[opendtv] FCC rules concerning what consitutes an MVPD
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 5 Jun 2013 00:55:12 +0000
This is interesting. Not sure where this has gone during the past year, but it
could affect what TV content owners are allowed to withhold from OTT providers.
There has been other rulemaking in the past year, which I think is a lot more
obtuse. Such as, cable was required to make FOTA channels available in standard
analog over their systems. But if they go to digital-only, they are allowed to
encrypt everything. But only as long as they provide some IP scheme, from their
STB, to make the content available to IP devices. That was the compromise.
On this second one, not covered in the attached article, wouldn't a more direct
ruling have been to simply permit OTT sites, including the local broadcasters
themselves, to offer FOTA programming FOTI? As long as congloms do this on
their own, I suppose it's not an issue. It just seems like these rules could
easily enshrine the dual revenue streams in law.
As always, consumers need to vote with their wallets.
Bert
http://www.webpronews.com/fcc-rule-change-would-pave-the-way-for-internet-tv-2012-05
------------------------------------
FCC Rule Change Would Pave The Way For Internet TV
Rule change would allow companies like Hulu the same rights as cable, satellite
providers.
By Shaylin Clark * May 23, 2012
A little while ago we brought you news that FCC Chairman Julius Genachowski had
voiced support for usage-based pricing of broadband internet service. Speaking
at the annual conference of the National Cable & Telecommunications
Association, Genachowski said that such a pricing model would promote fairness
to the customer and innovation among ISPs. Nevertheless, it's concerning for
"cord cutters" who have scaled back or eliminated cable service in favor of
streaming internet.
Genachowski's comments notwithstanding, however, it seems the FCC is also
mulling changes that would be decidedly beneficial to cord cutters. The agency
is considering changing the definition of "multichannel video programming
distributor" (MVPD) to include internet based organizations like YouTube, Hulu,
or Netflix.
Historically, MVPDs have been clearly defined as content providers like
satellite and cable companies. Under existing FCC rules, networks are required
to sell their content to any MVPD that wants it. By changing the definition of
MVPD to include online-only services, the FCC would make it so that Hulu, for
example, could purchase content from CBS and CBS would be obligated to sell
(CBS is one of the few holdouts that does not allow its content on Hulu).
The question of what constitutes an MVPD arose when Sky Angel, an online-based
Christian media company approached the Discovery Channel about offering
Discovery Channel programming to Sky Angel customers. When Discovery refused to
sell, Sky Angel appealed to the FCC. Though the FCC originally ruled that Sky
Angel was not a MVPD, and thus Discovery was not obligated to sell Sky Angel
their content, Sky Angel's continued appeals have prompted the FCC to consider
changing the rules about what makes a MVPD.
Speaking at the NTCA conference, FCC General Counsel Austin Schlick
acknowledged that the move would have "very, very broad implications." Not only
is Schlick right, he may have left out a "very." So far, internet-based content
services like Netflix, Hulu, and the like have been at the mercy of content
owners. To return to a previous example, that's why you can't watch CBS
programming on Hulu, but you can watch CBS on even the smallest and least
significant cable provider in the country. According to the FCC's current
rules, Jim's Cable TV and Used Car Repair in Podunk, USA counts as a MVPD, and
CBS is obliged to sell their content. But since Hulu is not an MVPD, CBS is
under no such obligations. If the FCC changes its rules about what makes an
MVPD, all that could change.
Such a rule change would also pave the way for niche-based content providers
like Sky Angel to offer a selection of cable and network programming tailored
to the needs and desires of its audience. What's more, it would also pave the
way for exactly the kind of content offerings that Apple reportedly wants for
the long-rumored iTV. If the FCC does change the rules for what makes a MVPD,
it could be a major game-changer for the whole TV industry.
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