Watch this: the AllVid Proceeding

[Commentary] Back in March and April of this year, I wrote about the Federal Communications Commission’s efforts to open up the set-top box market. Now it’s time to talk about this proceeding (10-91) again, because the world of devices gives the pay-TV/programming industry another opportunity to squeeze Netflix and the rest of us. This proceeding is a big deal. If the provider of subscription video can control every possible angle of use of that video and simultaneously is one of very few choices for high-speed Internet access for a particular household, unending market-shaping mischief is possible.

Think of the angles.

1. Programming guide information: If no one else can get access to machine-readable, standardized data ABOUT programs, no one else can provide an interface to a wide variety of Internet and pay-TV programming. Only the pay-TV company will get to run this business.
2. Context for programming. If no one else can accompany the subscription programming with other applications, then only the pay-TV source will be able to run these businesses.
3. Choices of devices. If no one else can sell consumers devices that allow access to both online and pay-TV programming, then only the pay-TV source will be able to sell these integrated devices. We'll all be forced into monthly rentals, high-priced unending relationships with devices that we don't own. And if the pay-TV provider decides to offer an integrated device to us, they'll have control over what Internet access is allowed.
4. Use your market power to ensure that unauthorized video isn't allowed into approved consumer devices, and don't let anyone create new devices that will play well with subscription services.
5. A set of legal arguments - the carriers claim that the FCC proposal creates a risk of litigation over their First Amendment (forced speech!) and Fifth Amendment (taking our IP rights without just compensation!) rights, plus enormous copyright problems (those program guides are copyrightable!).