Monty Tayloe

A week after CBS and Fox talked about moving to a subscription model if retransmission-consent fees are threatened by a victory in court for online-TV service Aereo, some in the industry are divided over whether such a huge shift could really happen. “We're going to use all of our legal options to protect this business model that has sustained our industry,” said an NAB spokesman, echoing Fox Chief Operating Officer Chase Carey, who raised the spectre of a move to subscription at the NAB Show last week (CD April 9 p14). Several industry observers said Carey’s comments were posturing aimed at influencing legislators or investors, because removing content from broadcast would be very disruptive to network affiliates.

"Under the NTTAA, DOE, as a federal department, is required to use technical standards that are developed or adopted by voluntary consensus standard bodies unless these standards are inconsistent with applicable law,” wrote Doug Johnson, CEA vice president-technology policy. DOE has acknowledged that their proposed rules are based largely on the CEA-2043 VA, the test standard used in the industry consensus, but CEA and other industry commenters said the DOE should have to show that the VA is impractical under the law before developing it’s own standards. “U.S. law and good public policy favors simply relying on the standard rather than borrowing from, modifying or reinventing it,” wrote Johnson.

The FCC is failing to do enough to encourage diversity in media ownership, said former FCC Commissioner Michael Copps and others at the National Conference for Media Reform Friday, as the FCC released a letter from members of Congress opposing changes to cross-ownership rules. “Minorities own 2.2 percent of full-power TV stations in this country,” said Copps: “How’s that for representing America?”

The recent back and forth in FCC filings between Charter Communications and CEA over acceptable conditions for granting the cable operator’s application for a waiver of CableCARD rules could indicate a decision on the matter is upcoming, several industry observers said. The sides have been trading opposing filings on the company’s request for a CableCARD waiver (CD March 26 p13) so it can deploy downloadable security to set-top boxes. With Julius Genachowski planning to leave as FCC chairman, he may want to grant the waiver before he departs, said some industry officials.

Rulings and pending cases involving rebroadcasting TV over the Internet have huge implications for the TV industry and copyright law, and could be headed for the Supreme Court, said several communications attorneys at an FCBA event Wednesday night. On Monday, the 2nd U.S. Circuit Court of Appeals upheld a lower court decision denying broadcasters a preliminary injunction against Aereo, which lets customers watch New York City-area TV broadcasts online by leasing them personal DVRs and antennas (CD April 2 p8). However, in December, a similar injunction against a competing Internet TV company called Aereokiller was upheld in U.S. District Court in Los Angeles.

But the notice isn’t likely to lead to policy change any time soon, Liberman said. He said that’s especially since the notice came a week after FCC Chairman Julius Genachowski announced his upcoming departure. “It’s a hot potato,” and an interim chairman is unlikely to do anything substantive with the issue, Liberman said. “There are a lot of things that you can do to make it look like you're doing something without doing anything."