This is three hours. [background noises] good afternoon. The subcommittee will come to order the chair recognizes himself for five minutes for an Opening Statement. Welcome to todays educational hearing on the state. I look forward to our hearing today from our witnesses representing a wide range of viewpoints across the industry. The video marketplace is rapidly changing. For over half a century americas Video Program and one white on the television in their home. Tvs and devices allowed for the string platforms to provide new choices to consumers beyond over the air and tenants satellite disk or cable. Americans are no longer tethered to rigid tv schedule. Today viewers can choose where and when they watch tv whether its at home, on the go or everywhere in between. This industry shift has ushered in redefining how we entertain, educate and inform ourselves. Access to highquality content statistics tell americans preferences are changing the streaming becomes easy and affordable choice for americans. For the first Time Streaming providers claim the largest portion of u. S. Video viewership in july of 2022. At that Time Streaming viewership represented 34. 8 of tb viewership while cable subscriptions represent 34. 4 . The same report published this month streaming shares hit a new high of the tb viewership where this Shows Consumers continue to cut their cable subscriptions move to streaming or in other words theyre cutting cord. Yet as this immediate landscape has drastically evolved the Regulatory Environment has largely remained the same. The cable act which is over 30 years old still provides a bedrock framework for tv regulations today. Burdensome regulations including media ownership restrictions of transportation are just a few regulations in the broadcasters. With the introduction of streaming services we must resist the temptations and post more regulations on the competitive industry. Largely unregulated streaming marketplace allow platforms to flourish and negotiate deals with unprecedented access to content and local Broadcasters Television shows movies and other content. Rather we should focus on deregulating and overly regulating the industry 1990s error regulation onto eight new and vibrant industry. To determine whats working we can reduce regulations to help and support the american viewing choice one shrink local broadcast continues to thrive. Todays hearing is the beginning of this conversation. Recent changes in the industry, this hearing provides an opportunity for congress to learn about issues with laws and regulations pertaining to multichannel Video Programming distributors like comcast and directv and vpds and vpds like hulu, live tv, and youtube tv. The contrast between linear or scheduled tv and non linear meeting on demand content and outdated laws and regulations that may no longer make sense in todays marketplace. I look forward to our discussion today and thank our witnesses for their willingness to be here as representatives of their industry. Before i recognized my colleagues the Ranking Member of the subcommittee the gently from california the seventh district i went to make one last statement says a lot about this committee and its the greatest committee in congress. One of things i always say about it is we look over the horizon five 10 years that is where you are in a lot of cases. We cant go out there and think about enacting a piece of legislation or laws in general without knowing whats happening out there. Thats white so important we have this hearing today. With that again i recognize my good friend and Ranking Member the gentle lady from california for her Opening Statement thank you. Thank you, thank you for those words too. Todays hearing comes at a critical time for the video marketplace. Customer preferences and Business Models are changing quickly. Congress needs to keep pace this discussion provided a needed form for that. The market we are examining given the middle of a profound seachange the pandemic continues the trend that was arty building and the video ecosystem. Consumers are steadily drifting away from tv towards a videoondemand other overthetop services. By some estimates 80 million households will have cut the cord by 2026. As more families cut the cord then maintain a paid tv subscription implications for the market will be significant. Business mostly to adapt obligatory structures must be scrutinized to ensure they are presenting consumer harms. Because these changes are already being felt across the industry. Especially by consumers. Perhaps no more acutely than Television Blackouts. Freeman who has Expensive Television blackout theyre they easy to understand. Consumers pay for something they never get. And almost any other industry charging a customer for something that is not delivered would be unthinkable. And yet it is an experience that is all too common. Your friends over to watch the game, the big game or your favorite show for each turn on the tv nothing. Despite and paid in full nothing no gains no show. It is not just once these blackouts can go for weeks not only that but they are becoming more and more common. Its estimated there been more than 1000 stations blackouts since 2010. In 2019 alone they already had 230. These blackouts are unfair and they have to stop. Or forward to the video marketplace, im going to be laser focused on stopping these blackouts. As Congress Moves forward with hearings like this the scc is also engaged on these important