the millions of people that already subscribe to pay-TV, NBC is banking on quickly growing to 30 million or 40 million users with its service, as opposed to slowly growing a paid service and starting at zero subscribers, the person said.

NBC will air between three and five minutes of ads per hour of programming, NBCUniversal CEO Steve Burke told CNBC. NBC expects to make $5 per month from every user on the service from advertising, he said. NBC’s research showed subscribers prefer free services with low ad load, Burke said.

“One of the interesting things about this that makes it different and innovative is that we’ll have a big emphasis on free-to-consumer,” Burke said. “We want to create a platform that has significant scale and can scale quickly. The best way to do that, is make it free to consumers and leverage the fact that NBCUniversal’s sister company is a cable company and now owns Sky.”

The company sees an opening because there is no long-form, ad-supported streaming service, the person said. For example, Hulu costs $7.99, but has regular ad breaks. Netflix has long-form content, but costs a monthly fee. And YouTube is primarily short-form, user-generated content and supported by ads. NBCUniversal does not plan on aggressively pulling back shows and movies it has licensed to other streaming services, the person said.

Burke told CNBC the service will include live TV like news and sports, in addition to on-demand programming. Since it will launch in early 2020, it’s likely there will be content around the 2020 Summer Olympics to draw more people to the platform. Burke also said the service will bring in content from other companies like Sony, Discovery and Warner Bros.

NBCUniversal will be throwing its hat into an expensive and competitive ring. Streaming incumbents Netflix, HBO and Hulu are upping content spend and doubling down on original programming to stave off market share threats from new entrants like Apple, AT&T and Disney, which are set to launch its streaming service later this year.

Also Monday, NBCUniversal announced a reorganization of senior leadership. Mark Lazarus, currently chairman of NBC broadcasting and sports, will take on a larger role and oversee the company’s cable and news divisions as well. Jeff Shell, currently chairman of Universal Filmed Entertainment Group, has been named chairman of NBCUniversal film and entertainment. Donna Langley will take over as the sole chairman of Universal Filmed Entertainment Group.

Disclosure: NBCUniversal is the parent company of CNBC.


Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: alex sherman, julia boorstin, peter kramer
Keywords: news, cnbc, companies, company, nbc, free, paytv, person, content, 2020, service, launch, nbcuniversal, streaming


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Higher-than-expected viewership of ‘The Match’ between Tiger Woods and Phil Mickelson forces refunds, WSJ reports

Viewer interest in “The Match” between Tiger Woods and Phil Mickelson far surpassed AT&T’s expectations, according to The Wall Street Journal. The $19.99 pay-per-view subscription fee was dropped due to technical glitches from the high volume of viewers. AT&T and other major pay-TV providers including Comcast, Dish and Charter Communications said they would refund or credit customers who paid to watch Friday’s golf showdown. Initial estimates for viewers of “The Match” were only as high as 150,0


Viewer interest in “The Match” between Tiger Woods and Phil Mickelson far surpassed AT&T’s expectations, according to The Wall Street Journal. The $19.99 pay-per-view subscription fee was dropped due to technical glitches from the high volume of viewers. AT&T and other major pay-TV providers including Comcast, Dish and Charter Communications said they would refund or credit customers who paid to watch Friday’s golf showdown. Initial estimates for viewers of “The Match” were only as high as 150,0
Higher-than-expected viewership of ‘The Match’ between Tiger Woods and Phil Mickelson forces refunds, WSJ reports Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: laura galligan, harry how, getty images
Keywords: news, cnbc, companies, journal, paytv, higherthanexpected, woods, providers, viewers, refunds, told, phil, match, wsj, subscription, tiger, payperview, mickelson, video, viewership, levy, reports


Higher-than-expected viewership of 'The Match' between Tiger Woods and Phil Mickelson forces refunds, WSJ reports

Viewer interest in “The Match” between Tiger Woods and Phil Mickelson far surpassed AT&T’s expectations, according to The Wall Street Journal.

