Volume LII, Issue 3

In This Issue

Carly Fiorina: Obama’s Net Neutrality Failure

Excerpted from CNN Report by Carly Fiorina

Crony capitalism is alive and well. If you need proof, look no further than the Federal Communication Commission’s (FCC) new Title II regulations imposed in the name of Net Neutrality under pressure from President Barack Obama, and the big businesses that benefit.

Net Neutrality proponents did a masterful job of marketing it with the help of late-night hosts and political spin, arguing that it would level the Internet playing field. The truth, however, is that it will insert Washington bureaucracy and control into the 21st century’s greatest success story. The Internet, which has empowered hundreds of millions of Americans in so many aspects of life, will now be subject to the same types of regulations that governed telephone service in the 20th century.

Only big companies can deal with vast, sweeping regulation like the 313 pages imposed by the FCC. This administration has had a habit of identifying a particular problem and then convincing the voters that we require enormous new swaths of government control to fix it.

For example, Dodd Frank started out as way to protect consumers. But the consequence of Dodd Frank has been that 10 banks too big to fail became 5 banks too big to fail with record bonuses all around…. Read More

Rules Face Court Challenge from Cable Industry Groups

Excerpted from Variety Report by Ted Johnson

The FCC‘s Net Neutrality rules are facing two more legal challenges from cable industry groups, as two trade associations filed notices of appeal in Washington, DC on Tuesday.

The National Cable & Telecommunications Association (NCTA), representing major cable and Internet providers, has hired Ted Olson, the former Solicitor General, and Miguel Estrada, former US Assistant to the Solicitor General, to take their case.

The FCC voted 3-2 on February 26th to reclassify the Internet as a Title II telecommunications service, giving it greater authority to impose rules that prohibit Internet providers from blocking or throttling content, or from selling better access to their subscribers in what is called “paid prioritization.” Internet providers had vowed to challenge the FCC’s move, arguing that the agency was imposing utility-style regulation on the 21st century technology.

“The FCC, in effect, has impermissibly rewritten the Communications Act,” Olson said in a statement. In its petition, the NCTA argues that the FCC’s action was “arbitrary, capricious and an abuse of discretion.”

FCC Chairman Tom Wheeler has predicted that the rules will survive a legal challenge… Read More

14 Republicans Move to Block Internet Rules

Excerpted from The Hill Report by Mario Trujill

Thirteen Republicans joined Congressman Doug Collins (R-GA) in support of a resolution that would block new Internet rules approved by the Federal Communications Commission (FCC)..

The simple, eight-line resolution introduced Monday reads that “Congress disapproves of the rules” passed in February and that they “shall have no force or effect.”

The resolution under the Congressional Review Act would give Congress expedited procedures to get rid of the regulations that reclassify broadband Internet under authority governing traditional telephones. Advocates say those new FCC regulations are necessary to ensure service providers treat all Internet traffic equally.

The Congressional Review Act allows for both chambers to take an up-or-down vote, without the threat of a filibuster in the Senate.

House Judiciary Chairman Bob Goodlatte (R-VA) signed onto the resolution, as did the Vice Chairman of the Commerce Committee, Bob Latta (OH). Others included Members of Congress Steve Chabot (R-OH), Lynn Westmoreland (R-GA), Glenn Grothman (R-WI), Bill Posey (R-FL), Rick Allen (R-GA), Ryan Zinke (R-MT), Barry Loudermilk (R-GA)… Read More

Report from DCIA CEO Marty Lafferty

Click Here for Video

We’re pleased to announce the DCIA’s partnership with Informa Telecoms & Media in presenting the Cloud World Forum (CWF) on June 24th and 25th in London, England.

The seventh annual CWF will be Europe / Middle East / Asia’s (EMEA) largest expo for C-level decision makers focusing on Mobile Cloud, Big Data, Social Networking, and the Internet of Things (IoT).

This year’s CWF will be co-located with Enterprise Apps World, and will help attendees build businesses in the cloud, enable digital operations and supply chains, and drive workplace transformation through mobility.

