La formación de las leyes o decretos puede comenzar indistintamente en

A. Introduction

321. Changes in consumer premises equipment (“CPE”) and user equipment technology continue to have an important impact on competition in the video programming market. CPE is necessary for consumers to access the services that broadcasters, MVPDs, and OVDs provide. Because CPE is an integral part of viewing video programming, CPE features, such as recording, home networking, mobile access, and user interface, are factors consumers must consider when choosing to purchase programming services. Consumers also choose electronics products based on the availability of content and where they want to view video, within or outside of the home.1247 _{Interoperability of CPE will encourage innovation} and give consumers the ability to seamlessly switch providers.1248 _{Today’s CPE marketplace offers} consumers more flexibility in content consumption through a growing list of devices that also enable time- and place-shifting.1249 _{In this section, we examine technological, regulatory and market}

developments related to CPE since the last report. First, we introduce advancements in higher resolution video content and televisions. Next we consider MVPD and non-affiliated vendors’ development of navigation devices. Finally, we review developments in devices used to access online and mobile video services.

B. 4K/UltraHD Televisions

322. Since the last report, televisions that encompass higher resolutions (more pixels) and more realistic color than HDTV have become available in the U.S. marketplace. These televisions, known as Ultra High-Definition1250(“Ultra HD”), or “4K,” present a leap forward in television picture quality with four times the number of pixels of HD televisions, giving viewers a feeling of being immersed in what they are watching.1251 _{CEA defines the core characteristics of Ultra HD to include} monitors and projectors with an aspect ratio of 16 x 9 and display resolution of at least eight million pixels with a minimum of 3,840 horizontally and 2,160 vertically (3,840 x 2,160).1252 _{The sets also are} capable of higher frame rates (i.e., more frames per second) and have improved color standards with greater dynamic range (i.e., brighter highlights and darker shadowing).1253 _{Prices of larger Ultra HD sets}

1247_{CEA Comments at i.}

1248_{AllVid Alliance Comments at 2-3.} 1249_{CEA Comments at i.}

1250_{CEA News Release, Consumer Electronics Industry Announces Ultra High-Definition, Oct. 18, 2012} http://www.ce.org/News/News-Releases/Press-Releases/2012-Press-Releases/Consumer-Electronics-Industry- Announces-Ultra-High.aspx(visited June 30, 2014).

1251_{Jack Wetherill, Is Now the Time to Buy a 4K TV Set?Yes: If You Buy it Now, You Are Set for Many Years to} Come, WALL ST. J., May 11, 2014, http://online.wsj.com/articles/is-now-the-time-to-buy-a-4k-tv-set-1399645629

(visited May 14, 2014).

1252_{CEA News Release, Consumer Electronics Industry Announces Ultra High-Definition, Oct. 18, 2012,} http://www.ce.org/News/News-Releases/Press-Releases/2012-Press-Releases/Consumer-Electronics-Industry- Announces-Ultra-High.aspx(viewed May 15, 2014). See also International Telecommunications Union

Recommendation ITU-R BT.2020, http://www.itu.int/dms_pubrec/itu-r/rec/bt/R-REC-BT.2020-0-201208-I!!PDF- E.pdf(visited May 16, 2014).

1253_{Lucas Mearian, Why You Shouldn’t Buy a 4K TV This Year, COMPUTERWORLD, Nov. 27, 2014,}

http://www.computerworld.com/s/article/9244406/Why_you_shouldn_t_buy_a_4K_TV_this_year(visited June 30 16, 2014).

from Panasonic, Sony, Samsung and LG Electronics start at around $3,000,1254_{down from $5,000 from} just over a year ago.1255 _{According to the NPD Group, fewer than 100,000 Ultra HD TVs were sold in the} United States during the twelve months ending in March 2014 with Samsung, having a 35.4 percent share, and Sony, with a 34.5 percent share.1256 _{Ultra HD TV ownership is expected to reach nearly a third} of U.S. homes by 2020.1257