The $19.99 pay-per-view subscription fee was dropped due to technical glitches from the high volume of viewers. AT&T and other major pay-TV providers including Comcast, Dish and Charter Communications said they would refund or credit customers who paid to watch Friday’s golf showdown.

AT&T was entitled to have the subscription revenue generated by other pay-TV providers, but the company will not seek out the fees, people familiar with the matter told the Journal.

Initial estimates for viewers of “The Match” were only as high as 150,000, an official told the Journal. But about 750,000 people alone watched the contest just on the video service B/R live, part of the Bleacher Report’s digital platform. The total number of sign-ups and views, including those from other pay-TV providers, has not yet been released.

AT&T’s Turner Media President David Levy said B/R never had a problem streaming video, but its system to collect payment information did not have the capacity to collect so much credit card information, blocking people from purchasing the event, the Journal reported.

Despite the refunds, Levy told the Journal the event was successful, and bodes well for the future of pay-per-view, noting that every advertiser involved in “The Match” wants to come back.

Read the full Journal report here.

Disclosure: Comcast is parent of NBCUniversal and CNBC.


Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: laura galligan, harry how, getty images
Keywords: news, cnbc, companies, journal, paytv, higherthanexpected, woods, providers, viewers, refunds, told, phil, match, wsj, subscription, tiger, payperview, mickelson, video, viewership, levy, reports


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Rupert Murdoch may buy back Fox Sports Networks from Disney

First, while the DOJ forced Disney to sell the RSNs to get the larger deal done, the networks were never a crown jewel asset for Fox, Disney or Comcast. Disney took them because it wanted other assets from Fox (its studio, its stake in Hulu, Star India). About a decade ago, the networks began to hike carriage fees, knowing cable providers would agree to the higher prices rather than risk alienating customers by blacking out the networks. In recent years, pay-TV providers, which have seen million


First, while the DOJ forced Disney to sell the RSNs to get the larger deal done, the networks were never a crown jewel asset for Fox, Disney or Comcast. Disney took them because it wanted other assets from Fox (its studio, its stake in Hulu, Star India). About a decade ago, the networks began to hike carriage fees, knowing cable providers would agree to the higher prices rather than risk alienating customers by blacking out the networks. In recent years, pay-TV providers, which have seen million
Rupert Murdoch may buy back Fox Sports Networks from Disney Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-26  Authors: alex sherman, getty images
Keywords: news, cnbc, companies, fees, providers, fox, sell, willing, paytv, networks, rsns, buy, rupert, murdoch, disney, cable


Rupert Murdoch may buy back Fox Sports Networks from Disney

There are several ironies here.

First, while the DOJ forced Disney to sell the RSNs to get the larger deal done, the networks were never a crown jewel asset for Fox, Disney or Comcast. Fox was willing to sell them (and did). Disney took them because it wanted other assets from Fox (its studio, its stake in Hulu, Star India).

Meanwhile, Comcast saw the RSNs as an albatross and was equally willing to divest them, according to people familiar with the companies’ thinking.

Regional sports networks used to be huge value-adds for the cable industry. They carry exclusive broadcasting rights to local games, which come with devoted fan bases. About a decade ago, the networks began to hike carriage fees, knowing cable providers would agree to the higher prices rather than risk alienating customers by blacking out the networks. That led to a steady rise in the cost of cable for consumers. Residents of markets like New York or Los Angeles, which have multiple teams and a handful of RSNs, were paying fees up to $10 a month (baked into their monthly cable bill) whether or not they were watching the games.

In recent years, pay-TV providers, which have seen millions of customers cut the cord, have started to see RSNs differently. Providers have pushed to tier them onto packages that appeal just to sports fans while keeping costs lower for everyone else. This has decreased the value of the networks, which are no longer automatically part of everyone’s basic cable packages.

Several pay-TV providers have dropped regional sports networks, refusing to pay their high programming fees. For instance, SportsNet LA, which broadcasts L.A. Dodgers games, which hasn’t been carried by DirecTV for five straight years.

