The Honourable James Moore, Canadian Minister of Industry

The Honourable James Moore, Canadian Minister of Industry

Canadian Industry Minister James Moore made a bit of news over the weekend when he told The Canadian Press that the government plans to require cable and satellite TV companies to offer a la carte programming choices to their customers. “We don’t think people should be forced to buy bundled television channels when they’re not interested in watching those channels and those shows,” Moore said, according to a story in the Edmonton Journal.

The Canadian Radio-television and Telecommunications Commission, which regulates TV in Canada, had already nudged the industry in that direction in 2011. Rogers, one of the country’s largest cable operators, responded by offering London, Ontario viewers a “skinny basic” package with extra channels available as add-ons, and that plan proved very popular there. But many other companies resisted such plans, which were optional, so Moore said the government needs to step in.

“It’s not a command economy, we’re not going to put in place onerous regulations. We’re a government of deregulation,” Moore insisted. “But from time to time, we think that the best interest of consumers need to be enforced in the marketplace.”

Now there are plenty of people who will tell you that a la carte pricing is not in the best interest of consumers. At the CEDIA Expo last month, I was fortunate to share a table with Bruce Leichtman, brilliant president of the Leichtman Research Group. Our conversation about various topics was always friendly, but when I mentioned a then-recent a la carte news story, Leichtman launched into an impassioned lecture on the naivety of a la carte’s supporters and the widespread collapse of TV programming that would result if a la carte were ever implemented in the US.

I respectfully disagree. The vast majority of broadcast and pay-TV channels in the US are owned by just six corporations. These corporations routinely pad their packages with extra channels filled mostly with reruns from other channels they own. These extra channels serve to occupy space on cable and satellite operators’ finite channel bandwidth, blocking potential competitors and often eventually rebranded as ready-made launch platforms for completely different channels. If viewers actually had to pay 10 cents for H2 or MTV2, those programmers would probably throw them in for free with something else.

In an a la carte system, some current channels might die. Many others would experience profound changes. ESPN is getting around $5 per month per subscriber. If viewers could save $5 by opting out, ESPN would lose a lot of cash, but then what? Disney, ESPN’s owner, would be intelligent enough to set its price to achieve maximum overall profit. Considering that its advertising revenue is based on number of viewers, I think that ESPN’s price would stabilize at a point where any sports fan would want to buy it.

Even if some channels died, that would make room for new channels, and they’re out there. Just check out the continuing growth in digital sub-channel networks broadcasting over the air. These are networks that aren’t getting a dime of retransmission money, but they keep popping up. Maybe there’s something to this advertising-supported TV model.

For a long time, I’ve talked about Canada whenever the topic of a la carte came up. Canadian satellite TV companies Shaw Direct and Bell TV (and their predecessors) provided basic programming packages and a lot of small bundles of channels that were available to add on to those packages. Maybe it’s the smaller Canadian market, but this system hasn’t precipitated programming apocalypse. Even though channels such as Slice aren’t in every core package, they somehow survive.

Nobody really designed cable TV to be a bundled system; the technology at the time of cable’s origins demanded it. Nobody really knows exactly what would happen if each viewer were now allowed to choose individual channels. Some media companies would probably lose profits in an a la carte system, but maybe it’s something worth trying anyway. We’ll see what happens in Canada.

As we continue our occasional returns to music videos of the 1980s, I present one by Stray Cats that you probably haven’t seen before. In 1985, EMI released a “Video 45” VHS tape of the band’s four US top-40 hits to date. Three of them were well-known chart-toppers. Stray Cat Strut and Rock This Town got the band its first serious US exposure when they hit #3 and #9 respectively on the Billboard chart in 1982. A year later, (She’s) Sexy + 17  reached #5. Also in 1983, one more Stray Cats tune peaked at #35.

I Won’t Stand in Your Way by Brian Setzer sounds as if it had been written in 1959. The doo-wop harmonies mingle with the band’s signature three-piece style. (In fact, the flip side to the single had the same song recorded in doo-wop a cappella.) As with the best from that period, Setzer’s lyrics and performance add plenty of emotional depth.

Peter Heath, directing his first music video, did a magnificent job of using a few vintage vehicles and a lot of dark street scenes to take us back to 1959 New York. A young, shirtless Setzer looks vulnerable and dedicated during his guitar solo. Only one blatant anachronism always bugs me when I watch this, but the rest of it is so moody and so well crafted that I can’t help but overlook it. Enjoy the ride.

“Whether we like it or not, we’re a proving ground for the masses.”
– Dave Pedigo, CEDIA Senior Director of Learning and Emerging Technologies

Virtual golf booth at 2013

One of four virtual golf products I saw at CEDIA Expo 2013

At first glance, the CEDIA Expo, held in Denver last week, might not look all that relevant to those of us who are more interested in finding new ways to watch TV than in where to buy rows of theater seats. Pedigo, speaking at a panel discussion sponsored by Dish Network, summed up the counterargument in that sentence. Today’s 4K video upconverters are tomorrow’s $40 Walmart DVD players. Okay, maybe day after tomorrow.

