NCTA Offers Set-Top Compromise Using HTML5

Dubbed “Ditch the Box” by the MVPD-backed Future of TV Coalition, the new proposal is based on a plan to build pay-TV apps on an open HTML5 standard, which would allow any third-party company to construct devices that could run the apps and thus deliver pay-TV content. The plan also would allow the third-party devices to offer universal search, with over-the-top content appearing alongside MVPD content in the search results. The plan is similar to what Roku already does, a consumer electronics official told us.

NCTA President Michael Powell and executives from AT&T, Comcast, Revolt, TV One and VMe presented the plan in separate meetings with Commissioners Mike O'Rielly, Jessica Rosenworcel and Mignon Clyburn, aides to Chairman Tom Wheeler, FCC Chief Technologist Scott Jordan and General Counsel Jonathan Sallet, an ex parte filing said. “This alternative approach of creating enforceable commitments is the most constructive, lawful, and achievable path for moving forward.” Though many members of the Future of TV Coalition visited the FCC on the Ditch the Box compromise, Dish Network and many programmer opponents of the FCC set-top plan such as MPAA weren't involved. The compromise proposal “is a constructive step,” said MPAA. “We appreciate the MVPDs' thoughtful effort” and “will continue conversations with the FCC and others as we evaluate how well this and other proposals respect programmers’ rights,” MPAA emailed.

The FCC released a statement praising the MVPDs for making an effort at compromise as Wheeler asked them to at INTX (see 1605180058). Some supporters of the FCC proposal told us they're unsure how receptive the commission will be to the MVPD plan. The FCC proposal is seen as having a lot of momentum, and commission allies on the matter were told to reject the compromise plan, a supporter of the FCC plan told us. “Chairman Wheeler is heartened that the industry has adopted the primary goal of our proposal, to promote greater competition and choice for consumers, and agree it is achievable,” an FCC spokeswoman emailed. “We look forward to seeing additional details so we can determine whether their proposal fully meets all of the goals of our proceeding and the statute.” The compromise plan may be intended more for Congress than the FCC, where the pay-TV criticisms of the agency plan have gotten a lot of traction, one supporter of the commission plan told us. A proposed appropriations bill contains a rider that would temporarily derail the FCC proposal (see 1606160055).

The compromise offer would involve pay-TV providers building apps using an open, HTML5-based standard, and licensing the apps “without charge” to third-party devices. That system would allow third-party devices to be built that would allow consumers to access MVPD content, while allowing pay-TV companies to control consumer data collection and content security though their own apps, said Tim McCann of the Future of TV Coalition. “The app license agreements would also prohibit equipment manufacturers from violating licensing terms, burying niche programming, or inserting or overlaying additional advertising,” said a coalition release on the plan. Though each app would use its provider’s user interface, the third-party box maker would be able to offer its own UI for the universal search function and to navigate among apps, McCann said. The use of the existing HTML5 standard would allow the compromise plan to be implemented faster than the FCC proposal, McCann said.

This latest proposal is “lipstick” on the original MVPD app proposal, an industry official who supports the FCC set-top plan told us. It's not clear the third-party boxes would be able to offer DVR functionality, and the app-based system severely limits the services a third-party box maker could offer and sends all the consumer data back to the MVPDs, making it difficult to see what the business model for a third-party box maker would be, the official said. Public Knowledge Senior Staff Attorney John Bergmayer said it's not clear the technology exists to offer apps to any third-party device, and the proposal doesn't go far enough to allow third-party devices to compete. The compromise plan would offer video over broadband rather than from the cable connection to the home, and MVPD apps don't always offer all the services their set-top boxes do, Bergmayer said. That leaves the door open for MVPDs to reserve some services or functionality for their own boxes, which won't lead to a competitive market, he said. Bergmayer did say supporters of the FCC proposal are somewhat "encouraged" by aspects of the MVPD plan.