The recent announcements by HBO and CBS that they would sell their programming directly to consumers have stirred hopes that Americans will soon have the ability to buy TV channels a la carte, over the Internet, rather than in bundles. But there has always been a big obstacle to achieving that reality: Internet-based firms do not have the same access to TV programming that cable and satellite companies do.
Now the chairman of the Federal Communications Commission, Tom Wheeler, is proposing a workaround to that problem. He wants to allow businesses like Aereo and Sony to register as cable companies. This would allow those companies to strike deals to carry the TV stations owned by media businesses like Viacom, NBC and Time Warner.
In a blog post, Mr. Wheeler compared his proposal to a 1992 law passed by Congress that allowed satellite-TV companies like DirecTV and Dish Network be regulated in the same way as cable companies had been. “Congress mandated access to cable channels for satellite services, and competition flourished,” he wrote. “Today I am proposing to extend the same concept to the providers of linear, Internet-based services; to encourage new video alternatives by opening up access to content previously locked on cable channels.”
This is a good step and should provide consumers more choices. (A couple of weeks ago, the editorial board wrote that the plans by HBO and CBS to sell directly to consumers would also benefit Americans.)
But even if the F.C.C. were to adopt Mr. Wheeler’s proposal, it would be naïve to expect big changes right away. For one thing, many new entrants to the video business will find it difficult to negotiate contracts with media giants like Disney and Viacom. Even some cable companies have grumbled about the rising prices demanded by media firms and have said that they might get out of the TV business altogether in the future. Cablevision, one such company, is even suing Viacom, arguing that the media company has forced it to buy less popular channels like MTV Hits and VH1 Classic in order to get access to more popular channels like MTV and Comedy Central.
Firms that try to provide TV channels on the Internet might also be stymied by cable and phone companies, which provide most of the high-speed Internet connections to American homes. The F.C.C. is working on regulations to prevent broadband firms from blocking or interfering with Internet traffic requested by consumers.
Still, giving more companies access to TV channels will shake up the cable and media businesses.