If Fox ends up with the sports networks again, part of the reason will be that no other large pay-TV distributor — Charter, AT&T, Comcast or Dish — saw value in owning the networks. While Sinclair Broadcast Group CEO Chris Ripley has discussed making an offer for the networks with private equity support, it would need quite a bit of help. Sinclair’s market capitalization is just $2.8 billion. The regional sports networks were valued at more than $20 billion, according to a Guggenheim Securities analysis.

It’s still unclear how much New Fox is willing to spend on the networks — or what Disney values them at. What is clear is that Disney needs to sell them.


Company: cnbc, Activity: cnbc, Date: 2018-10-26  Authors: alex sherman, getty images
Keywords: news, cnbc, companies, fees, providers, fox, sell, willing, paytv, networks, rsns, buy, rupert, murdoch, disney, cable


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The government just gave its explanation for appealing the $85 billion AT&T-Time Warner merger

The U.S. Department of Justice released its written argument explaining why it’s appealing AT&T’s $85 billion acquisition of Time Warner, a deal that was approved by U.S. District Court Judge Richard Leon in June. The government argues Judge Leon ignored “mainstream economics” in his decision because he refused to see a deal as having “an appreciable danger” of raising prices on consumers in the future. The government said Judge Leon ignored economic theory by claiming Time Warner wouldn’t have


The U.S. Department of Justice released its written argument explaining why it’s appealing AT&T’s $85 billion acquisition of Time Warner, a deal that was approved by U.S. District Court Judge Richard Leon in June. The government argues Judge Leon ignored “mainstream economics” in his decision because he refused to see a deal as having “an appreciable danger” of raising prices on consumers in the future. The government said Judge Leon ignored economic theory by claiming Time Warner wouldn’t have
The government just gave its explanation for appealing the $85 billion AT&T-Time Warner merger Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-06  Authors: alex sherman, lucas jackson, stephanie keith
Keywords: news, cnbc, companies, gave, leon, merger, appealing, billion, warner, economics, atttime, explanation, 85, directv, judge, ignored, att, district, refused, paytv


The government just gave its explanation for appealing the $85 billion AT&T-Time Warner merger

The U.S. Department of Justice released its written argument explaining why it’s appealing AT&T’s $85 billion acquisition of Time Warner, a deal that was approved by U.S. District Court Judge Richard Leon in June.

The government argues Judge Leon ignored “mainstream economics” in his decision because he refused to see a deal as having “an appreciable danger” of raising prices on consumers in the future.

The government said Judge Leon ignored economic theory by claiming Time Warner wouldn’t have increased bargaining power over pay-TV distributors by linking up with AT&T. This was one of the DOJ’s primary arguments during the initial case to the District Court — that AT&T could charge companies such as Comcast, Charter and Dish more money for Time Warner with the fallback of blacking out networks such as CNN, TNT and TBS and offering them on DirecTV, which AT&T owns. If pay-TV operators refused to pay more, customers could switch their service to DirecTV, setting up a “win-win” for AT&T.

AT&T successfully defended against this charge, arguing that the economics behind buying Time Warner only made sense if the company made programming available to as many people as possible.


Company: cnbc, Activity: cnbc, Date: 2018-08-06  Authors: alex sherman, lucas jackson, stephanie keith
Keywords: news, cnbc, companies, gave, leon, merger, appealing, billion, warner, economics, atttime, explanation, 85, directv, judge, ignored, att, district, refused, paytv


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Disney could avoid a bidding war with Comcast if it’s willing to shed these Fox assets

(Comcast owns NBCUniversal, the parent company of CNBC.) Fox executive chairman Rupert Murdoch already agreed to take less money from Disney than Comcast, a sign that he sees a higher future value in Disney shares. Could Disney strike a deal with Comcast, where it effectively splits up Fox’s assets, in lieu of an all-out bidding war? Fox owns 39 percent of Sky and is attempting to acquire the rest (currently a publicly-traded entity). The Fox deal would give Disney a controlling stake, thus tipp


