Intellectual Property Law

Over-the-top demand

By Susan Crawford

There will be plenty of posts here about the importance of ubiquitous, interconnected, nondiscriminatory, high-speed Internet access infrastructure to America’s economic future - but let’s not forget about the demand side.  The FCC’s recent update on its national broadband plan work included a section on opening up the set-top box market:

• Increasingly, the television is becoming an Internet-access device
• Delivering Internet video to the television could drive higher broadband adoption and utilization (as 99% of households have TVs, versus 79% with computers) as new apps and uses would emerge
• The convergence of television and the Internet is hindered by the lack of innovation in the set top box market
  
• An open market in devices will drive further innovation
• To date, CableCARD has not achieved its intended goals, in part due to poor implementation
• The FCC has the authority to help open the set top box market to greater competition and innovation

This is a big deal.  Video drives demand - if people can buy nondiscriminatory cable high-speed Internet access as part of a package that allows them to use any video set-top box (or other gateway) they want, and the price is right, more people will want access.  More people demanding more access will help drive more fiber to more places, and more competition in the set-top box market will help this happen.

Right now, the market for the devices that provide gateways for multichannel video program distributors isn’t very competitive.  Most cable operators provide their own, and there are substantial switching costs.  With standards-based video gateways, the market would explode.  Big deal.  Be brave.

Full post as published by Susan Crawford Blog on December 22, 2009 (boomark / email).