A federal judge ruled on Thursday that streaming company FilmOn could “potentially” be entitled to a compulsory license to retransmit broadcasters’ copyrighted content, suggesting that OTT streaming services should be treated like traditional cable providers. If the ruling survives scrutiny on appeal, the broadcasting channels – CBS, Fox, NBC and ABC – will have to license their content to a digital outlet at below-market rates, which means that streaming services like Sling TV could add those broadcast channels if they pay the retransmission fees.
What you should do:
If this decision holds, it will hasten TV’s transition from a network-cable structure to OTT services. Brands should prepare for this possibility by testing media on existing OTT services, and carefully monitor their customers’ usage patterns and adjust their spend accordingly.
Source: The Verge