Is there Competition in the Video Delivery Market?

The Federal Communications Commission seeks data, information, and comment on the state of competition in the delivery of video programming for the Commission's Fourteenth Report on Competition in the Market for the Delivery of Video Programming.

Using the information collected pursuant to this Further Notice, we seek to enhance our analysis of competitive conditions, better understand the implications for the American consumer, and provide a solid foundation for Commission policy making with respect to the delivery of video programming to consumers. Under a new analytic framework, the FCC first will categorize entities that deliver video programming into one of three groups: multichannel video programming distributors (MVPDs), broadcast television stations, and online video distributors (OVDs).

Second, the FCC will examine industry structure, conduct, and performance, considering factors such as:

• Structure: The number and size of firms in each group, horizontal and vertical integration, merger and acquisition activity, and conditions affecting entry and the ability to compete.
• Conduct: The business models and competitive strategies used by firms that directly compete as video programming distributors, including product differentiation, advertising and marketing, and pricing.
• Performance: The quantity and picture quality of programming, prices charged for delivered video programming, financial indicators (e.g., revenue and profit margins), and investment and innovation activities.

Third, the FCC will look upstream and downstream to examine the influence of industry inputs and consumer behavior on the delivery of video programming. The FCC expects to discuss three key upstream industry inputs: video content creators, video content aggregators, and consumer premises equipment.
Comments in the proceeding are due June 8, 2011. Reply comments are due July 8, 2011.