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11/21/2024 11:21:12 pm

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FCC to Regulate Internet Video Like Satellite TV, Cable

Tom Wheeler

(Photo : Reuters) Federal Communications Commission Chairman Tom Wheeler

Tom Wheeler, chairman of the U.S. Federal Communications Commission, has proposed rule changes covering "over-the-top" Internet video services such as those provided by Verizon, Sony and Dish Network that will treat them similarly to satellite TV and cable providers.

"Consumers have long complained about how their cable service forces them to buy channels they never watch," Wheeler wrote in a blog post Tuesday. "The move of video onto the Internet can do something about that frustration -- but first Internet video services need access to the programs."

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On-demand streaming services such as Hulu and Netflix are exempted from the proposal that will only affect multichannel video programming distributors providing pre-scheduled programs.

"Taking advantage of this rule, new [over the top providers] 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," Wheeler wrote.

"And perhaps consumers will not be forced to pay for channels they never watch."

The idea could also offer a more solid legal foundation for Aereo, a shuttered streaming service which attempted to modify its licensing model to be seen as a provider of cable television. Chet Kanokia, the founder and chief executive officer of Aereo, issued a statement Tuesday commending the proposal from Wheeler as "an important first step in the right direction for consumers."

He said the means by which the public watches television is quickly changing, and laws and regulations have been left behind. Kanojia added the FCC is taking a "real and meaningful step" forward for competitors in the video market by clarifying the rules.

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