The FCC has put together a proposal to unlock the set-top box, saying this will create choice for consumers, spur innovation, lift independent and minority content and push competition, pulling down prices. The proposal will be voted by the full Commission on 18 February.
The FCC said it wants to create a framework to provide innovators, device manufacturers and app developers with the information they need to develop new technologies. Consumers will then be able to choose how they access the provider video service to which they subscribe, with cable, satellite or telecom companies.
For example, consumers should be able to have the choice of accessing programming through the provider's interface on a pay-TV set-top box or app, or through devices such as a tablet or smart TV using a competitive app or software. The FCC believes TV providers and competitors should be able to differentiate themselves and compete based on the experience they offer users, including the quality of the user interface and additional features like suggested content, integration with home entertainment systems, caller ID and future innovations.
The proposal identifies three core information streams that must pass from providers to the creators of competitive devices or apps, namely service discovery (info about what programming is available to the consumer, such as the channel listing and video-on-demand lineup, and what is on those channels), entitlements (info about what a device is allowed to do with content, such as recording), and content delivery (the video programming itself).
Instead of mandating a government-specific standard for these three information flows, which might impede innovation, the proposal recommends these be made available to the creators of competitive devices and navigation solutions using any published, transparent format that conforms to specifications set by an independent, open standards body.
The proposal includes a number of clauses, such as providing pay-TV operators flexibility in the security systems they use while putting in place some constraints to ensure that they do not use their security choices for anti-competitive purposes. The proposal also respects copyrighted content, with these and licensing agreements to stay intact. The proposal will also seek to ensure that important consumer protections like emergency alerting, privacy, and children’s advertising restrictions will apply.
Data from the FCC shows that 99 percent of pay-TV subscribers are chained to their set-top boxes because cable and satellite operators have locked up the market. Lack of competition has meant few choices and high prices for consumers, translating into an average of USD 231 in rental fees per year for the average US household. Altogether, US consumers spend USD 20 billion a year to lease these devices. The FCC also cited recent data which showed cable set-top box prices rose 185 percent since 1994, compared to the cost of computers, televisions and mobile phones which dropped by 90 percent.
