The way video services are distributed and sold to consumers may soon be very different, based on two requests that have been recently made to the FCC. MVPD giant Charter filed a petition with the …
The FCC is also currently in negotiations with local TV station groups concerning the revival of a 2014 discussion toCharter’s argument hinges on ISPs owned by MVPDs, such as Verizon and Comcast, already having carriage agreements with big streaming services like Netflix. If they can do it, why not Charter?
This will have multiple reverberations in the streaming world. Each of the three major types of streaming serviceBeing free to view, AVODs will have no subscription fees to share with MVPDs. Instead, much as MVPDs have a portion of the ad inventory on the TV networks they distribute, expect the hunt for new revenue streams to drive similar conditions imposed upon free streaming services like Roku Channel, Pluto and Tubi.
VMVPDs are MVPDs’ most immediate competition, and for operators like Charter who do not have a true VMVPD option , represent a potential customer drain. By having the ability to impose carriage fees upon these services, their monthly cost will be driven up further, and begin to compete with the basic tiers of cable .
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