FCC Ruling Allows Select Blocking of Set-Top Box Outlets

WASHINGTON, D.C.: A new ruling by the Federal Communications Commission will allow pay-TV providers to disable the output connections on subscribers’ set-top boxes in order to prevent the duplication of new-release VOD titles.

The FCC motion was in response to a request from the Motion Picture Association of America (MPAA) to allow “selectable output control (SOC)” on movies that are being released on demand ahead of their DVD or Blu-ray release, or even while the film is still in theatrical release.

“This action is an important victory for consumers who will now have far greater access to see recent high-definition movies in their homes,” said Bob Pisano, the president and interim CEO of the MPAA. “And it is a major step forward in the development of new business models by the motion picture industry to respond to growing consumer demand. We deeply appreciate the recognition by the FCC that recently released movies need special protection against content theft when they are distributed to home televisions.”

He continued: “The first, and best way to view movies will always be in movie theaters—and nothing can replace the pleasure this brings to millions and millions of people all across our country and the globe. But for those people unable to make it to the theater and interested in viewing a recently released movie, thanks to the FCC, they will now have a new option. For other consumers who prefer standard, linear, on-demand or DVD or Blu-ray options, these services will be unchanged.”

The FCC order noted: “On balance, this limited waiver will provide public interest benefits—making movies widely available for home viewing far earlier than ever before— without imposing harm on any consumers.” The media regulator has put limitations on the ruling—the blocking cannot be used once a title is on DVD or Blu-ray, and must be removed after 90 days.

The move is being criticized by public-interest groups as well as by film exhibitors, concerned that their revenues could be undercut if the theatrical windows is shortened. The Consumer Electronics Association, meanwhile, noted: "We are unsure when the FCC has ever before given private entities the right to disable consumers’ products in their homes. The fact that the motion picture studios want to create a new business model does not mean that functioning products should be disabled by them."