^{Democracy & Technology Blog} Multicast must-carry

There’s a suspicion that no one really cares about high-definition TV. That’s why broadcasters are planning more local news, more local weather, more local sports, educational and children’s programming – more of everything – in standard-definition. But not without assurances that cable systems will carry the additional channels.

Cable systems were built with private capital. And the cable industry is facing a competitive onslaught from the likes of DIRECTV, DISH Network and now SBC, Verizon and others. Yet they would have to allocate up to 6 channels to each local broadcaster if Congress mandates multicast must-carry. The justification for even the current level of must-carry is eroding. Expanding the requirement would simply restrain investment and innovation that much further.

If the problem is that a lot of consumers do not have an outdoor antenna or a digital receiver, the question ought to be how can broadcasters make their product more compelling? Instead, Congress is forced to consider multibillion dollar subsidies for digital-to-analog converter boxes, withholding valuable spectrum from public safety and commercial wireless uses and, now, expropriating private investment in the cable industry.
Broadcasters need to adopt a forward-thinking entrepreneurial mindset. This is an entitlement mindset. It’s worth remembering that consumers didn’t ask for digital TV, broadcasters did.