The FCC has been considering whether or not to add online program bundling services to its definition of an MVPD along with cable and satellite services, and it want to hear from America on the topic.
Cable and satellite are considered different at the moment largely because they own their means of distribution (cables, or satellites/dishes).
On the other hand, online distributors rely on IPSs owned and operated by third parties to get their programming to the second party – the subscriber.
The types of online services that would fall into the definition are those that offer linear – or prescheduled – programming. Services such as Netflix and YouTube, in which the consumer selects programming on demand, would not be included.
The Notice of Proposed Rulemaking on the topic has made it into the Federal Register, which in turn set up the deadline for comments: 2/17/15; and reply comments: 3/2/15.
RBR-TVBR observation: Broadcasters don’t really have a dog in this race, other than making sure that their right to be fairly compensated for use of local and network broadcast programming is assured. Basically, the rules that apply to cable should apply to online.
As long as that is the case, for broadcasters it will become another income stream.
A big one? We guess not – consumers being added to online rosters will probably be subtractions from cable or satellite rosters, becoming more of a replacement of lost income rather than a source of new income.
Further, many believe linear online service negates the primary online advantage — viewer choice on when to watch a given program, rather than being stuck with a fixed schedule – and therefore don’t expect such services to ever be a big factor in the video delivery mix.
