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Cable and Telecommunications Association THE FUTURE OF VIDEO HEARING BEFORE THE SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS SECOND SESSION JUNE 27, 2012 Serial No. 112–155 ( Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov U.S. GOVERNMENT PRINTING OFFICE 82–325 PDF WASHINGTON : 2014 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Aug 31 2005 09:46 Mar 14, 2014 Jkt 037690 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 F:\112-15~4\122-15~1 WAYNE COMMITTEE ON ENERGY AND COMMERCE FRED UPTON, Michigan Chairman JOE BARTON, Texas HENRY A. WAXMAN, California Chairman Emeritus Ranking Member CLIFF STEARNS, Florida JOHN D. DINGELL, Michigan ED WHITFIELD, Kentucky Chairman Emeritus JOHN SHIMKUS, Illinois EDWARD J. MARKEY, Massachusetts JOSEPH R. PITTS, Pennsylvania EDOLPHUS TOWNS, New York MARY BONO MACK, California FRANK PALLONE, JR., New Jersey GREG WALDEN, Oregon BOBBY L. RUSH, Illinois LEE TERRY, Nebraska ANNA G. ESHOO, California MIKE ROGERS, Michigan ELIOT L. ENGEL, New York SUE WILKINS MYRICK, North Carolina GENE GREEN, Texas Vice Chairman DIANA DEGETTE, Colorado JOHN SULLIVAN, Oklahoma LOIS CAPPS, California TIM MURPHY, Pennsylvania MICHAEL F. DOYLE, Pennsylvania MICHAEL C. BURGESS, Texas JANICE D. SCHAKOWSKY, Illinois MARSHA BLACKBURN, Tennessee CHARLES A. GONZALEZ, Texas BRIAN P. BILBRAY, California TAMMY BALDWIN, Wisconsin CHARLES F. BASS, New Hampshire MIKE ROSS, Arkansas PHIL GINGREY, Georgia JIM MATHESON, Utah STEVE SCALISE, Louisiana G.K. BUTTERFIELD, North Carolina ROBERT E. LATTA, Ohio JOHN BARROW, Georgia CATHY MCMORRIS RODGERS, Washington DORIS O. MATSUI, California GREGG HARPER, Mississippi DONNA M. CHRISTENSEN, Virgin Islands LEONARD LANCE, New Jersey KATHY CASTOR, Florida BILL CASSIDY, Louisiana JOHN P. SARBANES, Maryland BRETT GUTHRIE, Kentucky PETE OLSON, Texas DAVID B. MCKINLEY, West Virginia CORY GARDNER, Colorado MIKE POMPEO, Kansas ADAM KINZINGER, Illinois H. MORGAN GRIFFITH, Virginia SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY GREG WALDEN, Oregon Chairman LEE TERRY, Nebraska ANNA G. ESHOO, California Vice Chairman Ranking Member CLIFF STEARNS, Florida EDWARD J. MARKEY, Massachusetts JOHN SHIMKUS, Illinois MICHAEL F. DOYLE, Pennsylvania MARY BONO MACK, California DORIS O. MATSUI, California MIKE ROGERS, Michigan JOHN BARROW, Georgia MARSHA BLACKBURN, Tennessee DONNA M. CHRISTENSEN, Virgin Islands BRIAN P. BILBRAY, California EDOLPHUS TOWNS, New York CHARLES F. BASS, New Hampshire FRANK PALLONE, JR., New Jersey PHIL GINGREY, Georgia BOBBY L. RUSH, Illinois STEVE SCALISE, Louisiana DIANA DEGETTE, Colorado ROBERT E. LATTA, Ohio JOHN D. DINGELL, Michigan (ex officio) BRETT GUTHRIE, Kentucky HENRY A. WAXMAN, California (ex officio) ADAM KINZINGER, Illinois JOE BARTON, Texas FRED UPTON, Michigan (ex officio) (II) VerDate Aug 31 2005 09:46 Mar 14, 2014 Jkt 037690 PO 00000 Frm 00002 Fmt 0486 Sfmt 5904 F:\112-15~4\122-15~1 WAYNE CONTENTS Page Hon. Greg Walden, a Representative in Congress from the State of Oregon, opening statement ................................................................................................ 1 Prepared statement .......................................................................................... 4 Hon. Lee Terry, a Representative in Congress from the State of Nebraska, opening statement ................................................................................................ 5 Hon. Anna G. Eshoo, a Representative in Congress from the State of Cali- fornia, opening statement .................................................................................... 9 Hon. Fred Upton, a Representative in Congress from the State of Michigan, opening statement ................................................................................................ 13 Prepared statement .......................................................................................... 15 Hon. Cliff Stearns, a Representative in Congress from the State of Florida, opening statement ................................................................................................ 16 Hon. Marsha Blackburn, a Representative in Congress from the State of Tennessee, opening statement ............................................................................ 16 Hon. Henry A. Waxman, a Representative in Congress from the State of California, opening statement ............................................................................. 16 WITNESSES Robert W. Johnson, Chief Executive Officer, Sky Angel U.S., LLC .................... 18 Prepared statement .......................................................................................... 