Cable Defends TV Everywhere
The cable industry Monday dismissed calls by public interest groups for a federal investigation into an initiative, known as TV Everywhere, by cable, satellite and other multichannel video providers to distribute content online, saying allegations that these industry participants are illegally colluding to extend their business models to the Internet are baseless.
"The call for an 'investigation' of TV Everywhere has no factual or legal basis no matter how many times Free Press and its allies repeat the words 'collusion,' 'cartel' and 'illegal,'" National Cable and Telecommunications Association President and CEO Kyle McSlarrow said in a statement. In the name of protecting competition, they would actually reduce the amount of online content available to consumers."
Free Press, Consumers Union, the Media Access Project and four other groups Monday wrote Christine Varney, the assistant attorney general for antitrust, urging the Justice Department to investigate an initiative they claim "rests on an illegal agreement among competitors specifically designed to undermine emerging Internet-based competition and consumer choice in video programming delivery." In a conference call, representatives from these groups argued that cable providers and their multichannel video competitors have illegally colluded in an effort to limit competition from other online sources. Ben Scott of Free Press said the groups are not "not opposed to content companies charging for content. We're opposed to companies bundling and tying content to cable subscriptions."
But McSlarrow argued that the online service, which would be provided at no extra charge to subscribers, "could significantly increase the amount of high-value video content available online." Time Warner also issued a statement Monday defending TV Everywhere as a consumer friendly service aimed at providing consumers with "more value for their money, by allowing them to watch their favorite shows when they want to watch them on both their TVs and over the Internet at no additional charge. That is what TV Everywhere is, and it is quite plainly beneficial for consumers."
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Antitrust
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