(Comcast owns NBCUniversal, the parent company of CNBC.) Fox executive chairman Rupert Murdoch already agreed to take less money from Disney than Comcast, a sign that he sees a higher future value in Disney shares. Could Disney strike a deal with Comcast, where it effectively splits up Fox’s assets, in lieu of an all-out bidding war? Fox owns 39 percent of Sky and is attempting to acquire the rest (currently a publicly-traded entity). The Fox deal would give Disney a controlling stake, thus tipp
Disney could avoid a bidding war with Comcast if it’s willing to shed these Fox assets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-05-08  Authors: alex sherman
Keywords: news, cnbc, companies, avoid, foxs, bidding, disney, stake, fox, rights, war, assets, owns, hulu, paytv, shed, willing, comcast, deal


Disney could avoid a bidding war with Comcast if it's willing to shed these Fox assets

Comcast’s plan to outbid Disney for Fox’s assets is evidence that CEO Brian Roberts believes the deal is too unique for Comcast to pass up without a fight. (Comcast owns NBCUniversal, the parent company of CNBC.)

Pushing away Disney won’t be easy. Fox executive chairman Rupert Murdoch already agreed to take less money from Disney than Comcast, a sign that he sees a higher future value in Disney shares. While Disney is paying in stock, Comcast is talking to banks to raise about $60 billion for an all-cash counterbid. That would top Disney’s December offer, valued at the time at $52.4 billion.

Murdoch owns 17 percent of Fox’s outstanding shares, so it’s possible Comcast could convince enough Fox shareholders to take an all-cash offer even if Murdoch resists.

If that doesn’t work, Comcast would still prefer a consolation prize to nothing.

Could Disney strike a deal with Comcast, where it effectively splits up Fox’s assets, in lieu of an all-out bidding war? Here are the Fox assets Comcast covets:

Sky UK. Comcast generates nearly all of its revenue from within the United States. International growth has long been viewed as the next horizon for the largest U.S. cable provider, which also owns NBC Universal. Sky owns billions of dollars worth of original and exclusive content, including Premier League soccer rights. It’s also a U.K. pay-TV and Internet provider — the same business that Comcast has dominated for more than a decade. Fox owns 39 percent of Sky and is attempting to acquire the rest (currently a publicly-traded entity). Comcast also wants the entire business, having already topped Fox’s bid for the outstanding 61 percent with a $31 billion offer.

Star India. Comcast would love to have a foothold in India, where entertainment consumption growth is massive. Netflix, too, is trying to crack the country, which analysts suggest could be a huge growth engine. Star India, which operates about 70 different entertainment channels, reaches more than 720 million viewers a month in more than 100 countries. Star also owns sports rights, including a $940 million deal for India’s most popular sport, cricket, signed just last month. Sports rights are seen as the lifeblood of the traditional pay-TV ecosystem (Comcast’s core business) because consumers watch games live rather than on demand.

Hulu. Speaking of on-demand, Comcast has a hedge against the decline of pay-TV: its stake in Hulu. Comcast’s NBCUniversal owns 30 percent of the platform. The remainder is split among Disney (30 percent), Fox (30 percent,) and Time Warner (10 percent), which may soon be part of AT&T if the government fails to block the deal. The Fox deal would give Disney a controlling stake, thus tipping the balance of power around Hulu to Iger. This would lead to an unstable situation for Comcast, likely forcing a sale of its stake to Disney. But if Comcast could wrestle away Fox’s stake in Hulu, it would become the controlling owner of Hulu and could use it as a defense against Netflix and Disney’s new streaming service, which will debut next year.


