https://www.fcc.gov/document/mb-seeks-comment-17th-video-competition-report
I scanned through this. The FCC is asking for comments about much of what we've
"discussed" on OpenDTV, related to OTT sites (or what they call OVD) and how
they are used.
Just a small highlight. Note how the FCC isn't nearly as rigid in their
assumptions "as some people are." For example, on the issue of "complementing"
vs. "substituting," on the issue of an OTA broadcaster's role.
Page 12:
"For many years, broadcast television networks used their local broadcast
television-affiliated stations as their primary distributor of programming.
Broadcast network programming, however, has become increasingly available from
OVDs. In addition, broadcast networks are increasingly providing OVD services
themselves to strengthen their competitive position in the market for delivery
of video programming. For example, free VOD programming is available from the
ABC, CBS, FOX, and NBC broadcast networks, and subscription VOD and live
programming is available from the CBS broadcast network. Are other broadcast
networks planning to offer subscription VOD and live programming, either as
standalone OVD services or through joint ventures like Hulu and Hulu Plus? How
successful are their subscription offerings, relative to their free offerings?
When networks offer their programming as OVDs, how does this impact the
financial well-being of affiliated stations that previously offered such
programming to the public on an exclusive basis? Have local broadcast stations
adapted their business models and competitive strategies in ways that indicate
that they view MVPDs and OVDs as competitors?
How are stations using their own OVD services to strengthen their competitive
positions in the market?
"We seek comment generally on the effect of the broadcast networks' increasing
provision of OVD service. In particular, what effect is this having on the
relationship between broadcast networks and their affiliates? We note that CBS
All Access was initially available in markets where CBS owned broadcast
stations but has now expanded to markets with affiliated broadcast stations.
What competitive strategies are broadcast stations using to remain important to
broadcast networks for program distribution?
"Some households rely exclusively on over-the-air broadcast television stations
and others receive over-the-air broadcast television on some television sets
while also using MVPD and OVD services. These households may view various
combinations of over-the-air, MVPD, and OVD services as supplements,
complements, or substitutes. How do these households that rely solely on
over-the-air broadcast services view MVPD and OVD services? To what extent do
the prices associated with MVPD services and Internet services enter into the
decision of these households? Are broadcast stations encouraging consumers to
switch away from MVPD and OVD services and rely more on over-the-air services?
As indicated above, we are interested in the extent of substitution between
over-the-air services and MVPDs and between over-the-air services and OVDs. We
seek data, information, and comment on the extent of substitution between
over-the-air services and MVPDs and between over-the-air services and OVDs. Do
broadcast stations compare their video services to MVPD and OVD services? To
what extent do broadcast stations market themselves as substitutes for MVPD and
OVD services? What specific marketing activities have broadcast stations used,
if any, to encourage households to switch away from MVPDs and OVDs and rely
more on over-the-air services?"
Here's one crucial question from the FCC. In the Internet era:
"What competitive strategies are broadcast stations using to remain important
to broadcast networks for program distribution?"
Clearly, the FCC is not assuming that retrans consent will answer that question.
The bit about whether OTA broadcasters are trying to get people away from MVPD
and OTT use. As of right now, there's no incentive for broadcast stations to
lure people away from MVPDs, quite the contrary.
Bert
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