MUMBAI: Arizona senator John McCain has introduced legislation in the US.

This will make cable TV operators and other television service providers to split up content bundles and instead offer TV shows in smaller, more affordable packages and as a la carte channels. His legislation is called the Television Consumer Freedom Act. The aim is to have a shift from where customers are being forced to accept bundled packages to one where they are allowed to pick and choose which channels they want.

He said, "Mr. President, today I am introducing the Television Consumer Freedom Act of 2013. This legislation has three principal objectives: (1) encourage the wholesale and retail ?unbundling? of programming by distributors and programmers; (2) establish consequences if broadcasters choose to ?downgrade? their over-the-air service; and (3) eliminate the sports blackout rule for events held in publicly-financed stadiums."

He plans to penalise broadcasters who stop being free to air because of Aereo. "For over 15 years I have supported giving consumers the ability to buy cable channels individually, also known as ?a la carte? -- to provide consumers more control over viewing options in their home and, as a result, their monthly cable bill."

He went to hit out at NBC and Disney saying, "The video industry, principally cable companies and satellite companies and the programmers that sell channels, like NBC and Disney-ABC, continue to give consumers two options when buying TV programming: First, to purchase a package of channels whether you watch them all or not; or, second, not purchase any cable programming at all."

"This is unfair and wrong especially when you consider how the regulatory deck is stacked in favor of industry and against the American consumer. This is clear when one looks at how cable prices have gone up over the last 15 years, which is brought to light by the most recent Federal Communications Commission pricing survey," he added.

He noted that in the FCC survey, the average monthly price of expanded basic service for all communities surveyed increased 5.4 per cent over 12 months ending 1 January 2011, to $54.46 compared to an increase of 1.6 per cent in the Consumer Price Index. Over the last 15 years, this rise in costs becomes even more evident. According to the FCC, the price of expanded basic cable has gone up at a compound average annual growth rate of 6.1 per cent during the period from 1995 to 2011. This means that the average annual cable price has gone up from about $25 a month in 1995, to over $54 today. This he noted is a 100 per cent price increase.

However he also said that those who provide video directly to consumers, like cable and satellite companies, are not solely to blame for the high prices consumers face today. He attacked the concept of bundles - packages of channels, sold to cable and satellite companies by video programmers like Comcast-NBC, Time Warner, Viacom and The Walt Disney Company, which owns 80 per cent of ESPN. The ?Worldwide Leader in Sports, he said that ESPN calls itself that and it thrives because of the advertising revenue it is able to generate and large subscriber fees. ESPN he noted charges roughly $4.69 per household per month compared to the next costliest national network, TNT, which takes in $1.16 from about as many homes. All cable subscribers are forced to absorb the cost if even they do not watch ESPN because channels are bundled into packages. "Cable and satellite carriers that consider dropping ESPN must also contemplate losing other channels in the bundle, like the Disney Channel.

"Some have described this as an ?a tax on every American household." He warned that ultimately, there would be a revolt over the cost. "Or policymakers will get involved, because the costs of these things are so out of line with cost of living that someone?s going to put up a stop sign. Today, we?re putting up a stop sign," he further stated.

"My legislation would eliminate regulatory barriers to a la carte by freeing-up multichannel video programming distributors (MVPDs) -- like, cable, satellite and others offering video services -- to offer any video programming service on an a la carte basis. Notably, my bill offers no mandates, regulations and is entirely voluntary.

"In order to give MVPDs an incentive to offer programming on an a la carte basis, the legislation links the availability of the compulsory copyright license to the voluntary offering of a la carte service by the MVPD. In other words, if the MVPD does not offer a broadcast station -- and any other channels owned by the broadcaster -- on an a la carte basis, the MVPD cannot rely on the compulsory license to carry those broadcast stations. The compulsory license is a benefit conferred on MVPDs. So, it?s reasonable to ask the recipients of that benefit to provide consumers with an a la carte option."

The second section of his bill is a response to statements by broadcast executives (Fox, CBS) that they may ?downgrade? the content on their over-the-air signals, or pull them altogether, so that the programming received by MVPD customers is preferable to that available over-the-air. "Our country is facing a spectrum crunch, and if broadcasters who are using the public airwaves in return for meeting certain public interest obligations are going to deviate from those obligations, it is my view that we should consider if that is the most efficient use of our country?s spectrum. It would be a distortion of this basic social compact if over-the-air viewers were treated as second-class citizens. This bill provides a legislative response if broadcasters either downgrade their signal or pull it altogether. The bill provides that a broadcaster will lose its spectrum allocation, and that spectrum will be auction by the FCC, if the broadcaster does not provide the same content over the air as it provides through MVPDS."

