Commentary

FCC Could Pave Way For Aereo To Resume Operations

The original version of Aereo struck out at the Supreme Court, but the company still might be able to reinvent itself -- with some help from the Federal Communications Commission.

The online video startup recently went to the FCC and asked to be considered a “multichannel video programming distributor.” If Aereo succeeds, it will have a better chance of qualifying for a compulsory cable license -- which would enable it to resume service, providing it pays retransmission fees to the broadcast networks.

Until this June, Aereo offered subscribers the ability to stream over-the-air television to their smartphones and tablets. Aereo, which used antennas to capture  and stream the programs, didn't pay retransmission fees to the broadcasters.

Broadcasters said that Aereo infringed copyright because it “publicly” performed the shows. The Supreme Court agreed with the broadcasters, ruling 6-3 that the startup had no right to stream shows in real time.

Aereo stopped operating shortly after the decision, but has taken several steps to mount a comeback -- including asking to be considered an MVPD.

Today, FCC general counsel Jonathan Sallet addressed some of the issues raised by Aereo's request. While Sallet didn't say how regulators are leaning, the way he framed the issue suggests they're at least taking Aereo's application seriously.

Specifically, Sallet said that including online-only companies in the definition of MVPDs “would not regulate the Internet,” but would instead apply the law on a “technology-neutral” basis.

“Of course, the Commission doesn’t root for one business model over another,” he said in a speech delivered at a Duke conference. “But it does -- and it should -- look to see if any of its rules should be updated to facilitate the innovation that is occurring in the marketplace.”

He went on to ask whether a “technologically neutral” standard would encourage broadband deployment.

“Demand for broadband might increase if consumers knew they could use broadband connections to access MVPD services regardless of whether the broadband network itself provided video programming,” he said.

Even though Sallet didn't make any promises, advocacy group Public Knowledge cheered his remarks. "Today's speech from the FCC's General Counsel is the latest indication that the FCC might do something that is both bold, and common sense,” senior staff attorney John Bergmayer said in a statement. “It could further open up the video marketplace to new online providers, by recognizing that any service that offers subscription ‘channels’ of programming should have regulatory parity with other pay TV services.”

Next story loading loading..