Cablefax Dailytm Wednesday — July 1, 2015 What the Industry Reads First Volume 26 / No

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Cablefax DailyTM Wednesday — July 1, 2015 What the Industry Reads First Volume 26 / No. 125 Bob Bowman: MLB Advanced Media’s Game Plan Over the past few years, MLB Advanced Media (MLBAM), the digital arm of MLB, scored an impressive lineup of clients including HBO NOW, PGA Tour Live, Sony PlayStation Vue and the WWE Network, providing back- end infrastructure for live, VOD and other digital services. These companies joined long-time MLBAM customers WatchESPN, Turner Sports’ March Madness Live and Glenn Beck’s TheBlaze. The key to success in the increasingly competitive digital technology market? Incorporating variations of distribution and content strategy, Bob Bowman, pres and CEO, told BTIG analyst Rich Greenfield during the research firm’s “Screening The Future” webcast series Tues. While different distribution platforms might be based on the same technology, user behavior, target market, the nature of content and company culture among MLBAM’s customers vary, he said. For example, the HBO NOW model, which is based on the net’s popular original programming, might not work for other non-sports programmers. And even between sports programmers, ESPN and WWE have vastly different strategies. While WWE uses a lot of its existing inventory to promote its live events and create content throughout the year, ESPN looks to supply as much content as possible to WatchESPN. For content providers wanting to get into the streaming/direct-to-consumer business, it’s not a one-size-fits-all model. That said, there are a few best practices including using trials to drive participation, according to Bowman. That could be especially important to having the right direct-to-consumer pricing model, as programmers never had to deal with pricing in a traditional pay-TV bundling world. HBO offered a free 30-day trial for its $15 a month stand-alone streaming service. “It [trial] is essential to get people using it,” Bowman said, citing Netflix’s approach to pricing as a “textbook” example. Bowman’s other advice for potential streaming service providers is “don’t be afraid of churns.” “It’s a business that takes 18 months or more to grow… The best Internet business is something people use every day and become reply on,” he said. “There’s no overnight success.” Besides, churn gives important insights into sub behavior, which drives improvement, he added. Meanwhile, one challenge of the streaming business, especially in the sports world, is rights restrictions. In MLB’s case, users of MLB.TV are limited to out-of-market live games. The good news is new MLB commish Rob Manfred is working to change that. Bowman reports “good discussions” with RSNs and MVPDs, and “we are closer than ever” to resolving the problem. Moving forward, MLBAM is looking beyond the baseball field. The company is talking to several production firms about creating original content in different genres. Title II Briefs: Start your engines. The DC Circuit has set a fast-tracked schedule for challenges to the FCC’s Title II Open Internet order, with petitioners, including NCTA and CTIA, required to submit a joint opening brief by July 30. The schedule could bring about a DC Circuit decision by early next year. Interveners filing in support of petitioners have an Aug 6 deadline, while the FCC must file its opening brief (not to exceed 33K words) by Sept 14. Those

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© 2015 Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $100,000 for violations. Cablefax DailyTM Wednesday, July 1, 2015 ● Page 2 CABLEFAX DAILY (ISSN 1069-6644) is published daily by Access Intelligence, LLC M www.cablefax.com M 301.354.2101 M Editorial Director: Amy Maclean, 301.354.1760, [email protected] M Associate Publisher: Michael Grebb, 323.380.6263, [email protected] M Editor: Joyce Wang, 301.354.1828, [email protected] MSr Community Editor: Kaylee Hultgren, 212.621.4200, [email protected] MAdvisor: Seth Arenstein MDir. of Business Dev.: Rich Hauptner, 203.899.8460, [email protected] M Jr. Acct. Exec: Olivia Murray, 301.354.2010, [email protected] MDir of Market Dev: Laurie Hofmann, 301.354.1796, [email