Company: cnbc, Activity: cnbc, Date: 2018-05-08  Authors: alex sherman
Keywords: news, cnbc, companies, avoid, foxs, bidding, disney, stake, fox, rights, war, assets, owns, hulu, paytv, shed, willing, comcast, deal


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

AT&T court fight with the US Justice Department heads into closing arguments

Lawyers for the U.S. Justice Department and AT&T will give closing arguments on Monday in a trial to determine if the wireless giant, owner of pay-TV provider DirecTV, will be allowed to buy movie and TV show maker Time Warner. The Justice Department sued to block the $85 billion deal, saying it would lead to higher prices for rival pay-TV companies. Two key witnesses at the trial were AT&T Chief Executive Randall Stephenson and Time Warner CEO Jeff Bewkes, who is retiring if the transaction goe


Lawyers for the U.S. Justice Department and AT&T will give closing arguments on Monday in a trial to determine if the wireless giant, owner of pay-TV provider DirecTV, will be allowed to buy movie and TV show maker Time Warner. The Justice Department sued to block the $85 billion deal, saying it would lead to higher prices for rival pay-TV companies. Two key witnesses at the trial were AT&T Chief Executive Randall Stephenson and Time Warner CEO Jeff Bewkes, who is retiring if the transaction goe
AT&T court fight with the US Justice Department heads into closing arguments Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-04-30  Authors: joshua roberts
Keywords: news, cnbc, companies, fight, tv, justice, heads, warners, paytv, witnesses, argued, warner, court, closing, arguments, trial, video, department, att, vertical


AT&T court fight with the US Justice Department heads into closing arguments

Lawyers for the U.S. Justice Department and AT&T will give closing arguments on Monday in a trial to determine if the wireless giant, owner of pay-TV provider DirecTV, will be allowed to buy movie and TV show maker Time Warner.

The Justice Department sued to block the $85 billion deal, saying it would lead to higher prices for rival pay-TV companies.

The government has argued that AT&T viewed the merger as a way to convince viewers to stick with pay-TV instead of moving to cheaper online providers, at one point quoting from a report in which an AT&T executive said that buying Time Warner would allow AT&T to slow the decline of pay-TV subscriptions, which was described as a “cash cow.”

AT&T’s satellite television service DirecTV lost 187,000 traditional U.S. video customers in the first quarter of 2018.

The judge’s decision, which is expected in several weeks, will guide dealmakers on how aggressive they can be in buying suppliers, what is known among antitrust people as a vertical merger. Until this tie-up, vertical deals were largely considered approvable by regulators.

Two key witnesses at the trial were AT&T Chief Executive Randall Stephenson and Time Warner CEO Jeff Bewkes, who is retiring if the transaction goes through.

The two executives argued that marrying AT&T’s granular information about customers with Time Warner’s ability to create compelling video would allow them to advertise more effectively, giving the merged company a fighting chance to compete with internet advertising titans like Facebook and Google.

They also denied as “ridiculous” and “absurd” the notion AT&T would be reluctant to license Time Warner content like CNN or March Madness basketball to other pay-TV rivals or to cheaper online video companies — a key government argument.

In hopes of preventing a court fight, AT&T proposed that for seven years it would submit to third-party arbitration any disagreement with distributors over the pricing for Time Warner’s networks and promise not to black out programming during arbitration.

But smaller pay-TV rivals called as government witnesses argued that this was inadequate. Warren Schlichting, group president of Dish Network’s Sling TV, argued AT&T’s offer was inadequate because it was limited to seven years and HBO is not part of the proposal.


Company: cnbc, Activity: cnbc, Date: 2018-04-30  Authors: joshua roberts
Keywords: news, cnbc, companies, fight, tv, justice, heads, warners, paytv, witnesses, argued, warner, court, closing, arguments, trial, video, department, att, vertical


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Murdoch’s Fox could separate Sky News to satisfy UK regulator on takeover

Twenty-First Century Fox said it could legally separate Sky News within the wider Sky group to allay the concerns of a British regulator about the news service’s continuing independence under Rupert Murdoch’s ownership. Fox agreed to buy all of the European pay-TV group in December 2016, but the deal has been repeatedly delayed by the British government and regulators. Fox, which already owns 39 percent of the European pay-TV group, had already put forward steps it would take to guarantee the in


