Senators Jim DeMint, R-S.C., and John Kerry, D-Mass., sparred over the future of program carriage rules at a Tuesday hearing on the 20th anniversary of the Cable Act (PL 102-382), offering a preview of a policy debate that could take place next year. DeMint argued that the rules are outdated and should be repealed, thanks to increased competition among broadband, cable, satellite and online video providers. Kerry agreed that the current market offers broad-based competition but credited the Cable Act for creating the conditions to allow said competition to flourish. Both small and large cable companies have pushed for the elimination of the program carriage rules, while the broadcasters argued they should stay in place.
While the amount of competition outside of major urban markets could still be debated, it appears the choice for lawmakers is between scaling back cable regulations and leaving them untouched. DeMint's proposal has yet to draw much support, in part because of the opposition of local broadcasters, who rely on carriage fees to stay viable. But the escalating number of blackouts and standoffs between cable providers and local stations could easily swing some lawmakers sitting on the fence toward one side or the other. Any new cable regulations would also have to take into account the growing online video market, which currently faces significant disadvantages, particularly regarding access to content. Extending the program carriage rules to online video providers could be considered an undue burden, but it could also open the door for sites like Netflix and Hulu to offer local sports and other live broadcast TV — a scary thought for the cable companies, but an option that some consumers would likely welcome.
Full Transcript of Senate Commerce Cable Act Hearing Cybersecurity Sponsors Expect Senate Debate This Week: The sponsors of comprehensive cybersecurity legislation in the Senate (S 3414) said Tuesday that they expect debate on their bill to begin by the end of the week. The legislation has been stripped of any security mandates for critical infrastructure providers in hopes of attracting some GOP support, but Majority Leader Harry Reid, D-Nev., acknowledged it is still unclear whether he has enough votes to overcome a potential GOP filibuster. The U.S. Chamber of Commerce remains opposed to the bill, and Sen. John McCain, R-Ariz., has criticized Reid for bypassing committee approval and bringing the bill directly to the floor. But Reid shot back that cybersecurity is too urgent to delay action any further. The bill could hit the floor late Thursday or early Friday, with Reid hoping to tackle amendments by the start of next week. Senate Intelligence Committee Approves Authorization Measure: The Senate Select Intelligence Committee approved a draft authorization bill on Tuesday that includes measures aimed at cracking down on national security leaks. After the closed-door markup, Chairwoman Dianne Feinstein, D-Calif., refused to go into details about the provisions, but she earlier outlined some efforts aimed at preventing leaks. Feinstein also said she shouldn't have speculated on the origins of the leaks earlier this week in comments that suggested the White House should have been more on top of the situation. Among prominent Democrats, Feinstein has been the most critical of the leaks, adding fuel to Republican allegations that the White House authorized the leaks for political purposes. Lawmakers Question Data Brokers About Privacy: Six bipartisan lawmakers joined Reps. Edward Markey, D-Mass., and Joe Barton, R-Texas, on Tuesday in writing to nine major data brokerage companies asking for details on how they collect, assemble and sell consumer information to third parties. The letter claims the data brokers have combined offline and online data sources to develop "hidden dossiers on almost every U.S. consumer." The lawmakers seek information such as a list of entities that provide data about consumers, a list of the data points they collect from consumers, and services or products offered to third parties that use the data. Congress has shown increasing concern about consumer privacy issues as reports have emerged of companies selling, trading or otherwise leveraging consumers' personal information without their knowledge. While broad new privacy laws remain a tough sell in a divided Congress, a more narrowly targeted measure that combines data breach provisions with some mandatory protections for consumer data could gain traction in the 113th Congress. Regulation of data brokers is another area that could be ripe for legislation, if the voluntary efforts currently under way do not bear fruit. Apple Misses Expectations Despite Sales Increase: Apple's stock was down almost 5 percent in pre-market trading after the tech giant missed expectations with its second-quarter results. Apple sold 28 percent more iPhones in the quarter than a year earlier, but that was still below the market's estimates. Analysts have warned that iPhone sales are likely to weaken ahead of Apple's introduction of a new version of the phone this fall.