(The Big Disrupt) The Long Slow Death of Internet Privacy

What do you do online? No, really. What do you do? In addition to the glut of social media we consume, we store and share files, access our banks, fill out forms, buy furniture, and make fun of politicians we don’t like. The reasons for these activities are manifold, but two of the big ones are privacy and anonymity.

Well, the United States just voted to repeal a law that protects that online privacy and anonymity.

If you have not read George Orwell’s book ‘1984’, you may want to pick up a copy so you can brush up on what our future will be like. To sum it up, the government controls everything and is always watching. Even the smallest things are recorded. You can be arrested for ‘thought crime’ which is writing, saying, or alluding to something that the government doesn’t like. Then the whole avalanche of your other transgressions falls upon you as you are shipped off, never to be seen again. But, hey! It’s good for profits right?

Major communication corporations like Comcast, AT&T, and Verizon are strong proponents of this action because it means they will be able to use any data they have about you freely (BBC). Get ready for more targeted advertising, folks.

“Today Congress proved once again that they care more about the wishes of the corporations that fund their campaigns than they do about the safety and security of their constituents,” said Evan Greer, campaign director from rights group Fight for the Future (FFTF).

Think of this change as allowing your mail or parcel carrier to snoop through your letters and packages in order to figure out what junk mail to send you (WIRED). Or on a deeper level, allowing the government to do the same thing in order to accomplish whatever secret ends they have in mind. All it takes is for one nation to set a precedent in order for others to think it’s okay. It’s the whole idea of your child whining and saying “Billy did it, why can’t I?” There isn’t much sense to the argument, but it gets many ideas pushed through a governing body in the interest of ‘fairness’.

The point here is that citizens, who are supposed to be cared for by their government, are being pushed aside in the interest of profit. It’s easy for major corporations with plenty of money to play off of the rampant fear many governments have regarding terrorism by giving the government what it wants and getting the profit boost they so desire in the process. Why fix the system if it isn’t broken? Let’s keep our internet free and neutral, the way it always has been.

(Business) BT: A Real Challenge to Sky’s Dominance of the Pay-TV Market ?

For two decades, Sky have dominated the pay TV industry in the UK from its inception owing mostly to its vice grip over rights to broadcast matches of the premier league, the world’s most watched league, a feat in which Sky have played a large part in making a reality. Football fans for two decades have had to purchase Sky’s sky sports package to watch the fortunes of their favourite team unfurl before their eyes but with the challenge being posed by telecoms giant BT, Sky’s death grip over the UK Pay-Tv market may see a loosening of its grip.  

BT’s challenge to sky’s dominance of the Pay-tv market has been a long time coming which has required a lot of work outside the market as well as in it. BT has profited of the regulatory climate favouring the need of competition in the Pay-TV market, which Sky have basically cornered, warding off new competitors  with ruthless efficiency.

However for all BT’s encouraging challenge to the dominance of Sky regarding the Pay TV market, it still faces a very powerful foe as Sky have 67% of the market share while BT only have  4%[1].This dominance is largely down to the fact that Sky dominate  subscriptions via cable and satellite which represent much of the subscription market altogether thanks to laying much of  the ground in the UK pay tv market in the first place and BT’s rather late entrance into the market[2] .

This is why BT is avoiding the fatal mistake of past challengers to sky’s pay tv dominance as others had tried and failed miserably to loosen Sky grip over cable and satellite subscriptions, the most notable and infamous example of this failure was  ITV digital’s remarkable collapse which had left a mark on ITV that only now is truly recovering from[3].  BT are clearly playing to their strengths by offering its “ new sport channels and ESPN free for the first year to customers who take its broadband products, marking the first serious attempt to combine exclusive TV services and the internet” [4], effectively leveraging its dominance in the broadband market as BT have a “37% retail share of DSL, LLU and fibre broadband market [5].

In addition to expanding its broadband customer base through its foray into Pay TV  sports broadcasting,  BT also look to leverage Sky’s cable and satellite subscription dominance by offering its new sports channels, BT Sport 1 and 2,  in an attempt to reach those  “who do not have BT’s broadband” and compensate for it weakness regarding cable satellite subscriptions[6].

However, as The Mirror’s Graham Hiscott had pointed out, BT’’s foray into the pay Tv market has very little to do with the Pay TV market, While BT would like to make some gains from its investment into Pay TV and take some customers off sky in the process, the move  is clearly motivated by its attempt to  secure its ebbing long term dominance over the broadband market with Sky’s Broadband business growing at a rapid rate [7]. BT even said as much in the ‘our aim and strategy’ section of  their 2012 annual report as the company sought to  exploit the UK ‘s large “broadband connectivity” by increasing broadband speed and “grow and enhance our(BT’s )TV services” [8].  

In sum, BT are sure to make some waves and fare better than past challengers simply by following the time tested wisdom of playing to your strengths, However, in BT’s case, its foray into the Pay TV  market is clearly an effort to maintain their strength and stifle Sky’s.

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[1] BT, 2012, BT Group plc Annual report & form 20-F 2012, http://www.btplc.com/Sharesandperformance/Annualreportandreview/pdf/BTAnnualReport2012_smart.pdf

[2] Ibid

[3] BBC, 2002, ITV Digital goes broke,

 http://news.bbc.co.uk/1/hi/business/1896732.stm

[4] M. Warman, 2013, BT Sport Channel:broadband takes on TV, http://www.telegraph.co.uk/technology/broadband/10046320/BT-Sport-channel-broadband-takes-on-TV.html

[5] Ibid

[7] G. Hiscott, 2013, BT battle with Sky is all about broadband not sports,

http://www.mirror.co.uk/money/city-news/bt-battle-sky-broadband-not-1879554

[8] BT, 2012, BT Group plc Annual report & form 20-F 2012, http://www.btplc.com/Sharesandperformance/Annualreportandreview/pdf/BTAnnualReport2012_smart.pdf