ASPEN, Colo. -- Seeking a national conversation on resolving what some feel are tech's harms, the head of MPAA said that without compromise from internet companies, another option is tweaking laws that let them avoid liability in some situations for what's on their platforms. He said such a change could require additional "proactive steps" for such liability protections. "One of the most vibrant and interconnected human ecosystems in history" is "in serious jeopardy," CEO Charlie Rivkin said of the internet. At a Technology Policy Institute event Monday, he sought "a declaration of accountability for cyberspace." Speaking on the following panel, a representative from Google pushed back on such criticism while saying his company is taking privacy seriously and is eyeing further privacy safeguards.
ASPEN, Colo. -- DOJ's antitrust chief will continue to take cases involving mergers and acquisitions to court if those combining won't accede to the department's demands -- even if there's a chance of losing a case, his deputy said. Antitrust Division Chief Makan Delrahim is "not afraid to litigate," said Deputy Assistant Attorney General Barry Nigro in Q&A at a Technology Policy Institute event Monday. He replaced his boss, who couldn't attend as planned. Asked about T-Mobile buying Sprint, AT&T's now-successful buy of Time Warner over DOJ opposition, and a Sinclair/Tribune sale that raised FCC questions, Nigro noted he wasn't commenting specifically and is recused on the last deal.
AT&T may not stumble integrating Time Warner's HBO as part of buying TW, Needham & Co.'s Laura Martin told Technology Policy Institute President Scott Wallsten. Asked by the TPI head on a podcast if AT&T is "going to be able to work with HBO," the board member of the group replied yes: But "there are going to be big cultural differences. The culture at Time Warner was very much autonomous, autonomy. I think AT&T is a little more buttoned up and centralized." Offsetting that is that AT&T reportedly wants "to give HBO more money to have more series," she continued. "That’s a good idea." She noted HBO spends about $3 billion in the U.S. on content annually, versus Netflix's $12 billion globally. "It’s fair to say Netflix is becoming a dominant member of the content creation community," spending more than CBS, Disney and NBC combined, the analyst said in a taping July 17 emailed Monday night. "By that definition, they are definitely a dominant player in the content creation business. When you look at Emmys, and they just did surpass HBO for the first time I think in seven years. ... So you would hope that if you spend four times as much that you can have just as many Emmys." Netflix was nominated for 112, HBO for 108, Wallsten and Martin said. What "remains to be seen" is whether the streaming video provider can form a culture that encourages high-quality content creation, Martin said. "These cultures that hold on for long periods of time to the most talented people are just really rarefied air in terms of being hands off and hands on simultaneously, and having a lot of creative people around to rub shoulders with and collaborate with. So Netflix has to prove out that it can create and maintain a studio system so people are on the payroll." HBO's spending of $2 billion to $3 billion annually on content is for what it makes in or for the U.S. and sells worldwide, Martin told us Tuesday. The unit was part of TW before the parent's sale to AT&T. Netflix's $12 billion of spending forecast for 2018 includes money for local content in the U.S., France and Latin America, she said. Also Tuesday, AT&T and Netflix didn't comment.
With FCC members having unanimously approved a hearing designation order on Sinclair buying Tribune, the agency said Wednesday evening that the HDO will be released the next day. That was despite the companies changing their plan earlier Wednesday. Some of the divestitures that would have gone to broadcasters linked to Sinclair would instead be sold to others once buyers were found.
With "serious concerns" on Sinclair buying Tribune, FCC Chairman Ajit Pai is asking commissioners to OK a draft order to designate, for an administrative law judge hearing, issues involving some proposed divestitures. “Based on a thorough review of the record," Pai said Monday morning, "the evidence we’ve received suggests that certain station divestitures that have been proposed to the FCC would allow Sinclair to control those stations in practice, even if not in name, in violation of the law."
For Disney's $71.3 billion deal to buy much of 21st Century Fox, DOJ said it would require the would-be acquirer to divest 22 regional sports networks. In a settlement agreed to by Disney, the Antitrust Division filed suit Wednesday in the U.S. District Court for the Southern District of New York, Justice announced. "To streamline agency clearance, Disney agreed to divest the 22 RSNs rather than continue with the Antitrust Division’s ongoing merger investigation." Smaller cable operators and others recently said they were concerned about such RSN concentration.
USTelecom companies, in a deal with member Windstream, changed a proposal so that it would now increase by almost twice the amount of time telcos wouldn't be able to raise prices for unbundled network element connections that competitors can use to reach their own customers. Other telecom companies using such UNEs weren't swayed by the association's changed FCC forbearance proposal posted Friday in docket 18-141, after the past version drew a letter of protest earlier last week to leaders of the Senate Commerce Committee from companies including Windstream. With the changes, Windstream is now on board. Incompas remains concerned, its chief told us.
With "every week, there is some new technology that I am learning about," Chairman Ajit Pai is wondering "how can the FCC overall stay abreast of some of these new developments." One answer: Invite experts to discuss new tech. He will perhaps this year "start with a forum on" artificial intelligence and machine learning, "a huge area of innovation," Pai said in Q&A at an Axios event Thursday, asking what can this mean for communications businesses and consumers. "How will this affect how companies use spectrum more smartly?" Though he's "not sure there is a formal regulatory role" about tech's effects on kids, Pai identified pros and cons to screen use by his two children. "I do worry a little bit about the way it changes how they interact with the world," he said, wondering "are my kids’ cognitive processes changed" via looking at screens. "It’s a challenge for parents." With this busy time on mergers and acquisitions including a court clearing AT&T to buy Time Warner after DOJ tried to block it (see 1806120060 and 1806140041), Pai said his agency takes a case-by-case approach to reviewing M&A. "We don’t start with a premise that vertical integration is good or bad," he said. "We start from the ground up." A goal is to "make sure that there is a competitive marketplace" via a "holistic view" of market structure, the FCC chief said. "The marketplace is changing very, very quickly," he said, citing digital ads. As his agency's net neutrality deregulation took effect Monday (see 1806110054) and includes transparency rules, Pai noted the "FTC has broad authority … to take action" and its Chairman Joseph Simons has told Congress "he is willing and determined to do just that." There's a memo of understanding between the commissions, he noted. "Our agencies are going to work hand in glove to make sure consumers are protected." While "people are going to clash" on policies, Pai indicated one way he wants to be judged is by how much the commission closes the digital divide. "If we can make a dent in that problem, then I think our time will be viewed as a success," he said. "Where our mark is going to be made is helping to get people onto the internet."
LAS VEGAS -- Technology in the enterprise and connected home is converging, creating opportunities and challenges for integrators serving both, said panelists at an event at Infocomm Tuesday. Bring-your-own-device policies at work are driving convergence, leading consumers to want familiar experiences and user interfaces (UI) all over, said Parks Associates' Brad Russell. The analyst is often shocked in hotel rooms by the “abysmal” UIs on hotel TVs vs. what’s available to consumers at home, a “step back in time.” Consumers should be able to port content preferences, he said.
Geoffrey Starks will be nominated by President Donald Trump to be a commissioner, FCC Chairman Ajit Pai said. The elevation of the Enforcement Bureau assistant chief has been expected, and he would succeed outgoing Commissioner Mignon Clyburn. Starks would serve the rest of a five-year term ending June 30, 2022, said a White House announcement forwarded to us from a Senate official. Other FCC members offered endorsements and encouragement as well (here, here and here.)