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The availability and ownership of television channels is regulated because airwaves are a scarce resource. So much of the available spectrum is required to broadcast television that it is not possible for anybody who wants a channel to stake a portion of the radio frequencies and begin transmitting. Chaos would ensue. Broadcast television is very wasteful of radio frequency spectrum. Because bandwidth for television transmission is scarce, the broadcast industry has geared itself always to try to maximize the number of people viewing the content delivered through that scarce channel. It is an inherently industrial-age, massmarket medium. However, the truth is that bandwidth isn t scarce. Every time another optical fiber is laid, the amount of available bandwidth increases. There is no practical limit to how much fiber can be installed. The limit on bandwidth provision is really a limit on human capital, because installing and maintaining that bandwidth needs people, and on the cost of the equipment that converts electrical signals to optical ones and back. The number of streaming media channels that can be served is only further limited by the number and power of the streaming media servers that can be deployed worldwide. The important point is that, compared to broadcast television, the number of distinct program streams that can be delivered at the same
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time is far greater. The potential exists to provide a virtually limitless choice of streaming media programs. In fact, streaming media can be cached at the edge of the Internet, enabling the content to be delivered reliably to consumers, with little delay. This will ensure a high quality of experience, as well as a vast range of choice. With broadcast television, while the territory that the distribution channels covers is vast, it is not completely global. Few television broadcast networks reach a global audience. With streaming media, the reach is global, to the extent that wireline transmissions have global reach. However, IP streams can also be delivered over satellite to the unwired world. This is as true for broadcast television as it is for streaming media. The difference is in the efficiency of the use of the bandwidth. The compression techniques used in streaming media tend to use less bandwidth for a given image quality than those used for digital television. It would be na ve to think that there will be no gatekeepers controlling access to the streaming media distribution infrastructure. Infrastructure, whether broadcast or streaming, will always cost money and need to make a return. Someone, at some level, will always own parts of the streaming media distribution infrastructure. However, the broadband Internet will be harder to monopolize than the airwaves, since there are fewer barriers to entry and no regulated scarcity of bandwidth. The potential for a wider choice of streaming media distribution providers exists. Ownership of the major streaming media distribution backbones, gateways permitting access to the home, and of the streaming media servers may be concentrated in a handful of powerful companies. That is always a risk. However, the potential for greater diversity in ownership of these key resources is far greater than it is for broadcast television. There is no monopoly enshrined in licenses to use the airwaves as there is in broadcast television. With streaming media, there are fewer national legislative boundaries that limit the reach of the distribution, as they do with broadcast television today. Freedom of entry into streaming media distribution is less restricted than it is for broadcast television and incumbent companies do not have such strong advantages. Whether this will benefit the industry overall or hinder it is debatable. What it really does is make possible far greater choice, with the consumer able to use competition to get cheaper access to media. Competition is usually thought to be beneficial to any market.
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