The Studios Look For An Island In The Set-Top Storm

The Motion Picture Association of America really, really doesn’t want the FCC to tear up the set-top box. So much so that its filing with the commission last week regarding the final report of the Downloadable Security Technical Advisory Committee (DSTAC) contained a thinly veiled threat of litigation should the FCC mandate disaggregation of pay-TV services into parts that can be reassembled at will, and on constitutional grounds no less.

“Mandating such a regime…could violate content owners’: 1) contracts with distributors regarding how their content may be presented, monetized, and accessed; 2)

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exclusive rights under section 106 of the Copyright Act to determine how their content is copied, distributed, and publicly performed; 3) First Amendment right against compelled speech; and 4) Fifth Amendment right against taking of property without due compensation,” the MPAA warned. “If third-parties wish to offer a subset of content, services, features, and functions rather than all the choices distributors offer customers in the way that they offer them, the appropriate course is through individualized negotiation, not regulatory fiat.”

What has the Hollywood trade group so exercised is a proposal by one faction within DSTAC, included in the final report, to require cable and satellite providers to unbundle their video feeds from other elements of their services, including the user interface, interactive features and billing, so those feeds can be incorporated into the UI of a third-party device and integrated with other video services. Only then, proponents of unbundling argue, can consumer electronics makers create devices that can compete fully with or replace set-top boxes provided by pay-TV operators. Read More »

DSTAC-ing The Pay-TV Deck

While over-the-top video services may soon need to ponder whether to become MVPD’s in the eye of the FCC, traditional MVPDs are wondering how far the FCC might go to force them to behave more like OTT services.

The FCC’s Media Bureau convened the penultimate meeting of the Downloadable Security Technical Advisory Committee (DSTAC) this week, ahead of a September Cable_Guy4th deadline to come up with technical recommendations for a successor to the CableCARD. The report, and the deadline, were mandated by Congress as part of the STELA Reauthorization Act it passed in December in an effort to spur the market for third-party retail devices that can be used to control pay-TV services without relying on service providers’ proprietary set-top boxes.

Bringing more competition to the set-top has been an official goal of Congress and the FCC since 1996, when Congress directed the agency to come up with a solution as part of the Telecommunications Act — a provision knows as Section 629. Since then, however, the best the agency and the industry have come up with is the CableCARD, a hardware dongle for cable conditional access that does not support many interactive features, such as video-on-demand and which is not compatible with direct-broadcast satellite services or with IPTV systems like AT&T’s U-Verse. Read More »