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Speaker 1: On w T I, I'm Charlie Pellett, and that's a
Speaker 1: Bloomberg business flash. You're listening to taking stock with Kathleen
Speaker 1: Hay and Pim Fox on Bloomberg Radio. Whose set top
Speaker 1: boxes it? Anyway? Kyle Dailey is a senior reporter for
Speaker 1: Bloomberg b NA, joining us from Arlington, Virginia. Bloomberg b
Speaker 1: NA a wholly owned subsidiary of Bloomberg, a leading source
Speaker 1: of legal, regulatory and business information for professionals. Bloomberg Bonna's
Speaker 1: authoritative coverage spends a full range of legal practices, and
Speaker 1: in this case, we're paying attention to the Federal Communications
Speaker 1: Commission delaying today's vote on a contentious proposal to open
Speaker 1: the pay TV set top box market to competition. Kyle,
Speaker 1: thank you very much for being with us outline exactly
Speaker 1: what is at stake here and what did or did
Speaker 1: not happen today? Sure, so, this proposal would open the
Speaker 1: set top box market to third parties. What that means
Speaker 1: is the sort of big, clunky set top box that
Speaker 1: you rent from Comcast or Time Warner, Cable or Charter. Uh,
Speaker 1: he would be able to replicate that experience on a Roku,
Speaker 1: some drive or you know, any sort of third party
Speaker 1: device that plogs into your TV. UH. So there's been
Speaker 1: a lot of back and forth about this for months now,
Speaker 1: and um SEC Chairman Tom Wheeler finally arrived at UH
Speaker 1: for revision of an earlier proposal that would adopt an
Speaker 1: app space approach, which which just means, you know, again,
Speaker 1: a Comcast did make an app that replica it's that
Speaker 1: whole experience of flipping around channel the channel and then
Speaker 1: Google or Roku or whoever would be able to put
Speaker 1: that into their device. Now there UH was still a
Speaker 1: provision in there that would get the SEC involved in licensing,
Speaker 1: and you know, we're trying to do some te f
Speaker 1: reading because it was a pretty closed process. But what
Speaker 1: seems to be happening is that that's kind of a
Speaker 1: sticking point and um there seems to be some willingness
Speaker 1: for for compromise, but they didn't quite get there in
Speaker 1: time for a vote this morning. Okay, how this is
Speaker 1: and this and your story very clearly points out how
Speaker 1: this licensing question is so central to the story. You
Speaker 1: point out that in the hearing the Republican commissioners came
Speaker 1: out against the licensing provision. The Democratic commissioner uh said,
Speaker 1: let me be candid with you problems with licensing. I
Speaker 1: think this SEC is going a little bit too involved
Speaker 1: in the licensing here. She said, she did not see
Speaker 1: that the FCC has his authority. What is this about
Speaker 1: the licensing language? Break this down for us. Why is
Speaker 1: it so complicated and contentious? Well, that's that's another thing
Speaker 1: that kind of makes this hard to track, is that
Speaker 1: we don't know exactly. UM what's been released so far
Speaker 1: is a fact sheet that just kind of says, okay,
Speaker 1: here's what we would do. So what they would do,
Speaker 1: as far as you know, anyone outside the SEC it
Speaker 1: can understand, is they would set some sort of standard
Speaker 1: for UM licensing between U copyright owners and PAPD providers
Speaker 1: and then sort of how you know, just have a
Speaker 1: standard there and then create an independent oversight board. UM.
Speaker 1: So that basically to ensure that these devices are sticking
Speaker 1: to the terms of licensing agreements between copyright holders and
Speaker 1: a comcast or or a charter UM, and you ensure
Speaker 1: that that those aren't violated and make sure that sort
Speaker 1: of licensing across the board seems to be you know,
Speaker 1: reasonable and and sort of you know, all parties are
Speaker 1: happy with it. Beyond that, we don't know exactly how
Speaker 1: that would work. What we do know is that, you know,
Speaker 1: we've gotten used to UH in the last few years
Speaker 1: to become a very partisan fec um. Most items sort
Speaker 1: of fly under the radar and still you know, pass
Speaker 1: UH without too much ceremony. But we see a lot
Speaker 1: of especially on on these sort of big ticket things
Speaker 1: of a split votes where the Democratic majority votes one
Speaker 1: way the Republicans stow it the other way. Daily thank
Speaker 1: you so very much for joining us. The senior reporter
Speaker 1: for Bloomberg b n A joining us to talk about
Speaker 1: the fccs UH decision on a contensius proposal to open
Speaker 1: the pay TV set top box market market. Cat joins
Speaker 1: us now Politics and national cover reporter for Bloomberg News
Speaker 1: and Mark, I'm want to dive in to one of
Speaker 1: our latest Bloomberg polls and stories. Hillary Clinton's turnout challenge
Speaker 1: seems like in some ways that could be bigger than
Speaker 1: her Donald Trump challenge. Yeah, I'm particularly among certain groups
Speaker 1: that she really needs to be behind her. Uh, if
Speaker 1: she's gonna win in key battleground states, and that is millennials,
Speaker 1: younger voters, and African American voters. You know, the polls
Speaker 1: consistently show that these uh, two groups you know overwhelmingly
Speaker 1: back her, like her better than Donald Trump, but they're
Speaker 1: less likely to vote. There's there's not as much enthusiasm
Speaker 1: in some cases among millennials. UM, when you introduced the
Speaker 1: third party option, they're more likely to vote third party
Speaker 1: than they are to vote for Clinton, even if they
Speaker 1: don't like Donald Trump. Is that really gonna hurt Clinton
Speaker 1: in the outcome? When you look at electoral votes, it
Speaker 1: couldn't matter, Like I said, in some of these battleground states.
