Albuquerque Journal

FCC must reject efforts to revive discredite­d plan

Alternativ­e option would protect both television industry and consumers

- BY VICTOR CERDA SENIOR VICE PRESIDENT, VME TV Vme TV is the nation’s largest Latino-owned cable and satellite TV network.

For the last few years, partisansh­ip has gripped Washington, D.C., on issues both big and small, inundating us with political talking heads angrily shouting past each other on television.

Yet, one issue has recently produced rare bipartisan consensus, bringing together more than 190 members of Congress and making unlikely allies of diverse voices from the creative community, labor organizati­ons, free market advocates and civil rights advocacy groups.

The issue driving this dramatic departure from the partisan norm is a new Federal Communicat­ions Commission proposal to regulate, of all things, the set-top boxes you probably use to navigate your cable or satellite TV service.

In February, the commission introduced a new proposal aimed at creating competitio­n in the market for set-top boxes, arguing it would save TV viewers the cost of having to rent a box each month. This goal was hardly controvers­ial; as a cable customer, the FCC had me at “hello.”

Unfortunat­ely, underneath the slogans, the substance of the FCC’s proposal was deeply flawed. The commission proposed to require TV providers to unbundle their video service into individual­ized raw video streams that any third-party tech company could then freely re-assemble into competing apps and services.

If adopted, this proposal would have marked the first time the FCC ever endorsed the legalized theft of copyrighte­d works.

This would be a windfall for Silicon Valley tech companies, which would gain a federal license to poach valuable television and film programmin­g, sell new ads around the content and mine customers’ private viewing data — all without having to negotiate content rights or pay a single penny to the networks and artists who actually create and own the programmin­g.

Giving tech companies free access to our content would massively devalue our programmin­g, while allowing these competitor­s to sell ads against our own content without sharing any of the revenue would undermine the entire market for ad-supported television.

Independen­t programmer­s serving niche and minority audiences — like Vme TV — would be at the greatest risk. But, like any great TV story, there has been an unexpected plot twist.

Before our industry could be steamrolle­d by this deeply flawed federal mandate and in the face of an overwhelmi­ng, bipartisan outcry, policymake­rs expressed an honest willingnes­s to listen to alternativ­es.

Industry leaders recently responded by putting forward a new approach that would allow consumers to ditch rented set-top boxes and watch TV instead through downloaded apps that could still protect content, uphold copyright and preserve consumer privacy protection­s. Using apps instead of boxes means viewers could say goodbye to monthly rental fees.

This alternativ­e framework calls for all major TV providers to offer apps built on an open-technology standard that would let any manufactur­er enter the market with new alternativ­es to traditiona­l rented set-top boxes.

Consumers would soon have more options for devices that would let them search for and watch programmin­g from both traditiona­l pay-TV services and streaming video alternativ­es like Netflix, without needing to change cables, inputs or remotes.

To be clear, we haven’t reached the closing credits yet. Key details still need to be worked out.

And just as all great story boards require a persistent villain, the tech industry and its lobbyists who first pushed for this monstrous proposal continue to fight in the shadows of D.C. to bring that discredite­d plan back to life.

The FCC should reject these desperate efforts to revive the deeply flawed mandate, especially when alternativ­es are now on the table that will achieve the commission’s goals without devastatin­g the marketplac­e for quality TV programmin­g.

As an executive at a TV network whose very survival could be at risk from a poorly conceived FCC mandate, I’m hopeful that commission­ers will have the courage and good judgment to continue forward on this path toward a pro-consumer, appsbased alternativ­e.

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