The FCC has simplified its proposal to give pay-TV subscribers access to their services on any box, following criticism from the industry. The proposed final rules will allow consumers to access their pay-TV content via free apps on a variety of devices. The FCC has decided to rely more on existing TV apps, leaving the technical control in pay-TV providers' hands, rather than its original proposal for TV providers to make programming streams available to third parties to develop their own boxes.
According to the FCC, 99 percent of pay-TV subscribers in the US lease set-top boxes from their cable, satellite or telecommunications provider. They pay an average of USD 231 a year for the boxes needed to access their TV subscriptions. Under the FCC's proposal they would no longer have to pay these fees on top of their TV subscriptions and could access their services from the device of their choice.
The Commission will vote on the new rules at its next open meeting on 29 September. If adopted, the largest pay-TV providers, who serve 95 percent of subscribers, will have two years to comply with the rules.
Pay-TV providers would still be able to offer their own set-top boxes, but would need to give customers the choice of downloading a free app in order to watch their subscription on another device. This may include tablets, smartphones, gaming systems, streaming devices or smart TVs. Pay-TV providers would be required to provide apps for all widely deployed platforms, such as Roku, Apple iOS, Windows and Android.
The app must provide the same ability to search and access content in the subscription, both linear and on-demand, as other devices, including offering access in the app to premium subscription channels and their VoD services. In addition consumers must have access to full search integration with other TV and video services appearing on the device. Furthermore, pay-TV providers will not be allowed to pay third-party device makers to promote their apps over others.
The pay-TV providers would continue to be responsible for content rights and security, with full control over the software behind their apps. Existing distribution deals would not be affected, the FCC said. It plans to develop a standard license governing the process for placing an app on a device or platform, in order to give device manufacturers certainty over their liability.