issues. The scc is taking steps to correct out on focus junk fees sticker shock and inflated bills the precedent would require distributors to provide the all in price clearly and prominently in their ads and on scrubbers bills. Consumers deserve Accurate Information to make informed decisions and i hope the scc can strike the right balance. It would be an incomplete discussion if we did not our valued News Partners are facing. From election information to Public Safety alerts, americans rely on the trusted sources of information. I have seen it firsthand im excited will be describing a perfect example of local news. In sacrament casie are a casey are aawardwinning journan indispensable part of our regions fabric. Intuit wildfires a provide a lifeline to every resident who needs it. I slid forward with discussions at the need local are fighting for committees like all of the country depend on it. Without appreciate todays witnesses for appearing before us. I look for to support discussion are you back the balance of my time per click thank you the gentle it yields back the balance over time. The church recognize the gentle lady from washington the chair of the full committee for five months for Opening Statement for. Good afternoon. Thank you and all of our witnesses. Todays video marketplace is evolving rapidly. Americans have more choices than ever on how, when and where they watch content. As well as what content they watch. We have seen a profound shift in peoples viewing habits especially streaming services have become more available and reliable. For decades, the only options available were over the air television and Cable Services or people could watch live tv at a scheduled time on television. Now streaming platforms allow people to watch whatever they want, whenever they want. Whether that is on a tv or on the go using a phone, computer, tablet or any device that is access to the internet. Streaming platforms have reshaped our entertainment habits. Made our lives more convenient and diversified the content available. This transformation introduce complex challenges for the entire Media Industry. Cable and satellite operators or are continue to lose record numbers of historic people have experienced major blackouts on Cable Networks across the country due to a failure by providers and broadcasters to reach carriage agreements. Including in my district work just this past weekend constituents were prevented from watching local news and the seahawks. They lost. Hollywood shut down as actors and writers strikes carries on. 1992 Congress Passed the cable act. A landmark piece of legislation that injected matching the competition and Consumer Protection to eight monopolistic cable and satellite tv industry. As discussed the industry has changed drastically since then. The internet has created unlimited possibility for innovation which we have seen with the advent of streaming services. This shift has created a new environment the cable access was never designed for. After nearly 30 years its timee for us to reexamine the law. To want to get ensure innovation and competition are encouraged. Now some have called to simply expand the law to cover the streaming industry. Rather than reevaluate and bring into the 21st century. This approach would be irresponsible could potentially kill the flourishing streaming industry. Walking both Online Platforms and providers into elevated laws. Under the Obama Administration to expand the legacy rules related to multichannel programming distributors to new internet based streaming providers. Thankfully this effort was never finalized. Recently however calls to the tc to open that proceeding. This is an effort i do not support. White earlier this year chairman and i caution from refreshing the record. We were minded to chairwoman the scc has a Legal Authority to regulate streaming services. The scc and congress should not be in the business of applying a decades old laws to modern innovative technology. Especially when much of that technology the service it provides does not even exist at the time the law was written. Congress also must be mindful of the crucial role that local broadcast plays in the Media Industry. Local broadcasters have long been pillars of our community. Providing Vital Information for millions of the platform for diversity of voices to be heard. And Rural Communities in particular rely on local broadcasting. Especially when they only have limited our no access to the broadband and streaming services. Fosters a sense of local identity. Connecting people through regional programming that reflects the unique perspective and traditions. Local broadcasters Important Safety Information to public and pert first responders. Its closer to the people telling the story sharing perspectives to does not cover sometimes ignores must be sure the local broadcast is preserved. Todays hearing will provide expert insight into the evolution of this market. As well steps congress can take to ensure outdated regulations do not hinder innovation competition. I look forward to the discussion today so chairman i yield back. Thank you very much for the gentle lady yields back. The chair not recognize us for five minutes the Ranking Member of the full committee. Thank you, mr. Chairman. We are here today to discuss everchanging video marketplace the marketplace that has been experiencing an ongoing transformation. These changes the consumers options and prices they paid to do the programs