If any group should be nervous about the implications of an internet “Fast Lane”, major league sports should be at the top of that list.
As more and more consumers are diversifying their media consumption, one of the few areas you can count on to get viewers watching in real-time, with ads, are sports games. ESPN Scored a hit this summer streaming the World Cup over their mobile app, and Major League Baseball has been improving their MLB.tv service.
Of course streaming live HD video takes some bandwidth, and that means MLB would also need to negotiate a separate deal with ISP’s to “guarantee” a fast enough service for their subscribers. It’s entirely likely those additional costs would eventually be passed down to consumers.
MLB Advanced Media L.P. filed their official comments on the matter late last week in a brief titled “In the Matter of Protecting and Promoting the Open Internet“.
While discussing the ramifications of Fast Lane access, the write up also details concerns surrounding ISP’s merging, like the proposed Comcast and Time Warner deal, which also limits competition, and it also addresses the claims from the cable industry that Fast Lane is necessary for improving infrastructure.
The assertion that fast lanes are needed so that Broadband ISPs can invest in broadband infrastructure is unsupported by the facts. Broadband ISPs already generate tens of billions of dollars in revenue annually, with margins in excess of 60%, from their cable broadband services. They already have ample capital to invest in their systems. There can be no assurance that any fast lane revenue would be invested to improve or expand broadband service.
And MLB is right to be concerned. What exactly would they get for their money if they did negotiate higher rates for speedy service? Netflix is currently the only public test we have of pay to play, and that hasn’t gone very well. While Netflix has signed deals to pay extra behind the scenes, their speeds haven’t really improved. As of their last monthly speed test, the ISP’s that are getting paid “protection” fees actually got slower, and we’ve seen the legal drama unfold when Netflix notifies customers of Verizon’s throttling.
But why be concerned? If your Netflix is constantly buffering, why not use the fantastic VOD service provided by your cable company, where individual movie rentals are likely more expensive than an entire month of Netflix? If you want to watch live sports without interruption, just make sure you’re at home when the game starts. And if you’re unhappy with your provider, or you don’t want to do business like this, you’ve certainly got options to go to another ISP in your area, don’t you?
This is what we wanted isn’t it? A “Free Market” with fewer choices, less competition, slower service, and higher rates? The system works!
You can read MLB’s full comments to the FCC by clicking here.