WorldCom’s financial scandal could have repercussions on entire communications industry and how it’s regulated, said Washington policymakers, analysts and others who follow sector. FCC Comr. Copps said scandal “should give us some pause at the Commission before we rely fully on [corporate] data” when reviewing applications for mergers and other financial changes. It might be better for FCC to do its own analysis, he said. One industry lobbyist warned that companies would have tougher time getting deregulatory action on Hill, for example broadband relief sought by Bell companies through measures such as Tauzin-Dingell, because Congress was expected to become much tougher on corporations in general. Randolph May, senior fellow at Progress & Freedom Foundation, said he had hoped WorldCom’s problems wouldn’t lead to backlash against deregulation because bankruptcy was “about accounting practices and human frailties, not regulatory policy.”
Time Warner Cable is using its video-on-demand capabilities in novel way, giving 130,000 digital subscribers in Raleigh, N.C., chance to see wedding of local radio personality Madison Lane. Her guest list apparently was short, but by putting videotape of wedding on Time Warner’s server, fans of WDCG-FM personality will be able to see wedding and have ability to pause, fast-forward and rewind with cable company’s iControl service. “'Madison’s Wedding’ is proof that VoD offers amazing potential,” said George Douglas, vp-sales and mktg., Raleigh division.
Software bugs in hard disc recorder from U.K.’s Sky+ have prompted credits on monthly fee for subscribers to BSkyB’s digital satellite service. Meanwhile, TiVo in U.K. apparently has solved shortcoming of recording programs that start early or run late, but has raised hackles there by sending sponsored programs to PVR without subscribers’ knowledge.
Time Warner Cable is in beginning stages of deploying Scientific-Atlanta’s new Explorer 8000 digital interactive set- top box with digital video recording capabilities. Device allows users to pause live TV, record one channel while watching another, record 2 channels and play back one channel simultaneously, and have picture-in-picture (PIP). Explorer 8000 home entertainment server features 80 Gb hard drive, capable of recording up to 50 hours of programming.
Neil Bush, President Bush’s brother, visited NCTA convention Sun. to pitch his newest business scheme to cable operators. Speaking at early convention session, Bush, chmn.-CEO of Ignite, said his new company would introduce online, educational “courseware” in fall that would offer multimedia versions of middle-school textbooks. Designed to fully complement, not compete with, school curricula, Ignite’s customized courseware will cost $30 per child per subject. Bush, who raised $18 million in private capital to launch his company, plans to start with American history in fall, then expand course offerings to earth, life and physical sciences. Describing himself as “kind of a Pollyannic type of guy,” Bush said his online, multimedia textbooks would help teachers reach and motivate their students. “Our teachers are still using screwdrivers and sledgehammers,” he said. President’s brother urged cable to back his efforts by installing more high-speed data connections to schools and homes and supporting development of software and applications to fill broadband pipeline. “I think the cable industry has a huge potential role,” he said: “Build out the cable modem thing” and promote use of applications. Bush, who said he started Ignite for healthy mix of social responsibility and profit motives, projected that company “won’t be profitable for 3 years” and “won’t be dominant for 5 years.” He decried schools’ increasing reliance on standardized testing and assessments, even though his brother has been strong advocate of both, because he believes they favor memorization ability over thinking skills. But he said he wouldn’t press that case with President. “I made a point of not lobbying him,” Bush said. “He’s got his people.” -- AB
Comcast said it introduced video-on-demand (VoD) service in one of its N.J. cable systems. Rollout gives 222,000 Comcast customers opportunity to order movies and special programming whenever they want, with VCR functionality, Comcast said. Company said customers would be able to choose among hundreds of new releases, classic movies, other programs. New releases on Comcast VoD cost $3.95 per movie, library titles $2.95, children’s TV, concerts and other specials 99 cents-$1.95. Programs can be paused, rewound and fast-forwarded, as well as stored for up to 24 hours from time of ordering. Comcast said it planned to offer VoD on its systems in N.J. and Pa. in next several months. Comcast has 3 million VoD-ready homes in its 26- state service area.
