Freedom Line Blog

In this week’s Freedom Minute, CFIF’s Renee Giachino discusses the absurdity of the Federal Communications Commission’s cable set-top box proposal.

We at CFIF recently highlighted a dangerous new regulatory proposal from the Obama Administration’s rogue Federal Communications Commission (FCC):  Its set-top box proposal that simultaneously embodies crony capitalism, regulatory overreach and technological sclerosis:

The latest manifestation is a new initiative from Obama’s overactive FCC to impose a one-size-fits-all mandate to make cable television set-top boxes artificially compatible with third-party entertainment devices.  In other words, even as cable companies themselves voluntarily move in the direction of abandoning traditional cable boxes and toward devices owned and maintained by individual customers as they so choose, the FCC wants to impose 1990s-style regulation on the industry.  That would essentially freeze in place the increasingly outdated model of set-top cable boxes even as it becomes increasingly anachronistic on its own.”

Fortunately, there’s good news to report.

Specifically, a bipartisan House Communications and Technology Subcommittee coalition led by Chairman Greg Walden (R – Oregon) and committee member Yvette Clarke (D – New York) sent a letter on Friday asking the nonpartisan federal Government Accountability Office (GAO) to investigate the FCC’s set-top box proposal.  For those unfamiliar with the GAO, it is popularly known as the “Congressional Watchdog,” and is more officially the agency that provides investigatory and auditing services to Congress of various institutions within the federal government.  The joint letter highlights their concerns and requests a formal GAO examination:

We are concerned that the agency’s efforts do not include a meaningful assessment of the effects on independent and diverse networks, whose business models may be greatly threatened and undermined by the FCC’s proposed rules.  The FCC must proceed with a better understanding of how their proposed rules could limit diversity and inclusion on our nations shared media platforms.  We are requesting that the U.S. Government Accountability Office examine the impact of the FCC’s proposal to change the rules regarding cable set top boxes on small, independent, and multicultural media programmers and content providers.”

This constitutes great news.

It shows a bipartisan Congressional concern over the broad array of potential damage that the FCC’s proposed set-top box regulation would inflict.  And Congress isn’t alone.  A diverse group of consumer groups, innovators, employers and businesses join in opposing the proposal, which offers optimism that it will be rightfully stopped before further damage occurs.

In recent weeks we’ve highlighted a destructive new initiative by the Obama Administration’s Federal Communications Commission (FCC) to impose a one-size-fits-all regulation forcing cable TV set-top boxes to become artificially compatible with third-party devices.  Translation:  in the ever-evolving home entertainment market, where cable companies themselves are already moving from traditional cable boxes toward devices owned by individual consumers, the FCC remains mired in a 1990s mindset and wants to regulate accordingly.  The FCC’s inexplicable proposal would freeze in place a technological state that is already outdated.

Check that.  Perhaps the FCC’s behavior isn’t so inexplicable at all.

This morning, The Wall Street Journal editorial board highlights many of the concerns that we and others address, but notes in “Government by Google” that crony capitalism constitutes the underlying foundation of the initiative:

The Federal Communications Commission has proposed rules that would force television providers to create a universal cable-box adapter.  This would hand over shows to companies – TiVo, Google – that would peddle programming as their own…

The new rule amounts to government-sponsored piracy in allowing TiVo and Google to broadcast programs that providers pay to distribute.  Google wouldn’t have to abide by carriage agreements or pay licensing fees, which is one reason content creators are pushing back.  The stealing would no doubt violate copyright.  Some 30 members of the Congressional Black Caucus sent a letter to FCC Chairman Tom Wheeler saying the rule would relegate minority programming to channels rarely visited by viewers.  Google prodded the supposedly independent FCC in 2014 to bust open cable boxes, and Chairman Wheeler followed orders.  The tech giant wants to sell ads against poached content, mowing over cable commercials and crushing advertising competitors.”

The federal government can’t be trusted to control our healthcare industry, our free speech rights, our children’s educational options, our Second Amendment rights and so on.  Why would control over our home entertainment choices or the constantly-advancing telecommunications industry somehow be any different?

The Journal concludes by noting another ominous element:  the Obama Administration’s mad rush to impose the remainder of its to-do list as the sun sets on its tenure:

The FCC rejected a similar proposal in 2010, but now the Democratic majority seems committed to ramming it through before President Obama leaves office.  Mr. Wheeler has already done great harm to his reputation by taking direction from the White House to regulate the Internet.  He’ll do even more damage if he does the cable-box bidding of Google.”

Well said.  Fortunately, a bipartisan Congressional consensus, the creative community, consumer groups and other elements stand ready to stop the FCC’s scheme at the legislative, judicial and regulatory levels.  Its up to the American electorate justifiably disgusted by crony capitalism and stifling federal overregulation to support them.

In an interview with CFIF, Seth Cooper, Senior Fellow at The Free State Foundation, discusses what is wrong with the Federal Communications Commission’s proposed rule to “unlock set top boxes,” how it is going to impact programming and why the government should not be allowed to pick winners and losers.

Last night, like many nights, our family experienced what more and more American families experience when it comes to video entertainment at home:  option overload.  Not that this is a bad thing, of course.  Who wants to return to the days of three major networks dictating the limited number of things we can watch?  Today we enjoy a wealth of options unimaginable even five years ago.

Despite our ever-increasing wealth of options, some continue to ignore reality and push for government-imposed regulations that will only interrupt continued innovation and future choice for consumers.

These parties are urging the Federal Communications Commission (FCC) to revisit an embarrassing chapter in its regulatory past to force a government-approved design for the set-top boxes that allow cable and satellite TV customers to view programming.  The FCC’s previous regulation of these devices cost consumers tens of millions of dollars, and never created the market in alternative set-top boxes envisioned by regulators.  Specifically, some companies who would like to see the FCC engage in another attempt to “create” a market for their set-top products – products consumers stubbornly refuse to demand — are pushing for FCC regulations that would define the technologies cable and satellite companies use in manufacturing their set-top boxes.

The video marketplace has never had more choices in the number of devices and the number of platforms over which consumers can view video products.  There are gadgets and apps available for any number of devices to view any number of offerings, and yet there are those who would lock in the very set-top boxes that may be on their way out if the government would only leave the market to its own devices.

The FCC’s Downloadable Security Technology Advisory Committee (DSTAC, pronounced “DEE-stack”) issued a report in August which made no collective recommendation for any new FCC technology mandate on set-top boxes.  The panel reported what most younger video viewers have known for some time, namely, that there is “wide diversity” in networks, security, and communication technology choices across all pay TV platforms.

Although there is no doubt that interested parties will call for the government to regulate technology for set-top boxes, we urge the Commission to let consumers in the thriving market for video services sort out what devices and what technologies best serve their budgets, tastes, and viewing preferences.  To have the government lock in any present technology means cutting off future innovations.

We also need to respect the interests of content providers who have a right to negotiate the terms under which their content can be viewed.  And here again, apps can serve an important advancement for consumers and content providers, as the services provided by apps have exploded over the past few years as rights become available from content providers.

Simply put, consumers today are viewing video content using Amazon, Apple TV, Netflix, Roku, Cable and Satellite Apps, smartphones, tablets and web browsers.  The video market is thriving without government regulation and intervention.

Let’s hope the FCC can help video consumers by resisting the temptation to regulate in this exciting and rapidly changing world.