FCC Approves Notice Redefining OTT Providers as MVPDs; 3 Yes Votes and 2 Concurrences

The FCC approved an rulemaking notice seeking comment on broadening the FCC definition of a multichannel video programming distributor to include over-the-top providers, with three yes votes from Democrats and two concurrences from Republicans, FCC officials told us Thursday. The item seeks comment on defining linear online video services as MVPDs and includes tentative conclusions about how broadly the new definition would reach, the officials told us.

Originally slated for a vote last week, the item was held back by Chairman Tom Wheeler’s office despite already having the approval of the FCC’s three Democrats, officials told us (see 1412150059). The item was delayed with the hope of reaching a consensus with Republican commissioners Mike O’Rielly and Ajit Pai, the officials said.

The NPRM seeks comment on how linear OTT providers should be defined and differentiated, and on not applying the same facilities-based rules to OTT providers that are applied to MVPDs, FCC officials told us. The item tentatively concludes that the new MVPD definition would not apply to programmers that provide linear OTT content that only they themselves own, an FCC official said. This definition would likely mean that OTT services from sports leagues or CBS’s online offerings would not be MVPDs, the official said. In meetings with the FCC in November, CBS said the new rules for OTT MVPDs shouldn’t interfere with online, programmer-owned offerings, a CBS ex parte filing said.

The item also seeks comment on how the new definition should be applied to programmers offering multiple streams of linear OTT content, and what obligations currently applied to the pay TV industry would now apply to linear online services. Wheeler already has said existing MVPDs' terrestrial operations would still be bound by the rules they're now bound by, even if they have IP offerings.