The Case For Network Neutrality

1
The Case For Network Neutrality

• Jonathan Taplin
• Annenberg School For Communication
• University of Southern California
• jtaplin_at_usc.edu
• http//www-rcf.usc.edu/jtaplin/

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The Future of TV
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My Summer Job in 1967
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Memory Lane-1965-1980

• Radio Landscape-Memphis,Nashville, Chicago, New
  Orleans, Detroit, San Francisco, Los Angeles, San
  Antonio
• Film Festival-Fellini, Bergman, Penn, Truffaut,
  Coppola, Hopper, Lumet, Kubrick, Scorsese
• TV Land-All in The Family, Sanford Son, Mary
  Tyler Moore, Rockford Files, The Waltons

5
The Digital Transition
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The Vanishing Independents

• 66 of Independent Newspaper Owners
• 40 of the Independent Radio Owners
• 43 of the Independent TV Stations
• 73 of the Independent Record Labels
• Percentage of shows on TV produced by the
  networks themselves rose from 16 to 78

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Corporate Responses to The Digital Transition

• The 500 Channel Universe or The Walled Garden

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The News Corp Bet
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Too Many Channels?
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Cable Satellite Static

• Average consumer watches 9 channels regularly
• Bundles have 5 times that number
• The top 20 shows account for ¾ of all viewing
• 100 gain in ad inventory in 7 years
• Wolzien-Gerbils running in place
• Wide scale introduction of PVRs

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Broadband To The Rescue

• The End Of Distribution Scarcity

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Worldwide Broadband Households
126.1
96.9
70.9
47.5
27.0
11.5
13
Broadband Penetration
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IP Everywhere

• As WISPs, DSL DOCSIS proliferate, niche media
  moves to IP on demand delivery
• DVD-2 MBPS
• HD-6 MBPS
• Multiple Device Connection
• IP DOCIS Set Top Box (Pace, Motorola, SA)
• E-Home Server Wi-Fi WiMax
• X-Box Playstation II
• 3G Mobile Platforms

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The Solution to The Dark Fiber Problem
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Death Of the 80/20 Rule
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Selling Non Hits
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The Walled Garden

• Inside the Wall
• Preferred Providers with superior video
  performance
• Special deals for Preferred E-commerce Providers
• Outside The Wall
• Degraded Service
• Blocking of VOIP Ports
• Blocking of e-commerce transactions

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The Four Freedoms of Broadband

• Freedom to Access Content without interference.
• Freedom to Use Applications.
• Freedom to Attach Personal Devices.
• Freedom to Obtain Service Plan Information