Twenty-First Century Fox said it could legally separate Sky News within the wider Sky group to allay the concerns of a British regulator about the news service’s continuing independence under Rupert Murdoch’s ownership. Fox agreed to buy all of the European pay-TV group in December 2016, but the deal has been repeatedly delayed by the British government and regulators. Fox, which already owns 39 percent of the European pay-TV group, had already put forward steps it would take to guarantee the in
Murdoch’s Fox could separate Sky News to satisfy UK regulator on takeover Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-04-03  Authors: scott mlyn
Keywords: news, cnbc, companies, proposed, foxs, sky, twentyfirst, satisfy, fox, independence, uk, group, takeover, european, murdochs, paytv, pounds, regulator, separate


Murdoch's Fox could separate Sky News to satisfy UK regulator on takeover

Twenty-First Century Fox said it could legally separate Sky News within the wider Sky group to allay the concerns of a British regulator about the news service’s continuing independence under Rupert Murdoch’s ownership.

It also said it could sell the 24-hour news channel to Walt Disney if its bid to acquire the 61 percent of the company it does not already own is approved, regardless of whether Disney’s proposed acquisition of Twenty-First Century Fox’s assets proceeds.

Fox agreed to buy all of the European pay-TV group in December 2016, but the deal has been repeatedly delayed by the British government and regulators. U.S. cable giant Comcast Corp gatecrashed the deal in February when it said it would offer 12.50 pounds a share to buy Sky, compared to Fox’s 10.75 pounds, although it has not yet made a formal bid.

Fox, which already owns 39 percent of the European pay-TV group, had already put forward steps it would take to guarantee the independence of Sky News, such as funding it for 10 years and creating an independent board of directors.

“We have worked diligently with the CMA (Competition and Markets Authority) throughout its extensive review,” Fox said on Tuesday.

“In fact, we believe that the enhanced firewall remedies we proposed to safeguard the editorial independence of Sky News addressed comprehensively and constructively the CMA’s provisional concerns.”

Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.


Company: cnbc, Activity: cnbc, Date: 2018-04-03  Authors: scott mlyn
Keywords: news, cnbc, companies, proposed, foxs, sky, twentyfirst, satisfy, fox, independence, uk, group, takeover, european, murdochs, paytv, pounds, regulator, separate


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Sky strikes deal to add Netflix to its European pay-TV bundles

Sky, the European pay-TV group at the centre of a fierce takeover battle, said it would add online video service Netflix to a new TV bundle, bringing drama like “The Crown” to its sport and entertainment offer for the first time. Netflix’s mix of original drama and movies has proved popular globally, with subscriber numbers reaching nearly 118 million at the end of 2017, bringing new competition to traditional pay-TV cable and satellite providers. Sky CEO Jeremy Darroch said the tie-up would ena


Sky, the European pay-TV group at the centre of a fierce takeover battle, said it would add online video service Netflix to a new TV bundle, bringing drama like “The Crown” to its sport and entertainment offer for the first time. Netflix’s mix of original drama and movies has proved popular globally, with subscriber numbers reaching nearly 118 million at the end of 2017, bringing new competition to traditional pay-TV cable and satellite providers. Sky CEO Jeremy Darroch said the tie-up would ena
Sky strikes deal to add Netflix to its European pay-TV bundles Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-03-01  Authors: chesnot, getty images
Keywords: news, cnbc, companies, bringing, strikes, paytv, video, drama, customers, add, deal, bundles, netflix, fox, sky, entertainment, viewers, european


Sky strikes deal to add Netflix to its European pay-TV bundles

Sky, the European pay-TV group at the centre of a fierce takeover battle, said it would add online video service Netflix to a new TV bundle, bringing drama like “The Crown” to its sport and entertainment offer for the first time.

Netflix’s mix of original drama and movies has proved popular globally, with subscriber numbers reaching nearly 118 million at the end of 2017, bringing new competition to traditional pay-TV cable and satellite providers.

Sky CEO Jeremy Darroch said the tie-up would enable customers to access even more entertainment on its platform.

