Amazon and HBO Ink Deal

Amazon Press Release

SEATTLE–(BUSINESS WIRE)–Apr. 23, 2014– (NASDAQ:AMZN)—Amazon.com, Inc. today announced a content licensing agreement with HBO, making Prime Instant Video the exclusive online-only subscription home for select HBO programming. The collection includes award-winning shows such as The Sopranos, Six Feet Under, The Wire, Big Love, Deadwood, Eastbound & Down, Family Tree, Enlightened, Treme, early seasons of Boardwalk Empire and True Blood, as well as mini-series like Band of BrothersJohn Adams and more. Previous seasons of other HBO shows, such as Girls, The Newsroom and Veep will become available over the course of the multi-year agreement, approximately three years after airing on HBO. The first wave of content will arrive on Prime Instant Video May 21. This is the first time that HBO programming has been licensed to an online-only subscription streaming service. This programming will remain on all HBO platforms.

In addition, HBO GO will become available on Fire TV, targeting a launch by year-end. HBO GO is HBO’s authenticated streaming service offering subscribers instant access to over 1,700 titles online including every episode of new and classic HBO series, as well as HBO original films, miniseries, sports, documentaries, specials and a wide selection of blockbuster movies.

“HBO has produced some of the most groundbreaking, beloved and award-winning shows in television history, with more than 115 Emmys amongst the assortment of shows coming to Prime members next month,” said Brad Beale, Director of Content Acquisition for Amazon. “HBO original content is some of the most-popular across Amazon Instant Video—our customers love watching these shows. Now Prime members can enjoy a collection of great HBO shows on an unlimited basis, at no additional cost to their Prime membership.”

“Amazon has built a wonderful service—we are excited to have our programming made available to their vast customer base and believe the exposure will create new HBO subscribers,” said Charles Schreger, President of Programming Sales for HBO.

“As owners of our original programming, we have always sought to capitalize on that investment. Given our longstanding relationship with Amazon, we couldn’t think of a better partner to entrust with this valuable collection,” said Glenn Whitehead, Executive Vice President of Business and Legal Affairs, who along with Schreger headed up HBO’s negotiating team. “We’re also excited to bring HBO GO to Amazon’s Fire TV. The features like unified voice search will provide a compelling experience for HBO customers.”

Beginning May 21, Amazon Prime members will have unlimited streaming access to:

  • All seasons of revered classics such as The Sopranos, The Wire, Deadwood, Rome and Six Feet Under, and of recent favorites such as Eastbound & Down, Enlightened and Flight of the Conchords
  • Epic miniseries, including Angels in America, Band of Brothers, John Adams, The Pacific and Parade’s End
  • Select seasons of current series such as Boardwalk Empire, Treme and True Blood
  • Hit original movies like Game Change, Too Big To Fail and You Don’t Know Jack
  • Pedigreed documentaries including the Autopsy and Iceman series, Ghosts of Abu Ghraib and When the Levees Broke
  • Hilarious original comedy specials from Lewis Black, Ellen DeGeneres, Louis CK and Bill Maher

The multi-year deal will bring additional seasons of the current series named above, along with early seasons of other series like Girls, The Newsroom and Veepto Prime members over the life of the deal.

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By Len Mullen Posted in News, OTT

ABC, Inc. v. Aereo, Inc., 13-461

Today is THE DAY.  April 22, 2014, the Supreme Court of the United States will hear arguments that could impact almost nothing.  Seriously, do you know anyone who has Aereo or Skitter?  Regardless of the outcome of this case, broadcasters ought to embrace the technology and the idea behind Aereo and extend their reach beyond the fringe.

So, what is going on here?

Most people do not understand the Aereo proposition. The Supreme Court is not going to rule that Aereo can rebroadcast without paying a retransmission fee. That, as they say, is settled law. The SC is going to rule WHETHER Aereo is rebroadcasting at all. If the court finds that Aereo is rebroadcasting, then Aereo will need to license content just like the cable companies. If the court finds that Aereo is simply leasing an antenna to a customer, there is no law against that. In fact, it was common in the early days of television for communities to erect repeaters to improve reception in a valley or behind a hill and it is common today for people renting apartments or staying at hotels to pay the proprietor to use his antenna.

None of this has any impact on the cable companies’ requirement to pay re-transmission fees. I think a more reasonable comparison would be to satellite companies that erect an antenna for reception of local channels then integrate that signal into their programming. That, of course, was never challenged and no re-transmission fees were ever paid.

