On January 14, 2014, Sky Angel ceased its IPTV business, citing that because it did not fall under the traditional legal definition of a multichannel video programming distributor, it was unable to employ legal remedies for its allegations that broadcasters were discriminating against its business model by preventing carriage of their channels.
This involved a partnership with NeuLion to develop a new over-the-top IPTV-based platform, which offered increased channel capacity and network DVR support.
[4] On January 14, 2014, Sky Angel suspended its television services; in an FCC complaint, the company detailed that it had been unable to offer a competitive service to its subscribers because content providers (including in particular, Discovery Communications) had refused to allow the provider to "acquire programming in a fair and nondiscriminatory way".
C-SPAN denied Sky Angel's arguments, and claimed the removal was for contractual reasons relating to IPTV.
Sky Angel, in its filing with the court, showed that C-SPAN was already streaming its channels over the web to the public free of charge.
The claims were rejected, with the court arguing once again that Sky Angel had produced no actual evidence of collusion among the C-SPAN consortium.
[9] In April 2010, Discovery Communications announced that it would pull its channels from Sky Angel in response to unspecified concerns surrounding how its programming was delivered.
In response, Sky Angel filed a program access complaint with the Federal Communications Commission, alleging that Discovery was discriminating against the service by allowing other major cable providers to offer access to its programming over the internet (either through a TV Everywhere service, or through Dish Network's Slingbox-based set-top boxes).
The Commission, along with allies such as Google, acknowledged that making any ruling on whether an over-the-top service qualifies as an MVPD may have a major effect on the Internet video industry as a whole.