GAO Report: FCC Should Conduct Additional Analysis to Evaluate Need for Set-Top Box Regulation

Millions of households subscribe to cable, satellite, and telephone companies—known as multichannel video programming distributors (MVPDs)—for television, which is generally delivered via a set-top box attached to a television. Congress directed Federal Communications Commission to adopt regulations to assure a commercial market for devices to access MVPDs, and in February 2016, FCC proposed a rule intended to do so. Many industry stakeholders raised concerns about the proposal's potential effects, and FCC did not issue the proposed rule. This report examines: (1) the role of set-top boxes in accessing video programming content and (2) views of selected stakeholders and experts on the need for FCC regulation regarding set-top boxes and FCC's analysis of such need.

GAO analyzed data from a media research group regarding the video market and interviewed 35 industry stakeholders including 12 MVPDs, 5 video content producers, 3 device manufacturers, 12 industry associations, and others; GAO selected stakeholders based on comments filed with FCC on its 2016 proposed rule. GAO also interviewed 11 industry analysts and experts selected based on industry coverage and publications.

GAO recommends that FCC conduct a comprehensive analysis of how recent industry changes related to video services affect consumer choice for devices to access video services. The FCC agreed with GAO's recommendation and provided technical comments that GAO incorporated as appropriate.