Finally, the bill touches on ?sports blackout? rules that can limit the ability of subscribers to see sporting events when they take place in their local community but are not broadcast on a local station. "When the venues in which these sporting events take place has been the beneficiary of taxpayer funding, it is unconscionable to deny those taxpayers who paid for it the ability to watch the games on television when they would otherwise be available. Therefore, the bill proposes to repeal the sports blackout rules insofar as they apply to events taking place in publicly financed venues and/or involve a publicly financed local sports team."

"In the end, the Television Consumer Freedom Act is about giving the consumer more choices when watching television. It?s time for us to help shift the landscape to benefit television consumers. Now I know the broadcasters and cable companies are likely to suggest that the government should not micromanage how they offer their product to customers and that bundling can promote diverse offerings. What those interests will fail to mention, is that the government has already entered the marketplace, and conferred certain rights and privileges like the compulsory license, network non-duplication, syndicated exclusivity and retransmission consent, which stack the deck in the favor of everyone but the American consumer," he ended.

MUMBAI: US media conglomerate Disney has reported a 32 per cent jump in profits for the second fiscal quarter. Net income was $1.51 billion.

Its media networks, film and theme parks businesses all contributed towards this happy state of affairs. Revenue for the quarter ending 30 March 2013 rose by 10 per cent to $10.55 billion. Diluted earnings per share (EPS) for the second quarter increased to $0.83 from $0.63 in the prior-year quarter. Diluted EPS for the six-months ended 30 March, 2013 was $1.60 compared to $1.43 in the prior-year period.

Disney chairman and CEO Robert A. Iger said, "With adjusted earnings per share up 36 per cent over last year, we?re obviously pleased with our second quarter. Our results reflect our successful strategy, the strength of our brands and the value of our high-quality creative content, all of which continue to drive long-term growth and shareholder value."

Operating income at Cable Networks increased by $224 million to $1.7 billion for the quarter due to growth at ESPN. Higher operating income at ESPN was due to increased affiliate revenues and, to a lesser extent, higher ad revenues, partially offset by increased programming and production costs.

Increased affiliate revenues at ESPN were primarily due to contractual rate increases, a reduction in revenue deferrals as a result of changes in provisions related to annual programming commitments in certain affiliate contracts and international subscriber growth. During the quarter ESPN deferred $120 million of revenue compared to $190 million in the prior-year quarter.

Growth in ESPN ad revenues was primarily due to an increase in units sold and higher rates, partially offset by lower ratings in certain programming. The increase in programming costs was driven by contractual rate increases for college sports.

Operating income at broadcasting decreased by $91 million to $138 million for the quarter due to higher primetime programming costs and a decrease in ad revenue at ABC, partially offset by an increase in ad revenue at the owned television stations. Higher primetime programming costs were driven by increased production cost write-offs and higher cost acquired programming.

The decrease in network ad revenue was primarily due to lower ratings, partially offset by higher rates and increased online advertising.

The revenues in their studio and entertainment division increased by 13 per cent to $1.3 billion. And segment operating income increased by $202 million to $118 million. Higher operating income for the quarter was driven by lower film impairments, due to the write-down on ?John Carter? in the prior year and an increase in worldwide theatrical distribution. Worldwide theatrical distribution results reflected the strong performance of ?Oz The Great And Powerful? and ?Wreck-it Ralph? in the current quarter compared to ?John Carter? in the prior-year quarter.

Parks and Resorts revenues for the quarter increased by 14 per cent to $3.3 billion and segment operating income increased 73 per cent to $383 million.

Results for the quarter were driven by increases in the US and, to a lesser extent, at its international operations. Results at both domestic and international parks and resorts reflected a favorable impact due to a shift in the timing of the New Year?s and Easter holidays relative to the company?s fiscal periods.

Consumer products revenues increased by 12 per cent to $763 million and segment operating income increased by 35 percent to $200 million. Higher operating income was primarily due to increases at merchandise licensing and at its retail business. The increase at merchandise licensing was driven by the performance of Disney Channel, Mickey and Minnie, and Marvel properties, partially offset by lower revenue from sales of Cars merchandise.

Merchandise licensing growth also benefited from a licensee audit settlement. At the retail business, higher operating income was driven by higher comparable store sales in the US and Japan and higher online sales in the US.

