The White House has asked the Federal Communications Commission to strip barriers blocking cable companies from providing customers with a variety of cable TV boxes for streaming shows and movies.
President Obama announced the move in his weekly address Saturday, arguing the change will enhance Americans’ viewing experiences and drive competition among equipment providers.
“While we have almost unlimited choice in what we watch on television, from traditional programming to online content, there’s next to no competition to build a better, user-friendly product that allows you to easily access all this content in one place,” Obama said. “The deck should not be stacked in favor of the wealthiest individuals and biggest corporations, against working Americans.”
Approximately 99 percent of cable and satellite TV customers use a set-top box. The device costs the average U.S. household $230 annually. Corporations rake in $20 billion every year from the charges, he said, citing a study.
Obama compared the change to the FCC’s move decades ago to boost competition among home-phone producers. Phones were once also rented out to consumers by phone companies.
“This was a while ago, but when the FCC finally unlocked competition for home phones, the marketplace was flooded with all kinds of phone options with new features, and at different price points,” Obama said. “Consumers suddenly had many options. And the whole industry moved forward as a result.”
The White House did not indicate when the changes go into effect.
