[opendtv] Broadcasters, Cable Spar over Retrans

From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
Date: Tue, 31 May 2011 18:01:53 -0500
Aside from the one case involving Scripps channels, Food Network and HGTV I 
think it was, almost all of the other cases have involved OTA broadcasters 
wanting a piece of the MVPD quasi-monopoly action. And subscribers creating a 
huge stir when network content was subtracted from the MVPD network.

No matter what the source of House might be, whether it's Fox themselves or a 
local affiliate, no reason to think that content won't cost more over time, for 
the MVPD, if the subscribers raise a big stink when it's gone. That really is 
capitalism.

The MVPDs have an easy fix, which involves no one else. Decide to go a la carte 
pricing. If Fox pulls their content, MVPDs charge their subscribers that much 
less per month. Problem solved. That will force Fox and affiliates to either 
keep their demands in check, or charge nothing and go "must carry," or help 
people install antennas.

If MVPDs do not want to charge a la carte for their channels (and that's their 
prerogative), and the broadcasters want a piece of the walled garden action 
(and that's also their prerogative), I don't see how any impartial person can 
invent a single "bad guy" here. Consumers can either pay up or step outside of 
the walls. For the network channels, probably most of the MVPD subscribers can 
adopt the unwalled alternative.

Craig can try to make the broadcasters or the networks the bad guys, but the 
simple fact is, this is capitalism. If there's any threat of a monopoly 
creating this imbalance, it's not from the major networks. The major networks 
still do offer the unwalled bypass path, HD and all, and people certainly do 
have a choice of multiple TV networks to watch. So that ain't it.

Bert

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http://www.tvtechnology.com/article/121072

Broadcasters, Cable Spar over Retrans
05.31.2011.

Representatives of the broadcast and cable industries have filed comments with 
the FCC in connection with the commission's latest foray into retransmission 
consent rules.

The FCC is proposing to update retransmission consent rules in response to 
recent skirmishes between broadcasters and cable companies over fees 
broadcasters charge to carry their content over cable systems. Cablevision, New 
York City's regional cable operator, in particular, battled with Fox over 
carrying network programming in late 2010. The cable company, in comments filed 
last week, said that the commission should update the "good faith standard" in 
retransmission negotiations, in light of the changing pay TV marketplace.

"With the increase of competition among MVPDs, the economic conditions on which 
the retransmission consent rules were premised have changed," Cablevision told 
the FCC. "Indeed, it is now the subscribers of MVPDs who need protection to 
ensure that local broadcasters continue to offer their programming to MVPDs 
under reasonable rates and conditions."

Cablevision asked the commission to require broadcasters to charge 
"non-discriminatory" and "transparent" rates to cable operators without 
requiring them to carry additional ancillary cable networks. This would result 
in greater certainty in negotiations, less disruption to programming and, 
additionally, is within the commission's authority.

"By updating the rules to reflect current market conditions and to re-establish 
the balance in retransmission consent negotiations that Congress intended, 
Cablevision's proposal would result in speedier, reasonable retransmission 
consent agreements that appropriately reflect the value of a broadcaster in a 
local market and ensure that consumers have an opportunity to share the 
benefits of the more favorable retransmission consent deals that will flow from 
the proposed regulatory changes," Cablevision said.

Broadcasters, which have become more aggressive in retrans negotiations in 
recent years, urged the commission to take a hands off approach, advocating a 
market-based scenario. In comments filed with the FCC, the NAB noted that the 
commission has limited authority in establishing retrans negotiation rules and 
that consumer disruptions over retrans battles have only resulted in only one 
hundredth of one percent (0.01) of annual television viewing hours since 2006.

"In recognition of this limited authority and the competitive nature of the 
retransmission consent marketplace, the Commission should not make significant 
changes to its current rules governing retransmission consent, including its 
good faith negotiation standard," NAB said.

The few changes the NAB does advocate include:

* Expanding the FCC's notice requirements to non-cable MVPDs to help consumers 
make "educated decisions" if they are impacted by a breakdown in negotiations;

* Ensure that consumers don't get penalized by early termination fees if they 
choose to switch to another carrier during a retrans impasse, and

* Allow broadcasters access to information about ownership and operations of 
MPVDs to facilitate retrans elections and communications.

NAB also criticized several proposed changes to the rules, including the 
prohibition of joint negotiations by broadcasters from different owners, noting 
that there is no legal or public policy basis to the proposed change and that 
"no credible evidence has been provided to suggest that joint negotiations by 
broadcasters result in delays or other complications warranting intervention in 
the retransmission consent marketplace." It also said that 
"government-mandated" negotiations are beyond the scope of the FCC's authority, 
and urged the commission to retain network nonduplication and syndicated 
program exclusivity rules for retrans consent.

 
 
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[opendtv] Broadcasters, Cable Spar over Retrans

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