Mobile video on the rise: Regulating disruptive competition

[Commentary] Online video continues to assert its claim to the title of Killer App of the Early 21st Century.

Cisco Systems has released its annual Internet traffic forecast, which Re/code amusingly summarized with the headline “Cat Videos, Binge TV Watching Will Account for 84 Percent of Internet Traffic.”

Another study suggests that Netflix is making significant inroads into traditional pay television markets.

This growth disrupts old business models, putting pressure on traditional media providers to find innovative new ways to connect with viewers. But it also puts pressure on regulators, who face the unenviable task of protecting consumers in a dynamic, chaotic business environment. Too little regulation risks anticompetitive behavior that harms consumers. But importantly, too much regulation also risks consumer harm, by preventing companies from testing new, innovative business models that may benefit consumers.

When navigating uncertain competitive terrain, the regulator must resist the urge to reflexively apply old rules to a new business environment where they may do more harm than good.

[Lyons is associate professor at Boston College Law School]