Ch 11 Emerging Issues In The Video Marketplace

11.1 Introduction

  1. Cable a la carte rules
  2. Broadcast flag
  • Questions:
    • How should the reg. regime support trend whereby consumers get content in many different ways?
    • How should the reg. regime combat content piracy?
    • Choice & copyright issues

11.2 Choice

  • "The First Amendment in Cyberspace," by Cass R. Sunstein
    • Two Free speech traditions: 1) Market model; 2) Public deliberation model
      • Market model: Gov't should not do anything other than set up basic rules of property and contract that make markets feasable
      • Public deliberation model: emphasizes gov't control, political equality, and shared civic culture via promotion of deliberative debate as central democratic goal. Traced back to James Madison

*Requiring Competition - No constitutional problem with legislative efforts to ensure competition in communications market * Subsidizing New Media - Gov't could promote "conversations" on e-mail that are of public importance or promote educational goals for children and adults
* Leaving Open Channels Available - Gov't should have to provide payment to carrier in return for access equipment
* Madison in Cyberspace - Madisonian ideals applicable given reach and complexity of new technologies 0 system of free expression is not an "aimless abstraction" - goals of First Amendment connected with deliberative democracy of informed citizens

  • "Bad News," by Richard A. Posner
    • Declining public confidence in press, liberal media slant, conservative "new media"

11.2.2 The Commission on Cable a la Carte
*"Further Report on the Packaging and Sale of Video Programming Services to the Public" (2006): This document criticizes the "First Report" as incomplete and flawed (i.e. id did not provide an appropriate analysis of costs and benefits of bundling in MVPD marketplace as compared to programming a la carte)
11.2.3 Price Discrimination
* Price discrimination can either harm or benefit consumers - economic literature is complicated, but there is conclusion that price discrimination can enhance or reduce social welfare, depending largely on question of how ell the strategy can predict each individual consumer's willingness to pay for product or service and whether the provider possesses market power.

11.3 Digital Copyright
* Primary issue - Whether hardware manufacturers will be obligated to, allowed to, or barred from helping content producers protect their work.

  • Broadcast Flag - Arguments for/against (see notes from class slides)
    • "American Library Ass'n. v. FCC"
      • Legal Question: Did Congress delegate authority to FCC in CA of 1934 to regulate apparatus that can receive television broadcasts when those apparatus are not actively receiving broadcast transmission?
      • Answer: No.
      • Why? FCC had no specific statutory provision to give it authority to regulate consumers' use of television receiver after completion of transmission. The commission falsely relied on its Title I ancillary jurisdiction in this case.
      • Why, pt. 2: FCC's jurisdictional grant does not encompass regulation of consumer electronics products used for receipt of wire or radio communication when those devices are not actively receiving transmission
      • Precedential case: "Southwestern Cable v. U.S." - FCC's ancillary jurisdiction has limits
Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License