Most Americans have access to paid television, and consumers who subscribe to these services by cable or satellite – provided by what the FCC calls multichannel video programming distributors, or MVPDs – use a device commonly called a “set-top box” in their homes to connect to these services. Rather recently, the Federal Communication Commission (FCC) proposed new rules aiming to “tear down anti-competitive barriers and pave the way for software, devices, and other innovative solutions to compete with the set-top boxes that a majority of consumers must lease today.”
ACT | The App Association’s membership is primarily comprised of small companies working to innovate in this ecosystem. Apps are playing an increasingly important role in enabling a consumer experience that includes MVPD programming where a traditional set-top box is irrelevant. Instead, consumers will be able to enjoy an app-based interactive experience that is device-agnostic. This evolution is happening today, and our members are directly impacted by the FCC’s proposal.
We are concerned by the lack of analysis on the impact of these rules on small companies, even though the 1980 Regulatory Flexibility Act requires agencies like the FCC to undertake such an analysis. We have shared our concern on this need for a robust economic analysis with each of the FCC’s five commissioners as well as in a letter to the Small Business Administration (SBA).
We are not alone. Representatives Yvette Clarke (NY-9) and Gene Green (TX-29), and approximately 50 other members of Congress have urged the FCC to delay moving forward with this rulemaking until more detailed impact analysis on small and minority businesses has been completed. Even more recently the SBA’s Office of Advocacy shared similar concerns with the FCC. Despite all of this, the FCC’s rulemaking stands to move quickly through the regulatory process.
Agency regulations have a profound impact on consumers and the companies they rely on to meet their needs. More than larger entities, small companies in nascent spaces like the app economy can be buoyed or destroyed by these forces.
We applaud Reps. Clarke and Green for requesting that a more robust cost analysis be undertaken before the FCC’s set-top box proposal proceeds further in the regulatory process. Through a fully developed record, we can ensure there is a healthy and innovative consumer video programming experience.
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