323. At this time, there are no broadcast outlets in the United States supporting Ultra HD and no movies available on disc in Ultra HD, thus content is only available through broadband

connectivity.1258 _{Content in Ultra HD, however, is becoming available. Sony’s new Unlimited 4K} download service was launched in 2013 with seventy 4K movies and television shows for owners of their 4K Ultra HD Media Player and 4K Ultra HD TVs.1259 _{Netflix also now offers some of its original shows} in 4K to those Ultra HD TVs with their built-in app and native HEVC (H.265) decoding capabilities.1260 Comcast is working with programmers, including its NBCUniversal subsidiary, to provide a library of Ultra HD content for the Xfinity TV 4K app.1261 _{Some issues regarding this technology remain unsettled,} such as the level of security acceptable to content producers and owners, and therefore the amount of 4K content continues to be limited.1262 _{In addition, Ultra HD resolution requires file sizes of about double} those of current HD videos1263_{with broadband speeds of 15 megabits per second (Mbps) to ensure a good} experience.1264 _{Akamai added “4K Readiness” to its first quarter 2014 State of the Internet Report using a}

1254_{John Morris, Ready or Not, 4K Video is on Its Way, ZDNet, Apr. 23, 2014, http://www.zdnet.com/ready-or-not-} 4k-video-is-on-its-way-7000028706/(visited May 16, 2014); http://consumerist.com/2014/01/08/buy-a-4k-tv-now- if-you-have-gobs-of-money-like-kevin-spacey-a-lot-like-a-whole-lot/.

1255_{Andrew Tarantola, Sony's 4K TVs Will Be Surprisingly Affordable—in That They Cost Less than a Car,} GIZMODOApr. 7, 2013, http://gizmodo.com/5993798/sonys-4k-tvs-will-be-surprisingly-affordablein-that-they-cost-

less-than-a-car(visited May 16, 2014). A Sony 55 inch XBR-55X900A retailing for $4999.99 at the time of the story is now selling for $2699.99 on Sony’s website, http://store.sony.com/55-class-54.6-diag-xbr-4k-ultra-hd-tv- zid27-XBR55X900A/cat-27-catid-All-XBR-Series-TVs(visited May 16, 2014).

1256_Id.

1257_{Michelle Clancy, UltraHD Penetration Faster than Expected, RAPID TV NEWS, May 13, 2014,}

http://www.rapidtvnews.com/2014051333628/ultrahd-penetration-faster-than-expected.html(visited May 12, 2014). 1258_{John R. Quain, Sean Captain, What is 4K TV?, Mar. 10, 2014, http://www.tomsguide.com/us/4k-tv-}

explained,news-17877.html(visited May 19, 2014).

1259_{TVTechnology and BroadcastEngineering.com, Sony Launches 4K Download Service; Can UltraHD OTT be} Too Far Behind?, Sept. 11, 2013, http://www.tvtechnology.com/cable,-satellite,-iptv/0149/sony-launches-k- download-service-can-ultrahd-ott-be-too-far-behind/226054(visited May 12, 2014). Sony 4K Ultra HD Media Player FMP-X1 Retails for $699.99 with built-in 2 tera byte hard drive, https://store.sony.com/4k-ultra-hd-media- player-zid27-FMPX1/cat-27-catid-All-Internet-Players(visited May 20, 2014).

1260_{Andrew Michael, Netflix Begins Streaming House of Cards in 4K Ultra HD, ULTRA HDTV MAGAZINE, Apr. 8,} 2014, http://www.ultrahdtv.net/netflix-begins-streaming-house-of-cards-in-4k-ultra-hd/(visited May 12, 2014). 1261_{Alistair Bar, CES 2014: 4K TVs start to get 4K content, USA TODAY, Jan. 6, 2014.}

http://www.usatoday.com/story/tech/2014/01/06/4k-tvs-content/4345165/(visited May 20, 2014). 1262_{Peter Suciu, Is 2014 Going to be the Year of 4K TV?, CHI. TRIB., Jan. 3, 2014,}

http://articles.chicagotribune.com/2014-01-03/site/sc-cons-0102-tech-20140103_1_4k-tv-hdtv-colin-dixon(visited May 21, 2014).

1263_{WGAW Comments at 19.}

1264_{Jack Wetherill, Is Now the Time to Buy a 4K TV Set? Yes: If you Buy it Now, You Are Set for Many Years to} Come, WALL ST. J., May 11, 2014, http://online.wsj.com/articles/is-now-the-time-to-buy-a-4k-tv-set-1399645629 (visited May 14, 2014).

benchmark for an average connection speed above 15 Mbps for countries and regions.1265 _{The report} finds that 17 percent of the United States is prepared to deliver 4K services through broadband and that the United States ranks thirteenth globally in 4K readiness.1266