When voters sent President Donald Trump back to the White House, they did so because they were ready for an administration that would stop the government overreach that was a hallmark of the previous administration. As such, it is critical that Federal agencies heed the will of voters by working to cut regulations and rebuke calls to apply antiquated rules to new, consumer-friendly technologies.
This is especially relevant when it comes to proposals to apply old-technology regulations to innovative new services like streaming platforms. These new services provide competitive options for consumers and have emerged in an environment free from government edicts. Now is not the time to encumber the industry with new constraints from Washington. Burdensome new regulations would threaten to send cord-cutters back to the days of restrictive pay TV bundles and undermine President Trump’s agenda as he seeks to empower consumers and strip power from government bureaucrats.
Large broadcast groups want to revive an Obama-era proposal that would turn the clock back to the old days and force new streaming services to be treated like cable and satellite TV services of the past – the option that many consumers have abandoned. Yet, even President Obama’s FCC passed on that plan due to the adverse impact it would have on consumers and businesses, and little has changed to suggest now would be any different. In fact, the ensuing decade has seen an explosion of new viewing options for the public.
At the heart of the issue is the battle between streaming providers and broadcast groups over whether platforms like YouTube TV, Hulu+ Live, or Roku should be regulated as TV services launched many decades ago. Currently, there are pages and pages of regulations dictating how cable and satellite providers negotiate for carriage of the hundreds of local television stations. The result? Years of very little competition for consumers.
In contrast, streaming services have not been subjected to heavy-handed government regulation. This has allowed efficient new business practices to emerge in the context of streaming, creating rapid entry by competitive services offering local network affiliates in every market in the country. However, some TV station groups are now pushing the FCC to treat those streaming platforms as they would cable and satellite providers, arguing that local news affiliates will suffer without the FCC dictating the parties, the time, and the manner of negotiations for streaming services to carry content.
There are several problems with treating streamers the same way as cable or satellite, not the least of which is that it would unravel 30 years of entertainment innovation and force consumers back into the highly regulated, inflexible business model they’ve rejected. Every month, more Americans are cutting the cord, rejecting the big bundles of the past. Smaller, tailored options provide consumers with a variety of choices — choices that include access to local news stations, giving consumers more control over how they choose to watch movies, sports, and local news.
Some local station groups argue that reclassifying streaming services like cable and satellite will help strengthen local news affiliates, but the argument simply doesn’t match reality. Networks already have broad agreements with platforms such as YouTube TV or Hulu+ Live to cover local affiliates. Changing the FCC’s classification would upend that system, resulting in small affiliates potentially not being carried at all. There could be massive disparities between station groups, with the local independent news that proponents of the rule change claim to want to protect being left in the dust.
Any proposal to apply outdated cable and satellite regulations to the streaming services that Americans prefer would be contrary to the interests of both regular viewers and the television business as a whole. Fortunately, Senator Ted Cruz has spent his career recognizing that government-dictated business models are toxic to innovation, growth, and freedom that every Texan and every American wants. The time is now for the senator and his colleagues to dismiss calls for expanded FCC control of the pay-TV market. A majority of Americans prefer streaming services over traditional cable and oppose applying new regulations to streaming. President Trump and his administration should continue to protect Americans’ choices and allow streaming services the freedom to continue serving consumer needs.
Mike Wheeler is Chairman of the Kendall County GOP and represents Senate District 25 on the State Republican Executive Committee.