The FCC has good news this morning for cable and satellite companies, but bad news for their subscribers who hate the set-top boxes they usually must lease in order to watch TV.
The agency’s new chairman, Ajit Pai, has removed from its agenda consideration of a proposal that would have made it possible for independent manufacturers to sell boxes that could replace the ones providers supply. The FCC says that 99% of subscribers pay an average of $231 a year to lease the boxes, even well after they’ve covered the cost of the devices.
Former FCC chairman Tom Wheeler led the charge for a rule that would have required pay TV distributors to offer subscribers free, FCC-approved apps that they could download to the device of their choice to watch programming.
Congress ordered the FCC in several laws to find a way to give subscribers an alternative to the operator-provided boxes that unencrypt transmissions. For example, a 2014 law governing satellite services told regulators to come up with “a not unduly burdensome, uniform, and technology- and platform neutral software-based downloadable security system” to provide competition.
But opponents, including Pai, said that Wheeler’s proposal would interfere with arrangements that networks make with distributors about advertising, security, and channel placement, among other things.
The MPAA sided with cable and satellite companies, and cheered Pai’s decision.
CEO Chris Dodd says that while “we support competition within the set-top box market,” it should not come “at the expense of copyright policy or the livelihoods of millions of American creators.”
Last year Pai said, in his objection to Wheeler’s proposal, that “the Commission should focus on ways to ditch the set-top box and embrace the video marketplace of the future.”
In September, Comcast said the proposed change would “stop the apps revolution dead in its tracks by imposing an overly complicated government licensing regime and heavy-handed regulation in a fast-moving technological space.”
AT&T also said the initiative should be “discarded” because it had “copyright and privacy concerns.”
Consumer advocates disagreed. For example, Consumers Union gave the proposal its seal of approval saying it could “save American families hundreds of dollars a year in device fees. This proposal is an important step in giving consumers new, innovative choices in a market that’s had limited — if any — competition for years.”
Here we go….. Trumps FCC will be VERY anti-consumer. No one should be forced to indefinitely ‘lease’ a shitty piece of equipment from a service provider. If a consumer has a ‘box’ that they’ve leased from the provider the cost is ridiculous. $250 a year for 10 years? That’s $2,500 for a box that generally works horribly and is unreliable! If a consumer can BUY a better unit, and own it – why not! Ohhhh, greed. One more reason to dump cable and satellite. What’s that saying? Oh yeah, fuck you.
You hit the nail on the head in your last sentence. No one is being forced to lease the box. Stop paying for it and discontinue service. Let the marketplace speak as opposed to the government.
There is no marketplace.
The cable companies have local monopolies. When there isn’t another company to get that service from with a difference, it isn’t an option.
Well said.
DSL, Fiber, Wireless are valid options in some cases. If not, get basic internet only from the cable company and use Hulu/Netflix/Prime. Or to further mess with them, get a (not quite) unlimited plan on your phone and use the IPTV providers I listed to cut out Comcast and Time Warner.
You are aware that some areas of the country literally have no options other than Comcast, Time Warner, or ATT. They LITERALLY cannot get service except for these providers.
@Anonymous – But internet is still available. Forget about the box and do as dobknocks suggests.. Hulu/Netflix/Prime. I live in a large city where nearly ALL of those options are available and I still choose to cut the cord.
If you’re still leasing equipment, you’re doing it wrong. Get a Roku/Fire TV/Apple TV and a subscription to Sling TV, Playstation Vue, or DirecTV Now. Apps are the future.
Just wait until Pai gets his hands on net neutrality. Throttle Sling TV, Vue, Netflix, DirectTV Now, HBO Now down to nothing … well, unless the monopoly owns them then go right ahead.
Look at your bills now, come back in a year.
Not only has the GOP become the party for anti-intellectuals, it has also become the party for anti-consumers. Sad.
looks like Pai’s hands have been greased already. Don’t look out for the 99%- just protect the corporation . Time to cut the cord
The trump administration will be all about the distributer, the companies that own the pipe. They will all be about short term profit.In the meantime cord cutting will only accelerate and content producers will pay the price.
This will just accelerate the pace of consumers ditching cable and moving to pirate streams via firesticks etc etc. Good call idiots!!
And….. Cities are beginning to TAX streaming services. Because people are ‘cutting the cord’, cities and counties are losing tax revenue. The city of Pasadena, CA is going to start taxing Netflix users 9% per month. That shit will add up. It’s not right. Most people have multiple streaming services, taxing streaming services will become expensive.
7.5% in NJ
This decision definitely screws consumers. We might as well get used to that–in so many ways–over the next 4 years until we can #DumpTrump.
However, I can also understand some of the concerns of the cable and satellite companies, as well as the content creators.
There is a simple compromise:
Make a rule that the cable/satellite companies continue to provide the box, just like now. But, when the monthly “rental” fees have added up to enough to have the box paid for–at a fair price within a regulated value above actual cost–the monthly fees will no longer be charged.
Then, if the box is returned in good shape when you end your service your money paid for the box will be refunded. If you are voluntarily (or required to) switching to an upgraded (presumably more expensive) box you will only be charged monthly fees to make up the difference in price–as long as you turn the old box back in. If a box malfunctions–without being abused by the customer–a replacement will be provided for free (or continued fees if the balance has not been paid off yet).
Things like having to lease the cable box will only speed the change to new and better ways of getting content. The old greedy anticompetitive cable companies will be left behind and hopefully a highly competitive market will be their replacement. This is actually good for the people in the long run even though it sounds horrible if you feel like you can’t drop cable yet.
Right now, after seeing Verizon back out of a deal to expand FIOS along the eastern seaboard and then backing out of it where AT BEST they only got 40% done but keeping the hundred of billions dollar subsidy should make you very open to see where isps main focus is. Stagnation and profit.
For reference Verizon pulled out in 2012 and people like Christie let them duck out because they were in on the scam as well.
Hello Hollywood.
Everytime Cable screws their customers they make more pirates.
Close the FCC. Laissez faire!