CEDIA stands for the Custom Electronic Design and Installation Association. These are the people who assemble and install wonderful entertainment goodies in the houses and mansions of clients who can afford the very best. They’re the type of folks who think that a $4000 Kaleidescape movie server would be a good fit for their home theater project. As a rep at the Dish booth told me, “This is not our typical customer.”

Pedigo’s statement also contained another truth – today’s new tech standard might be tomorrow’s Betamax. Already buzzards are circling around 3D TV, the tech darling of 2010. (I think that 3D will come back strong once it works out glasses-free, big-screen displays, but it’s not here yet.) Standards and technologies that are only recently available will be what we live with 10 or 20 years from now.

“Good design is about removing complexity from users’ lives.”
– Zean Nielsen, President of Bang & Olufsen America

Bang & Olufsen announced at its CEDIA press conference that it will be the first to launch a product certified by the Wireless Speaker & Audio (WiSA) Association. According to the WiSA site, it’s “an industry group dedicated to promoting the adoption of WiSA-compliant wireless audio technology.” That should give you a good hint about the nature of that product, for which I’m under an NDA until October 30.

I mention that announcement as another good example of what’s going on here. Companies line up behind different standards, and some of those standards are destined to be ubiquitous in a few years. Sure the prices are not those experienced by the median Dish customer. (A Sound & Vision magazine distributed at CEDIA Expo raved about the “crazy-affordable” Fluance XL7F speaker system, available at the “unbelievably low price” of $800.) But their wave of influence will reach that average Joe eventually.

“Convenience is Number One for consumers. Give them the best product so they won’t look elsewhere.”
– Vivek Khemka, Dish Senior Vice President of Product Management

SonyBlurWhat more can I tell you? Here are more of my notes:

  • More than 470 exhibitors and 17,900 attendees from 84 countries attended CEDIA Expo this year. That’s about an eighth of the International CES’s numbers from January. In almost every way, CEDIA Expo resembled a scaled-down CES, except that its training sessions seemed a lot more down to earth. Teaching real installers how to work with different technologies is useful no matter where you are.
  • Sony held its press conference in its 4K demonstration theater on the CEDIA Expo exhibit hall floor just as the show opened. Around 35 guys crowded into a black room designed to seat 20. As the Sony reps began to show off their newest and most dazzling products, the convention’s announcer’s voice boomed around us that CEDIA 2013 was underway. Even as the screen in the dark room showed the amazing glitter of the Carnaval in Rio (captured to the best of my iPhone’s ability here), we heard the swarms of conventioneers passing within a few feet of its walls. It felt as though we were taking cover from a hurricane in a packed storm shelter.
  • Dish Network opened the APIs for its Hopper, and that effort began to pay off as it announced its upcoming integration with Control4, one of the leading home automation and control companies. Dish promised that it will be working with more partners soon. As a Dish shareholder, I’m glad to see it go after this high-end market.
  • Only one exhibitor even mentioned over-the-air TV. Veteran satellite and OTA antenna manufacturer Winegard had a small booth to promote its new FlatWave AIR outdoor amplified antenna. On the other hand, TiVo was promoting its Roamio line of DVRs. Unlike the TiVo models that I fell in love with a decade ago, the Roamios have no OTA inputs.
  • On a related note, Bruce Leichtman of Leichtman Research Group pointed out that those early TiVo models, which were so influential and game-changing when they were introduced, never reached more than 2 percent of TV households, while today over half of households use a DVR. The lesson there is “consumers like it better when it’s incorporated in their receiver.” Personally, I can just imagine the sea change once a serious over-the-top service gets integrated with a standard pay-TV receiver. Dish Anywhere and Roku are closing in on this idea from different directions. Who will be the first provider to include include dozens of OTT-delivered channels in its receiver’s live TV guide?

Hopper mascot at Dish Network's CEDIA booth

Hopper mascot at Dish Network’s CEDIA booth

“What nimbleTV is doing, Dish regards as illegal.” That’s what a press relations contact for Dish told me this afternoon immediately after consulting with Dish executives at their booth at CEDIA Expo. I had asked Dave Arland about the nature of Dish’s relationship with nimbleTV, prompting him to withdraw to a lengthy discussion before returning with that short answer.

When I pointed out that Dish had already shut down nimbleTV once and asked why Dish didn’t simply continue cutting off its service, Arland replied, “It’s not that simple.” He said that nimbleTV had “workarounds” and declined to elaborate further.

That description of nimbleTV contradicts its often-stated goal of keeping its programmers fully paid and therefore happy. I’ve reached out to nimbleTV for a reaction to today’s Dish comment, but at the time of this post, I haven’t received a reply.