In my opinion, that is the basis of the case and the court should rule that it is legal for Aereo to lease antennas and DVRs.

The implications of an Aereo win are not clear. I think there are a three likely outcomes…

1) Aereo branches out and the reach of broadcast tv extends dramatically. This accelerates cable cutting, streaming, and a resurgence of ad supported television
2) Google or Amazon buy Aereo to add local programming to their streaming products.
3) Comcast improves and lowers the cost of basic programming.

I think the third outcome is most probable.

Aereo will not be widely adopted because it’s not inexpensive and it’s not very good. You have to have a good network connection. You need to buy hardware for each television. You end up paying $8 per month for each set. There is no continuous programming. DVR space is too limited.

Cable re-transmission fees are not related to this court case.

Broadcasters will not shut down OTA channels because 1) they are profitable, and 2) there are alternatives to the the Big Four networks. Syndicated programming and clones of network reality programming would be less expensive and nearly as popular as what airs now. Look at the top ten programs…

1 CBS NCAA BSKBL CHAMPSHIPS(S) CBS 12.4 21,196
2 NCIS CBS 11.1 17,392
3 THE BIG BANG THEORY CBS 10.0 16,288
4 NCIS: LOS ANGELES CBS 9.3 14,560
5 DANCING WITH THE STARS ABC 9.3 14,467
6 CBS NCAA BSKBL CHMP-PRE-2(S) CBS 7.3 12,015
7 VOICE NBC 7.2 11,966
8 BLUE BLOODS CBS 7.1 11,051
9 VOICE-TUE NBC 6.9 11,085
10 60 MINUTES CBS 6.8 10,987

Syndicated programming is not much worse…

1 JUDGE JUDY (AT) CTD 7.2 9,908
2 WHEEL OF FORTUNE CTD 6.8 10,611
3 JEOPARDY (AT) CTD 6.7 10,435
4 BIG BANG-SYN (AT) WB 6.0 9,119
5 FAMILY FEUD (AT) 2/T 4.9 7,306
6 LAW & ORDER:CI-WKL (AT) NBU 4.3 5,632
7 MODERN FAMILY-MF-SYN (AT) 2/T 4.2 6,060
8 BIG BANG WKND (AT) WB 4.1 6,457
9 MODERN FAMILY-WK-SYN (AT) 2/T 3.6 5,461
10 ENTERTAINMENT TONIGHT(AT) CTD 3.5 5,112

Cable trails far behind…

1 GAME OF THRONES HBOM 3.5 6,310
2 WWE ENTERTAINMENT (WWE RAW) USA 3.3 5,313
3 WWE ENTERTAINMENT (WWE RAW) USA 3.2 5,094
4 WWE ENTERTAINMENT (WWE RAW) USA 3.1 5,032
5 WMNS NCAA BKBL CHAMP L (ND/CT) ESPN 2.8 4,271
6 REAL HOUSEWIVES ATLANTA BRVO 2.6 3,816
7 PAWN STARS HIST 2.5 3,692
8 WATCH WHAT HAPPENS LIVE BRVO 2.4 3,506
9 AMERICAN PICKERS HIST 2.3 3,543
10 BREAK HBOM 2.1 4,018

It’s easy to imagine broadcast television without ABC, CBS, Fox, and NBC.

I think there are some significant barriers to market entry. I’m not sure Aereo is very profitable. I don’t expect to see their hardware cloned and even Aereo has not had a lot of success with the software. I think they well may be a national niche.

There is lots of precedent for people paying to receive broadcast television via equipment owned by others.

– If I rent an apartment and there is an antenna on the roof and a cable in my living room, the landlord is renting an apartment with an antenna not re-transmitting programming.

– DirecTV leases a box that takes a signal from the air and integrates it into your DirecTV program guide. You pay a premium for that equipment and do not own it.

– TiVo streams broadcast television over ethernet to other televisions. TiVo charges a monthly fee for this service — one fee for the transmitter and another fee for the receiver.

If you read the FCC FAQ on Must Carry, it’s clear it does not apply to Aereo…

http://www.fcc.gov/guides/cable-carriage-broadcast-stations

Note that 1) the requirement for cable carriers is specifically documented, and 2) that this was added to the fcc rules as a matter of fairness to broadcasters who were singularly required to abide by the rule until 1992.

The fcc would have to amend their rules again for them to apply to re-transmitters who are neither broadcasters not cable carriers. The problem with changing the law to include Aereo without specifically naming the company is in the use cases I cited above. Any law would be unenforceable and Aereo could say they are being targeted.

