Before the Federal Communications Commission
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HDTV Penetration Reaches 81% of U.S. Homes, FierceCable (Mar. 13, 2015), http://www.fiercecable.com/cable/hdtv-penetration-reaches-81-u-s-homes. The information provided by MVPDs to Senators Markey and Blumenthal did not enable the report to fully examine the varied fees, and thus the Markey/Blumenthal Press Release likely underestimated how much an average household pays in lease fees. See Mt. Hood Cable Regulatory Commission, Montgomery and Anne Arundel Counties, Maryland Reply, MB Docket No. 16-42, CS Docket No. 97-80, at 9 (May 23, 2016) (“Montgomery County’s research reveals . . . that most providers require the purchase of additional services or subscriptions for higher levels of service. These additional equipment charges include payment of additional HD, Broadcast, Sport Surcharges, DVR Service, and router rentals or purchase.”).
630 See, e.g., Comcast Reply at 8 (“Comcast, for example, continues to develop new features for its next-generation cloud-based X1 entertainment operating system, and most recently began a Netflix Beta program that will integrate Netflix onto the X1 platform and will allow X1 and Netflix customers to watch their live, on-demand, and DVR’ed cable programming, as well as Netflix’s online programming, all through their X1”); AT&T Comments at 2 (“DIRECTV’s HD DVRs harness the power of the Internet to bring subscribers interactive features right on their TV, including Pandora radio and free HD TV Apps that enable subscribers to check the weather, up-to-the minute sports scores, and, among other things, the subscriber’s NFL fantasy league.”). Comcast licenses the X1 platform to Cox. In 2016, Cox used the X1 platform to launch a cloud-based video platform in most of the company’s markets. Jeff Baumgartner, Cox Goes Wide With New ‘Contour’, Multichannel (Apr, 6, 2016), http://www.multichannel.com/news/content/cox-goes-wide-new-contour/403883. 631 These alternatives include, among others, Smart TVs, Apple TV, Amazon Fire TV, Google’s Chromecast, Roku, video game consoles, connected Blu-Ray players, and portable consumer electronics, such as tablets and smartphones. See NCTA Comments at 4-5; Verizon Reply at 4; AT&T Comments at 4. 632 Compare AT&T Comments at 4 with CFA Comments, MB Docket No. 16-42, at 20. 633 See, e.g., AT&T Comments at 4 (“Forty percent of American pay TV subscribers used apps to view their subscription content in 2015, and year-over-year viewing via MVPD app increased 102% in 2015.”). 634 See, e.g., CFA Comments, MB Docket No. 16-42, at 20 (arguing that the current MVPD market is a distinct product defined by multiple, new, first-run marquee content that cannot be obtained with the same quality, quantity, and price from anyone other than the cable or satellite operator). 635 Id. 636 STB NPRM, 31 FCC Rcd at 1552, nn. 47, 48. 637 47 U.S.C. § 549(a). 638 16th Report, 30 FCC Rcd at 3409-11, paras. 329-31. 639 See infra, Table IV.C.2 “Deployment of CableCARDS (Cumulative)” shows the reported number of CableCARD deployments for use in retail CableCARD-enabled devices since 2006 and the deployment of operator-supplied set-top boxes with CableCARDs since the integration ban went into effect on July 1, 2007. See Implementation of Section 304 of the Telecommunications Act of 1996: Commercial Availability of Navigation Devices, CS Docket No. 97-80, Second Report and Order, 20 FCC Rcd 6794, 6814-15, para. 39 (2005). Effective July 1, 2007, cable operators were required to separate security in their leased devices and rely on the same conditional access mechanism that consumer electronics manufacturers use in their commercially available devices (this requirement is known as the “integration ban”). 47 CFR § 76.1204(a)(1). See Implementation of Section 304 of the Telecommunications Act of 1996: Commercial Availability of Navigation Devices, CS Docket No. 97-80, Order and Further Notice of Proposed Rulemaking, 18 FCC Rcd 7924, 7926 para. 4 (2003); Implementation of Section 304 of the Telecommunications Act of 1996: Commercial Availability of Navigation Devices, CS Docket No. 97-80, Second Report and Order, 20 FCC Rcd at 6802-03, para. 13. The STELA Reauthorization Act of 2014 terminated the integration ban effective December 4, 2015, and cable operators subsequently stopped reporting the number of operator-supplied set-top boxes with CableCARDs that they deploy. STELA Reauthorization Act of 2014, § 106, 128 Stat. 2063-64. 640 See Letters from Neal M. Goldberg, Vice President and General Counsel, NCTA, to Marlene H. Dortch, Secretary, FCC, CS Docket No. 97-80 (filed June 29, 2006; June 25, 2007; June 23, 2008; June 26, 2009; June 23, 2011; June 30, 2011; July 30, 2012; July 31, 2013; July 31, 2014; July 31, 2015; July 29, 2016). 641 STB NPRM, 31 FCC Rcd at 1544, para. 6. 642 Id. at 1545-56, para. 2. 643 See Free State Foundation Comments at 2 (“Those devices included game consoles such as the Xbox One and PlayStation 4, streaming media devices like Roku and TiVo, Internet-connected Smart TVs and Blu-ray players, as well as home computers.”). 644 See Verizon Comments at 4 (“FiOS video subscribers can use the FiOS Mobile app to watch live and on-demand programming on mobile tablets and smartphones inside and outside the home. FiOS Mobile subscribers can watch over 200 channels of live TV at home, including Disney, HBO, TBS, The History Channel and The NFL Network, and access over 80,000 movie and TV titles from the FiOS library – all on the mobile devices of their choice. FiOS video subscribers can access over 140 channels outside the home.”). 645 Comcast Reply Comments at 8-9 (citing Press Release, Comcast, Comcast Seeks TV and Other Consumer Electronics Partners to Bring Xfinity TV Cable Service to More Retail Devices (Apr. 20, 2016), http://corporate.comcast.com/comcast-voices/comcast-seeks-partners-to-bring-xfinity-tv-cable-service-to-more-retail-devices). 646 AT&T notes in its comments that TVEverywhere is rapidly increasing in popularity: “Forty percent of American pay TV subscribers used apps to view their subscription content in 2015, and year-over-year viewing via MVPD app increased 102% in 2015.” AT&T Comments at 4. See also Federal Communications Commission, Report of the Downloadable Security Technology Advisory Committee at 43-44, https://ecfsapi.fcc.gov/file/60001515603.pdf. 647 AT&T Comments at 4; Comcast Reply at 9, n.42. 648 Free State Foundation Comments at 2. 649 NESN Comments at 3-4 (citing 17th Report, 31 FCC Rcd at 4566, para. 217). 650 Adobe, Digital Video Benchmark: Adobe Digital Index Q3 2015, at 7-12 (2015), http://www.slideshare.net/adobe/adobe-digital-index-q3-digital-video-report; Digital Democracy Survey at 7. 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