CWF will have more than 8,000 attendees and over 300 speakers.

Sponsors will be leading technology providers in the cloud computing space including Amazon Web Services (AWS), EMC, Google, IBM, Microsoft, and Salesforce.com.

Several special features have been added this year based on ascertainment conducted with a panel of 100 C-level information technology (IT) purchasers and innovators.

These include dedicated theaters and end-user case studies centering on Communications & Collaboration, Cybersecurity, DevOps, Hyperscale Data Centers, IoT, and Predictive Analytics.

There will also be six panel discussions with topics ranging from support for start-ups in this space to a Pod Zone showcasing new product offerings.

The event will also incorporate several exclusive venues for C-level attendees, including the Cloud100 Club, Executive Summit, Security Zone, and The Village.

Additional specialized sessions will zero-in on Applications and Migration, Cloud Security and Data Governance, Shadow IT and Enterprise Mobility, and Software Defined Environments.

Please contact me at your earliest convenience if you’re interested in speaking, sponsoring, or exhibiting at CWF.

Or register for your FREE exhibition pass here! Share wisely, and take care.

AT&T Files Separate Challenge to FCC’s Rules

Excerpted from CED Magazine Report by Ben Munson

AT&T this week adds its own lawsuit to the current pile of litigation aimed at overturning the FCC’s new Net Neutrality rules, set to take effect in June.

AT&T’s suit is somewhat surprising as the carrier was expected to allow wireless industry organizations lead the legal battle. CTIA, which represents the major US.carriers, as did the NCTA and ACA on behalf of the cable industry.

AT&T did not immediately respond to a request for comment.

According to the Wall Street Journal, AT&T’s suit is similar to those filed by CTIA and other companies and organizations. Opponents to the FCC’s new Open Internet Order criticize the regulations for potential overreaches that could have a chilling effect on network investment.

The FCC has insisted the new rules, which passed on a 3-2 vote earlier this year, will not delve into rate regulation, instead focusing on preventing network prioritization practices like throttling.

AT&T putting its name on the frontline of the current legal challenges to Net Neutrality regulations comes after Verizon lead… Read More

Project Maelstorm May Hold Key to Net Neutrality

Excerpted from Economic Times Report by Rajat Gandhi

Amidst a raging debate about Net Neutrality in India, peer-to-peer (P2P) transfer website BitTorrent announced something interesting late last week. It announced that its quest to make a web browser that runs on P2P technology has seen significant progress and was moving to the Beta stage.

Project Maelstorm, as BitTorrent dubbed it, is a revolutionary step in the way we access content through a web based browser.

Traditionally, whenever we want to access a webpage, the browser pings a server, which in turn allows you to access the files. Project Maelstorm looks to do away with one single server and instead help you access a webpage by getting content from P2P distributed torrents.

While BitTorrent around the globe has been more synonymous with helping people download video, music, and software, BitTorrent has a number of other businesses and products around P2P file sharing. “Project Maelstrom begins to answer that question with our first public release of a web browser that can power a new way for web content to be published, accessed and consumed,” says BitTorrent Chief Executive Officer (CEO) Eric Klinker in his blog… Read More

NAB 2015: Should the FCC Regulate OTTVPDs Like MVPDs?

Excerpted from Streaming Media Report by Troy Dreier

In December 2014, the Federal Communications Commission (FCC) proposed changing the definition of multichannel video programming distributor (MVPD) to include some over-the-top (OTT) services, a move that will impact the future of online video whatever the outcome. This afternoon at the NAB conference, a panel moderated by FCC Commissioner Ajit Pai met to debate that proposal.

“Online video is the new royalty,” enthused Pai, pointing out that 78 percent of all US adults now use the internet to watch or download videos, and Netflix counts for 35 percent of all peak-hour downstream content. “The variety of Internet programming is astonishing,” he said.