“By placing Sky and Netflix content side by side, along with programmes from the likes of HBO, Showtime, Fox and Disney, we are making the entertainment experience even easier and simpler for our customers,” he said.

Netflix will launch on Sky’s premium Sky Q product in Britain and Ireland this year, and in Germany, Austria and Italy thereafter, Sky said.

Sky, which Rupert Murdoch’s Twenty-First Century Fox and Comcast Corp are battling over, struck a deal with British rival BT last year to carry each other’s sports channels, enabling viewers to see more Premier League soccer on one platform.


Company: cnbc, Activity: cnbc, Date: 2018-03-01  Authors: chesnot, getty images
Keywords: news, cnbc, companies, bringing, strikes, paytv, video, drama, customers, add, deal, bundles, netflix, fox, sky, entertainment, viewers, european


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Comcast shares get downgraded due to acquisition strategy ‘uncertainty’

Comcast shares are less attractive after its big offer to buy a European pay-TV provider, according to one Wall Street firm. Macquarie Research lowered its rating to neutral from outperform for Comcast shares, citing concerns over the company’s acquisition strategy. Comcast shares declined 7 percent Tuesday after the company announced a cash offer to buy European pay-TV provider Sky for 22.1 billion pounds or $31 billion. Yong reduced her price target to $42 from $47 for Comcast shares, represen


Comcast shares are less attractive after its big offer to buy a European pay-TV provider, according to one Wall Street firm. Macquarie Research lowered its rating to neutral from outperform for Comcast shares, citing concerns over the company’s acquisition strategy. Comcast shares declined 7 percent Tuesday after the company announced a cash offer to buy European pay-TV provider Sky for 22.1 billion pounds or $31 billion. Yong reduced her price target to $42 from $47 for Comcast shares, represen
Comcast shares get downgraded due to acquisition strategy ‘uncertainty’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-02-28  Authors: tae kim, jeff chiu
Keywords: news, cnbc, companies, buy, comcast, wrote, acquisition, scale, strategy, sky, shares, paytv, uncertainty, satellite, provider, pressures, downgraded


Comcast shares get downgraded due to acquisition strategy ‘uncertainty’

Comcast shares are less attractive after its big offer to buy a European pay-TV provider, according to one Wall Street firm.

Macquarie Research lowered its rating to neutral from outperform for Comcast shares, citing concerns over the company’s acquisition strategy.

Comcast shares declined 7 percent Tuesday after the company announced a cash offer to buy European pay-TV provider Sky for 22.1 billion pounds or $31 billion.

“The potential to expand internationally, double its scale, and leverage cross-border IP is undoubtedly a great one. However, uncertainty around the M&A playbook and increased net leverage to 3x marks a shift in what would otherwise be a clean thesis,” analyst Amy Yong wrote in a note to clients Wednesday. “Though the downside in CMCSA shares is limited after yesterday’s move, we believe the unpredictability could cap near-term upside.”

Yong reduced her price target to $42 from $47 for Comcast shares, representing 15 percent upside to Tuesday’s close.

The analyst said the Comcast’s acquisition bid for Sky is expensive given the competitive pressures on the satellite television market. She prefers the company instead use any funds to buy back its own shares.

“The addition of Sky diversifies its portfolio/doubles its scale, but exposes it to satellite TV, which faces secular pressures,” she wrote. “For one, Comcast could buy back its own stock at 8x vs acquiring Sky at 12x; although the deal is expected to be accretive in Y1, we question the synergies given the cross border combination.”

Comcast did not immediately respond to a request for comment.

— CNBC’s Michael Bloom contributed to this story.

Disclosure: Comcast owns CNBC parent NBCUniversal.


Company: cnbc, Activity: cnbc, Date: 2018-02-28  Authors: tae kim, jeff chiu
Keywords: news, cnbc, companies, buy, comcast, wrote, acquisition, scale, strategy, sky, shares, paytv, uncertainty, satellite, provider, pressures, downgraded


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post