presentation by deborah roy, attorney, telecommunications ... · 12/3/2015 · presentation by...
TRANSCRIPT
![Page 1: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/1.jpg)
Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S. Department of Justice
IFT Competition Day Mexico City December 3, 2015
*The views in this presentation are not purported to represent those of the U.S. Department of Justice.
![Page 2: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/2.jpg)
Multichannel Video Programming Distributor (“MVPD”)
◦ Cable operators, DBS operators, and telephone companies that offer multiple channels of video programming.
◦ Comcast, Time Warner Cable, DIRECTV, DISH, ATT, Verizon
Online Video Distributor (“OVD”)
◦ An entity that offers video programming by means of Internet delivery.
◦ Netflix
Video Programmer (“Programmer”)◦ An entity that delivers video programming to an MVPD or OVD.
◦ Viacom and The Walt Disney Company
2
![Page 3: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/3.jpg)
1950’s-60’s: Broadcast Television◦ ABC CBS NBC
1970’s-80’s: Cable Television◦ HBO (1972) ESPN (1979) CNN (1980)
1990’s: Direct Broadcast Satellite “DBS”◦ DIRECTV DISH
1996: Cable Residential Broadband
3
![Page 4: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/4.jpg)
To differentiate its offering, DBS offered a greater number of networks.
Cable responded by increasing the number of networks that it offered.
Continued innovative responses.
The MVPD Business Model remained the same.
4
![Page 5: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/5.jpg)
Studios: Content Creators
Programmers
MVPDs
Consumer
5
![Page 6: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/6.jpg)
6
![Page 7: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/7.jpg)
Consumers purchase a package of networks
◦ Basic Packages
20 to 250 networks
$20.00 to $70.00/month
◦ Specialty Packages
Sports
Foreign Language
HBO
Internet Access
7
![Page 8: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/8.jpg)
Time-Shifted Viewing◦ Digital Video Recorder “DVR” (2005-2007)
◦ Video On-Demand “VOD” (2005-2007)
Video over the Internet◦ YouTube (2005)
◦ Netflix Streaming (2007)
8
![Page 9: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/9.jpg)
Subscription Video on Demand (“SVOD”)◦ Netflix
Direct-to-Consumer Applications (“DTC”)◦ CBS All-Access HBO Now
Linear Streaming (“vMVPD”)◦ DISH Sling
◦ Apple TV Streaming
◦ Cable OTT Service
9
![Page 10: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/10.jpg)
1. Internet Access to deliver video content Reasonable pricing
Reasonable speeds
Reasonable delivery quality
2. Programming Access First Run - Rolling 5 Episodes - Full Current Season
Differentiation – Smaller Bundle of Select Networks
10
![Page 11: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/11.jpg)
Internet Access to deliver content◦ Data Caps or Usage Based Pricing
◦ Prioritization/Degrading Quality
Programming Access◦ Alternative Distribution Clauses (“ADMS”)
Outright Prohibition
No online distribution for a period of time
Bundling Requirements for OVD
11
![Page 12: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/12.jpg)
Comcast-NBCU
◦ DOJ Consent Decree (2011-2018) Banned discrimination against OVD Internet traffic.
Prohibits agreements with programmers that limit their ability to provide programming to OVDs.
Requires licensing of NBCU programming to OVDs.
FCC Order has similar provisions.
Comcast-TWC (2015)
◦ Transaction abandoned due to DOJ/FCC concerns.
2015 FCC Open Internet Order
◦ Prohibits blocking or slowing lawful content.
◦ No favoring some traffic over other traffic in exchange for a benefit.
12
![Page 13: Presentation by Deborah Roy, Attorney, Telecommunications ... · 12/3/2015 · Presentation by Deborah Roy, Attorney, Telecommunications and Media Section, Antitrust Division, U.S](https://reader034.vdocuments.mx/reader034/viewer/2022042114/5e9099e52a0ff83dc2243b1a/html5/thumbnails/13.jpg)
Change in consumer viewing habits provides opportunity for OVD entry.
OVD entry is new and experimentation with innovative business models is ongoing.
Antitrust and Regulation both have a role.
13