protected] M Production: Joann Fato, [email protected] M Diane Schwartz, SVP Media Comms Group, [email protected] M Group Subs: Laurie Hofmann, 301.354.1796, [email protected] M Sub Questions, Client Services: 301.354.2101, [email protected] M Annual subscription price: $1,649/year M Access Intelligence, LLC, 4 Choke Cherry Road, 2nd Floor, Rockville, MD 20850 backing the FCC must file a joint brief by Sept 21. Petitioners’ reply briefs are due Oct 5, with final briefs slated for Oct 13. Typically, oral arguments are a minimum of 45 days after the briefing is complete. NCTA, CTIA, US Telecom, ACA, AT&T, CenturyLink and WISPA are allowed to file a joint opening brief of up to 20K words (The petitioners had originally proposed CTIA be allowed to file a separate brief). Alamo Broadband and Daniel Berninger are allowed to file a separate opening brief, not to exceed 4K words. Full Service Network, TruConnect Mobile, Sage Telecom and Telescape Comm also can file separate briefs of up to 9K words each. Cisco Buys OpenDNS: Cisco agreed to buy Internet security firmOpenDNS for $635mln. It’s the 2nd Internet of Everywhere acquisition Cisco has done in the past 2 months. The company announced the acquisition of cloud-based voice and messaging service developer Tropo in May. Cisco expects the OpenDNS deal to boost its Security Everywhere initiative. According to Cisco, visibility into potential threats is limited in a world in which devices and people can connect from anywhere at anytime. That’s what makes OpenDNS’ cloud-based security platform, which aims to offer predictive threat intelligence, valuable. Last year, Cisco acquired cybersecurity firm Sourcefire for $2.7bln. The OpenDNS team will join the Cisco Security Business Group organization led by svp/ gm David Goeckeler. The acquisition is expected to close in the first quarter of fiscal year 2016, subject to cus- tomary closing conditions. 2Q Ratings: The NBA playoffs propelled TNT to first place among cable nets in prime for 2Q. The net averaged 2mln viewers for the Q. Sister net TBS had the most-watched programs of the Q with its coverage of the NCAA Fi- nal Four on Apr 4. Kentucky vs Wisconsin averaged nearly 17mln viewers (Live+7), while Duke-Michigan State averaged more than 11mln viewers. When it comes to scripted series, HBO’s “Game of Thrones” owned the quarter, with the Season 5 premiere and finale both averaging about 10.4mln viewers each (L+7). Other 2Q ratings highlights include ESPN’s NFL draft coverage (7.1mln viewers) and Comedy Central’s roast of Justin Bieber (7mln viewers). Sun’s BET Awards notched 6.3mln viewers (L+Same Day), down from last year’s 7.9mln but still good enough to rank as cable’s top awards show of the year. Last week was a strong one for cable. In addition to the awards, Dis- ney premiered its highly anticipated “Teen Beach 2” (5.8mln), and Fox Sports 1 netted more than 4.7mln viewers for FIFA Women’s World Cup coverage. AT&T/DirecTV: AT&T and DirecTV have extended the termination date for their $48.5bln pending merger again. In an SEC filing late Mon, the companies said they agree “to further extend the ‘Termination Date’ of the Merger Agreement for a short period of time to facilitate obtaining final regulatory approval required to close the merger.” AT&T 1st filed for an extension in May. Despite the extension request, the companies said they expect the merger to close shortly. Arris/Pace: As part of the regulatory review process for Arris’ $2.1bln proposed acquisition of Pace, DOJ sent a 2nd request for information. The companies will respond to the request “as quickly as practicable and to continue to work cooperatively with the DOJ in connection with its review,” Arris said in a release late Mon. The deal was announced in April. According to Arris, the 2nd request will extend the waiting period imposed by the Hart-Scott- Rodino Antitrust Improvements Act until 30 days after each company has complied with its 2nd request, unless that period is extended voluntarily by the companies or terminated sooner by the DOJ. Arris said it “continues to Who are cable’s most powerful women and in uential minorities? Nomination Deadline: July 10 | Free to Enter Nominate the executives you think should be included in these two annual issues of Cablefax: The Magazine. Enter at www.cablefax.com/2015-nominations Questions: Kate Schaeffer at [email protected]