U.S. Appeals Court, D.C., turned down request for stay on implementation of video description rules. Request was made by MPAA, NAB, NCTA. Court denied request March 29, but still pending is groups’ petition seeking to overturn rules. Oral argument in that case is set for Sept. 6, and decision is expected in late 2002 or early 2003. Because motion for stay was turned down, FCC’s rules went into effect Mon. Rules require major broadcast and cable networks to add video descriptions to 50 hours of prime-time or children’s programming per quarter. In video description, narrator describes action and environmental aspects of program during pauses in dialog, and those descriptions are broadcast over Secondary Audio Programming channel. American Council of the Blind is major supporter of rules. FCC also turned down MPAA, NAB and NCTA request for postponement, saying it wasn’t in public interest to delay. Industry groups argued that rules impinged on First Amendment and would cost them hundreds of thousands of dollars to comply.
Aiwa will deliver TV with 15” LCD screen this week in Japan, press reports from Tokyo said. One feature of models in new Encore is pause function that enables viewer to freeze onscreen image with remote control. Set will be priced at about $800 and produced at rate of 7,000 monthly. Company also announced plans for 20” model and 15” combo with DVD player.
MPAA, NAB and NCTA asked FCC to stay rules for video descriptions for blind. They said in filing that Commission should stay rules, scheduled to take effect April 1, until U.S. Appeals Court, D.C., ruled on their petition seeking to overturn them. Oral argument in that case is set for Sept. 6, and decision is expected in late 2002 or early 2003. Rules would require major broadcast and cable networks to add video descriptions to 50 hours of prime-time or children’s programming per quarter, starting April 1. In video description, narrator describes action and environmental aspects of program during pauses in dialog, and those descriptions are broadcast over Secondary Audio Programming channel. Hollywood groups said FCC should grant stay because their court case was “likely to succeed on the merits” and because “the Commission clearly lacks statutory authority to adopt video description rules.” Groups said Communications Act empowered FCC to adopt only closed- captioning rules, and video description rules impinged on First Amendment. Groups said if rules went into effect they would have to spend hundreds of thousands of dollars for equipment and programming costs to abide by rules that they said were likely to be overturned by court, and that complying would mean interference with Spanish language audio. American Council of the Blind (ACB) “categorically condemned” entertainment industry trade associations for their filing and asked them to “stop this senseless attack on the need and right of blind people to know what is going on during TV and movie presentations.” ACB said it believed “vast majority” of individual members of those Hollywood trade assns. agreed with ACB. Earlier this week, FCC reminded TV, movie and cable industries of upcoming deadline.
MPAA, NAB and NCTA asked FCC to stay rules for video descriptions for blind. They said in FCC filing that Commission should stay rules, scheduled to take effect April 1, until U.S. Appeals Court, D.C., ruled on their petition seeking to overturn them. Oral argument in that case is set for Sept. 6, and decision is expected in late 2002 or early 2003. Rules would require major broadcast and cable networks to add video descriptions to 50 hours of prime-time or children’s programming per quarter, starting April 1. In video description, narrator describes action and environmental aspects of program during pauses in dialog, and those descriptions are broadcast over Secondary Audio Programming channel. Hollywood groups said FCC should grant stay because their court case was “likely to succeed on the merits” and because “the Commission clearly lacks statutory authority to adopt video description rules.” Groups said Communications Act empowered FCC to adopt only closed- captioning rules, and video description rules impinged on First Amendment. Groups said if rules went into effect they would have to spend thousands or hundreds of thousands of dollars for equipment and programming costs to abide by rules that they said were likely to be overturned by court, and that complying would mean interference with Spanish language audio. American Council of the Blind (ACB) “categorically condemned” entertainment industry trade associations’ for their filing and asked them to “stop this senseless attack on the need and right of blind people to know what is going on during TV and movie presentations.” ACB said it believed “vast majority” of individual members of those Hollywood trade assns. agree with ACB. Earlier this week, FCC reminded TV, movie and cable industries of upcoming deadline.