The Future of Cable TV
Maki Takahashi
1. Net Neutrality – Who owns the internet
- What is “Net Neutrality”?
Watch this and this. In 2010, the FCC established the Open Internet Order. (Additional Reading: Read more information on the first chapter of the Order (P2-4))
- Even after the Order comes into effect, issues which seems against the Order happens. Watch this and read this. Is Time Warner Cable’s explanation persuasive?
- The theory of Net Neutrality itself is not solid. In 2013, Verizon has brought the order to the court (Read the background of the case). At the oral argument in September, the judges somewhat seemed dubious about the Order (Read the article).
- Because of the rapid traffic increase from online video such as Netflix etc., internet service providers claim edge providers to compensate the cost of the infrastructure. Read this article (another copy via Proquest is here).∗ What do you think the best way to keep the internet innovative?
2. The Overview of the Cable Industry. Can we live without cable?
- Regulations
- The first cable systems started in the 1950s and increased their subscribers in 1960. The Supreme Court’s decision that cable system were not liable for copyright infringement when to retransmit with standardized license fee enabled them to access to programming without negotiation with broadcasters.
- In 1992, the Cable Television Consumer Protection and Competition Act enacted: broadcasters has two choices: (1) must carry rule: requires cable operators to carry most local broadcast channels free of charge, or (2) retransmit consent: allow broadcasters to sell their content to cable operators.
- Under the 1996 Telecommunications Act, cable modem service is categorized an information service= no common carrier obligation.
- Read FCC’s Excerpt of Memorandum Opinion and Order (26 FCC Rcd. 4238 (2011)) on the merger of Comcast and NBC (Posted on C-Tools/Excerpted from: Stuart Minor Benjamin et al., Telecommunications Law and Policy 470-478 (3rd ed. 2012)). Was it the right decision to clear the merger?
- Started in 2007, Netflix has stayed popular getting more than 35 million subscribers in the US (April 2013). Are these online video services killing cable TV companies? Read this, this and this (another copy)∗. Furthermore, recent cable TV’s new services “TV everywhere” cast a huge threat to online streaming video service companies. Read this. Do you “cut the cord”?
- How do cable companies deal with competitors? Read this and this (another copy)∗. How do we stop the dominant power of cable TV companies? Google started to build its own fiber network (Google Fiber). What does this mean? Read this (another copy)∗.
3. Copyright – Do cable TV companies have any concern on their future business?
Copyright infringement consists when an infringer violates at least one of exclusive right of the owners
- Scope of Exclusive Rights (17 U.S.C. 106 (1)-(6))
Reproduction Right, Adaptation Right, Public Performance Right, Public Display Right, Digital Performance Right in Sound Recordings
- Read Cartoon Network v. CSC Holdings (536 F.3d 121 (2nd Cir. 2008) )
- As for Reproduction Right, in Cartoon Network, the court denied the copyright infringement of Cablevision since the copy was made by the customer’s RS-DCR.
- Regarding Public Performance Right, the Court construe “a transmission of a performance” is itself a performance, therefore no infringement since the devices transmit a video to a single customer at a time.
- Do you agree the control of the Public Performance Right?
- Read this on Fox Broadcasting Co. v. Dish Network.
- Dish leaves the users’ control over contents. How do we balance the profits of copyright owners and the benefit for users? Do you think these courts’ decision contain the public policy perspective? Facing with innovative new technologies which could deliver cable TVcompanies’ contents to consumers in non-traditional way, how should cable TV companies change their business model?
∗ Having trouble following the links to the Wall Street Journal articles in the assignment? Click here for help.
Return to the syllabus