Google Fiber and the future of cable
[Commentary] Cable is no longer the “bottleneck” that Congress once assumed it was for delivering video into American homes. This calls into question the continuing value of must-carry, retransmission consent and other regimes based on this premise.
As a mature-to-declining product, cable must cut costs to remain viable against new competitors. This dynamic explains the recent rise in merger activity among cable operators. Building economies of scale can strengthen regional cable operators’ negotiations with programmers and can help them compete more effectively against Netflix and other alternatives, which are national in scope. It is important that antitrust regulators recognize cable as only one part of a larger market for video services — and allow them to compete accordingly.
[Daniel Lyons is an associate professor at Boston College Law School]
Google Fiber and the future of cable