Recap: The Future of Video

The House Commerce Subcommittee on Communications and Technology, chaired by Rep. Greg Walden (R-OR), held a hearing examining how advances in consumer electronics, broadcasting, cable, satellite, the Internet and other platforms are changing how consumers access video content, how those changes are impacted by existing regulations, and what type of regimes should apply going forward. In light of technological changes in how video content is distributed and consumed, members heard from witnesses representing the entire supply chain of video content, from owners to distributors, each of whom provided insight into the current state of video, current regulations and the best course of action to allow for consumer access and innovation in the future.

Lawmakers disagreed over the role of Congress in the fast-moving online video industry. “The last thing we want to do is shackle everyone's entrepreneurial spirit with one-size-fits-all rules,” said Chairman Walden (R-OR). But Rep. Henry Waxman (D-CA) said current practices by cable and telecom firms have raised concerns that new Internet rivals aren’t going to get a “fair shot” at reaching consumers. “Independent creators need rules that prevent discrimination against carriage of their programming,” Waxman said.

The practice of charging Internet customers by how much data they consume took center stage, pitting Web firms such as Netflix against cable and telecom companies in a debate over whether such billing policies are anticompetitive. Netflix and public interest group Public Knowledge argued to lawmakers that data cap policies have the potential to hinder online video streaming providers, especially if cable and telecom companies only count competing video viewing as part of monthly bills and not their own. Highlighting the swift changes of the industry, where new battles lines are being drawn and competition is shifting, Dish Network chairman Charlie Ergen expressed concern over Verizon Wireless’ spectrum and marketing deal with cable firms. “We certainly would have a concern where two vicious competitors might get together and agree not to compete with each other and preclude others from competing with them," Ergen said to lawmakers. Ergen’s comments were part of a broad reexamining of cable industry rules that haven’t been updated since 1992, when cable television dominated American homes. Lawmakers also discussed whether new laws should be created to protect Internet video providers — questions that are expected to set the stage for lobbying and legislative battles for months ahead.