In an attempt to encourage online video, the Federal Communications Commission is planning to adopt regulations that will make Internet-delivered video services to compete easier with the conventional pay-TV providers.
The commission voted to start the rule-making procedure that will expand the 'multichannel video programming distributor' (MVPDs) category so that OTT or over-the-top providers will be included. The content of the OTT is distributed via Net and not through the satellite pay-TV and conventional cable.
"We expect Internet-based linear programming services to develop as a competitor to cable and satellite," as the Chairman of FCC, Tom Wheeler, declared. "Consumers should have more opportunities to buy the channels they want instead of having to pay for channels they don't want."
The new rules will permit online video providers to give linear, live broadcast TV content which at present is transmitted by antennas or through pay-TV systems.
John Bergmayer, senior staff attorney of Public Knowledge, said that the pro-competition and pro-consumer step would make "opportunities for new and existing competitors to offer new kinds of video-subscription services to viewers."
If the rules are prepared already, video streaming service, like Aereo - the pioneering provider will be available to consumers. This is a much-awaited development that many viewers want to explore.
The step up initially begun in New York by offering total of 28 channels, together with 'cloud DVR storage,' with an $8 monthly charge.
The Commission did not agree totally with regards to the needs of new rules or their possible effects. Commissioner Agit Pai said in a report that, "This proposal is being packaged as a way to increase video competition." Pai is indecisive if an additional rule on that matter is necessary. He also added that the commission must give time to resolve the four year issue regarding Internet-based video programming distributors if it can be considered as MVPDs.