Media vs. big tech in DC showdown...
Media vs. big tech
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By Sara Fischer
July 18, 2017
Media companies
are in the crosshairs of three major tech policy fights taking place right now
— net neutrality, privacy, and antitrust. (More on each below.)
Why it matters: The outcome of these battles could have an enormous
effect on what content consumers can access through their broadband providers
and how legacy media companies will be able to survive against tech/telecom
giants, and how they all sell digital ads.
Current state of play: We're seeing a phase of unbundling and
re-bundling in the media industry to accommodate sinking cable viewership and
an increase in digital video consumption.
Telecom
companies are making big investments in
streaming channels and content companies to survive. (Verizon
bought Yahoo/AOL, AT&T is trying to merge with Time Warner, Comcast owns
NBC Universal, etc.)
Digital media
companies are betting their future on being allowed to sell user data to advertisers
and are investing in digital video to increase engagement.
The Trump effect: If you think The Trump Administration doesn't influence
these outcomes, you're wrong. The FCC under Trump has advocated for more
laissez-faire policies that reduce restrictions on media distributors. In
addition, there have been more more media and
entertainment deals in the first quarter under the Trump Administration
than in the last two years of the Obama Administration and investors tell Axios
that they are optimistic this administration will allow many deals to proceed
based on the current regulatory environment.
Base reminder: If you recall, Trump was vehemently against the proposed
AT&T/Time Warner merger on the campaign trail, but now many expect
antitrust enforcers at the DOJ to let the deal to go through because the
companies don't directly compete.
The three big battles
1.
Net Neutrality: Digital media companies are urging the FCC to
reconsider its proposal to roll back Obama-era rules about how traffic is
treated on the web. Their position is generally echoed by the tech giants, who
used to rely on these rules when they were smaller players, so they support
them now for optics rather than need. It's the internet service providers, like
AT&T and Comcast, who say these rules go too far and want more flexibility
to come up with new services and packages.
2.
Privacy (from Axios' David McCabe):
States are trying to figure how out to regulate consumer privacy in the digital
ad space, but the battlefield to watch is Sacramento, where lawmakers are
vetting a bill today that would require internet service providers like Verizon
and Comcast to get permission from customers before sharing their data with
marketers. As the lines between media, tech and telecom companies blur,
Internet providers and the web companies that use their pipes have a rare
alliance in opposing the bill because they all have a stake in the fight:
Telcos are buying media companies and web companies, in some cases, working on
their own connectivity initiatives.
3.
Antitrust: Last week a newspaper trade group that represents over 2,000
newspapers in the U.S. (like NYT, WaPo), asked Congress for
an antitrust safe harbor against Google and Facebook. Local media companies are pushing back saying
it views the tech industry "as partners, not adversaries,"
demonstrating a growing rift between who benefits in the short-term from the
resources tech companies give news companies while monetizing their content,
and who doesn't.
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