KEVIN MARTIN is drawing ire from consumers, the cable industry and even his own FCC. Three consumer advocate groups have submitted a filing to the FCC that says Martin’s plan to relax media ownership rules will destroy competition, reduce local news and taint editorial pages. The NCTA has also logged complaints about Martin’s plan to increase cable regulation by lowering rates for leased channels and possibly forcing a la carte programming. NCTA President Kyle McSlarrow accused Martin of manipulating data to support his agenda and said “The FCC is broken.” Lastly, two Republican FCC commissioners have requested the data that Martin used to support his claim that cable is used by 71.4% of the country and therefore legally subject to increased regulation.
COMCAST has been sued by a customer over its practice of throttling connections with peer-to-peer file-sharing services. The Plaintiff is arguing that Comcast used false and misleading advertising about the speed of its connections and violated both federal computer laws and user contracts. He is seeking class action status for all customers from California and seeks to collect financial damages.
EDGAR BRONFMAN issued a sobering warning to outside industries to avoid the mistakes that have decimated the music business. Bronfman admits that the music industry was fooling itself for years by assuming its product would be unaffected by the changing distribution paradigm. He says the music industry committed major errors “by standing still or moving at a glacial pace” and believes that doing so created a war with consumers by denying them what they wanted. Bronfman urged other industries, specifically the mobile carriers, to quickly adapt to emerging technology and consumer demands.
VUDU will offer downloadable HD content from Paramount, Universal Studios and Lionsgate. Vudu’s on-demand box allows consumers to rent titles over high-speed Internet connections. It currently offers 5,000 standard-definition titles.
RCRD LBL is offering yet another ad-supported music business as a joint venture between Downtown Records and Internet entrepreneur Peter Rojas. RCRD LBL is a hybrid blog and record label that will post free, unrestricted music on its site. The company has signed major advertisers for the site, including Puma and Richard Branson’s Virgin America airline. Artists will receive advances on a per-song basis and share in licensing deals but will not get a cut of advertising.