CableCARD Standard, Program Access Rules Contentious in Video Competition Report Replies
Many players in the media landscape that want video regulations that foster increased competition remained at odds over CableCARD and program access rules, in replies on the 16th FCC video competition report. Verizon again stated its case against technology mandates like CableCARD, while TiVo continued its support for a successor to that regime. DirecTV and NCTA battled over whether there’s a need to maintain program access rules. Replies were posted Tuesday in docket 14-16, and initial comments had broken down along similar fault lines (CD March 25 p12).
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Verizon and NCTA opposed TiVo’s push for a new CableCARD regime (CD Feb 10 p5). The variety of devices available to consumers to use to watch video programming “is rapidly expanding because of consumer demand, competition and innovation -- not because of regulatory requirements like the integration ban and CableCard regime,” Verizon said (http://bit.ly/1praiby). These choices are largely being driven by developments in software rather than hardware, “enabling consumers to access and view programming across a wide range of general purpose devices,” it said.
The dynamic and competitive market is addressing and solving problems that CableCARD was designed to address, “with diverse and innovative approaches,” NCTA said (http://bit.ly/1prbewD). “A government-mandated uniform technology approach would only interfere with and stifle the most consumer-friendly results.” NCTA opposed TiVo and the AllVid Tech Company Alliance’s support for a successor to CableCARD rules. AllVid and TiVo denigrate the immensely popular and rapidly changing world of apps markets and IP devices as an irrelevant whim, NCTA said. But millions of device sales and multichannel viewing apps on those devices “demonstrate a market with real choices far beyond a TiVo Roamio,” it said. NCTA again said there’s no need for a rulemaking to define a nationally uniform IP successor technology to CableCARD.
TiVo urged the commission to reinstate the CableCARD standard until it can establish a successor solution to it that’s more in tune with the IP video market. The developments in viewing choices for consumers don’t “measure up to the type of retail competition mandated by Section 629” of the Communications Act, it said, referring to the rule governing consumer availability of equipment used to access services provided by multichannel video programming distributors. True retail competition requires consumers to buy a retail device “knowing that they would be able to access all content to which they have subscribed, and that they would continue to be able to do so if they moved to a different part of the country,” TiVo said. In addition to viewing video programming on different screens, retail competition involves innovative user interfaces, search functions and other ways that give consumers greater choice and an enhanced user experience, which is “a true alternative to what is provided by the operator,” it said.
DirecTV and Verizon said program access rules remain critical. DirecTV said NCTA suggests that the underpinnings of the rules no longer exist (http://bit.ly/1nH0J3F). Cable maintains its dominant position, DirecTV said. Comcast’s pending acquisition of Time Warner Cable “promises to increase concentration” in many designated market areas, it said. Verizon urged the FCC to be vigilant “to ensure that competitive providers continue to have access to this programming on reasonable terms,” it said. Cable incumbents continue to control some of the most important programming, including such must-have programming as regional sports, Verizon said. As the video market grows more competitive, incumbent cable companies have even greater incentives “to handicap their competitors by denying access to such programming or by offering access only on unreasonable terms,” it said.
The time for protecting DBS companies or any other competitors in the vibrantly competitive video market is long past, NCTA said. DirecTV and Dish Network together have 34 percent of U.S. MVPD customers, while incumbent cable operators’ share has fallen to 53 percent, it said. Phone companies have invested in new fiber technologies and facilities to retain and attract customers, said the association. “Consumers are the beneficiaries when providers are constantly striving to stay ahead of -- or trying to catch up with -- their competitors."
NAB fired back at MVPDs that called for an end to the retransmission consent model. Retrans fees aren’t high compared to what MVPDs are paying for other programming services, “including programming that is considerably less popular among viewers and therefore generating less economic value for MVPDs,” NAB said (http://bit.ly/1lG5vBv). Research has found a few cents of every cable revenue dollar go to retrans, versus much more for cable channels, said NAB, citing Multichannel News and SNL Kagan. The FCC must disregard comments saying it should analyze possible avenues for repealing or mitigating the requirement that TV stations be placed on the basic tier, NAB said. The association also rejected Verizon’s argument that the FCC should find broadcasters in violation of their duty to negotiate retrans in good faith “if they limit access to online video content,” it said. The availability of video content on websites operated by video content providers is not and should not be regulated by the FCC or any other entity, NAB said.