The FCC and Netflix

From FEE.org (May 11):

In the Golden Age of Television, video consumers don’t have much to complain about. We have cable, satellite, and telco providers; Netflix, Hulu, and Amazon; smart TVs, Chromecasts, and tablets.

There have never been more devices, more content, and more ways to watch. So what problem is the Federal Communications Commission (FCC) trying to solve by meddling in this market?

The purpose of regulation, at least in theory, is to protect consumers from marketplace harms. And while robust competition is usually the best antidote, government can fill the gaps by regulating in a smart, neutral way — e.g. rooting out fraud, preserving clean water, etc.

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So what does that look like in the Golden Age of Television? Too many remotes. The FCC thinks you have too many remotes, and that government intervention is the solution.

Having one remote for Xfinity but a different one for Netflix? What a nightmare! Having to rent a set-top box from your cable company to watch TV? FCC to the rescue.

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It’s often said that technology regulation inevitably fights the last battle. By the time the dust settles from years of litigation, the market has already solved or mooted the problem. In this case, we don’t even have to wait. The market has already crashed the FCC’s party.

Despite that, the Commission is moving ahead with plans to “open up” the set-top box by forcing multichannel video programming distributors (MVPDs) — think cable, satellite, and telephone companies — to allow other companies like Google and Amazon to reconfigure and carry their signals in third-party apps and set-top boxes. Currently, MVPD subscribers can access their content only through a rented set-top box or the MVPD’s app. [read more]

Yea, what the FCC is doing is stupid. Then again it is a gov’t agency filled with bureaucrats that think they are smarter than the free market.