Presentation By Deborah Roy, Attorney, Telecommunications And

Transcript

Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S. Department of Justice IFT Competition Day Mexico City December 3, 2015 *The views in this presentation are not purported to represent those of the U.S. Department of Justice.  Multichannel Video Programming Distributor (“MVPD”) ◦ Cable operators, DBS operators, and telephone companies that offer multiple channels of video programming. ◦ Comcast, Time Warner Cable, DIRECTV, DISH, ATT, Verizon  Online Video Distributor (“OVD”) ◦ An entity that offers video programming by means of Internet delivery. ◦ Netflix  Video Programmer (“Programmer”) ◦ An entity that delivers video programming to an MVPD or OVD. ◦ Viacom and The Walt Disney Company 2  1950’s-60’s: Broadcast Television ◦ ABC  ESPN (1979) CNN (1980) 1990’s: Direct Broadcast Satellite “DBS” ◦ DIRECTV  NBC 1970’s-80’s: Cable Television ◦ HBO (1972)  CBS DISH 1996: Cable Residential Broadband 3   To differentiate its offering, DBS offered a greater number of networks. Cable responded by increasing the number of networks that it offered.  Continued innovative responses.  The MVPD Business Model remained the same. 4  Studios: Content Creators  Programmers   MVPDs Consumer 5 6  Consumers purchase a package of networks ◦ Basic Packages  20 to 250 networks  $20.00 to $70.00/month ◦ Specialty Packages  Sports  Foreign Language  HBO  Internet Access 7  Time-Shifted Viewing ◦ Digital Video Recorder “DVR” (2005-2007) ◦ Video On-Demand “VOD” (2005-2007)  Video over the Internet ◦ YouTube (2005) ◦ Netflix Streaming (2007) 8  Subscription Video on Demand (“SVOD”) ◦ Netflix  Direct-to-Consumer Applications (“DTC”) ◦ CBS All-Access  HBO Now Linear Streaming (“vMVPD”) ◦ DISH Sling ◦ Apple TV Streaming ◦ Cable OTT Service 9  1. Internet Access to deliver video content  Reasonable pricing  Reasonable speeds  Reasonable delivery quality  2. Programming Access  First Run - Rolling 5 Episodes - Full Current Season  Differentiation – Smaller Bundle of Select Networks 10  Internet Access to deliver content ◦ Data Caps or Usage Based Pricing ◦ Prioritization/Degrading Quality  Programming Access ◦ Alternative Distribution Clauses (“ADMS”)  Outright Prohibition  No online distribution for a period of time  Bundling Requirements for OVD 11  Comcast-NBCU ◦ DOJ Consent Decree (2011-2018)  Banned discrimination against OVD Internet traffic.  Prohibits agreements with programmers that limit their ability to provide programming to OVDs.  Requires licensing of NBCU programming to OVDs.  FCC Order has similar provisions.   Comcast-TWC (2015) ◦ Transaction abandoned due to DOJ/FCC concerns. 2015 FCC Open Internet Order ◦ Prohibits blocking or slowing lawful content. ◦ No favoring some traffic over other traffic in exchange for a benefit. 12    Change in consumer viewing habits provides opportunity for OVD entry. OVD entry is new and experimentation with innovative business models is ongoing. Antitrust and Regulation both have a role. 13