Looking at the diversity of today’s online video offerings — which include programmers creating online services, Netflix offering a la carte options, and Meerkat opening new doors — he noted that the Internet is redefining video. The trend that matters most to the FCC, however, is that more distributors are creating channel bundles as an alternative to cable or satellite services.

“The bottom line is that all of this is great to American consumers,” Pai said. People are enjoying more content options than ever… Read More

Netflix Drives Record 4.9 Million New Subs in Q1

Excerpted from Multichannel News Report by Jeff Baumgartner

Led by better than expected growth in the US and other corners of the globe, Netflix added a record 4.9 million new streaming subscribers worldwide in the first quarter, soundly beating its forecast of 4.1 million.

Netflix ended the period with 59.62 million subs, and expects to add a more modest 2.5 million in the second quarter.

In the US, Netflix added 2.28 million subs, extending its total to 41.40 million. It expects to add 600,000 in the second quarter.

On the international front, Netflix added 2.6 million subs, giving it 20.88 million, and expects to add another 2.9 million in the category during Q2 as it benefits from recent launches in Australia and New Zealand, which adds 8 million broadband subs to its addressable market.

Netflix is slating a launch in Japan later this year.

While international subs were on the upswing, Netflix said the strong US dollar hit earnings. Netflix posted net income of $24 million (38 cents per share), versus $53 million (86 cents per share) in the year-ago period. Revenues climbed to $1.4 billion in Q1… Read More

US Adults Spend 5.5 Hours with Video Content Each Day

Excerpted from eMarketer Report

Adults in the US will spend an average of 5 hours, 31 minutes watching video each day this year, according to new figures from eMarketer, and digital video viewing across devices is driving growth.

In 2011, time spent with video on digital devices — PCs, mobile devices and other connected devices including over-the-top (OTT) and game consoles — totaled 21 minutes daily. This year, US adults will spend an average of 1 hour, 16 minutes each day with video on digital devices.

Meanwhile, the average time US adults spent watching video programming on televisions totaled 4 hours, 35 minutes in 2011 and will decline to 4 hours, 15 minutes in 2015. In total, time spent with video on all devices is up from 4 hours, 56 minutes in 2011.

“The increase in overall screen time highlights the complexity of today’s media ecosystem,” said Paul Verna, Senior Analyst at eMarketer.

“While so much debate has centered on a supposed tug-of-war between TV and digital video, the reality is that digital video is growing not at the expense of TV, but because video content is more popular than ever… Read More

NAB 2015 Keynote: Google Sends Greetings from “Valleywood”

Excerpted from Streaming Media Report by Troy Dreier

Our entertainment now comes from “Valleywood,” which, as Rany Ng, Google’s Director of Product Management for Video Advertising, explained in her NAB keynote address, is the merger of Hollywood and Silicon Valley. Valleywood means change: change in how people view content (including new options such as binge watching) and change in how advertisers reach those viewers.

“It’s created this massive explosion of content,” Ng said. “We’ve entered in this golden age of viewers.”

The entertainment industry has shifted from one of scarcity to one of abundance, Ng said. Multiscreen viewing has grown by over 500 percent in recent years, she noted, and viewers now watch three more hours of online TV per month than they did only last year.

Advertisers are also trying to deal with the shift to abundance. While 20 years ago they could work with the 4 major networks and know they were reaching their customers, today they have many more choices.

In this new landscape, there are three things programmers and distributors need to think about, Ng said:

First, capturing the moments that matter. Brands can’t afford to be on every screen all the time… Read More

Imagine & VDMS Partner on Multiscreen OTT Distribution System

Excerpted from Streaming Media Report by Troy Dreier

Imagine Communications and Verizon Digital Media Services announced that they’re partnering to create a comprehensive solution that lets broadcasters stream their linear content to online viewers. The solution combines Imagine’s broadcast routing, playout, and trafficking abilities with VDMS’s video encoding, management, and content delivery network.