Here are a couple more articulate presentations on the matter…


I don’t expect the media to get this right. I hope the court does. Either way, you should cut your cable. Put up an antenna and enjoy high quality ad supported television. It’s completely free and works when the internet is down!

Amazon Fire TV Hands On

I’ve had my Fire TV (FTV) for about a week and it sits right next to a Roku 2 XS as I compare and contrast. We cut our ties with Comcast five years ago and are OTA first cable cutters — which is to say we have an antenna and most of our programming comes in via that antenna. We have had a lot of streamers and currently use six Rokus plus this Fire TV. None of these are Roku 3s because using WiFi for streaming audio+video+remote is a really bad idea — especially if you have a half dozen streamers.

The Fire TV streamer is the best streamer available at this time. It combines the most popular features of Apple TV, Roku, and Ouya in a sleek package which is much faster at the same price point. I think it is worth noting that Amazon warrants its streamer for a full year while the others only stand behind theirs for 90 days.

At launch, FTV had nearly 200 apps available including Netflix, Amazon Instant, Hulu Plus, Plex, and YouTube — the most streamed services. Within a few days, people were running XBMC on the Fire TV hardware.

The Fire TV is better hardware than Apple, Roku, or Ouya devices. A faster processor, more memory, usb, wired and wireless ethernet, and optical out all perched on a substantial heat sink ensures cool, smooth operation. During my week of comparison, the Fire TV has not yet hung or rebooted. During this same period, the Roku 2 XS sitting beside it has rebooted three times.

The USB port is a bit of a mystery. I am using it for a wired Xbox controller. Amazon claims it has no current use.

The more time I spend with this streamer, the more I appreciate the user interface. It’s elegant and well thought out. The left margin is a series of topics. As you scroll down the topics, the right side of the screen is filled with subtopics and items. These topics are ordered naturally and default to the logical destination. Press the Home button on your remote and you are taken to the main menu with the Home topic selected revealing your most recent apps and a lot of recommendations. Right click once to return to the last app used, twice to the one before that. Once you settle in with Fire TV what you do will be just a couple clicks away from your favorite apps.

There are a lot of apps for the Fire TV. Many are always free and quite a few were reduced for the launch. Apps purchased for my Kindle Fires are in my Fire TV library even if a different app is required for the FTV.

Fire TV has apps for the most popular services. The Netflix app supports profiles. The Plex app is being revised. It looks great but lacks some recent features like Play All. The YouTube app can be linked to a PC or tablet so that items selected on that device are played on the TV if the app is running. I like this a lot. There are not a lot of news apps, but I like Now This News. NTN plays news clips. On my Roku, there is a black loading screen between clips. On FTV, clips one after another. I guess this is the first application of Amazon’s smart buffering.

Conspicuously absent at launch: a web browser, an email client, social media apps, PlayOn.tv (which works in a browser on my Kindle Fires), Simple.TV DVR app, Tablo DVR app, and the top news and sports apps. I expect these to make their way to FTV as most are already on the Kindle Fire.

The Fire TV is a really decent casual game console. Fire TV launched with 136 games. Thirty of these are free. If you have already purchased an app for your android device, you get the Fire TV version for free.

There are familiar titles (Crazy Taxi, Deus Ex, Minecraft, Prince of Persia, Sonic, Rayman, and Tetris), original titles (Sev Zero), and 47 games that can be played with the included remote control.

I did not purchase a controller for Fire TV. I had hoped PS3 or Xbox controllers would work as I have these in my home. While I was unable to pair a PS3 remote with my Fire TV, I was able to plug in an Xbox USB controller. It was immediately recognized and it is a fine controller for the Fire TV. I will probably get at least one Amazon controller. At $40, it is not overprices and it includes media controls. The $40 price includes Sev Zero and $10 in coins. If you want Sev Zero and/or have your eye on some other paid apps, this will reduce your cost to $23 which is a very good price for a full fledged game controller. The controller takes AA batteries. So, $39.99 for a controller, Sev Zero, Crazy Taxi, and Air Fighters Pro seems like a pretty good deal to me.

Fire TV supports Parental Controls and Amazon’s Freetime will be on Fire TV next month. For $2.99/month, Freetime includes content from Nickelodeon, Sesame Street, PBS Kids, and more. Parents can create custom profiles for up to four kids, choosing the movies, TV shows, apps, and games they can access and limit/restrict certain types of content.

