[opendtv] FCC considers a change of definition that could shake up broadcast business
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 11 Jun 2013 09:25:53 -0400
http://broadcastengineering.com/business-announcements/fcc-considers-change-definition-could-shake-broadcast-business?NL=BE-04&Issue=BE-04_20130610_BE-04_762&YM_RID=craig@xxxxxxxxx&YM_MID=1400507&sfvc4enews=42
FCC considers a change of definition that could shake up broadcast business
The commission is considering changing the definition of "multichannel video
programming distributor” (MVPD) to include Internet-based program providers.
Jun. 10, 2013
Michael Grotticelli
Today, Internet-based content services are at the mercy of content owners as to
whether they can air certain programming.
If the FCC changes its existing definition, MVPDs could include Internet-only
program providers such as Netflix, YouTube, Amazon, Apple and Hulu. The
networks would then have to sell to Internet providers that they can now avoid.
Change is happening so fast in the television business that it’s getting harder
and harder to keep up. But as television continues its move toward the
Internet, a newly appointedFCC will consider a change that could have huge
implications for the entire industry.
The commission is considering changing the definition of “multichannel video
programming distributor” (MVPD) to include Internet-based program providers
such as Netflix, YouTube, Amazon, Apple and Hulu. If that happens, watch out.
The current rules, made in the pre-Internet era, say that the term MVPD applies
only to cable and satellite providers. Because of this, television networks
don’t have to sell their content to program providers who are not designated an
MVPD.
If the FCC changes that definition, MVPDs could then include Internet-only
program providers. This means networks would have to sell to Internet providers
that they can now avoid. If this happens, it would be a boon for Internet
companies and cord-cutters that want to get rid of cable’s big program bundles
and high monthly fees.
FCC General Counsel Austin Schlick, speaking at an NTCA conference,
acknowledged that the move would have “very, very broad implications.”
Today, Internet-based content services are at the mercy of content owners as to
whether they can air certain programming. For example, one can’t watch CBS
programming on Hulu. A simple redefinition of MVPD could change that quickly.
This new rule change would also affect major pay television issues like
bundling of programs and high subscriber fees. Niche-based Internet content
providers could target their content to better service audiences than pay TV
does today.
Such a move by the FCC would also pave the way for exactly the kind of content
offerings that Apple reportedly wants for the long-rumored iTV initiative.
This won’t happen until a full FCC is appointed and confirmed. But the issue is
on the table and if the change occurs, it will shake-up the business model for
the entire television industry.
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