FCC Considering Extending Cable Rules To Internet Players Like Aereo (Though Probably Too Late For Aereo)

Broadband

from the looks-like-a-duck,-perhaps-we-should-make-it-a-duck dept

Aereo’s most recent effort to stay alive was to take the Supreme Court’s “looks like a duck” test and to say, since the Supreme Court said it looked like cable TV (for the sake of declaring its service a “public performance”), “fine, then let us quack like a duck and pay compulsory licenses under Section 111.” Only problem? Other courts have said internet services don’t qualify as cable systems for Section 111, leaving them in a Schrodinger’s CATV situation. Aereo is a cable TV system as far as the Supreme Court is concerned when it’s talking about public performance, but it’s not a cable TV system when it wants to go to the FCC and copyright office to pay a compulsory license, which is available to cable and satellite providers.

It appears that FCC Commissioner Tom Wheeler may be looking to change that, beginning a process to give internet companies access to those compulsory licenses, letting “over the top” (OTT) video providers get access to network television at compulsory rates:

In 1992 Congress realized that the then-nascent satellite industry would have a hard time competing because much cable programming was owned by cable companies who frequently kept it from competitors. Congress mandated access to cable channels for satellite services, and competition flourished. Today I am proposing to extend the same concept to the providers of linear, Internet-based services; to encourage new video alternatives by opening up access to content previously locked on cable channels. What could these over-the-top video providers (OTTs) supply to consumers? Many different kinds of multichannel video packages designed for different tastes and preferences. A better ability for a consumer to order the channels he or she wants to watch.

Wheeler is clearly thinking of Aereo here, even noting that the company recently came to the FCC to plead for this sort of thing:

In Title VI of the Communications Act, Congress created rules to ensure that cable companies that own video content can?t raise artificial barriers to competition by refusing to let their video competitors have access to the programming they own. That worked for satellite providers, and also helped telephone companies entering the video business. I believe it makes just as much sense ? and will have just as positive a consumer benefit ? for an OTT.

Such benefits follow from innovation. Taking advantage of this rule, new OTTs may offer smaller or specialized packages of video programming, so consumers will be able to mix-and-match to suit their tastes. Aereo recently visited the Commission to make exactly this point ? that updating the definition of an MVPD will provide consumers with new choices. And perhaps consumers will not be forced to pay for channels they never watch.

Of course, this move may be too little, too late for Aereo. The company has been losing in court, and any final FCC rules may take a bit of time. Still, at the very least it can mean that the next Aereo or ivi may actually be able to survive, rather than have to deal with a veto from the TV networks.

Filed Under: cable tv, copyright, fcc, internet, internet tv, ott, over the top video, section 111
Companies: aereo