Another feature I haven’t really played with, but may be compelling for some, is a feature called Second Screen. This allows you to mirror a Fire HDX tablet to the TV. Second Screen allows a Fire HD or HDX to display additional information about media playing on the TV. Just pointing this out.

I give this streamer a big thumbs up. Fire TV is a terrific Netflix player that supports profiles. It supports other popular services and is totally integrated with Amazon Prime. FTV plays games with real controllers and plays your media using third party apps like Plex. It’s fun and safe for kids with integrated parental controls. Good job Amazon!

This review on Amazon

Mohu Channels Kickstarter Closing

With 21 hours left in the project, I have decided to withdraw my support. I think it could be a good device for a lot of cord cutters, but not for me. Lack of Simple DVR support is kind of a big deal, but my scrutiny of the project over the last week has eroded my confidence in their ability to deliver what has been promised — never mind what many were hoping for.

I have a Fire TV coming tomorrow and will focus my energies on that for now.

Good luck to those who hang on.  A successful Mohu Channels is good for the cord cutting community.

By Len Mullen Posted in OTA, OTT

Fire TV Torches Competition!

After much anticipation and a little delay, Amazon finally released their streamer yesterday.  It’s called Fire TV (FTV).  FTV, at $99, competes with the Roku, Apple TV, and, to a lesser extent, Chromecast and Ouya.  I predict it will kill them all.  Let’s look at the specs (click to enlarge)…

firecomp

For less than $100, FTV has impressive specs.  With a quad core cpu, 2G of memory, optical audio out, and wired/wireless ethernet, FTV is a pretty expensive box.  Amazon is probably not making much money on the hardware and this is going to be a problem for competitors that rely on hardware sales to pay the bills.

Then there’s the software.  FTV streams almost all of the important stuff — Netflix, Amazon Instant, HuluPlus, WatchESPN, ShowTime, Crackle, and YouTube.  Not enough?  Install the Plex app and enjoy hundreds of internet streams via Plex.   Plus it does flash.

And the accessories.  ATV comes with a bluetooth remote and a bluetooth game controller is available.  Chances are pretty good that your PS3 controller or Kindle keyboard will pair with FTV.  It’s also, apparently, pretty easy to side-load apps.

And everything else.  In advance of yesterday’s presser, Amazon quietly reduced the prices for their Kindle Fire products.  These tablets are a great FTV companion.  The Fire can be mirrored to FTV or used as a second screen as Amazon extends X-Ray to television.  Free Time for television lets parents their kids’ use of FTV.  An integrated microphone allows for voice activated media searches.

The Fire TV comes with a one year warranty.  Compare that to the 90 day warranties of the other products.

All of this is wrapped in a beautiful gui and coupled with Amazon free apps and media.  If you have been considering a media streamer, Fire TV looks like a winner.


Reviews/Previews

 

Will Your Next Roku Be A Mohu?

What don’t you like about your Roku?  Lack of live programming?  Lack of games?  Primitive interface?

Relief may be on the way.

I just backed the Mohu Channels Kickstarter project.  The Kickstarter project initially targeted $35,000 and is already over $100,000.  The more money they raise, the more features they promise to add to the streamer.  Here are the stretch goals…

  • $70,000: lifetime subscription to the Mohu Guide
  • $85,000: Side-Loading – Personal Movie Playback
  • $100,000: OTA Time-shifting
  • $115,000: 5.1 Audio PassThrough
  • $125,000: Remote Control App for Android tablets and smartphones


The Kickstarter ends Thursday April 10, 2014 @ 1:02 PM EDT.  As of today, 981 backers have pledged $103,569 to the project.  For a pledge of $89, backers get a Mohu Channels streamer, the motion remote, and an HDMI cable. Mohu Channels is a set top streamer that integrates internet streaming and broadcast television via a traditional grid guide.   Unlike the Roku with its proprietary Brightscript apps, Mohu’s streamer creates channels from broadcast stations, google play apps, and even web pages. The remote features a full keyboard and an ‘air mouse’ that moves the pointer on the screen — kind of a WII-mote with a keyboard. I’ll be reviewing the Mohu Channels on https://thebeersoncomcast.wordpress.com when mine arrives in June.  CNet has taken one for a ride and you can read about Channels on the kickstarter page. If this sounds like fun to you, join the Kickstarter project and help us get 5.1 passthrough audio and an android remote app!

Supported apps list…

By Len Mullen Posted in OTA, OTT