Stonepeak Infrastructure Partners will pay $8.1 billion for Astound Broadband, the parent of regional cable ISPs RCN, Grande, Wave and enTouch, it said Sunday. Stonepeak said the purchase from TPG Capital is expected to close in Q2. It said it will partner with Patriot Media, the management company operating the Astound companies, and Patriot will continue in that role.
The accelerating shift of advertisers to digital likely bolsters Roku, Wedbush's Michael Pachter wrote investors Monday. COVID-19 conditions are increasing adoption, creating potential to grow revenue and profits significantly in the long run as incremental Roku device sales along with “substantial” active user growth likely drive higher ad spend, said the analyst. The accessibility of live sports over over-the-top platforms accelerated cord cutting, a trend seen continuing “in a recessionary environment as streaming has a more favorable and flexible price point than cable.” Despite uncertainty, Roku appears to be on “solid footing for future expansion as ad spend is diverted from TV to OTT and overall ad spend will certainly expand again in a post-recession environment,” Pachter said. The company reports Q3 earnings Thursday.
Contrary to claims by challengers to the FCC's cable TV local franchise authority order (see 1909120028), local franchise authorities can still require I-nets and public, educational and government channel access, and they still have substantial authority to determine how to use franchise fees that remain after the value of those obligations is counted against the franchise fee cap. That's per an FCC response brief Wednesday (in Pacer, docket 19-4161) with the 6th U.S. Circuit Court of Appeals. The commission said it "reasonably" decided to count the fair-market value of those cable-related in-kind contributions instead of cable operators' actual costs.
Even if the Cable Act is ambiguous about what's meant by franchise fees, the FCC's cable TV local franchise authority (LFA) order ignored the reliance interests of state and local governments and the investments made in communications networks, assuming traditional cable franchise fee practices would remain in place. That's according to New York City, NATOA and various Florida cities in an intervenor brief Monday (in Pacer, docket 19-4161) with the 6th U.S. Circuit Court of Appeals. They're interveners in a consolidated challenge of the FCC's 2019 LFA order (see 2005150019). Important public safety infrastructure uses the public, educational and government channels and I-nets, and the order jeopardizes law enforcement and public safety functions, they said. If there must be some kind of compensation for franchise obligations, the FCC didn't explain why it should be set at market value or how to determine that amount, they said. The FCC didn't comment.
LG smart TV owners can buy direct from QVC, HSN and several other home shopping channels through the free Shop Time app downloadable for all LG sets dating to the 2016 model year, said the company Monday. New HSN customers who download Shop Time, navigate to HSN.com and create an account through Nov. 30 can qualify for a $20 digital coupon redeemable toward a $40 or higher HSN.com purchase, said LG.
The FCC has “broad authority” to change rules for dedicated short-range communications and modify DSRC roadside unit licenses in the 5.9 GHz band, NCTA representatives told Office of General Counsel staff. Title III of the Communications Act provides "expansive authority to change spectrum rules in the ‘public interest,’ and Section 316 gives the agency power to modify the small number of existing licenses for DSRC roadside units,” said a filing posted Friday in docket 19-138. More than 50 organizations oppose the FCC’s proposal to reallocate 45 MHz of the band to Wi-Fi, ITS America President Shailen Bhatt said during a webinar Thursday. More use of safety technologies would prevent the “vast majority” of 36,000 yearly U.S. highway deaths, he said. Vehicle-to-everything technologies “could significantly reduce the more than $800 billion in annual costs associated with traffic crashes,” he said: “V2X safety technologies fully utilize the 75 MHz in the 5.9 GHz spectrum band.” For V2X to work, “messages must travel quickly and without interference,” he said. The FCC hasn’t provided any evidence to show that V2X can safely share the band with Wi-Fi, he said. Commissioners may vote on revised rules in November (see 2010190040).
Australian subscription TV platform Foxtel is using TiVo’s voice search, part of its Personalized Content Discovery platform, said parent company Xperi Thursday. The search uses a dynamic knowledge base of entertainment metadata, said to be capable of understanding trends and conversations. Customers can search by voice across linear TV and video on demand programming.
Netflix had 2.2 million net paid subscriber additions in Q3, about 300,000 short of its July 16 forecast, said the company Tuesday. Q3 net paid additions declined 78% from Q2 and 68% from the 2019 quarter. Netflix is forecasting 6 million net subscriber adds for Q4, which would be a 32% decline from the 2019 quarter. The slowdown in growth was expected, management wrote shareholders: “We think this is primarily due to our record first half results and the pull-forward effect we described in our April and July letters.” Subscriber “retention remains healthy and engagement per member household was up solidly year over year in Q3,” it said. “The state of the pandemic and its impact continues to make projections very uncertain, but as the world hopefully recovers in 2021, we would expect that our growth will revert back to levels similar to pre-COVID.” Paid net adds are likely to be down year over year in the first half of 2021, “as compared to the big spike in paid net adds we experienced in the first half of 2020,” it said. Netflix management is “thrilled to be competing with Disney and a growing number of other players to entertain people,” it said. “Consumers and content creators will benefit from our mutual desire to bring the best stories to audiences all over the world.” Netflix stock fell 5.4% to $497.11 at 4:37 p.m. EDT.
Antitrust authorities approved Trian Partners buying a stake in Comcast, per an FTC early termination notice released Monday. Trian announced the investment in September.
An additional 72 Pluto TV channels are available on the TiVo+ network, said TiVo Thursday, bringing the number of channels to 144. TiVo+ is also adding 13 Spanish-language channels, said the company. TiVo+ unique viewership has grown 90% from March to September, and viewer engagement rose 165%, said the Xperi subsidiary. Pluto TV channels are available now on TiVo Stream 4K boxes and rolling out to select TiVo DVR customers.