AT&T jumped into the online video space with both feet Tuesday, announcing a joint venture with the Chernin Group. The Tier 1 provider committed more than $500 million to fund SVOD services, advertising and other online streaming initiatives.
Netflix will increase its monthly streaming subscription price by one to two dollars, "depending on the country," this quarter, CEO Reed Hastings and CFO David Wells wrote in a letter to shareholders this afternoon. The announcement coincided with the release of Netflix's first quarter results, in which the company notched 2.25 million new customers in the United States.
Executives polling two middle and high school students at a recent summit on over-the-top services were set back a bit by the middle schooler's frank admission: She doesn't watch Netflix much, if at all.
For the third time since 2012, Netflix is the target of a patent suit filed by Nagra and OpenTV, both owned by Swiss company Kudelski SA. The suit involves four patents related to digital TV services.
There's no joy at Netflix today: The FCC rejected CEO Reed Hastings' request to regulate interconnects between the various networks that make up today's Internet. The online video provider had pushed for the expanded net neutrality rules so that it would no longer have to pay a toll to access Comcast's network.
While much of the attention of the net neutrality debates between Netflix and major carriers like Comcast and AT&T have focused on having enough last mile bandwidth to the home, the real problem actually resides in the Internet peering backbone points. Sam Bookman, editor of FierceOnlineVideo, examines this issue in her latest Editor's Corner. Read more
Earlier this week, media outlets lit up with news that Apple might be negotiating a deal with Comcast to stream the cable giant's linear TV and on-demand video across its Apple TV device. A number of articles arose almost as quickly analyzing whether or not this would actually happen, and why. The rumors can't be completely dismissed, but the biggest traffic issues, and the deals put together to prevent them, may be taking place well before the last mile.
AT&T Mobility CEO Ralph de la Vega waded into the fraught debate over whether Netflix should be forced to pay to interconnect its video traffic to subscribers. Speaking at the Rutberg Global Summit, de la Vega said that video is driving exponential traffic growth. "We have to provide additional capacity," he said. "The only question is who pays for that addition?"
While no one wants to pay more for online video services, Amazon's recent move to raise its Prime membership to $99 could be just the start. Will Netflix and other subscription video on demand (SVOD) services move to raise their prices as well? Sam Bookman, editor of FierceOnlineVideo, examines why subscription prices are likely to rise over the next year. Read more
The latest draft of the European Union's proposed legislation on the telecoms single market moved a step closer to realising its goals this week, after the European Parliament's Industry Committee backed plans that include bringing an end to roaming charges and the introduction of net neutrality rules.