Amazon Warns of Unintended Consequences in Expanding MVPD Category to Some OTTs

Given what it sees as the booming and competitive over-the-top market, the case for expanding the multichannel video programming distributor (MVPD) umbrella to cover some forms of OTT services is questionable, Amazon said in an FCC ex parte filing posted Wednesday in docket 14-261. "The rules proposed by the commission would inhibit innovation by imposing on over the top services regulatory burdens created long ago that are neither relevant to nor tailored to address this new vibrant industry, without any of the competitive benefits [including the attendant statutory copyright licensing] that were envisioned when the rules were originally drafted decades ago." The filing recapped meetings between such Amazon executives as General Counsel David Zapolsky and Public Policy Director Brian Huseman with Commissioners Mike O'Rielly and Ajit Pai. Amazon said it warned in those meetings of unintended consequences from an expanded definition of MVPD, such as its Twitch.tv live streaming videogaming service being subsequently considered an MVPD. The resulting regulatory burdens would "distort a new and alternative video segment that is growing and flourishing without any government intervention," Amazon said. In a separate ex parte filing in docket 14-261 posted Tuesday, NATOA said cable operators offering online video services to ISP customers should be subject to the same franchise fees and public interest obligations they would otherwise be for any IP cable service. In the filing reporting on a phone conversation between NATOA General Counsel Stephen Traylor and Media Bureau Deputy Chief Michelle Carey, NATOA said a line also should be drawn between delivery of online video services over what it called "the 'public' Internet rather than via the providers' own transmission path."