Sec. 2. Findings; statement of policy

738 words·~3 min read·/bill/113/s/1680/is/section-2

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Congress makes the following findings: Online video distribution has the potential to increase consumer choice in video programming, lower prices for video services, bring innovative services to the video distribution marketplace, and disrupt the traditional multichannel video distribution marketplace. Evolving consumer demand, improving technology, and increased choice of viewing devices can make online video distributors stronger competitors to multichannel video programming distributors for an increasing number of viewers.

Unlike traditional multichannel video programming distributors, online video distributors do not own distribution facilities and are dependent upon Internet service providers (many of which are affiliated with multichannel video programming distributors) for the delivery of their content to viewers. Internet service providers’ management and pricing of broadband services affects online video distributors. Because online video distribution consumes significant amounts of Internet bandwidth, Internet service providers’ use of usage-based billing practices can negatively impact the competitive position of online video distributors and the appeal of their services to consumers.

Internet service providers that are affiliated with a multichannel video programming distributor or an online video distributor have an increased incentive to degrade the delivery of, or block entirely, traffic from the websites of other online video distributors, or speed up or favor access to the content and aggregation websites of their affiliates, because online video distributors pose a threat to those affiliates’ video programming distribution businesses. Similarly, multichannel video programming distributors who are affiliated with Internet service providers, online video distributors who are affiliated with Internet service providers, or video programming vendors with significant market power have the incentive and ability to use their competitive position to engage in unfair methods of competition meant to hinder competition from online video distributors.

Growth of online video distribution alternatives also will depend, in part, on the distributor's ability to acquire programming from content producers. Without access to content on competitive terms, an online video distributor suffers a distinct competitive harm. Some traditional multichannel video programming distributors have admitted to taking steps to limit the ability of online video distributors to access content or otherwise effectively compete in the video distribution marketplace.

Traditional multichannel video programming distributors and even other online video distributors have the incentive and ability to convince their video programming vendor partners not to sell content to online video distributors or to sell content to them at competitively disadvantageous prices, terms, and conditions. They also have the incentive and ability to retaliate against a video programming vendor that sells content to an online video distributor. Traditional multichannel video programming distributors have the incentive and ability to use their relationships with manufacturers of television sets, set-top boxes, and other customer premises equipment to favor their own services over offerings from online video distributors.

There is a substantial governmental and First Amendment interest in— requiring Internet service providers to provide consumers with accurate information about their Internet service, and to ensure that data usage monitoring systems are accurate, effective, and not used for an anticompetitive purpose; promoting a diversity of views provided through multiple technology media; promoting the development of online video distribution platforms and fair competition amongst all distributors and vendors of video programming; preventing Internet service providers that are affiliated with a multichannel video programming distributor or an online video distributor from discriminating against unaffiliated content and distributors in its exercise of control over consumers’ broadband connections; encouraging and protecting consumer choice and innovation in online video distribution, including with respect to distribution of broadcast television content; and providing consumers with the ability to choose to receive local broadcast television content from various markets.

It is the policy of the Congress that— consumers should be fully informed about the terms and conditions related to the purchase of Internet service from an Internet service provider; usage-based billing systems used by an Internet service provider should not be used in a way that harms development and use of high-bandwidth consuming Internet applications and services that might compete with that Internet service provider’s own services; the availability of a diversity of views and information should be promoted to the public through various video programming distribution platforms, including those providing service by utilizing the Internet or other IP-based transmission paths; existing multichannel video programming distributors and video programming vendors should not have or exercise undue market power with respect to online video distributors; and Internet service providers should not hinder through anticompetitive behavior the ability of online video distributors to provide services to their subscribers.