in the content they want. Around a boxy television with rabbit ears and on a good day to be off three Major Television networks. Today there are a lot more options we cannot scroll through endless channels to get to either cable or Satellite Service and Subscription Services access to the internets. While the delivery mechanism differ at its heart its really the same. Watching a video screen consuming sports, art, entertainment judging by recent surveys do a lot of pert in 2022 there six hours a day watching video and over the air broadcast Broadcasting Cable satellite Tv Streaming Services and social media sites. In some ways theres never been a better time to be a consumer of the video content. Numerous options mean petition, and more awareness of what Consumers Want. They are buying district amount of content more opportunity for content creators who are women and people of color. Creating more diversity and new competitive streaming services have offered consumers the promise of saving money. Only paying for the content they want. While the industry remains robust consumers have largely benefited, new players in the market changing Business Models and outpatient statutes have dramatically altered Revenue Streams. Precarious moment some portion of our to be getting seep market consolidation, rising prices, junk fees and disappearing content. Consumers are beginning to experience prescription fatigue upwards of one third dollars a month on multiple servers to get access to all of the content they want to watch. Television blackouts are rampant content creators are finally getting a chance to tell their stories are fighting new gatekeepers take it or leave it feels are impacting their ability to make a living. Moreover we cannot forget the backbone of all of this is Broadband Internet access. Unlike our old cable bundles for free over the air broadcasting, access to the new Online Video Services require the separate subscription to highquality reliable broadband. Unfortunately Digital Divide persists and whether due to affordability or availability broadband subscription often remains out of reach for many families. That is why programs champion the Affordable Connectivity Program and the broadbent equity access and Deployment Program are so important. They offer so much promise to truly unlock the innovative Video Services for people across the country who simply dont have access because of they cannot afford it or stop available where they live. We should all keep in mind as we discussed the positive impact these are making on American Families around the nation. We are also child to the shifting video marketplace by changing information landscape. American still by and large support broadcasters and cable trusted local news live events and emergency information. We were Online Streaming Services still rely on traditional challenge to offer this important content to consumers. Whats more is consumers increasingly turn to social media and Online Platforms for the raid content. This information and content harmful to children. This troubling content jeopardizes our democracy. The evolving video marketplace is complex in the midst of uncertainty is more important than ever to put consumers first to make sure the not being ripped off by these companies because of high prices and junk fees. Localism and diversity. The solution is not to throw it all out were enacted in the first place. On behalf of the American People consumers. The judgment yields back insert curtis the president chief executive officer of the National Association of broadcasters. President chief executive officer association. Mr. David gantner cofounder chief executive officer of food boat tv inc. Mr. Jon lee senior policy counsel for Consumer Reports. Thank you all for being with us. I want to take a quick want to understand and hope its all out there on the table your timer light will turn yellow you have a one minute remaining. It will turn red when your time has expired. Just a quick note of personal privilege we do have the former chair of the energy and Commerce Committee with us today. Also the former subcommittee chair of the communication and technology. That might be more important. So welcome back. You are recognized for five minutes your Opening Statement. Ranking numbers and members of the subcommittee. My name is curtis i am the president ceo National Association of broadcasters. I am proud to testify today on behalf of the thousands of local television and Radio Station members who serve your constituents across the country. In todays media landscape television and radio broadcasters Value Proposition stands alone. We are the most trusted. We are the most local. We offer the most in demand sports and entertainment programming. And we are freely available to any viewer and listener who wants to access our stations over the air. For those reasons we remain the most popular. More than 181 million adults watch broadcast tv each month within 227 million listeners tune into broadcast radio each week. Most importantly we are lifelines in times of emergency internet and Cell Networks fail. Consider the wildfires that recently ravage the island of maui. Destroying homes, lives and businesses forcing thousands of people to evacuate. Theres no power no water no internet service. Vibrant lines and cell towers burned to the ground. But broadcast remained one of the few dependable sources of communication providing roundtheclock updates on the fires, emer