by Justin Hurwitz
American Enterprise Institute
July 17, 2014
The future of the video market is easy to predict and concise to state: the Internet. The question is what’s stopping us from getting there? Today’s video marketplace looks more like the marketplace of a decade ago than one of the future. One reason for this is the existing regulatory regime, which generally ossifies traditional business models and stifles entry by new firms. One remedy for this would be for Congress to recognize that consolidation, particularly vertical integration, of online video providers is more often good for consumers than bad. Another thing Congress could do to promote the video marketplace is update the Copyright and Communications Act, as a way of relieving regulatory uncertainty. Finally, spectrum policy must be updated – rather than struggle with how to fit online video into the traditional television model, we should be thinking about how to allow traditional television to operate more like online video.

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