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25600 Cablefax Women & Influential Ad_7.5x2_2.indd 1 6/8/15 2:02 PM Cablefax DailyTM Wednesday, July 1, 2015 ● Page 3 BUSINESS & FINANCE anticipate that the transaction will Cablefax Daily Stockwatch close in late 2015.” Company 06/30 1-Day Company 06/30 1-Day CES Tally: The final numbers are in, Close Ch Close Ch with an independent audit confirm- BROADCASTERS/DBS/MMDS COMMSCOPE:...... 25.87...... 0.12 ing that CES attendance reached a DIRECTV:...... 92.79...... (0.04) CONCURRENT:...... 6.20...... (0.2) DISH:...... 67.71...... (0.31) CONVERGYS:...... 25.49...... (0.17) record 176,676 people in Jan. The ENTRAVISION:...... 8.23...... 0.13 CSG SYSTEMS:...... 31.66...... 0.08 show saw a 10% increase in atten- GRAY TELEVISION:...... 15.68...... 0.35 ECHOSTAR:...... 48.68...... 0.73 MEDIA GENERAL:...... 16.52...... 0.38 GOOGLE:...... 520.51...... (1.01) dance over 2014. The media also NEXSTAR:...... 56.00...... (0.15) HARMONIC:...... 6.83...... (0.08) was there in full force, with 6,952 SINCLAIR:...... 27.91...... 0.30 INTEL:...... 30.42...... 0.03 credentialed media professionals in TEGNA:...... 32.07...... 0.44 INTERACTIVE CORP:...... 79.66...... 1.34 JDSU:...... 11.58...... (0.12) attendance. CEA’s 4-day show gen- MSOS LEVEL 3:...... 52.67...... 0.56 erated 750K mentions of #CES2015 CABLEVISION:...... 23.94...... (0.07) MICROSOFT:...... 44.15...... (0.22) CHARTER:...... 171.25...... 2.71 NETFLIX:...... 656.94...... 11.32 and 7.5bln total potential Twitter COMCAST:...... 60.14...... 0.16 NIELSEN:...... 44.77...... 0.04 impressions. COMCAST SPCL:...... 59.94...... 0.21 RENTRAK:...... 69.80...... 0.44 GCI:...... 17.01...... 0.34 SEACHANGE:...... 7.01...... (0.02) People: Creative Artists Agency GRAHAM HOLDING:...... 1075.05...... 5.00 SONY:...... 28.39...... (1.97) veteran David “Doc” O’Connor was LIBERTY BROADBAND:...... 50.97...... 0.38 SPRINT NEXTEL:...... 4.56...... 0.04 LIBERTY GLOBAL:...... 54.07...... (0.1) TIVO:...... 10.14...... (0.04) named pres, CEO of the Madison SHAW COMM:...... 21.79...... (0.09) UNIVERSAL ELEC:...... 49.84...... 0.46 Square Garden Company, effec- SHENTEL:...... 34.23...... 0.88 VONAGE:...... 4.91...... 0.05 SHENTEL:...... 34.23...... 0.88 YAHOO:...... 39.29...... 0.38 tive July 15. He succeeds Tad Smith TIME WARNER CABLE:...... 178.17...... 1.85 as chief exec, and he comes to the TELCOS company as MSG prepares to spin PROGRAMMING AT&T:...... 35.52...... (0.25) 21ST CENTURY FOX:...... 32.55...... 0.25 CENTURYLINK:...... 29.38...... (0.15) off its entertainment and sports hold- AMC NETWORKS:...... 81.85...... 0.71 TDS:...... 29.40...... 0.02 ings from its sports teams, which CBS:...... 55.50...... 0.17 VERIZON:...... 46.61...... (0.16) CROWN:...... 4.52...... 0.04 include the NY Knicks. O’Connor DISCOVERY:...... 33.26...... 0.04 MARKET INDICES spent more than 30 years at CAA, DISNEY:...... 114.14...... 1.09 DOW:...... 17619.51...... 23.16 working his way up from the mail GRUPO TELEVISA:...... 38.82...... 0.46 NASDAQ:...... 4986.87...... 28.40 HSN:...... 70.19...... 0.77 S&P 500:...... 2063.11...... 5.47 room to managing partner. -- Chris- LIONSGATE:...... 37.05...... 0.33 tine McCarthy, most recently evp of MSG:...... 83.49...... 1.05 SCRIPPS INT:...... 65.37...... 0.61 corporate real estate, alliances and STARZ:...... 44.72...... 0.52 treasurer, was named sr evp and TIME WARNER:...... 87.41...... 0.88 VIACOM:...... 64.87...... 0.15 CFO of Disney. She fills the role of WWE:...... 16.50...... 0.06 Jay Rasulo, who announced previ- ously he would leave the company TECHNOLOGY ADDVANTAGE:...... 2.33...... (0.04) on June 30. Kevin Mayer, who has AMDOCS:...... 54.59...... (0.53) served as corporate strategy and AMPHENOL:...... 57.97...... 1.13 APPLE:...... 125.43...... 0.90 business development evp since ’05, ARRIS GROUP:...... 30.60...... (0.22) was tapped as sr evp, chief strategy AVID TECH:...... 13.34...... (0.07) officer. Both appointments are effec- BLNDER TONGUE:...... 0.77...... UNCH BROADCOM:...... 51.49...... 0.57 tive immediately. CISCO:...... 27.46...... (0.08)

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