The combined solution integrates VDMS’s Video Lifecycle Solution into Imagine’s Zenium. A software-based workflow management platform, Zenium gives broadcasters a fast and flexible way to architect new workflows or use existing workflow blueprints, getting end-to-end systems up and running quickly. Video Lifecycle Solution prepares media for online delivery, encoding live or on-demand assets, then streaming them for multiscreen viewers.

“By combining our end-to-end video management solutions with Verizon’s industry-leading content delivery infrastructure, we are creating a dynamic and powerful combination that helps broadcasters more easily and effectively deliver their linear programming directly to end-users regardless of location or preferred device,” says Charlie Vogt, chief executive officer for Imagine Communications.

The combination of our two companies’ capabilities allows these media companies to rapidly develop new workflows… Read More

NAB 2015: Winning the Next Generation of Viewers with OTT Services

Excerpted from Streaming Media by Nadine Krefetz

In an NAB session called “Constant Cravings: Using OTT to Win the Next Generation of Viewers” on Monday, panelists pointed to three key elements for over-the-top (OTT) success: a strong business model, seamless multiplatform access, and frequent innovation.

The ad-supported vs. subscription debate continues, but some services have decided to embrace both monetization strategies. For CBS, the question wasn’t whether or not to go OTT, it was whether the broadcaster should offer live linear streaming.

CBS News is streaming news and some sports for free, while the live and on-demand service CBS All Access is available via a $5.99 per month subscription. “We mixed the Netflix model and the Hulu model,” said Marc DeBevoise, EVP and GM of Entertainment, News, and Sports for CBS Interactive.

Not surprisingly, people who pay for OTT services watch more video than those who don’t. “People who are willing to pay for video watch more, watch two times more on a computer, and four times more on mobile devices,” said Brett Sappington, Director of research at Parks Associates. “If you look at households that have kids, they spend 90% more on video, particularly online video… Read More

Akamai Takes Strategic Steps with Focus on Video

Excerpted from Trefis Report

Akamai recently announced the integration of Adobe Primetime ad insertion capabilities into its network. The company also acquired Internet protocol (IP) video services firm Octoshape last week. Video is an integral and rapidly growing part of Internet traffic and Akamai is clearly focusing on improving its capabilities on this front.

We currently have a price estimate of $66.16 for Akamai, which implies a discount of around 7% to the market price.

Akamai is a leading Content Delivery Network (CDN) provider and delivers between 15-30% of all web traffic. The company has made two big strategic moves in the last few days with focus on online video content. The company has integrated Adobe Primetime’s ad insertion capabilities into its network. Akamai believes that the integration will help simplify and improve the way video ads are delivered on the Internet. This integration will use a technique called server-side ad insertion, in which advertisements will be stitched into content at the network level.

The company also acquired Danish IP video services firm Octoshape in a cash transaction. Octoshape’s services are designed to help optimize the quality of video streams for over-the-top (OTT) content and to enable Internet Protocol television (IPTV) solutions. The acquired company caters to many high-profile clients including CNN, CBS, NBA and NASCAR… Read More

Telefonica Uses NEC for SMB Cloud Integration Services

Excerpted from Light Reading Report

Telefonica Business Solutions, a leading provider of a wide range of integrated communication solutions for the B2B market, and NEC, a leader in IT systems integration and communication technologies, have today signed a four year agreement. The agreement will see NEC become Telefonica’s global integrator to enable the delivery of comprehensive cloud services to SMB customers in both Europe and Latin America.

NEC will work on operation, integration, and support for the software-as-a-service (SaaS) platforms and services that Telefonica offers. This work will use the latest technology, with no additional investment required, and offer the flexibility to adapt to changing needs.

As part of the agreement, NEC will also deploy its new NEC Cloud Brokerage Suite (NCBS) across Telefonica’s operations in Latin America. This platform enables the rapid deployment of services and the creation of packaged commercial offers, reducing the costs of integrating carriers and significantly shortening the go-to-market time of services.

