http://www.multichannel.com/news/fcc/amazon-warns-fcc-about-ott-redefinition/393743
Amazon Warns FCC About OTT Redefinition
FCC chairman Tom Wheeler proposed reclassifying some linear over-the-top (OTT)
video providers as MVPDs to help boost them as a competitor for traditional
cable, but OTT provider Amazon is advising the agency not to.
In meetings with Republican FCC Commissioners and their staffs earlier this
month, Amazon execs and their counsel argued that the OTT marketplace is
already "vibrant and growing" without the FCC stepping in.
Wheeler's proposal is to require that linear OVDs be given access to
cable-affiliated programming and local TV station broadcasts regardless of
whether or not they have facilities based distribution platforms. Beyond that,
it tees up lots of questions about how to apply that definition and the
ramifications of doing so.
The idea is to help promote online video as a competitor to traditional cable
and satellite providers, which the FCC says should produce more choices for
programming, by making the MVPD definition technology neutral. "Video is no
longer tied to a certain transmission technology, so our interpretation of MVPD
should not be tied to transmission facilities," Wheeler said at the time of the
December 2014 vote to launch the rulemaking.
Amazon SVP David Zapolsky and director of public policy Brian Huseman said the
current investment in creative, quality, programming was occurring "naturally
in the marketplace."
"In view of this dynamic, healthy, and rapidly changing technological and
competitive environment, we questioned the need for government intervention in
this market segment," they told the commissioners, according to FCC documents,
concerned that "the rules proposed by the Commission would inhibit innovation
by imposing on OTT services regulatory burdens created long ago that are
neither relevant to nor tailored to address this new vibrant industry, without
any of the competitive benefits (including the attendant statutory copyright
licensing) that were envisioned when the rules were originally drafted decades
ago."
The license means cable and satellite operators don't have to separately
negotiate with content providers for the underlying programming when they are
negotiating retrans rights to the TV station signal.
The execs expressed particular concern bout Twitch.tv, its live streaming video
service. It said if it were to fall under the proposed rule, that could be
"highly damaging" because it would "significantly distort a new and alternative
video segment that is growing and flourishing without any government
intervention."
Wheeler says he plans to vote on the proposal before year's end.
