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Google Draws Wrath Of AT&T, Pay-TV Industry On FCC Set-Top Proposal

AT&T ( T ) on Wednesday became the latest pay-TV company to lash out at Google parent  Alphabet ( GOOGL ) in the wake of the Federal Communications Commission’s proposal to open up the set-top box market to more suppliers. FCC Chairman Tom Wheeler last week proposed a new rule that would make it easier for consumers to switch from set-top boxes rented from cable TV companies to devices sold by consumer electronics or Internet companies. Pay-TV providers such as  Comcast ( CMCSA ) lease broadband cable modems as well as set-top-boxes to consumers, charging them on a monthly basis. The FCC aims to make programming bundles sold by pay-TV companies accessible from a wider range of devices. After Wheeler announced the initiative, Google followed up by demonstrating a set-top box to Congressional staffers at its Washington D.C. office, according to the “Future of TV Coalition,” a lobbying group formed by cable TV companies, industry groups, programmers and others. AT&T, in a blog post  on Wednesday, took a shot at Google. “When you get beyond all the hype, Google and its affiliated proponents of this technology mandate are simply trying to take our competitive service and repackage it as their own, without ever having to negotiate with us or with the content owners with whom we had to negotiate to create our service offering. It’s akin to the FCC mandating that we get access to Google’s home page so that we can redesign and rebrand it as our own,” said Stacy Fuller, AT&T vice president of federal regulatory issues. A Comcast blog post  last week said that companies concerned about the FCC proposal include: set-top box maker Arris Group ( ARRS ), Cisco Systems ( CSCO ) and Roku, as well as Walt Disney ( DIS ), 21 st Century Fox ( FOXA ), Comcast’s NBCUniversal and Viacom ( VIA ). Scott Cleland, head of consultancy Precursor Group said: “The FCC would be giving Google access to most of the benefits and business value of their pay-TV competitors for free. The real story here is Google wants to add TV advertising as their next-most-coveted market to dominate.”

Netflix Gets Bullish Call, But Stock Stages Downside Reversal

Loading the player… Netflix ( NFLX ) received a bullish upgrade from Piper Jaffray on Tuesday, but with the overall market taking a sharp step down the stock quickly reversed lower. The analyst believes that Netflix could nearly double its current subscriber base of 75 million by 2020. And the 142 million-subscriber estimate could be conservative since the projection models just a 15% international penetration rate, including 1% penetration in China. Piper Jaffray has a 122 price target on Netflix, which represents about a 30% premium to Monday’s closing price. Netflix staged a downside reversal in the stock market today in above-average volume, dropping 2.9%. Shares have been trading in five-month-low territory for the last few sessions, after breaching support at the 200-day line last month. Netflix is now trading 30% below its early December high. Netflix Vs. Amazon Amazon’s ( AMZN ) 54 million U.S. Amazon Prime subscribers gives it more potential viewers than Netflix, with its nearly 45 million U.S. subscribers. But according to a report by Consumer Intelligence Research Partners late last month, Netflix has significantly more actual viewers. Still, Amazon’s streaming service is gaining traction from critical acclaim for its original shows. Amazon sank 4%, falling for a third session in a row in above-average volume after issuing a lackluster quarterly earnings report last week. The stock is still holding above the critical 200-day line. It’s trading about 20% below its late December high. Hulu Getting Another Investor? Netflix and Amazon both face competition from Hulu, a joint venture between Disney ( DIS ), Comcast ( CMCSA ) and 21st Century Fox ( FOXA ). Time Warner ( TWX ) is reportedly in talks to buy a 25% stake in the streaming service. In early January, Time Warner retook its downward-sloping 50-day line in heavy volume. The stock is now trading about 20% below its high reached last July, and was down 1.8% Tuesday. Disney has been drifting lower since November amid fears about ESPN-subscriber losses. Volume has been heavy more for down days than for up days. Disney is about 23% below its July peak. Comcast is trading 15% below its 52-week high while Fox is about 24% below its 52-week high.

Amazon Halts Losing Streak On Globe Wins, HBO Talk

Amazon (AMZN) battled back from midday weakness to end a seven-session losing streak in the stock market today as the e-commerce giant’s streaming video service impressed at Sunday night’s Golden Globe awards. Amazon’s original “Mozart in the Jungle” won best comedy TV series and best actor in a comedy TV series. Netflix (NFLX) received eight nominations but no awards, while Hulu, which is co-owned by Disney (DIS), Fox (FOXA) and Comcast (CMCSA),