MUMBAI: Fox Sports Media Group (FSMG) has launched a new, national, multi-sport network called Fox Sports 1 in US with which it plans to take on Walt Disney?s ESPN. The new channel, set to debut on 17 August, will coincide with Fox Sports? 20th anniversary.

Fox Sports 1 is available in over 90 million homes, making this the biggest sports cable network launch in history, and one of the largest network launches ever. At the outset, FS1 boasts nearly 5,000 hours of live event, news and original programming annually.

The announcement was made by FSMG Co-Presidents and COOs Randy Freer and Eric Shanks.

"Our ?secret,? admittedly a very poorly kept one, is now revealed," said FSMG Co-President and COO Eric Shanks. "Fans are ready for an alternative to the establishment, and our goal for FS1 is to provide the best in-game experience possible, complemented by informative news, entertaining studio shows and provocative original programming."
A robust schedule of live events forms the backbone of Fox Sports 1?s programming which includes college basketball, college football, Nascar, soccer and UFC all on tap between launch and year?s end. In 2014, FSMG?s new rights agreement with MLB takes effect, bringing regular and postseason games to FS1.

In addition to live events and studio programs, Fox Sports 1 introduces Fox Sports Live, a 24/7 news franchise providing around-the-clock coverage through regularly scheduled programs, hourly updates and an information-rich ticker that provides a network agnostic sports event television schedule.

Thousands of hours of news programming are expected annually from newly minted sets including a nightly program at 11:00 PM ET or immediately following events. A morning newscast is expected to launch in January 2014 in conjunction with FSMG?s expansive coverage of Super Bowl XLVIII.

"Building credibility and trust with our audience is paramount, so naturally we?ll provide the staples, like news, scores and highlights, but we?ll do it in a Fox Sports way," offered Shanks. "Just as Fox NFL Sunday reinvented the pregame show, Fox Sports Live breaks new ground in the way sports news is presented. We already have the home-team advantage of significant audiences watching local games on our 22 regional sports networks as a platform to launch our new national news."

Complementing FS1?s live events and news coverage at launch are several original programs, highlighted by Rush Hour, hosted by Regis Philbin, airing live weekdays. Originating in New York City, Regis leads the charge along with a panel of sports professionals, celebrity guests and die-hard fans in this brand new, unpredictable, talk show. Following Rush Hour live every day is Fox Football Daily.

Launching together with Fox Sports 1 will be Fox Sports Go ? a mobile sports experience for iPhone, iPad, Android devices, and web. Fox Sports Go will offer more than 1,000 live games and events from across Fox Sports, Fox Sports 1 and Fox Sports? 22 regional sports networks, as well as scores, highlights, news, stats, and analysis. The live games and events will be available to subscribers of participating cable, satellite, and telco providers at no additional cost.

MUMBAI: With a lot of live sports content at its disposal, Star India is gearing up to launch a new sports channel under the Star Sports brand on 11 March.

Christened Star Sports 2, the channel will have international football as its driver content. It will also show other sports content.

Star has the broadcast rights to football properties like English Premier League, Spanish league La Liga and Italian league Serie A for India besides FA Cup rights.

"Yes, we are launching a new sports channel on 11 March. Star Sports 2 will primarily have international football content besides other sports content," Star India COO Sanjay Gupta tells Indiantelevision.com.

The channel will be initially available on digital cable networks and will be subsequently rolled out on analog cable networks across the country.

Star is launching the new channel to avoid overlapping of cricket content with other sports content. The problem only accentuates when India cricket is on as the broadcaster has a bi-lingual feed in English and Hindi on Star Sports and Star Cricket.

It will also help the broadcaster to streamline the scheduling of its different properties.

"We have a lot of sports content, so at times we are unable to utilise this content when there are multiple events lined up simultaneously," Gupta explains.

The broadcaster has dedicated supply of cricket content throughout the year as it holds the media rights for three cricket boards, India, Australia and England, in addition to the ICC rights. Besides cricket and football, Star also boasts of rights to properties like Formula One, MotoGP, Wimbledon, Australian Open in Tennis, and PGA Tour.

News Corps, which had last year acquired ESPN?s stake in joint venture ESPN Star Sports (ESS) for $335 million, had restructured its sports broadcasting business in Asia. While the India business was brought under Star India, the rest of Asia business came under Fox Star Sports Asia under Peter Hutton.

Subsequently, the ESPN brand name was dropped across Asia except India where Star is awaiting government clearance on the ESS acquisition before taking a call on change of brand name.

"We have still not decided what we will do with ESPN. We are considering both Fox as well as Star brand name. However, a final call is yet to be taken," Gupta discloses.