1FACT SHEET: CHAIRMAN WHEELER’S PROPOSAL TO INCREASE
CONSUMER CHOICE & INNOVATION IN THE VIDEO MARKETPLACE
Ninety-nine percent of pay-TV subscribers currently rent set-top boxes because there aren’t meaningful 
alternatives. Lack of competition has meant few choices and high prices for consumers – $231 in rental 
fees annually for the average American household. Altogether, U.S. consumers spend $20 billion a year 
to lease these devices. 
Congress recognized the importance of a competitive marketplace and directed the Commission to adopt 
rules that will ensure consumers will be able to use the device they prefer for accessing programming 
they’ve paid for. The new rules, if adopted, simplify the Commission’s original proposal to finally provide 
consumers with choice in how they access pay-TV service while satisfying Congress’ mandate.
Following constructive engagement from a wide range of stakeholders, the proposed final rules will 
allow consumers to access their pay-TV content via free apps on a variety of devices so they no longer 
have to pay monthly rental fees, enable integrated search, and protect content and privacy. The 
Commission will vote on these simplified consumer-first, app-driven rules at its next open meeting on 
September 29, 2016. If adopted, the largest pay-TV providers, who serve 95% of pay-TV subscribers, will 
have two years to comply with the rules.
Unlocking the box: Free apps will give consumers choice to access content on a variety of devices
? Apps will liberate consumers from set-top boxes: The new rules will require pay-TV providers 
to offer to consumers a free app, controlled by the pay-TV provider, to access all the 
programming they pay for on a variety of devices, including tablets, smartphones, gaming 
systems, streaming devices or smart TVs.
? Consumers will no longer have to pay monthly rental fees for a box: While consumers will still 
pay their monthly subscription fees for the service, they will be able to download an app to 
devices they purchase or already own to access pay-TV service, so they are no longer forced to
rent boxes from their pay-TV provider. Of course, a consumer may choose to keep their set-top 
box and enjoy their pay-TV programming as they do today. 
? Availability for innovators: Pay-TV providers must provide their apps to widely deployed 
platforms, such as Roku, Apple iOS, Windows and Android. Doing so will spur competition in the 
marketplace to develop new competitive products like next-generation streaming devices, smart 
TVs and tablets.
Integrated Search: Consumers will be able to search across all pay-TV content 
? Real cross-platform search: Pay-TV providers must enable consumers’ ability to search the 
content in their service, both linear and on-demand, alongside other video services accessible 
through the device. This means consumers will be able to search their programming options in 
one place whether from their pay-TV provider, an over-the-top service or a programmer’s 
standalone app.
? No discrimination in search: Pay-TV providers may not require a platform or device to promote
the pay-TV app over other sources of programming in the search function. 
? Ease of access:  Pay-TV providers must provide consumers with an equivalent ability to access 
content via the pay-TV app as they have in the set-top box.  Pay-TV providers must also make it 
as easy for a subscriber to access programming inside a programmer’s app, including
authentication of the subscriber, as it is to reach programming inside the pay-TV app.  
2? Independent and minority programming: Smaller and independent programmers will be better 
able to reach broad audiences under the new rules, even if they are not carried by cable or 
satellite, because their content will be easily searchable on the same device as pay-TV content.  
For those programmers already on a pay-TV system, their channel position, advertising and 
contracts remain in place, since the pay-TV provider will control the content end-to-end.
Protecting Copyrights & Contracts: Honoring the sanctity of contracts through pay-TV control of the 
app and related software
Pay-TV content will only be opened by the pay-TV app, thus using the robust security protocols already 
built in to pay-TV apps. In addition, programming will continue to be controlled by the pay-TV provider
from end-to-end, protecting content and maintaining all contracts and agreements currently in place.
The pay-TV’s software will manage the full suite of linear and on-demand programming licensed by the 
pay-TV provider.
? Maintains strong protections for copyrighted content: Copyrights and licensing agreements 
will remain in place. The proposed final rules maintain important aspects of the traditional video 
distribution regime by leaving the control of the app and related software in the hands of the 
pay-TV providers.   
? Existing content distribution deals, licensing terms and conditions are unchanged. Since the 
pay-TV provider controls its own app, deals made between pay-TV providers and content 
providers are not affected by this proposal. As pay-TV providers continue to oversee the delivery 
of content to consumers, all arrangements regarding channel lineups, advertising and 
distribution remain intact. Pay-TV companies retain their customers and will still receive a 
monthly subscription fee for the content they provide – consumers will simply have new ways to 
access that content. 
? Standard License: The proposed final rules require the development of a standard license 
governing the process for placing an app on a device or platform.  A standard license will give 
device manufacturers the certainty required to bring innovative products to market. 
Programmers will have a seat at the table to ensure that content remains protected. The license 
will not affect the underlying contracts between programmers and pay-TV providers. The FCC 
will serve as a backstop to ensure that nothing in the standard license will harm the marketplace 
for competitive devices.  
Technology-Neutral Standards: Removing barriers to innovation, speeding products to market
? Open standards: The proposed rules do not mandate a specific standard for app development. 
Rather, the rules would require pay-TV providers to make software available on all widely 
deployed platforms, such as Roku, Apple iOS, Windows and Android. Pay-TV providers can 
provide the software for their apps to these platforms in a variety of manners, including HTML5 
or native apps.  Consumers should get to choose from a wide range of devices to access the 
content for which they’ve paid, and apps on common consumer devices will enable this choice. 
? Flexibility, not mandates: Pay-TV providers will have flexibility in how they comply with the 
rules. They may choose to develop apps themselves or provide the necessary code to a third-
party developer to develop an app on behalf of the pay-TV provider.
? Enforceable timeframe: Large providers will have two years to fully implement the new 
requirements, medium sized providers will have an additional two years to comply.
? Limiting burdens on smaller providers: Smaller operators (those with fewer than 400,000 
subscribers) will not have to comply with the requirements, but may provide apps or software 
as appropriate for their business.
3Consumer Protection: Emergency alerts, privacy and accessibility
The proposal seeks to ensure that important consumer protections like emergency alerting, privacy and 
accessibility will apply by requiring compliance as a condition of the license and requiring third parties to 
make pledges to consumers to enable enforcement by the Federal Trade Commission and State 
Attorneys General.
? Emergency Alert System (EAS): Because the service from the pay-TV provider is unaltered, 
consumers will have the same access to EAS alerts that they would using a rented set-top box
and third-party devices will be prohibited from blocking the alerts
? Privacy: The FCC has a long history of protecting the privacy of consumers of communications 
services. Following the Federal Trade Commission’s input, the proposed rules would require that 
the privacy protections that exist today for consumers of pay-TV providers will be preserved no 
matter what device is used. 
? Accessibility:  Pay-TV apps must provide at least the same accessibility functions for people with 
disabilities that a set-top box provides. Third party devices may not block such functions and 
must adhere to the Commission’s accessibility rules.