Speaker 1: I'm based in Ohio, and that's definitely a concern here
Speaker 1: that if you have a close race. It was always
Speaker 1: going to be close. In Ohio. It's a you know,
Speaker 1: closely divided state. You know, if you lose a couple
Speaker 1: of percentage points that you normally would get or that
Speaker 1: you know, Barack Obama got in and two thousand and
Speaker 1: eight when he carried the state, UM, that could make
Speaker 1: a difference. Clinton going to carry Ohio, it's gonna be close. Um.
Speaker 1: You know, the Clinton campaign acknowledges that Donald Trump has
Speaker 1: some strength here that among the battleground states. You know,
Speaker 1: he might be doing better in states like Ohio and
Speaker 1: Iowa than he is in some of the other battleground
Speaker 1: states just because of the demographics in the state, you know,
Speaker 1: the number of older, white working class voters here, voters
Speaker 1: without a college degree. Um. So that's part of the
Speaker 1: challenge for the Clinton campaign. They sort of have to
Speaker 1: make up for whatever advantage that Trump might have in
Speaker 1: terms of appeal in the state with sort of this
Speaker 1: ground game where she does have an advantage and a
Speaker 1: more robust operation to sort of get her supporters to
Speaker 1: the polls. So mark the story to talks about and
Speaker 1: many have that one thing that's obvious. Younger you are,
Speaker 1: the less you tend to vote period. Okay, but it's
Speaker 1: also been an issue for Hillary Clinton, say compared to
Speaker 1: Bernie Sanders, right that she doesn't there's a worry about
Speaker 1: the millennial vote. So in some sense you could say, uh,
Speaker 1: why worry about them anyway, They're not going to vote
Speaker 1: as big big as numbers You're maybe not gonna Why
Speaker 1: not concentrate on the part of the population, who's in
Speaker 1: the middle a little more on the fence, who does
Speaker 1: tend to go to the polls and sway them to
Speaker 1: vote for you. I think they are doing that, But
Speaker 1: they also just can't ignore the millennial voting block. It's
Speaker 1: just such a large um segment of the voting population
Speaker 1: now larger than Baby boomers, and you know, large enough
Speaker 1: to dissway a race if it's close. And I think
Speaker 1: that's the concern again, particularly in these battleground states, as
Speaker 1: if you have a very close race on the margin,
Speaker 1: these things like where millennials vote or turnout in the
Speaker 1: African American community is can help decide who wins the state.
Speaker 1: Can you tell us whether the government has decided to
Speaker 1: stay in business at least until the middle of December.
Speaker 1: Congress Uh did send President Obama stop gat spending bill
Speaker 1: on Wednesday. UH. That's going to keep the government open
Speaker 1: at least through December nine. You know, they'll have to
Speaker 1: pick up after the election in terms of what happens
Speaker 1: for the rest of the fiscal year. But there have
Speaker 1: been some you know, debate and concern about you know,
Speaker 1: what Congress was gonna do, uh, particularly when it came
Speaker 1: to funding for things like the zeco virus. There was
Speaker 1: some fight over whether, UM, that should be tied to
Speaker 1: restricting funding for planned parenthood, which Democrats suppose for for example, UH,
Speaker 1: and some other issues such as how to deal with
Speaker 1: funding for lead abatement in places like Flint, Michigan. UH.
Speaker 1: And at the end they sort of came to an
Speaker 1: agreement that you know, if nothing else kicks the can
Speaker 1: down the road till after the election. So will this
Speaker 1: become any kind of political football in the remaining meets
Speaker 1: of the campaign. I don't think the funding of it will. Uh.
Speaker 1: You know, there might be still some discussion and arguments
Speaker 1: about things like, you know, should the federal government be
Speaker 1: paying for you know what ultimately our state or local
Speaker 1: problems like the Flint water crisis UM, which is a
Speaker 1: blame largely on action and inaction by the state and
Speaker 1: local authorities there. You know, some Republicans think, well, that's
Speaker 1: not really the federal government's job to step in and
Speaker 1: clean up the mess when it's not really a federal issue. UM.
Speaker 1: So you might seek debate about that sort of in
Speaker 1: the astract. But in terms of funding the government, I
Speaker 1: think we're probably kicking us beyond the elections. Just quick
Speaker 1: final question. Do we know what Hillary Clinton or Donald
Speaker 1: Trump has said about that particular issue funding local issues.
Speaker 1: I've seen that really addressed. You mean, they both talked
Speaker 1: about the need to deal with the problem, and I
Speaker 1: think both have talked about you in terms of federal
Speaker 1: government being a partner. But I don't know if they've
Speaker 1: gotten into sort of the devil of detail of how
Speaker 1: much should be federal responsibility versus state or local. All Right,
Speaker 1: we think Mark Niquette joining us to talk politics, one
Speaker 1: of our favorite subject heres. He's politics and national gun
Speaker 1: reporter for Bloomberg News, and you're listening to taking Stock.
Speaker 1: I'm Pim Fox, my co host, of course, Kathleen Hayes,
Speaker 1: and this is Bloomberg