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HDTV Almanac - Speed Bump in FilmOn Road to Success
by Alfred Poor on November 24, 2010 Categories: Broadcast, Internet HD Video, Programming

What would you say about a company that started streaming television programming over the Internet to subscribers, and chalked up 30 million users in a few weeks? That’s reportedly the score for FilmOn, one of two companies that are streaming locally-broadcast television content over the Internet. Along with iviTV, FilmOn believes that it has the right to rebroadcast the content as a cable company, but the networks are opposing this interpretation. Yesterday, a federal court in New York issued a temporary restraining order against FilmOn, requiring it to stop transmitting content from Fox, CBS, NBC, and ABC affiliate stations over the Internet. This is in advance of a hearing that will be held to determine whether or not there is legal cause for the FilmOn site to be shut down.

FilmOn has agreed to comply with the order, but continues to stream content from other channels. It likely will take weeks before the next set of decisions are handed down, but this is certainly an anxious time for the major networks. If FilmOn and iviTV should prevail in their position that their operations are legal under existing law, it could represent a serious challenge to the existing television broadcast and distribution systems. It could also impact the cable and satellite services by providing broadband subscribers with the equivalent of basic cable service at a much lower price.

We’re witnessing the initial skirmishes of what promises to be an important battle for the television industry as a whole.

Posted by Alfred Poor, November 24, 2010 5:00 AM

Reader Commentary

Reply
jbowen01 • Nov 28, 5:59am
I don't watch the local affiliates now....they need to adapt to new technology like they did with Directv. I use my Galaxy S Tab on the road....are they going to HUNT ME DOWN NEXT

And where in the Constitution does the FCC get the right to interfere with private business....
Reply
alfredpoor • Nov 28, 10:02am
You raise an interesting point. I'm not a Constitutional scholar, but here's how I think it works. The Founding Fathers didn't know about radio waves, but they did have a provision that lets the federal government hold assets in trust for the people as a whole. This led to the federal control of interstate commerce, so that businesses could count on some standardization of the rules. And it was decided that the radio spectrum belongs to the citizens, and it is up to the federal government to manage that asset (since it is clearly interstate commerce). The FCC is intended to do what it thinks makes the best use of this asset for the country as a whole. Clearly, there may be cause to disagree with some of their choices over the years, but we do have a wireless communication infrastructure in this country that I believe is second to none, so the federal involvement hasn't been a total barrier to progress.

Alfred...
Reply
720pete • Nov 28, 2:01pm
It would be nice if all the people constantly referring to the Constitution of the United States would actually read it once in a while.

Here's where it says the FCC has the "right to interfere with private business."

Article I, Section 8, Clause 8 of the United States Constitution, known as the Copyright Clause, the Copyright and Patent Clause (or Patent and Copyright Clause), the Intellectual Property Clause and the Progress Clause, empowers the United States Congress “…To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.”

The Federal Communications Act of 1934 created the FCC (successor to the FRC) to regulate the radio spectrum in the public interest. A clear case of interstate commerce, since radio (and TV) waves respect no state lines. And part of their job is to step in when use of those radio waves involves copyright infringements, which FilmOn clearl...

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About Alfred Poor

Alfred Poor is a well-known display industry expert, who writes the daily HDTV Almanac. He wrote for PC Magazine for more than 20 years, and now is focusing on the home entertainment and home networking markets.

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