21 Gigi B. Sohn, President, Public Knowledge ........................................................... 33 Prepared statement .......................................................................................... 35 Answers to submitted questions ...................................................................... 155 David Hyman, General Counsel, Netflix, Inc. ....................................................... 53 Prepared statement .......................................................................................... 56 Answers to submitted questions ...................................................................... 157 Jim Funk, Vice President, Product Management, Roku, Inc. .............................. 61 Prepared statement .......................................................................................... 63 Michael K. Powell, President and Chief Executive Officer, National Cable and Telecommunications Association ................................................................. 66 Prepared statement .......................................................................................... 69 Answers to submitted questions ...................................................................... 160 David Barrett, President and Chief Executive Officer, Hearst Television, Inc. 83 Prepared statement .......................................................................................... 86 Answers to submitted questions ...................................................................... 169 Charlie Ergen, Chairman, DISH Network, and Chairman, EchoStar ................ 111 Prepared statement .......................................................................................... 113 Answers to submitted questions ...................................................................... 174 Michael P. O’Leary, Senior Executive Vice President, Global Policy and Exter- nal Affairs, Motion Picture Association of America, Inc. .................................. 117 Prepared statement .......................................................................................... 120 Answers to submitted questions ...................................................................... 175 SUBMITTED MATERIAL Letter, dated June 26, 2012, from Gary Shapiro, President and Chief Execu- tive Officer, Consumer Electronics Association, to Mr. Walden and Ms. Eshoo, submitted by Mr. Terry ........................................................................... 6 Report, dated June 13, 2012, ‘‘Broadcaster Retrans Blackouts 2010–-2012,’’ provided by American Television Alliance, submitted by Ms. Eshoo .............. 10 Letter, dated June 25, 2012, from Paul Porter, Co-Founder, Industry Ears, et al., to Julius Genachowski, Chairman, Federal Communications Commis- sion, submitted by Mr. Rush ............................................................................... 149 (III) VerDate Aug 31 2005 09:46 Mar 14, 2014 Jkt 037690 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 F:\112-15~4\122-15~1 WAYNE IV Page Report, dated March 3, 2011, ‘‘Section 257 Triennial Report to Congress Identifying and Eliminating Market Entry Barriers For Entrepreneurs and Other Small Businesses,’’ Federal Communications Commission, submitted by Mr. Rush 1 1 Internet link to the report is on page 152. VerDate Aug 31 2005 09:46 Mar 14, 2014 Jkt 037690 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 F:\112-15~4\122-15~1 WAYNE THE FUTURE OF VIDEO WEDNESDAY, JUNE 27, 2012 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY, COMMITTEE ON ENERGY AND COMMERCE, Washington, DC. The subcommittee met, pursuant to call, at 10:06 a.m., in room 2123 of the Rayburn House Office Building, Hon. Greg Walden (chairman of the subcommittee) presiding. Members present: Representatives Walden, Terry, Stearns, Shimkus, Bono Mack, Blackburn, Bilbray, Bass, Scalise, Guthrie, Kinzinger, Barton, Upton (ex officio), Eshoo, Markey, Doyle, Mat- sui, Barrow, Christensen, Rush, DeGette, Dingell (ex officio), and Waxman (ex officio). Staff present: Gary Andres, Staff Director; Ray Baum, Senior Policy Advisor/Director of Coalitions; Sean Bonyun, Communica- tions Director; Andy Duberstein, Deputy Press Secretary; Neil Fried, Chief Counsel, Communications and Technology; Debbee Keller, Press Secretary; Peter Kielty, Associate Counsel; Nika Nour, NewMedia Specialist; Katie Novaria, Legislative Clerk; David Redl, Counsel, Communications and Technology; Charlotte Savercool, Executive Assistant; Tim Torres, Deputy IT Director; Lyn Walker, Coordinator, Admin/Human Services; Jean Woodrow, Director, Information Technology; Phil Barnett, Democratic Staff Director;
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