For Immediate Release
Liz Rose, Communications Director, Free Press, (202) 265-1490 x32
Free Press, Consumer Groups Call on Antitrust Authorities and Congress to Investigate 'TV Everywhere'
New Report Shows Cable and Media Giants Colluding to Kill Competition for Online TV
antitrust authorities and Congress to investigate agreements among
giant media companies to stifle competition in the emerging market for
online television programming.
This call for an investigation is based on a Free Press report
released today. In the report, Free Press details how giant cable,
satellite and phone companies and many leading programming networks,
led by Comcast and Time Warner, are colluding on an industry-wide
initiative called "TV Everywhere" that requires consumers to pay for
cable TV subscriptions to access online programming. While being
marketed as a consumer-friendly feature, TV Everywhere is designed to
eliminate the threat of online competition, limit consumer choice, and
build on the cable TV model that gouges consumers.
"This is a textbook antitrust violation," said Marvin Ammori, a law
professor at the University of Nebraska, senior adviser to Free Press,
and author of the report. "The old media giants are working together to
kill off innovative online competitors and carve up the market for
themselves. TV Everywhere is designed to eliminate competition at a
pivotal moment in the history of television. The antitrust authorities
should not stand by and let the cable cartel crush Internet TV before
it gets off the ground."
Read TV Competition Nowhere: How the Cable Industry Is Colluding to Kill Online TV here: http://www.freepress.net/files/TV-Nowhere.pdf
On Dec. 15, Comcast became the first company to launch its TV
Everywhere product, under the brand "Fancast Xfinity"; the other
dominant cable, satellite and phone companies have announced plans to
follow suit. Using published statements by industry executives and news
reports about industry discussions, Free Press demonstrates in the
report that the TV Everywhere initiative rests on an illegal agreement
among competitors -- and that the initiative would not be possible
without this illegal collusion.
"Internet TV could actually inject much needed competition into a
TV market long dominated by cable companies -- this is a valuable
opportunity to provide greater innovation for consumers," said Ben
Scott, policy director of Free Press. "More competition means lower
prices for consumers. The Internet offers the potential for
democratizing the TV screen now controlled by a handful of powerful
media companies. We urge antitrust authorities to move immediately to
Parul Desai of Media Access Project said, "This is an important test
for Congress and the antitrust authorities to make sure dominant old
media companies don't kill off potential sources of innovative, new
competition just as consumers are getting accustomed to the possibility
of that new competition."
The consumer groups -- which include Free Press, Media Access
Project, Consumers Union, Consumer Federation of America, New America
Foundation's Open Technology Initiative, Public Knowledge, and the
Participatory Culture Foundation -- filed letters
with the Department of Justice, the Federal Trade Commission and
congressional committees with jurisdiction over competition issues and
media and broadband Internet services.
Read the report here: http://www.freepress.net/files/TV-Nowhere.pdf
Read the letter to the Department of Justice here
Read the letter to the Federal Trade Commission here
Read the letter to Sens. Leahy and Sessions here
Read the letter to Sens. Rockefeller and Hutchison here
Read the letter to Reps. Waxman and Barton here
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