Cybertelecom Federal Internet Law & Policy An Educational Project

Interactive TV

     1. Interactive Television ("ITV") is a rapidly-developing service that could provide tremendous value to American consumers.  ITV services, provided over a high speed  platform, will offer, inter alia, increased viewer control of the television viewing experience; integration of video and data services, including web content; real-time interaction with other viewers; and television commerce ("t-commerce").  If it turns out that only one delivery platform in each geographic area has the capability to provide the most attractive ITV services package, and if the platform provider is vertically integrated with an ITV service provider, then there would be the potential for anticompetitive behavior.  This Notice of Inquiry ("Notice") seeks comment on what services constitute ITV services, what entities constitute ITV providers, how ITV services will be delivered, what business models will govern the delivery of ITV services to consumers, and the general status of an ITV services market. 
     2. In the 1992 Cable Act, Congress determined that cable television was the dominant platform among multichannel video programming distributors ("MVPDs"), and that cable market power in local distribution necessitated regulatory intervention in certain situations, including in the case of vertically integrated cable programmers.  In particular, Congress directed the Commission to adopt rules limiting the share of cable capacity that could be used for commonly-owned content and requiring vertically integrated cable programmers to provide their content to rival distribution platforms on nondiscriminatory terms.   If the same factual predicates that Congress cited in the 1992 Cable Act were to apply to a distribution platform delivering ITV services, then some regulation of those distribution facilities might be warranted. 
     3. This Notice addresses the question of whether, at least in the near term, the modern cable television plant is likely to be the superior platform for distribution of high speed ITV services.  Commenters asserting that the cable platform will, in fact, have substantial advantages in distributing ITV services should also comment on whether certain cable operators should prohibited from discriminating among ITV service providers.  The 1992 Cable Act analytic framework would suggest that such regulations be applied, if at all, to vertically-integrated cable ITV providers, i.e., cable television operators that have an attributable interest in an ITV service provider.  Commenters arguing in favor of regulatory actions in this area should also provide recommendations on how to make the principle of nondiscrimination operational and whether the principle should be applied to cable television operators unaffiliated with an ITV provider.  Commenters advocating imposition of regulations only on vertically integrated cable ITV providers should also address whether the current cable television ownership attribution rules would be appropriate for determining if a cable operator would be subject to  nondiscrimination rules. 
     4. The Notice also seeks comment on whether any other distribution platform does or might possess market power in the distribution of ITV services and, if so, what regulatory approach, if any, might be warranted.  The Notice seeks comment on the likely ITV delivery capabilities of other delivery platforms, such as Direct Broadcast Satellite ("DBS") and Digital Subscriber Line ("DSL"), in addition to cable.  The Notice explores the idea that those distributors, if any, that we determine to have the power to act anticompetitively with respect to ITV service delivery should be subject to regulations that require nondiscriminatory treatment of unaffiliated ITV providers. 
     5. The Notice seeks comment on the legal classifications of ITV services, what public policy and statutory objectives ITV rules would promote, and the Commission's authority to protect this market.  The Notice also asks questions about enforcement of any new rules, proposing alternatively a voluntary arbitration, subject to judicial review, or a Commission complaint procedure.

Copies of Comments can be viewed on the FCC's Electronic Comment Filing System (remember the docket number)

FCC INITIATES PROCEEDING ON INTERACTIVE TV. News media contact David Fiske 202-418-0513; Office of Plans and Policy Jonathan Levy 418-2030; Cable Services Bureau Royce Dickens, Darryl Cooper 418-7200. Docket 01-07. News Release. Adopted: 01/12/2001. (FCC No. 01-15) OMR PDF | Word | Text | Press Release

NONDISCRIMINATION IN DISTRIBUTUION O INTERACTIVE TELEVISION SERVICES OVER CABLE ERRATUM TO FCC 01-15. Released an Erratum correcting the table of contents in the Notice of Inquiry (FCC 01-15), released January 18, in proceeding CS Docket No. 01-7. By Erratum. Adopted: 01/19/2001 by ERRATUM. CSB

Papers

• Hernan Galperin and François Bar, The Regualtion of Interactive Television in the United States and the European Union, FCLJ 3/17/03
• Cyberatlas Interactive TV Market Remains Complex Oct 2000
• Who Wants Their ITV The Standard (statistics)

News

• More people turn to the web to watch TV, Free Press 8/2/2005
• America Online confirms end of AOLTV, CNET 2/19/03
• Whatever Happened to Interactive TV?, Newsfactor 6/24/02
• ITAA Joins Other Trade Groups in Questioning Interactive Television Court Order -, ITAA 5/22/02
• Final curtain comes down on ITV Digital, FTC 5/1/02
• Putting HTML On ITV, Internet News 4/17/02
• Interactive TV Arrives, Sort of, NYT 4/5/02
• Analyst: Investors Don't 'Get' iTV, Allnetdevices 4/5/02
• ITV giants offload Ask Jeeves stake, Guardian 2/8/02
• ITV cashes in on Pop Idol fever, Guardian 2/4/02
• Interactive TV football shown the red card, Guardian 2/4/02
• In the U.S., Interactive TV Still Awaits an Audience, NYTimes 1/2/02
• WebTV founder not giving up on interactive TV, USAToday 1/2/02
• Study: Interactive TV Won't Find Success on the Web, Newsfactor 12/20/01
• No Easy Way to Canadian ITV Services, Net Magazine Nov 2001
• Study: ITV Battles Apathy, Allnet 9/5/01
• Study: iTV Battles Almost Complete Lack of Interest, INews 9/5/01
• U.S. Consumers Still Not Sold On ITV, Cyberatlas 09/01/01
• Report on Interactive Television Technologies Documents New Threats to Privacy, CME 6/28/01
• Interactive TV: It's watching you, CNET 6/28/01
• Privacy Advocates: Interactive TV A Threat, Digital MAss 6/28/01
• Interactive TV Worries Privacy Group, The Standard 6/28/01
• Tattling interactive TVs a privacy threat, group saysq, USAToday 6/28/01
• AT&T revamps interactive TV plans, CNET 6/8/01
• AT&T Pares ITV Plans To MS's Chagrin, Internetnews 6/8/01
• CBS Beats Portal Envy, Hypes Interactive TV, CNET 3/2/01
• Who Wants Their ITV The Standard (statistics)
• Interactive TV: When Will It Arrive?, ZDNet 01/31/01
• FCC To Study Interactive Television Market Jan 19 cnn
• FCC to study interactive television market Jan 19 cnn
• CBS Tinkers With Interactive TV, Inside 2/23/01
• AT&T to test interactive TV service Sept 21, 2000 nandotimes

Congress

• House Commerce Committee Wednesday, February 16, 2000 10:00 am in 2123 Rayburn House Office Building. Subcommittee on Telecommunications, Trade and Consumer Protection hearing titled "Video on the Internet: iCraveTV.com and Other Recent Developments in Webcasting."