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ACA Takes Aim at Content Subscription Fees

The American Cable Association is targeting Internet content providers who plan to charge ISPs subscription fees for content, saying that their plan to do so could "cripple" the nation's goal to deliver broadband to every household, Multichannel News reports. According to Matt Polka, President of the organization, which represents small to mid-sized cable operators, the FCC and parties involved in the net neutrality debate "should be concerned that Web-based content and service providers...will drive up the retail cost of broadband access and drive down new adoption rates."

ESPN, which charges ISPs for carrying its content site ESPN360.com, said ACA's claims were "unsubstantiated." David Preschlack, executive vice president, affiliate sales and marketing, Disney and ESPN Media Networks, said, "We don't force distributors small or large to carry any of our product. ESPN360.com is a business that would simply not exist except for this economic model. And we have over 3,500 over live events, many of which would not otherwise be seen if it weren't for the business model."

In comments posted to the FCC's national broadband plan, ACA said companies like ESPN were effectively preventing Web users from accessing their content on networks that won't pay the fee. "E-commerce is built on an online marketplace where companies are free to charge for their services, and consumers are free to buy them," Free Press policy director Ben Scott said. "The situation changes when companies begin walling off content and selling network operators the right to distribute it."

Read the whole story at Multichannel News »

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