Clearly something happened in the weeks between Dish cutting off nimbleTV and the resumption of nimbleTV’s Dish-based packages. I had theorized that Dish required certain changes that nimbleTV implemented in the interim – local channels restricted to in-market subscribers, and fewer simultaneous recordings. There was one other change that I hadn’t mentioned, one that Dish would be unlikely to request. In my bottom-tier package, drawing from channels in Dish’s Welcome Pack, my non-local channels such as Comedy Central and TBS are now in HD. Before the service interruption, nimbleTV had delivered those in SD, matching the quality that direct subscribers to the Welcome Pack would see. If Dish mandated those changes, why allow HD upgrades to Welcome Pack subscribers? If Dish didn’t mandate those other changes, why did nimbleTV make them?

If Dish is right, could it have been that nimbleTV’s programmers somehow created some “workarounds” to continue offering service despite Dish’s desire to cut them off? Is nimbleTV account stacking, running too many receivers on each Dish account and letting too many subscribers view the results? I have a hard time believing that nimbleTV’s slow, careful buildup would culminate in aw-heck-with-it illegal access. NimbleTV could clear the air by simply telling the world how it delivers all those Dish-originated channels to all those streaming customers. In the absence of those facts, I’m confused as usual about nimbleTV. And even now, I sure hope it’s legal.

ebruscreenAfter I wrote about DishWorld last week, I knew I needed to give it a try so I could let you know what it’s like. It turns out that DishWorld offers some interesting wrinkles on how to stream TV over the internet.

DishWorld offers TV programming packages in 15 non-English languages. All of them include a bonus set of international English channels, and some also include a few English sports channels. I chose the Mandarin package, which includes 22 Chinese channels plus the English and sports sets for $14.99 per month. Other languages are more expensive. For example, Filipino provides just two native channels plus English and sports for $19.99, and Hindi provides almost as many channels as Mandarin but for $44.99. Since I don’t get any special discounts for being a Dish shareholder, and since I can’t speak any of the 15 available languages yet, the cheapest package works best for me.

In addition to all that programming, there are plenty of on-demand movies available on DishWorld. A few dozen Bollywood movies are free on demand, and hundreds of US-made new releases and older films are available to rent, most for $3 or $4.

The English-language bonus pack includes:

  • ND 24×7 – News channel from India.
  • Fashion TV – My old favorite former-FTA channel featuring people who dress skimpy and walk funny.
  • France 24 – News channel from France.
  • Ebru TV – US-based general entertainment channel majority-owned by Samanyolu Broadcasting Company.
  • BabyTV – International channel for babies and toddlers. Not to be confused with Baby First TV.
  • Blue Ocean Network – News channel from China.
  • Eurochannel – European culture and lifestyle movies and shows.
  • Euronews – News channel from Europe, of course.
  • Trace Urban – International urban music channel.
  • Luxe.TV – Luxembourg-based channel “dedicated to the world of luxury and art of living”.
  • RT – Formerly Russia Today, news channel from Russia.
  • Zoom – Bollywood channel from India, of course.
  • Bloomberg – US-based business news channel.

And the four or five sports channels include:

  • One World Sports – International sports offshoot of the America One over-the-air network.
  • Nautical Channel – Covers boating and board sports.
  • Universal Sports – Former over-the-air digital sub-channel concentrating on Olympic sports.
  • BeIN Sport – Qatar-based channel with lots of soccer.
  • BeIN Sport 2 – Bonus soccer that wouldn’t fit on BeIN. Off the air otherwise.

That’s an interesting set of channels for $15/month, not to mention the bewildering (to me) variety of Mandarin channels I can watch. It’s all available to stream on PC and Mac, Android devices, and particularly Roku. DishWorld offers a free Roku LT or half off a Roku 3 for prepaying the first four months of service. (I picked the Roku 3, which is very interesting in its own way. More about that Roku 3 in a future post.)

Unlike nimbleTV, FilmOn, and Aereo, DishWorld doesn’t offer a cloud-based DVR, but it provides an interesting alternative. DishWorld’s guide shows the last eight days of programming on each channel, and every show from that period is available on demand. When I first activated my subscription, I was able to watch an episode of Doctor Who that had aired a week earlier on Ebru. When I change channels in the middle of a program, DishWorld asks whether I want to watch it live or from its beginning. It’s like having the PrimeTime Anytime feature from Dish Network’s Hopper, except all day for all channels, but without automatically skipping commercials. This week-back feature is so cool, I almost don’t miss being able to record. Almost.

For some channels that are hard to find anywhere else, $15/month is okay. For plenty of entertainment in your non-English native language, it’s probably worth whatever your package costs. For a glimpse of how all TV might be delivered 10 years from now, DishWorld is priceless.