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FCC Planning Rules to Open Cable Market
quanticle writes "According to the New York Times, the FCC is planning to unveil new regulations for the cable market that will lower barriers to entry for independent programmers. The rules would be aimed at stopping the growth of existing cable giants like Comcast and Time Warner, while seeking to encourage more small companies to get into the field. Also, earlier this month, the FCC struck down the practice of having exclusive contracts between cable providers and apartment owners. All in all, this looks like a welcome infusion of competition into an otherwise stagnant market. The impact that this will have on the network neutrality debate is unclear."
..exclusive contracts between cable providers and municipalities?
If they really want to make it a level playing field, prohibit the ownership of both physical infrastructure and programming by the same entity. You can have one or the other, but not both. Once you own both, or a significant proportion of both (say, more than 3-5%), there is an inherent conflict of interest when the infrastructure side sets carrying rates for the programming side. If you own both, you can set the rates high enough that the programming side always loses money, and the infrastructure side makes enough money to keep the system afloat. That way, you can sell your programming costs below wholesale, knowing that at the end of the year the combined operation will make money. Outside players offering programming and paying the same infrastructure rate cannot compete, and you're back to a monopoly status.
Is it just my observation, or are there way too many stupid people in the world?
Who are you and what did you do with the real FCC?
"I am the king of the Romans, and am superior to rules of grammar!"
-Sigismund, Holy Roman Emperor (1368-1437)
I don't know. Opening up the cable markets would certainly be a good thing. It would be nice to be able to pay for the services I use instead of having to pay for 150 channels when I only watch 15.
However, part of me is a little wary about this. I would rather it be the FTC that steps in and implements these kinds of change. The FCC has said in the past that they wish to bring their brand of censorship and anti-obscenity rules to the world of cable service, an area which is legally outside of their jurisdiction. However, if they can claim successfully that cable falls under their rule enough to implement business changes, what stops them from carrying out these other tasks?
Would it be worth it to have the monopolies of cable television broken up only to replace it with the mediocrity that is broadcast television?