Every day, more people consume TV online but the laws and regulations haven't changed in years, according to Tom Wheeler, chairman of the Federal Communications Commission. He wrote in the FCC's blog, "Twenty-first century consumers shouldn't be shackled to rules that only recognize 20th century technology."
Wheeler also views it as a way to promote innovation among TV providers and because of that, more competition, which would ultimately be better for the consumer.
"Consumers have long complained about how their cable service forces them to buy channels they never watch. The move of video onto the Internet can do something about that frustration, but first Internet video services need access to the programs. Today the FCC takes the first step to open access to cable programs as well as local television. The result should be to give consumers more alternatives from which to choose so they can buy the programs they want."
Read MoreWhat's new in the 'net neutrality' proposal
The proposal wouldn't apply to streaming providers like Netflix and Hulu but to multichannel video programming distributors.