Juan Manuel Moreno, Telefonica Business Solutions Cloud Global Director, says “SMBs need to use new information communications technology (ICT) technologies to compete and interact with customers in an increasingly digital world… Read More

New DDN Storage Added to Target Media-Intensive Storage

Excerpted from TechTarget Report by Garry Kranz

DataDirect Networks (DDN) broadened its file storage portfolio this week with the introduction of the MediaScaler clustered NAS system for media and entertainment companies with petabyte-scale storage.

The vendor said MediaScaler provides tiering to flash, cloud object stores and linear tape file systems with a federated view of data. It is rated to support up to 10,000 concurrent users in a single namespace.

The new product integrates several existing DDN storage platforms. Similar to DDN’s GridScaler high-performance storage platform, MediaScaler runs IBM General Parallel File System (GPFS) (atop high-performance hard disk drives, but it adds integration between GPFS and back-end tape libraries for long-term storage.

MediaScaler combines block and file storage features of DDN’s Storage Fusion Architecture nodes with its Web Object Scaler (WOS) platform for cloud-based object storage. WOS storage serves as a public cloud gateway for MediaScaler that supports bursting to Amazon Web Services’ Simple Storage Services and OpenStack Swift.

DDN claims MediaScaler delivers more than 35 uncompressed ultrahigh-definition 4K media streams concurrently, or about 4 gigabits per second of streaming media per client. An automated policy engine enables data to be tiered… Read More

Kaltura Announces New Universal DRM Solution

Excerpted from eContent Report

Kaltura, provider of video technology platforms, announced a Universal Digital Rights Management (DRM) solution, adding support for DASH and the Common Encryption (CENC) standard, which enables media companies, content rights owners, and over-the-top (OTT) providers to stream premium content without needing to worry about which browser, device, or platform is being used.

The solution also aims to reduce storage costs and integration fees. With Google and others moving to deprecate or disable existing content protection systems, and Google choosing to disable the Netscape Plugin Application Programming Interface (NPAPI) support in the Chrome browser in April 2015, Kaltura’s Modular DRM allows video service providers to transition without disrupting service.

Kaltura has partnered with the DRM solution provider Castlabs to integrate multi-DRM capabilities that enable two-way Universal DRM. The new solution lets video service providers migrate to DASH and the Common Encryption standard. The unified solution allows customers to continue to use legacy streaming solutions, such as Smooth Streaming, while enabling clients to migrate to DASH CENC at their own pace.

A recognized leader in the OTT TV, Online Video Platform (OVP), Education Video Platform (EdVP) and Enterprise Video Platform (EVP)… Read More

Coming Events of Interest

All That Matters — May 20th-23rd in Singapore. Packed with influencers, content creators, platforms and marketers, ATM drives business and global collaboration for decision makers in the entertainment, media, and marketing industries.

CES Asia — May 25th-27th in Shanghai, China. The success of the 2015 International CES builds strong momentum for CES Asia. With strong exhibitor demand for CEA’s inaugural event, the show will be curated with select qualifying companies permitted to exhibit.

Data Center and Cloud Awards — June 2nd in Monaco. Europe’s most prestigious awards for data center and cloud achievements will be announced at an evening ceremony prior to the opening of Europe’s ‘must-attend’ Datacloud Europe conference and exhibition.

DataCloud Europe — June 3rd-4th in Monaco. This is eighth annual European Congress & Exhibition focusing on data center and cloud computing, and is co-located with the DataCloud 2015 Awards.

Freescale Technology Forum — June 22nd-25th in Austin, TX. FTF, this year focusing on the Internet of Things (IoT), is the heart of discovery, imagination and innovation. Together we will strategize and design the next market-shifting products.

Cloud World Forum — June 24th-25th in London England. This marquee event is presented by Informa Telecoms & Media. Co-located with the seventh annual major international conference will be Enterprise Apps World.

Internet of Things World Forum (IoTWF) — October (2015 Dates TBD) in Dubai, UAE. IoTWF is an exclusive event that brings together the best and brightest thinkers, practitioners, and innovators from business, government, and academia to accelerate the market adoption of the Internet of Things.

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